Title III: BUREAU OF LABOR RELATIONS

Article. 226. Bureau of Labor Relations & Labor Relations Divisions (RO) original and
exclusive authority to act within 15 days:subject to extension by agreement of the parties
1. on all inter-union and intra-union conflicts,
2. all disputes, grievances or problems arising from or affecting labor-management
relations in all workplaces, whether agricultural or non-agricultural,
Except: Arising from the implementation or interpretation of collective bargaining
agreements which is subject of grievance procedure and/or voluntary arbitration.

- BLR no longer handles "all" labor-management disputes; rather, its functions

and jurisdiction are largely confined to union matters, collective bargaining
registry, and labor education (EO 251 od 1987)
- current functions and authority of the BLR are those stated in Executive Order
No. 292 or the 1987 Administrative Code, as follows:
1. set policies, standards, and procedures on the registration and supervision
of legitimate labor union activities including denial, cancellation and
revocation of labor union permits
2. set policies, standards, and procedures relating to collective bargaining
agreements, and the examination of financial records of accounts of labor
organizations to determine compliance with relevant laws
3. provide proper orientation to workers on their schemes and projects for
improvement of the standards of living of workers and their families

- Inter-Union Dispute - any conflict between and among legitimate labor unions
involving representation questions for purposes of collective bargaining or to
any other conflict or dispute between legitimate labor unions
- Intra-Union Dispute - conflict between and among union members, including
grievances arising from any violation of the rights and conditions of
membership, violation of or disagreement over any provision of the union's
constitution and by-laws, or disputes arising from chartering or affiliation of
union.
- inter/intra-union disputes (examples):
1. cancellation of union registration
2. audit of union funds
3. violation of union members' rights
- complaint may be filed by a LLO or its members, if the issue involves the entire
membership, should be supported by at least 30% of the membership
- other related labor relations disputes - any conflict between a labor union and
the employer or any individual, entity or group that is not a labor organization or
workers' association; such dispute include cancellation of registration of a labor
organization and interpleader
- filed with the DOLE Regional Office where the labor organization is registered.
But if the complaint involves a federation or an industry/national union, it shall
be filed with the BLR itself.
- Certification election is the fairest and most effective way of determining which
labor organization can truly represent the working force.
 - Katarungang Pambarangay, not applicable to labor disputes. Presidential
Decree No. 1508 applies only to courts of justice and not to labor relations
commissions or labor arbitrators' offices. Article 226 of the Labor Code grants
original and exclusive jurisdiction over the conciliation and mediation of
disputes, grievances or problems in the regional offices of the DOLE

Article. 227. Compromise agreements. - Any compromise settlement, including those

involving labor standard laws, voluntarily agreed upon by the parties with the
assistance of the BLR or the DOLE-RO, shall be final and binding upon the parties.
The NLRC or any court, shall not assume jurisdiction over issues involved therein
except in case of non-compliance thereof or if there is prima facie evidence that the
settlement was obtained through fraud, misrepresentation, or coercion.

- A fundamental policy of Philippine labor laws is to allow the parties to find

solutions to their own disputes.
- Article 1878 of the Civil Code provides that a Special Power of Attorney is
required before an agent [including a legal counsel] can be authorized to enter
into a compromise
- Dire necessity - not an acceptable ground for annulling the releases, especially
since it has not been shown that the employees had been forced to execute
them. It has not even been proven that the considerations for the quitclaims
were unconscionably low and that the petitioners had been tricked into
accepting them
- Not all waivers and quitclaims are invalid as against public policy. If the
agreement was voluntarily entered into and represents a reasonable settlement,
it is binding on the parties and may not later be disowned simply because of a
change of mind
- The waiver of reinstatement, like waivers of money claims, must be regarded
as a personal right which must be exercised personally by the workers
themselves. "For a waiver thereof to be legally effective, the individual consent
or ratification of the workers or employees involved must be shown. Neither die
officers nor the majority of the union had any authority to waive ike accrued
rights pertaining to the dissenting minority members, x x x . The members of the
union need the protective shield of this doctrine not only vis-a-vis their employer
but also, at times, vis-a-vis the management of their own union, and at other
times even against their own imprudence or impecuniousness"
- when it comes to individual benefits accruing to members of a union from a
favorable final judgment of any court, the members themselves become the real
parties in interest and it is for them, rather than for the union, to accept or reject
individually the fruits of litigation
- Quitclaims executed by employees may be given effect if employer is able to
prove the following requisites:
1. Employee executes the deed of quitclaim voluntarily
2. There is no fraud or deceit on the part of any of the parties
3. Consideration of the quitclaim is credible and reasonable
4. Contract is not contrary to law, public order, public policy, morals and good
customs, or prejudicial to a third person with a right recognized by law
 - A compromise agreement may be effected at any stage of the proceedings and
even when there is already a final executory judgment
- a compromise agreement covering a case pending trial, on appeal, or with final
judgment, is allowed and valid, assuming that the elements of a valid contract
are present
- Rights may be waived through a compromise agreement, notwithstanding a
final judgment that has already settled the rights of the contracting parties. To
be binding, the compromise must be shown to have been voluntarily, freely and
intelligently executed by the parties, who had full knowledge of the judgment.
Furthermore, it must not be contrary to law, morals, good customs and public
policy.
- A compromise agreement is a contract whereby the parties make reciprocal
concessions in order to resolve their differences and thus avoid or put an end
to a lawsuit. They adjust their difficulties in the manner they have agreed upon,
disregarding the possible gain in litigation and keeping in mind that such gain is
balanced by the danger of losing. Verily, the compromise may be either
extrajudicial (to prevent litigation) or judicial (to end a litigation).
- Even if contracted without the assistance of labor officials, compromise
agreements between workers and their employers remain valid and are still
considered desirable means of settling disputes.
- Options when compromise agreement is violated:
1. enforce the compromise by a writ of execution
2. regard it as rescinded and so insist upon his original demand

Article 228. Mandatory Conciliation and Endorsement of Cases

a) All issues from labor and employment shall be subject to mandatory conciliation-
mediation except as provided in Book V or by Labor Sec. The Labor Arbiter or
the appropriate DOLE office that has jurisdiction over the dispute shall entertain
only endorsed or referred cases by the duly authorized officer
b) Any or both parties involved in the dispute may terminate conciliation-mediation
proceedings and request referral or endorsement to the appropriate DOLE
agency or office which has jurisdiction over the dispute or if both parties so
agree, refer the unresolved issues to voluntary arbitration.

- Statutory adoption of the administrative dispute-handling innovation called

SEnA (Single Entry Approach) to give speedy and inexpensive assistance in
any kind of labor issue or conflict. It authorizes SEnA Desk Officer (SEADO) to
conduct and end within 30 days a conciliation-mediation conference aiming to
prevent or solve the conflict before it ripens into a full-blown dispute
- If it fails, the conflict or claim may be referred to the DOLE Office or Agency that
has jurisdiction over the dispute

Article. 229. Issuance of subpoenas. - The Bureau shall have the power to require
the appearance of any person or the production of any paper, document or matter
relevant to a labor dispute under its jurisdiction, either at the request of any interested
party or at its own initiative.
Article. 230. Appointment of bureau personnel. –

Article. 231. Registry of unions (LLO) and file of collective bargaining agreements.,
records of settlement of labor disputes and copies of orders and decisions of voluntary
arbitrators
- shall be open and accessible to interested parties under conditions prescribed
provided that no specific information submitted in confidence shall be disclosed
unless authorized by the Secretary, or when it is at issue in any judicial litigation,
or when public interest or national security so requires.

- Within 30 days from the execution of a CBA, the parties shall submit copies of
the same directly to the BLR or the DOLE-RO for registration, accompanied with
verified proofs of its posting in two conspicuous places in the place of work and
ratification by the majority of all the workers in the bargaining unit. (shall act
within 5 calendar days from receipt)
- DOLE-RO shall furnish the Bureau with a copy of the CBA within 5 days from
its submission.
- shall assess the employer for every CBA a registration fee of not less P1,000.00
or any amount as may be deemed appropriate and necessary by the Secretary
of Labor and Employment for the effective and efficient administration of the
Voluntary Arbitration Program. Any amount collected under this provision shall
accrue to the Special Voluntary Arbitration Fund.
- The Bureau shall also maintain a file and shall undertake or assist in the
publication of all final decisions, orders and awards of the Secretary of Labor
and Employment, Regional Directors and the Commission.

- The registration of the CBA is not a requisite for its validity

- Once it is duly entered into and signed by the parties, a CBA becomes effective
as between the parties regardless of whether or not the same has been certified
by the BLR.

Article. 232. Prohibition on certification election. - The Bureau 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 Articles 253, 253-A and 256 of this Code.

- while a valid and registered CBA is subsisting, the Bureau is not allowed to hold
an election contesting the majority status of the incumbent union. The existence
of the CBA does not allow, that is, it bars, the holding of the inter-union electoral
contest. The election is legally allowed, says Article 256, only during the
"freedom period" which refers to the last 60 days of the fifth year of a CBA.

Article. 233. Privileged communication. - Information and statements made at

conciliation proceedings shall be treated as privileged communication and shall not
be used as evidence in the Commission. Conciliators and similar officials shall not
testify in any court or body regarding any matters taken up at conciliation proceedings
conducted by them.
 Title IV: LABOR ORGANIZATIONS
Chapter I: REGISTRATION AND CANCELLATION

Article 234. Requirements of registration. - A federation, national union or industry or

trade union center or an independent union shall acquire legal personality and shall
be entitled to the rights and privileges granted by law to legitimate labor organizations
upon issuance of the certificate of registration based on the following requirements:
1. Registration fee P50.00;
2. 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;
3. In case the applicant is an independent union, the names of all its members
comprising at least 20% of all the employees in the bargaining unit where it
seeks to operate;
4. If the applicant union has been in existence for one or more years, copies of
its annual financial reports; and
5. Constitution and by-laws (4 copies) of the applicant union, minutes of its
adoption or ratification, and the list of the members who participated in it

Article 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:

1. The names of the chapter’s officers, their addresses, and the principal
office of the chapter
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.

Article 235. Action on application. - within 30 days from filing.

- All requisite documents and papers shall be certified under oath by the secretary
or the treasurer of the organization, as the case may be, and attested to by its
president.

Article 236. Denial of registration; appeal. – if denied by Labor Relations Division,

may be appealed to the Bureau within 10 days from receipt of notice thereof.

Article 237. Additional requirements for federations or national unions:

1. Proof of the affiliation of at least 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;
 2. The names and addresses of the companies where the locals or chapters
operate and the list of all the members in each company involved.

- Labor Organization – any union or association of employees in the private sector

which exist in whole or in part for the purpose of collective bargaining or of
dealing with employees concerning terms and conditions of employment
- Union - any labor organization in the private sector organized for collective
bargaining and for other legitimate purposes.
- non-registration does not mean it is "illegitimate"; it simply is unregistered and
has no legal personality. It exists legally but does not possess the rights of an
LLO.
- Exclusive Bargaining Representative (EBR) – legitimate labor union duly
recognized or certified as the sole and exclusive bargaining agent (SEBA) or
representative of all employees in a bargaining unit that will negotiate a
collective contract with the employer (EBR and SEBA interchangeable)
- Worker’s Association – an association of workers organized for the mutual aid
and protection of its members or for any legitimate purpose other than collective
bargaining
- To bargain collectively is a right that may be acquired by a labor organization
after registering itself with the Department of Labor and Employment and after
being recognized or certified by DOLE as the exclusive bargaining
representative (EBR) of the employees.
- Dealing with the employer, on the other hand, is a generic description of
interaction between employer and employees concerning grievances, wages,
work hours and other terms and conditions of employment, even if the
employees' group is not registered with the Department of Labor and
Employment. As a legitimate labor relations process, "dealing with the
employer" explains why a labor organization does not always have to be a labor
union and why employer-employee collective interactions are not always
collective bargaining.
- Labor Organization Not Necessarily a Union

Classification of Labor Organizations:

National Level (Macro-Labor Relations)
1. National Union/Federation - labor organization with at least 10 locals/chapters
or affiliates each of which must be a duly certified or recognized collective
bargaining agent
2. Industry Union - any group of legitimate labor organizations operating within an
identified industry, organized for collective bargaining or for dealing with
employers concerning terms and conditions of employment within an industry,
or for participating in the formulation of social and employment policies,
standards and programs in such industry, which is duly registered with the
Department
3. Trade Union Center - group of national unions or federations organized for the
mutual aid and protection of its members
 4. Alliance - aggregation of unions existing in one line of industry, or in a
conglomerate, a group of franchisees, a geographical area, or an industrial
center.
- Each member union retains its own organization, structure, and independence.
An alliance, though, cannot represent its member unions in CBA negotiations.

At the Enterprise Level (Micro-Labor Relations)

1. Independent Registration – LLO that acquired legal personality through
independent registration
2. Chartering – duly registered federation or national union issues a charter to a
union in an enterprise and registers the creation of the chapter with the RO
where the applicant operates
- Its legal personality is derived from the federation/national union but it may
subsequently register itself independently
3. Company Union

Recent Changes by RA 9481

- The 20 percent registration requirement applies only to an independent union.
This makes a local chapter registerable even if it its initial membership is less
than 20 percent of the bargaining unit. Hence, a company can be quickly
unionized by a very small number of employees.
- Only Three Grounds to Cancel:
1. any falsehood about the CBL,
2. any falsehood about the election of officers
3. voluntary dissolution.
- At least two-thirds of the membership may vote to dissolve their organization,
but this action requires a subsequent "application to cancel" to be submitted by
the board of the organization, attested by the president
- A petition to cancel union registration does not prevent the filing or the hearing
of a petition for a CE
- In a PCE the employer is a bystander and has no right to oppose the petition.
His participation is limited to being informed about the petition and to being
required to submit the list of employees if a CE will be held
- Unregistered - still a lawful organization and can deal with the employer, but it
has no legal personality to demand collective bargaining with the employer. It
cannot petition for a certification election and cannot hold a legal strike.
- being registered - makes a labor organization legitimate in the sense that it is
clothed with legal personality to claim the representational and bargaining rights

Effect of Registration Under the Corporation Law - A labor organization may be

organized under the Corporation Law as a nonstock corporation and issued a
certificate of incorporation by the Securities and Exchange Commission. But such
incorporation has only the effect of giving to it juridical personality before regular
courts of justice. Such incorporation does not grant the rights and privileges of a
legitimate labor organization
 - A Trade Union Center cannot create a charter, only duly registered federations
or national unions may create chapters
- Recognition by BLR not a Ministerial Duty - If its application for registration is
vitiated by falsification and serious irregularities, especially those appearing on
the face of the application and the supporting documents, a labor organization
should be denied recognition as a legitimate labor organization
- Union's Legitimacy not Subject to Collateral Attack

20% Membership Requirement – to create a chapter no minimum size of membership

is required. But the 20% minimum membership is required to register an independent
union. The 20% is not a requirement for the organization meeting or the ratification of
the independent union’s constitution and by-laws. But it is required at the time the
independent union applies to register. It pertains to union membership when it was
registered and not to attendance in the organization meeting.

Collective Bargaining Unit (CBU)

Bargaining unit - 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.
- The DOLE policy favors creation of only one CBU in 1 company, each for rank-
and-file and supervisors
- To bargain with the employer, only one union can represent the whole CBU.
The representative union, once determined, will represent even the members of
other unions as long as they are part of the CBU. This is why the representative
union (also called bargaining agent or majority union) is called EBR of the CBU

Constitution, By-Laws, and Regulations

- A union's constitution and by-laws govern the relationship between and among
its members
- Under Article 234(e) it is implied that the members are the ones to adopt or ratify
the union's constitution and by laws. It being a governing law of the union, the
CBL should be democratically ratified.
- Amendments - A union's constitution and by-laws may be amended, modified
and extended by the duly constituted union authorities under the laws of the
state. In the absence of other requirements, and subject to vested rights, a union
constitution may be made, changed, unmade, or superseded by a majority vote
of the members or its constituent body

Appeal
- The denial by the regional office may be appealed to the Bureau and then to the
Court of Appeals. But if the denial originated at the Bureau itself, the appeal is
to the Secretary of Labor. The appeal should be filed within ten (10) days from
receipt of such notice, on the ground of grave abuse of discretion or violation of
[the] Rules
 - The Bureau or the Office of the Secretary shall decide the appeal within twenty
(20) days from receipt of the records of the case

Affiliation
Affiliate - independently registered union that enters into an agreement of affiliation
with a federation or a national union
Reasons:
1. Secure support or assistance particularly during the formative stage of
unionization;
2. Utilize expertise in preparing and pursuing bargaining proposals
3. Marshal mind and manpower in the course of a group action such as a strike

Local Union is the Principal and the Federation the agent

- 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.
- It only gives rise to a contract of agency, where the former acts in representation
of the latter.

Disaffiliation - a local union, being a separate and voluntary association, is free to

serve the interest of all its members including the freedom to disaffiliate when
circumstances warrant. This right is consistent with the constitutional guarantee of
freedom of association
- to disaffiliate is a right, but to observe the terms of affiliation is an obligation
- the disaffiliating union must itself be a registered union. If unregistered, it is not
a LLO. For this reason, it has no legal personality and does not possess the
rights granted by law
- 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.
- Freedom Period - last 60 days of the fifth and last year of a CBA
- disaffiliation may still be carried out, but such disaffiliation must be effected by
a majority of the members in the bargaining unit
- Disaffiliation must be by Majority Decision through secret balloting
- The obligation of an employee to pay union dues is coterminous with his
affiliation or membership. "The employees' check-off authorization, even if
declared irrevocable, is good only as long as they remain members of the union
concerned."
- The issue of affiliation or dis-affiliation is an intra-union dispute that must be
resolved in an action at the instance of the federation or the union or a rival labor
organization, not the employer.

Merger - process where a labor organization absorbs another, resulting in the

cessation of the absorbed labor organization's existence and the continued existence
of the absorbing labor organization
Consolidation/Amalgamation - refers to the creation or formation of a new union
arising from the unification of two or more unions
- in order to gain access to greater resources and expertise

Notice of Merger/Consolidation of Labor Organizations; Where to File

- filed with and recorded by the Regional Office that issued the certificate of
registration/certificate of creation of chartered local of either the merging or
consolidating labor organization. Notice of merger or consolidation of
federations or national unions shall be filed with and recorded by the Bureau
- Requirements of Notice of Merger/Consolidation:
1. the minutes of merger/consolidation convention or general membership
meeting(s) of all the merging/consolidating labor organizations, with the list
of their respective members who approved the same; and
2. amended constitution and by-laws and minutes of its ratification, unless
ratification transpired in the merger/consolidation convention, which fact shall
be indicated accordingly.

Article 238. Cancellation of registration. - by the Bureau, after due hearing

Article 238-A. Effect of a petition for cancellation of registration. - shall not suspend
the proceedings for certification election nor shall it prevent the filing of a petition for
certification election.
In case of cancellation, nothing herein shall restrict the right of the union to seek
just and equitable remedies in the appropriate courts.

Article 239. Grounds for cancellation of union registration:

1. 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;
2. Misrepresentation, false statements or fraud in connection with the election of
officers, minutes of the election of officers, and the list of voters;
3. Voluntary dissolution by the members.

Article 239-A. Voluntary cancellation of registration requisites:

1. Member’s desire to dissolve or cancel the registration of their union
2. At least 2/3’s of its general membership votes
3. Balloting should take place in a meeting duly called for that purpose to dissolve
the organization
4. Application to cancel registration is thereafter submitted by the board of the
organization, attested to by the president

- Any party-in-interest may commence a petition for cancellation of a union's

registration
- Cancellation orders issued by the Regional Director are appealable to the BLR.
The latter's decision is final and executory, hence, not appealable to the DOLE
Secretary but it may be elevated to the Court of Appeals by certiorari. BLR
 decisions on cancellation cases that originated at the BLR itself may be
appealed to the Secretary and, again, by certiorari to the CA.

Cabo - in the guise of a labor organization, supplies workers to an employer, with or

without any monetary or other consideration whether in the capacity of an agent of
the employer or as an ostensible independent contractor

Article 240. Equity of the incumbent. All existing federations and national unions
which meet the qualifications of a legitimate labor organization and none of the
grounds for cancellation shall continue to maintain their existing affiliates regardless
of the nature of the industry and the location of the affiliates.

Chapter II: RIGHTS AND CONDITIONS OF MEMBERSHIP

Article 241. Rights and conditions of membership in a labor organization:

(a) No arbitrary or excessive initiation fees shall be required nor in fine and forfeiture
be imposed;

(b) The members shall be entitled to full and detailed reports from their officers and
representatives of all financial transactions as provided for in the constitution
and by-laws of the organization;

(c) The members shall directly elect their officers, including those of the national union
or federation to which they or their union is affiliated, by secret ballot at intervals
of 5 years. No qualification requirements for candidacy to any position shall be
imposed other than membership in good standing in subject labor organization.
The secretary or any other responsible union officer shall furnish the Secretary
of Labor and Employment with a list of the newly-elected officers, together with
the appointive officers or agents who are entrusted with the handling of funds,
within thirty (30) calendar days after the election of officers or from the
occurrence of any change in the list of officers of the labor organization;

(d) The members shall determine by secret ballot, after due deliberation, any question
of major policy affecting the entire membership of the organization, unless the
nature of the organization or force majeure renders such secret ballot
impractical, in which case, the board of directors of the organization may make
the decision in behalf of the general membership;

(e) No labor organization shall knowingly admit as members or continue in

membership any individual who belongs to a subversive organization or who is
engaged directly or indirectly in any subversive activity;

(f) No person who has been convicted of a crime involving moral turpitude shall be
eligible for election as a union officer or for appointment to any position in the
union;
(g) No officer, agent or member of a labor organization shall collect any fees, dues,
or other contributions in its behalf or make any disbursement of its money or
funds unless he is duly authorized pursuant to its constitution and by-laws;

(h) Every payment of fees, dues or other contributions by a member shall be

evidenced by a receipt signed by the officer or agent making the collection and
entered into the record of the organization to be kept and maintained for the
purpose;

(i) The funds of the organization shall not be applied for any purpose or object other
than those expressly provided by its constitution and by-laws or those expressly
authorized by written resolution adopted by the majority of the members at a
general meeting duly called for the purpose;

(j) Every income or revenue of the organization shall be evidenced by a record

showing its source, and every expenditure of its funds shall be evidenced by a
receipt from the person to whom the payment is made, which shall state the
date, place and purpose of such payment. Such record or receipt shall form part
of the financial records of the organization.

Any action involving the funds of the organization shall prescribe after 3
years from the date of submission of the annual financial report to the
Department of Labor and Employment or from the date the same should have
been submitted as required by law, whichever comes earlier: Provided, That
this provision shall apply only to a legitimate labor organization which has
submitted the financial report requirements under this Code: Provided, further,
that failure of any labor organization to comply with the periodic financial reports
required by law and such rules and regulations promulgated thereunder 6
months after the effectivity of this Act shall automatically result in the
cancellation of union registration of such labor organization;

(k) The officers of any labor organization shall not be paid any compensation other
than the salaries and expenses due to their positions as specifically provided for
in its constitution and by-laws, or in a written resolution duly authorized by a
majority of all the members at a general membership meeting duly called for the
purpose. The minutes of the meeting and the list of participants and ballots cast
shall be subject to inspection by the Secretary of Labor or his duly authorized
representatives. Any irregularities in the approval of the resolutions shall be a
ground for impeachment or expulsion from the organization;

(l) 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 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.

(m) The books of accounts and other records of the financial activities of any labor
organization shall be open to inspection by any officer or member thereof during
office hours;

(n) No special assessment or other extraordinary fees may be levied upon the
members of a labor organization unless authorized by a written resolution of a
majority of all the members in a general membership meeting duly called for the
purpose. The secretary of the organization shall record the minutes of the
meeting including the list of all members present, the votes cast, the purpose of
the special assessment or fees and the recipient of such assessment or fees.
The record shall be attested to by the president.

(o) Other than for mandatory activities under the Code, no special assessments,
attorney’s fees, negotiation fees or any other extraordinary fees may be checked
off from any amount due to an employee without an individual written
authorization duly signed by the employee. The authorization should specifically
state the amount, purpose and beneficiary of the deduction; and

(p) It shall be the duty of any labor organization and its officers to inform its members
on the provisions of its constitution and by-laws, collective bargaining
agreement, the prevailing labor relations system and all their rights and
obligations under existing labor laws.
For this purpose, registered labor organizations may assess reasonable
dues to finance labor relations seminars and other labor education activities.
Any violation of the above rights and conditions of membership shall be a
ground for cancellation of union registration or expulsion of officers from office,
whichever is appropriate. At least thirty percent (30%) of the members of a union
or any member or members specially concerned may report such violation to
the Bureau. The Bureau shall have the power to hear and decide any reported
violation to mete the appropriate penalty.
Criminal and civil liabilities arising from violations of above rights and
conditions of membership shall continue to be under the jurisdiction of ordinary
courts.

- the courts must be vigilant to protect the individual interests of the union
members
Summary:
1. Political right — the member's right to vote and be voted for, subject to lawful
provisions on qualifications and disqualifications.
2. Deliberative and decision-making right — the member's right to participate in
deliberations on major policy questions and decide them by secret ballot.
3. Rights over money matters — the member's right”
a. Against excessive fees;
b. Against unauthorized collection of contributions or unauthorized
disbursements
c. require adequate records of income and expenses
d. access to financial records
e. vote on officers' compensation
f. vote on proposed special assessments and be deducted a special
assessment only with the member's written authorization.
4. Right to information - about the organization's constitution and by-laws and the
collective bargaining agreement and about labor laws.

- An individual employee or group of employee shall have the right at any time to
present grievances to their employee. The worker is an employee first and a
union second. As between the members and the union, the members are the
principal, the union is the agent or representative.
- If the officers with expired term do not call an election, the remedy is for at least
30% of the members to file a petition with the DOLE-RO

Every member in good standing must have the right to vote

- member in good standing - person who has fulfilled the requirements for
membership in the union and who has neither voluntarily withdrawn from
membership nor been expelled or suspended from membership after
appropriate proceedings consistent with the lawful provisions of the union's
constitution and by-laws.
- A labor organization may prescribe reasonable rules and regulations with
respect to voting eligibility. Thus, it may, in appropriate circumstances, defer
eligibility to vote by requiring a reasonable period of prior membership, such as
six months or a year. While the right to vote may thus be deferred within
reasonable limits, a union may not create special classes of nonvoting members
- Submission of the employee’s name with the BLR as qualified members of the
union is not a condition sine qua non to enable said members to vote in the
election of the union’s officers

Disqualification of Union Officers

- No person who has been convicted of a crime involving moral turpitude shall be
eligible for election as a union officer or for appointment to any position in the
union
- crime involving moral turpitude - an act of baseness, vileness or depravity in the
private or social duties which a man owes his fellowmen, or to society in general,
contrary to accepted and customary rule of right and duty between man and
man, or conduct contrary to justice, honesty, modesty, or good morals
Relief with the Union
- When the Constitution and by-laws of both unions dictated the remedy for intra-
union dispute, this should be resorted to not only to give the grievance
machinery or appeals' body of the union the opportunity to decide the matter by
itself, but also to prevent unnecessary and premature resort to administrative or
judicial bodies
- If intra-union remedies have failed to correct any violations of the internal labor
organization procedures, a case can be filed with the Bureau of Labor Relations,
which is authorized to hear and decide cases of this nature.
- Ordinarily Section 17 of Republic Act No. 875 [now Article 241] requires ten
[now 30] percent of the members to report a violation of the labor organization
procedures

Visitorial Power
- Article 289 authorizes the Secretary of Labor and Employment or his duly
authorized representative to inquire into the financial activities of any labor
organization on the basis of a complaint under oath, supported by 20 percent of
the membership in order to determine compliance or noncompliance with the
laws and to aid in the prosecution of any violation thereof.

Check-Offs and Assessments

Check-Off - method of deducting from an employee's pay at prescribed period, the
amounts due the union for fees, fines, or assessments. The right of a union to collect
union dues is recognized under Article 277(a).
- individual written authorizations are needed to deduct from members' salary the
attorney's fee for concluding a collective bargaining agreement through
compulsory arbitration.

Three Requisites to Collect Special Assessment:

1. Authorization by a written resolution of the majority of all the members at the
general membership meeting duly called for the purpose
2. Secretary's record of the minutes of the meeting;
3. Individual written authorization for check-off duly signed by the employee
concerned.

Check-off of Agency Fee

- Another allowable deduction from employee's wage is agency fee. This is an
amount, equivalent to union dues, which a nonunion member pays to the union
because he benefits from the CBA negotiated by the union. In negotiating the
CBA the union served as the employees' agent. Check-off of agency fee is
allowed under Article 248(e).
 Chapter III: RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS

Article 242. Rights of legitimate labor organizations:

(a) Act as the representative of its members for the purpose of collective bargaining;
(b) Certified as the exclusive representative of all the employees in an appropriate
bargaining unit for purposes of collective bargaining;
(c) Furnished by the employer, upon written request, with its annual audited financial
statements, including the balance sheet and the profit and loss statement,
within 30 calendar days from the date of receipt of the request, after the union
has been duly recognized by the employer or certified as the sole and exclusive
bargaining representative of the employees in the bargaining unit, or within 60
calendar days before the expiration of the existing collective bargaining
agreement, or during the collective bargaining negotiation; (bargaining rep (1-3)
(d) Own property, real or personal, for the use and benefit of the labor organization
and its members;
(e) Sue and be sued in its registered name; and
(f) Undertake all other activities designed to benefit the organization and its members,
including cooperative, housing, welfare and other projects not contrary to law.

Notwithstanding any provision of a general or special law to the contrary, the

income and the properties of legitimate labor organizations, including grants,
endowments, gifts, donations and contributions they may receive from fraternal and
similar organizations, local or foreign, which are actually, directly and exclusively used
for their lawful purposes, shall be free from taxes, duties and other assessments. The
exemptions provided herein may be withdrawn only by a special law expressly
repealing this provision.

- The DOLE certification as EBR is obtained through a process. It is through a

direct certification from DOLE without passing through on election or through a
DOLE certification after winning in a certification election. Without DOLE
certification of being the EBR, the union cannot demand CBA with the employer
- Even if it is not clear from the record that the union is a registered organization,
but considering that it filed a petition for certification election and such petition
was granted on appeal by the Labor Undersec, such union has the requisite
personality to sue in its own name to challenge the ULP acts committed by the
employer. Such union may institute the action in its representative capacity
- A compromise agreement between the Union and the Company, pursuant to
which the complaint in an unfair labor practice case had been withdrawn and
dismissed, is binding upon the minority members of the union.
- Money claims due to laborers cannot be the object of settlement or compromise
effected by a union or counsel without the specific individual consent of each
laborer concerned. The beneficiaries are the individual complainants
themselves. The union to which they belong can only assist them but cannot
decide for them.
 - For a waiver thereof to be legally effective, the individual consent or ratification
of the workers or employees involved must be shown.

Article 242-A. Reportorial requirements to the Bureau by the LLO concerned:

1. Its constitution and by-laws, or amendments thereto, the minutes of ratification,
and the list of members who took part in the ratification of the constitution and
by-laws within 30 days from adoption or ratification of the constitution and by-lam
or amendments thereto;
2. Its list of officers, minutes of the election of officers, and list of voters within 30
days from election;
3. Its annual financial report within 30 days after the close of every fiscal year; and
4. Its list of members at least once a year or whenever required by the Bureau.

Failure to comply with the above requirements shall not be a ground for
cancellation of union registration but shall subject the erring officers or members to
suspension, expulsion from membership, or any appropriate penalty.