Labor Relations Reviewer
Labor Relations Reviewer
Labor Relations Reviewer
a. DOCTRINE OF NECESSARY
IMPLICATION
While Art. 245 [now 255] of the
Labor Code singles out managerial
employees as ineligible to join, assist or CONFIDENTIAL INFORMATION:
form any labor organization, under the MUST RELATE TO LABOR
doctrine of necessary implication, RELATIONS AND NOT FROM A
confidential employees are BUSINESS STANDPOINT
similarly disqualified. This doctrine
states that what is implied in a statute is An employee must assist or act in a
as much a part thereof as that which is confidential capacity and obtain
expressed. [Metrolab Industries Inc. v. confidential information relating to
Roldan-Confessor, G.R. No. 108855 labor relations policies. Exposure to
(1996)] internal business operations of the
company is not per se a ground for the
exclusion in the bargaining unit. [Coca-
NATURE OF ACCESS TEST
Cola Bottlers v. IPTEU,
Confidential employees, by the G.R. No. 193798 (2015)]
nature of their functions, assist and
act in a confidential capacity to, or
have access to confidential matters of,
persons who exercise managerial Rationale of Exclusion of Confidential
Employees
functions in the field of labor relations.
Requisites If confidential employees could
1. The confidential relationship must unionize in order to bargain for
exist between the employees advantages for themselves, then they
and his supervisor, and could be governed by their own
motives rather than the interest of the
2. The supervisor must handle the
prescribed responsibilities relating employers.
to labor relations. [San Miguel
Supervisors and Exempt Union v. Moreover, unionization of
Laguesma, G.R. No. 110399 confidential employees for the
(1997)] purpose of collective bargaining
would mean the extension of the law
FUNCTION TEST: to persons or individuals who are
NOMENCLATURE IS NOT supposed to act in the interest of the
CONTROLLING employers. It is not far-fetched that in
the course of collective bargaining,
they might jeopardize that interest
The mere fact that an employee is
which they are duty bound to protect.
designated “manager” does not ipso
[Metrolab Industries Inc. v. Roldan-
facto make him one. Designation
Confessor, G.R. No. 108855 (1996)]
should be reconciled with the actual
job description of the employee. [Paper
Industries Corp. of the Philippines.
v. Laguesma, G. R. No.101738 (2000)]
REVIEWER ON LABOR RELATIONS
SUMMARY - Who Cannot Form, Join or oppressive fine and forfeiture be imposed. [Art.
Assist Labor Organizations 250(e)]
a. Managerial employees
Prohibition on subversive activities or
b. Confidential employees
membership
c. Non-employees No labor organization shall knowingly admit as
d. Member-employee of a cooperative
members or continue in membership any
e. Employees of international organizations
individual who:
f. High-level government employees 1. Belongs to a subversive organization; or
g. Members of the AFP, police officers, 2. Who is engaged directly or indirectly in any
policemen, firemen and jail guards subversive activity;
2. Commingling or Mixture of Unions cannot arbitrarily exclude qualified
Membership applicants
Unions are not entitled to arbitrarily exclude
Effect of Inclusion of Employees Outside
qualified applicants for membership, and a
the Bargaining Unit or Commingling closedshop provision would not justify the
General Rule: It shall not be a ground for the
employer in discharging, or a union in insisting
cancellation of the registration of the union. upon the discharge of, an employee whom the
Said employees are automatically deemed union thus refuses to admit to membership,
removed from the list of membership of said without any reasonable ground therefor.
union. [Art. 256]
Needless to say, if said unions may be
compelled to admit new members, who have
Exception: Unless such mingling was brought the requisite qualifications, with more reason
about by misrepresentation, false statement or may the law and the courts exercise the
fraud under Art. 247 (Grounds for cancellation coercive power when the employee involved is
of Union Registration) of the Labor Code. a long-standing union member, who, owing to
[SMCC-Super v. Charter Chemical and provocations of union officers, was impelled to
Coating Corporation, G.R. No. 169717 (2011)] tender his resignation which he forthwith
withdrew or revoked. [Salunga v. CIR, G.R.
3. Rights and Conditions of No. L-22456 (1967)]
Membership
Members who seek destruction of union
a. Nature of Relationship lose right to remain as members
Inherent in every labor union, or any
i. Member-Labor Union organization for that matter, is the right of self-
preservation. When members of a labor union,
The nature of the relationship between the therefore, sow the seeds of dissension and
union and its members is fiduciary in nature, strife within the union; when they seek the
which arises from the dependence of the
disintegration and destruction of the very union
employee on the union, and from the
to which they belong, they thereby forfeit their
comprehensive power vested in the union with
rights to remain as members of the union which
respect to the individual. The union may be
they seek to destroy. [Villar v. Inciong, G.R. No.
considered but the agent of its members for the
L-50283-84 (1983)]
purpose of securing for them fair and just
wages and good working conditions. [Heirs of ii. Labor Union-Federation
Cruz v. CIR, G.R. No. L-23331-32 (1969)]
Local unions do not owe their creation and
Admission and Discipline of Members
existence to the national federation to which
No arbitrary or excessive initiation fees shall be
they are affiliated but, instead, to the will of their
required of the members of a legitimate labor
members, [ … ] The local unions remain the
organization nor shall arbitrary, excessive or
REVIEW ER ON LABOR RELATIONS
[Sec. 2-B(5), Rule Mere affiliation does not divest the local union
III, Book V, IRR], of its own personality, neither does it give the
each of which must mother federation the license to act
be a duly independently of the local union. It only gives
recognized rise to a contract of agency, where the former
collective bargaining acts in representation of the latter. Hence, local
agent [Art. 244] unions are considered principals while the
Can directly create Cannot directly federation is deemed to be merely their agent.
local chapter [Art. create local chapter [Insular Hotel Employees Union NFL v.
241] [SMCEU-PTGWO v. Waterfront Insular Hotel, G.R. No. 174040-41
SMPEU-PDMP, (2010)]
G.R. No. 171153
(2007)]
(a) Disaffiliation
Purpose of Affiliation
To foster the free and voluntary organization of In the absence of specific provisions in the
a strong and united labor movement [Art. 218- federation’s constitution prohibiting
A(c)] disaffiliation or the declaration of autonomy of
a local union, a local may dissociate with its
The sole essence of affiliation is to increase, by parent union. [Malayang Manggagawa sa M.
collective action, the common bargaining Greenfield v. Ramos, G.R. No. 113907 (2000)]
power of local unions for the effective
enhancement and protection of their interests. Local unions have the right to separate from
Admittedly, there are times when without their mother federation on the ground that as
succor and support local unions may find it separate and voluntary associations, local
hard, unaided by other support groups, to unions do not owe their creation and existence
secure justice for themselves. [Philippine to the national federation to which they are
Skylanders, Inc. v. NLRC, G.R. No. 127374 affiliated but, instead, to the will of their
(2002)] members. [Philippine Skylanders, Inc. v.
NLRC, G.R. No. 127374 (2002)]
Nature of Relationship: Agency
The mother union, acting for and on behalf of A local union is free to serve the interests of all
its affiliate, had the status of an agent while the its members, including the freedom to
local union remained the basic unit of the disaffiliate or declare its autonomy from the
association, free to serve the common interest federation to which it belongs when
of all its members subject only to the restraints circumstances warrant, in accordance with the
imposed by the constitution and by-laws of the constitutional guarantee of freedom of
association. [...] The same is true even if the association. [Malayang Samahan ng mga
local is not a legitimate labor organization. Manggagawa sa M. Greenfield, Inc. v. Ramos,
[Filipino Pipe and Foundry Corp v. NLRC, G.R. G.R. No. 113907 (2000)]
No. 115180 (1998)]
Period of Disaffiliation
Effect of Affiliation Generally, a labor union may disaffiliate from
Inclusion of [the federation’s initials] in the the mother union to form a local or independent
registration is merely to stress that they are its union only during the 60-day freedom period
affiliates at the time of registration. It does not immediately preceding the expiration of the
mean that said local unions cannot stand on CBA. However, even before the onset of the
their own. [Adamson v. CIR, G.R. No. L-35120 freedom period, disaffiliation may be carried
(1984)] 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 The “substitutionary” doctrine provides that the
Manggagawang Nagkakaisa sa Manila Bay employees cannot revoke the validly executed
Spinning Mills, G.R. No. 118562 (1996)] collective bargaining contract with their
employer by the simple expedient of changing
[A] local union which has affiliated itself with a their bargaining agent.
federation is free to sever such affiliation
anytime and such disaffiliation cannot be It is in the light of this that the phrase “said new
considered disloyalty. [Malayang Manggagawa agent would have to respect said contract”
sa M. Greenfield v. Ramos, G.R. No. 113907 must be understood. It only means that the
(2000)] employees, thru their new bargaining agent,
cannot renege on their collective bargaining
Effect of Disaffiliation contract, except of course to negotiate with
On legal personality management for the shortening thereof.
A registered independent union retains its legal [Benguet Consolidated v. BCI Employees and
personality while a chartered local loses its Workers Union-PAFLU, G.R. No. L-24711
legal personality unless it registers itself. (1968)]
employer. [Belyca Corp. v. Calleja, G.R. No. University v. DLSU Employees Association EA,
77395 (1988) citing Rothenberg] G.R. No. 109002, (2000)]
Workers Union v. Calica, G.R. No. 96490 the several categories to select the group
(1992)] which each chooses as a bargaining unit.
[Kapisanan ng mga Manggagawa sa Manila
Spun-off corporations Road Co. v. Yard Crew Union, G.R. Nos. L-
The transformation of the companies is a 16292-94 (1960)]
management prerogative and business
judgment which the courts cannot look into Rationale: Highly skilled or specialized
unless it is contrary to law, public policy or technical workers may choose to form their
morals. [...] Considering the spin-offs, the own bargaining unit because they may be in
companies would consequently have their better position to bargain with the employer
respective and distinctive concerns in terms of considering the market value of their skills.
the nature of work, wages, hours of work and
other conditions of employment. [...] The nature Community or Mutuality of Interests
of their products and scales of business may The basic test in determining the appropriate
require different skills, volumes of work, and bargaining unit is that a unit, to be appropriate,
working conditions which must necessarily be must affect a grouping of employees who have
commensurate by different compensation substantial, mutual interests in wages, hours,
packages. [San Miguel Union v. Confesor, working conditions, and other subjects of
G.R. No. 111262 (1996)] collective bargaining. [UP v. Ferrer-Calleja,
G.R. No. 96189, (1992)]
TEST TO DETERMINE THE CONSTITUENCY
OF AN APPROPRIATE BARGAINING UNIT – Rationale: There are greater chances of
4 Factors: success for the collective bargaining process.
1. Will of the Employees (Globe Doctrine) The bargaining unit is designed to maintain the
2. Affinity and unity of employees’ interest mutuality of interest among the employees in
(Substantial Mutual Interests Rule) such unit.
3. Prior collective bargaining history
4. Employment status [Democratic Labor When the interest between groups has
Association v. Cebu Stevedoring Co. Inc, changed over time, there is reason to dissolve,
G.R. No. L-10321 (1958); University of the change or expand a certain bargaining unit.
Philippines v. Ferrer-Calleja, G.R. No.
96189 (1992)] Prior Collective Bargaining History
The existence of a prior collective bargaining
Note: Where the employment status was not at history is neither decisive nor conclusive in the
issue but the nature of work of the employees determination of what constitutes an
concerned; the Court stressed the importance appropriate bargaining unit. [Sta. Lucia East
of the 2nd factor. [Belyca Corp. v. Calleja, G.R. Commercial Corporation v. SOLE, G.R. No.
No. 77395 (1988)] 162355 (2009)]
while Rule IX, Sec. 2 reckon the period of Non-participation in previous election has
employment from the “time of filing the no effect
petition”. This difference has not been resolved [Failure to take part in previous elections is no
in any case before the Supreme Court. bar to the right to participate in future elections.]
No law, administrative rule or precedent
All rank and file employees in the appropriate prescribes forfeiture of the right to vote by
bargaining unit, whether probationary or reason of neglect to exercise the right in past
permanent are entitled to vote. The Code certification elections. [Reyes v. Trajano, G.R.
makes no distinction as to their employment No. 84433 (1992)]
status. [...] All they need to be eligible to
support the petition is to belong to a bargaining 1. Determination of Representation
unit. [Airtime Specialists, Inc. v. Ferrer-Calleja, Status
G.R. No. 80612-16 (1990)]
Methods of Establishing Majority Status
Rationale for Non-Distinction Policy a. Sole and Exclusive Bargaining Agent
Collective bargaining covers all aspects of the (SEBA) Certification
employment relation and the resultant CBA b. Consent Election
binds all employees in the bargaining unit. All c. Certification Election
rank and file employees, probationary or d. Run-Off Election
permanent, have a substantial interest in the e. Re-Run election
selection of the bargaining representative.
[Airtime Specialists, Inc. v Ferrer-Calleja, Note: D.O. No. 40-I-15 replaced Voluntary
supra.] Recognition with SEBA certification, as of
September 7, 2015.
Dismissed employees [Sec. 6, Rule IX, Book
V, IRR] a. SEBA Certification
General Rule: [Dismissed] employees [who]
contested legality of the dismissal in a forum of PROCEDURE [RULE VII, BOOK V, IRR]
appropriate jurisdiction at the time of the 1. File Request for SEBA Certification [Sec.
issuance of the order for conduct of a 1]
certification election
Who: Any legitimate labor organization
Exception: Dismissal was declared valid in a
final judgment at the time of the conduct of the File where: Regional Office which issued
certification election. its certificate of registration or certificate of
creation of chartered local
Disagreement over voters’ list over
eligibility of voters 2. Indicate in the request [Sec. 2]:
All contested voters shall be allowed to vote a. Name and address of the requesting
[but] their votes shall be segregated and sealed legitimate labor organization;
in individual envelopes. [Sec. 6, Rule IX, Book b. Name and address of the company
V, IRR] where it operates;
c. Bargaining unit sought to be
Voting List and Voters
represented;
The basis of determining voters may be agreed
d. Approximate number of employees in
upon by the parties (i.e. the use of payroll).
the bargaining unit; and
[Acoje Workers Union v. NAMAWU, G.R. No. e. Statement of the existence/non-
L-18848 (1963)] existence of other labor
organization/CBA.
REVIEW ER ON LABOR RELATIONS
If the Regional Director finds it deficient, 5. Regional Director shall post the SEBA
he/she shall advise the requesting union or Certification [Sec. 4.1]
local to comply within ten (10) days from
notice. Failure to comply within the Period: Fifteen (15) consecutive days
prescribed period shall be deemed
withdrawal of the request. Where: At least two (2) conspicuous
places in the establishment or covered
If Unorganized Establishment [Sec. 4] bargaining unit.
a. Finding of only 1 legitimate labor
organization – Regional Director shall call EFFECT OF SEBA CERTIFICATION [Sec.
a conference within five (5) working days 4.2]
for the SUBMISSION of: Upon the issuance of the [SEBA Certification],
1. Names of employees in the covered the certified union or local shall enjoy all the
bargaining unit who signify support for rights and privileges of an exclusive bargaining
certification; [and these] employees
agent of all the employees in the covered
comprise at least majority of the
bargaining unit.
number of employees in the covered
bargaining unit; and The certification shall bar the filing of a [PCE]
2. Certification under oath by the by any labor organization for a period of one (1)
president of the requesting union or year from the date of its issuance.
local that all documents submitted are
true and correct based on personal Upon expiration of this one-year period, any
knowledge legitimate labor organization may file a [PCE]
b. Failure to Complete Requirements for in the same bargaining unit represented by the
SEBA Certification - the request for SEBA certified labor organization, unless a [CBA]
between the employer and the certified labor organization. [Reyes v. Trajano, G.R. No.
organization was executed and registered with 84433 (1992)]
the Regional Office in accordance with Rule
XVII. BARS TO A CERTIFICATE ELECTION
Petition for certification may be filed:
b. Consent Election General Rule: Anytime
Exceptions:
Consent Election means the election 1. One-year bar rule
voluntarily agreed upon by the parties with or 2. Negotiation bar rule
without the intervention by DOLE [Sec. 1(i), 3. Deadlock bar rule
Rule I, Book V, IRR] 4. Contract bar rule
Procedure [Sec. 11, Rule VIII, Book V, IRR] See Grounds for denying a Petition for
1. The parties may agree to hold a consent Certification Election
election
a. Where no petition for certification (1) One-Year Bar Rule
election was filed; or
b. Where a petition for certification No certification election may be held within 1
election had been filed, and upon the year from the time a valid certification, consent
intercession of Med-Arbiter [Sec. 25, or run-off election has been conducted within
Rule VIII, Book V, IRR] the bargaining unit.
2. Mediator-Arbiter shall call for the consent
election, reflecting the parties’ agreement [If the order of the Med-Arbiter certifying the
and the call in the minutes of the results of the election has been appealed], the
conference. Regional Director or running of the one-year period shall be
authorized representative shall determine suspended until the decision on the appeal
becomes final and executory. [Sec. 3(a), Rule
the Election Officer by raffle in the
presence of representatives of the VIII, Book V]
contending unions if they so desire
3. First pre-election conference is scheduled Note: This bar also applies to a SEBA
within ten (10) days from the date of the Certification under Rule VII. “The certification
agreement. Subsequent conferences may shall bar the filing of a petition for certification
be called to expedite and facilitate the election by any labor organization for a period
holding of the consent election. of one (1) year from the date of its issuance.”
[Sec. 4.2, Rule VII, Book V, IRR]
c. Certification Election
(2) Negotiation Bar Rule
Certification Election is the process of
determining, through secret ballot, the sole and No certification of election may be filed when:
exclusive representative of the employees in 1. Within 1 year after the valid certification
an appropriate bargaining unit for purposes of election
collective bargaining or negotiation. [Sec. 1(i), 2. The DULY CERTIFIED union has
Rule I, Book V, IRR] COMMENCED AND SUSTAINED
negotiations in good faith with the employer
PURPOSE 3. In accordance with Art. 261 of the Labor
The purpose of a certification election is Code Sec. 3(b), Rule VIII, Book V
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
REVIEW ER ON LABOR RELATIONS
e. Re-Run Election