labrel midterms

8/13/2019 Labrel Midterms

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1 Cesar Nickolai F. Soriano Jr. Arellano University School of Law 2011-0303LABOR RELATIONS

LABOR RELATIONS

LABOR RELATIONS refers to that part of labor law which regulates therelations between employers and workers. It deals with the broad anddynamic relations between the employer and the employee, its ramificationsand implications insofar as their respective rights and interests areconcerned as well as the modes of settling and adjusting their differencesand disputes and ultimately, the grounds and manner by which suchrelationship will be terminated.

DISTINGUISHED FROM LABOR STANDARDS

LABOR STANDARDS LABOR RELATIONS

Prescribes the minimum terms andconditions of employment Regulates the relations betweenemployers and workers Substantive ProceduralBooks 1 to 4 of the Labor Code Book 5 of the Labor Code Covers working conditions, wages,hours of work, holiday pay andother benefits, conditions ofemployment of women, minors,househelpers and homeworkers,medical and dental services,occupational health and safety,termination of employment andretirement

Covers labor organizations, collectivebargaining agreement (CBA),grievance machinery, voluntaryarbitration, conciliation andmediation, unfair labor practices,strikes, picketing and lockout.

MUTUAL EXCLUSIVITY - Labor standards laws and labor relations laws arenot mutually exclusive; they complement each other. Thus the law on

strikes and lockouts which is an example of labor relations law includessome provisions on the security of tenure of workers who go on strike orwho are locked-out.

BOOK FIVELABOR RELATIONS

Title IPOLICY AND DEFINITIONS

Chapter I: POLICY

Article. 211. Declaration of Policy . –

A. It is the policy of the State:

(a) To promote and emphasize the primacy of free collective bargaining andnegotiations, including voluntary arbitration, mediation and conciliation, asmodes of settling labor or industrial disputes;(b) To promote free trade unionism as an instrument for the enhancementof democracy and the promotion of social justice and development;(c) To foster the free and voluntary organization of a strong and unitedlabor movement;(d) To promote the enlightenment of workers concerning their rights andobligations as union members and as employees;(e) To provide an adequate administrative machinery for the expeditioussettlement of labor or industrial disputes;(f) To ensure a stable but dynamic and just industrial peace; and(g) To ensure the participation of workers in decision and policy-makingprocesses affecting their rights, duties and welfare.

B. To encourage a truly democratic method of regulating the relationsbetween the employers and employees by means of agreements freelyentered into through collective bargaining, no court or administrative agencyor official shall have the power to set or fix wages, rates of pay, hours ofwork or other terms and conditions of employment, except as otherwiseprovided under this Code.

Chapter II: DEFINITIONS

Article. 212. Definitions. - (a) "Commission" means the National LaborRelations Commission or any of its divisions, as the case may be, as

provided under this Code.

(b)"Bureau" means the Bureau of Labor Relations and/or the Labor RelatDivisions in the regional offices established under Presidential Decree Noin the Department of Labor.

(c)"Board" means the National Conciliation and Mediation Board establisunder Executive Order No. 126.

(d)"Council" means the Tripartite Voluntary Arbitration Advisory Couestablished under Executive Order No. 126, as amended.

(e)"Employer" includes any person acting in the interest of employer, directly or indirectly. The term shall not include alabor organization or any of its officers or agents except whacting as employer.

(f)"Employee" includes any person in the employ of an employ

The term shall not be limited to the employees of a particuemployer, unless the Code so explicitly states. It shall include aindividual whose work has ceased as a result of or in connectwith any current labor dispute or because of any unfair lapractice if he has not obtained any other substantially equivaland regular employment.

(g)"Labor organization" means any union or association of employees whexists in whole or in part for the purpose of collective bargaining ordealing with employers concerning terms and conditions of employment.

(h)"Legitimate labor organization” means any labor organization dregistered with the Department of Labor and Employment, and includes branch or local thereof.

(i) "Company union" means any labor organization whose formatfunction or administration has been assisted by any act defined as unlabor practice by this Code.

(j)"Bargaining representative" means a legitimate labor organizawhether or not employed by the employer.

(k)"Unfair labor practice" means any unfair labor practice as expredefined by the Code.

(l)"Labor dispute" includes any controversy or matter concernterms and conditions of employment or the association representation of persons in negotiating, fixing, maintainichanging or arranging the terms and conditions of employmeregardless of whether the disputants stand in the proximrelation of employer and employee.

(m)"Managerial employee" is one who is vested with the powersprerogatives to lie down and execute management policies andto hire, transfer, suspend, lay-off, recall, discharge, assigndiscipline employees. Supervisory employees are those who, in interest of the employer, effectively recommend such manageactions if the exercise of such authority is not merely routinaryclerical in nature but requires the use of independent judgment.employees not falling within any of the above definitions aconsidered rank-and-file employees for purposes of this Book.

(n)"Voluntary Arbitrator" means any person accredited by the Board as sor any person named or designated in the Collective Bargaining Agreemby the parties to act as their Voluntary Arbitrator, or one chosen withwithout the assistance of the National Conciliation and Mediation Boapursuant to a selection procedure agreed upon in the Collective Bargain

Agreement, or any official that may be authorized by the Secretary of Laand Employment to act as Voluntary Arbitrator upon the written request agreement of the parties to a labor dispute.

(o)"Strike" means any temporary stoppage of work by the concerted act




of employees as a result of an industrial or labor dispute.

(p)"Lockout" means any temporary refusal of an employer to furnish workas a result of an industrial or labor dispute.

(q)"Internal union dispute" includes all disputes or grievances arising fromany violation of or disagreement over any provision of the constitution andby-laws of a union, including any violation of the rights and conditions ofunion membership provided for in this Code.

(r)"Strike-breaker" means any person who obstructs, impedes, or interfereswith by force, violence, coercion, threats, or intimidation any peacefulpicketing affecting wages, hours or conditions of work or in the exercise ofthe right of self-organization or collective bargaining.

(s)"Strike area" means the establishment, warehouses, depots, plants oroffices, including the sites or premises used as runaway shops, of theemployer struck against, as well as the immediate vicinity actually used bypicketing strikers in moving to and fro before all points of entrance to andexit from said establishment.

A. EMPLOYER under Sec. 1[s], Rule I, Book V, Rules to Implement theLabor Code, as amended by Department Order No. 40-03, Series of2003 [Feb. 17, 2003] , is defined as any person or entity who employsthe services of others, one for whom employees work and who paystheir wages or salaries. It includes any person directly or indirectlyacting in the interest of the employer. It shall also refer to theenterprise where a labor organization operates or seeks to operate.

An unregistered association of landowners may be an employer independentof the respective members it represents – it being clear that the law doesnot require an employer to be registered before it may come within thepurview of the Labor Code. (Orlando Farms Growers Association/GlicerioAnover vs. NLRC; GR No. 129076; Nov. 25, 1998)

B. EMPLOYEE under Sec. 1[r], Rule I, Book V of the same implementingrules, is defined as one who has been dismissed from work but thelegality of the dismissal is being contested in a forum of appropriate

jurisdiction. Hence, an employee who has filed an illegal dismissal casebefore the Labor Arbiter or Voluntary Arbitrator is, for labor relationspurposes, still to be considered an employee.

C. KINDS OF EMPLOYEES

1. Managerial – is one who is vested with the powers andprerogatives to lay down and execute management policies and/orto hire, transfer, suspend, lay-off, recall, discharge, assign ordiscipline employees (Art. 212[m], Labor Code)

2. Supervisory – is one who, in the interest of the employer,effectively recommends managerial actions and the exercise ofsuch authority is not merely routinary or clerical but requires theuse of independent judgment (Art. 212[m], Labor Code)

3. Rank-and-file – is one who does not fall within any of the abovedefinitions for purposes of labor relations under Book V of theLabor Code. This refers to an employee whose functions areneither managerial nor supervisory in nature.

D. EMPLOYEES WHO CEASED TO WORK BUT ARE STILL DEEMEDEMPLOYEES

1. General Rule: Employees who ceased to work is no longer to beconsidered an employee, as this term is understood in law.

2. However, under the law on LABOR RELATIONS, there are specificinstances where an employee is still considered as such for certainpurposes or reasons even if he has already ceased to work:

a. The employee ceased to work as a result of, or in connectionwith, any unfair labor practice IF he has not obtained nayother substantially equivalent and regular employment.

“Substantially Equivalent and Regular Employment” does not rto the amount of compensation which the employee receives frhis new employer. It refers to his new job which should be simto his work at the time of his dismissal. This holds true even ifemployee receives a higher salary in his new employment. (vs. CIR; GR No. L-17620; Aug. 31, 1962)

b. Certification Election: an employee who has been dismisfrom work but has contested the legality of dismissal is considered a qualified voter, unless his dismissal is declavalid in a final judgment at the time of the conduct of certification election.

c. An employee is still considered as such even in a strwhether staged or by reason of unfair labor practiceeconomic demands, or a lockout. When he is ordered bacwork, the law treats his employment as if there has beenINTERRUPTION.

Title IINATIONAL LABOR RELATIONS COMMISSION

Chapter I: CREATION AND COMPOSITION

Article 213. National Labor Relations Commission. - There shall bNational Labor Relations Commission which shall be attached to the Departmof Labor and Employment solely for program and policy coordination ocomposed of a Chairman and twenty-three (23) Members.

Eight (8) members each shall be chosen only from among the nomineethe workers and employers organizations, respectively. The Chairman the seven (7) remaining members shall come from the public sector, wthe latter to be chosen preferably from among the incumbent Labor ArbitUpon assumption into office, the members nominated by the workers employers organizations shall divest themselves of any affiliation withinterest in the federation or association to which they belong.

The Commission may sit en banc or in eight (8) divisions, each composethree (3) members. The Commission shall sit en banc only for purposepromulgating rules and regulations governing the hearing and dispositioncases before any of its divisions and regional branches and formulatpolicies affecting its administration and operations. The Commission sexercise its adjudicatory and all other powers, functions, and duties throits divisions. Of the eight (8) divisions, the first, second, third, fourth, f

and sixth divisions shall handle cases coming from the National CapRegion and other parts of Luzon; and the seventh and eighth divisiocases from the Visayas and Mindanao, respectively: Provided, That Commission sitting en banc may, on temporary or emergency basis, acases within the jurisdiction of any division to be heard and decided by other division whose docket allows the additional workload and such tranwill not expose litigants to unnecessary additional expenses. The divisionthe Commission shall have exclusive appellate jurisdiction over cases wittheir respective territorial jurisdiction.

The concurrence of two (2) Commissioners of a division shall be necessfor the pronouncement of a judgment or resolution. Whenever the requmembership in a division is not complete and the concurrence of two Commissioners to arrive at a judgment or resolution cannot be obtained, Chairman shall designate such number of additional Commissioners fromother divisions as may be necessary.

The conclusions of a division on any case submitted to it for decision sbe reached in consultation before the case is assigned to a member for writing of the opinion. It shall be mandatory for the division to meetpurposes of the consultation ordained therein. A certification to this efsigned by the Presiding Commissioner of the division shall be issued, ancopy thereof attached to the record of the case and served upon the partThe Chairman shall be the Presiding Commissioner of the first division, the seven (7) other members from the public sector shall be the PresidCommissioners of the second, third, fourth, fifth, sixth, seventh and eidivisions, respectively. In case of the effective absence or incapacity of




Chairman, the Presiding Commissioner of the second division shall be theActing Chairman.

The Chairman, aided by the Executive Clerk of the Commission, shall haveadministrative supervision over the Commission and its regional branchesand all its personnel, including the Labor Arbiters.

The Commission, when sitting en banc, shall be assisted by the sameExecutive Clerk, and, when acting thru its Divisions, by said Executive Clerkfor its first division and seven (7) other Deputy Executive Clerks for thesecond, third, fourth fifth, sixth, seventh and eighth divisions, respectively,in the performance of such similar or equivalent functions and duties as aredischarged by the Clerk of Court and Deputy Clerks of Court of the Court ofAppeals.

The Commission and its eight (8) divisions shall be assisted by theCommission Attorneys in its appellate and adjudicatory functions whoseterm shall be coterminous with the Commissioners with whom they areassigned. The Commission Attorneys shall be members of the Philippine Barwith at least one (1) year experience or exposure in the field of labor-management relations. They shall receive annual salaries and shall beentitled to the same allowances and benefits as those falling under SalaryGrade twenty-six (SG 26). There shall be as many Commission Attorneys asmay be necessary for the effective and efficient operations of theCommission but in no case more than three (3) assigned to the Office of theChairman and each Commissioner.

No Labor Arbiter shall be assigned to perform the functions of the

Commission Attorney nor detailed to the office of any Commissioner.

A. NATURE - the NLRC is an administrative quasi-judicial body.

B. RELATIONSHIP WITH DOLE1. NLRC is attached to DOLE solely for program and policy coordination

only and is thus considered autonomous and independent as opposedto being under the latter’s administrative supervision prior to RA 6715.

2. With the issuance of EO No. 185 and 204, the Secretary of Labor andEmployment was again empowered to exercise administrativesupervision over the NLRC.

3. With the issuance of RA No. 9347 the stalemate between RA 6715and the above executive orders was put to rest where it provided thatthe NLRC is attached to the DOLE “SOLELY for program and policycoordination only.”

4. Accordingly, it is the Chairman of NLRC, aided by the Executive Clerk

of the Commission, that has the power of administrative supervisionover the entire Commission and its regional branches and all itspersonnel, including the Labor Arbiters.

C. ORGANIZATION 1. Composition: a Chairman and 23 members.2. Tripartite Composition: workers and employers are mandatorily

required, as far as practicable, to be represented in decision andpolicy-making bodies of the government.

a. 8 members each shall be chosen ONLY among the nominees ofthe workers and employers organizations, respectively.

b. The Chairman and 7 remaining members shall come from thepublic sector, with the latter to be chosen PREFERRABLY fromamong the incumbent labor arbiters.

3. Commission en banc – only for the following purposes:

a. To promulgate rules and regulations governing the hearing anddisposition of cases before any of its divisions and regionalbranches; and

b. To formulate policies affecting its administration and operations.

4. 8 divisions of the NLRC:

a. Each division is composed of 1 member from the public sewho shall act as Presiding Commissioner, and 1 member efrom workers and employers sectors, respectively.

b. The first to sixth division shall handle cases coming from NCR and other parts of Luzon;

c. The seventh for Visayas;d. The eighth for Mindanao.

5. Temporary Re-Assignment – the Commission, sitting en banc, mon temporary or emergency basis, allow cases within the jurisdicof any division to be heard and decided by any other division whdocket allows the additional workload and such transfer will expose litigants to unnecessary additional expenses.

6. Review of cases on appeal with the NLRC by Commissioner who previously the Labor Arbiter who rendered the decision under revNOT ALLOWED. He should inhibit himself from any participation incase. Any resolution is void (Singson vs. NLRC; GR No. 122389; J19, 1997) .

D. ADJUDICATORY POWERS OF THE NLRC - the Commission EN BAdoes not exercise adjudicatory powers, this power is exercised only by DIVISIONS.

Article 214. Headquarters, Branches and Provincial Extension UnitThe Commission and its first, second, third, fourth, fifth and sixth divisions shave their main offices in Metropolitan Manila, and the seventh and eigdivisions in the cities of Cebu and Cagayan de Oro, respectively. The Commissshall establish as many regional branches as there are regional offices of

Department of Labor and Employment, sub-regional branches or provinextension units. There shall be as many Labor Arbiters as may be necessarythe effective and efficient operation of the Commission.

Article 215. Appointment and Qualifications. – The Chairman and oCommissioners shall be members of the Philippine Bar and must have bengaged in the practice of law in the Philippines for at least fifteen (15) yewith at least five (5) years experience or exposure in the field of lamanagement relations, and shall preferably be residents of the region whthey shall hold office. The Labor Arbiters shall likewise be members of Philippine Bar and must have been engaged in the practice of law in Philippines for at least ten (10) years, with at least five (5) years experienceexposure in the field of labor-management relations.

The Chairman and the other Commissioners and the Labor Arbiters shold office during good behavior until they reach the age of sixty-five (

years, unless sooner removed for cause as provided by law or becoincapacitated to discharge the duties of their office; Provided, however, Tthe President of the Republic of the Philippines may extend the servicesthe Commissioners and Labor Arbiters up to the maximum age of seve(70) years upon the recommendation of the Commission en banc.

The Chairman, the Division Presiding Commissioners and otCommissioners shall all be appointed by the President. Appointment to vacancy in a specific division shall come only from the nominees of sector which nominated the predecessor. The Labor Arbiters shall alsoappointed by the President, upon recommendation of the Commissionbanc to a specific arbitration branch, preferably in the region where theyresidents, and shall be subject to the Civil Service Law, rules aregulations: Provided, that the Labor Arbiters who are presently holdoffice in the region where they are residents shall be deemed appointhereat.

The Chairman and the Commission, shall appoint the staff and employeethe Commission, and its regional branches as the needs of the service mrequire, subject to the Civil Service Law, rules and regulations, and upgrtheir current salaries, benefits and other emoluments in accordance wlaw.

A. QUALIFICATIONS OF NLRC COMMISSIONERS

1. Members of the Philippine Bar;




2. Must have engaged in the practice of law in the Philippines for at least15 years;

3. Must have experience or exposure in handling labor-managementrelations for at least 5 years; and

4. Preferably residents of the region where they shall hold office.

B. QUALIFICATIONS OF LABOR ARBITERS

1. Members of the Philippine Bar;2. Must have been engaged in the practice of law in the Philippines for at

least ten years; and3. Must have experience or exposure in the field of labor-management

relations for at least 5 years.

C. TERM OF OFFICE

1. The Chairman, the other Commissioners and the Labor Arbiters shallhold office during good behaviour until they reach the age of 65years.

2. Prior to reaching 65, they may be removed on the following grounds:a. Removal for cause as provided by law; orb. Incapacity to discharge the duties of their office.

3. EXTENSION may be given by the President upto a maximum of 70years of age upon recommendation by the Commission en banc.

D. APPOINTMENT

1. The Chairman, Division Presiding Commissioners and otherCommissioners of the NLRC are all appointed by the President of thePhilippines;

2. Labor Arbiters are also appointed by the President uponrecommendation of the Commission en banc.

3. Staff and employees of the Commission and its regional branches, asthe needs of the service may require, are appointed by the Chairmanand the Commission.

Article 216. Salaries, benefits and other emoluments. – The Chairmanand members of the Commission shall have the same rank, receive an annualsalary equivalent to, and be entitled to the same allowances, retirement andbenefits as, those of the Presiding Justice and Associate Justices of the Court ofAppeals, respectively. Labor Arbiters shall have the same rank, receive an annualsalary equivalent to and be entitled to the same allowances, retirement andother benefits and privileges as those of the judges of the regional trial courts. In

no case, however, shall the provision of this Article result in the diminution of theexisting salaries, allowances and benefits of the aforementioned officials.

Chapter IIPOWERS AND DUTIES

Article. 217. Jurisdiction of the Labor Arbiters and the Commission. - (a) Except as otherwise provided under this Code, the Labor Arbiters shallhave original and exclusive jurisdiction to hear and decide, within thirty (30)calendar days after the submission of the case by the parties for decisionwithout extension, even in the absence of stenographic notes, the followingcases involving all workers, whether agricultural or non-agricultural:

1. Unfair labor practice cases;2. Termination disputes;3. If accompanied with a claim for reinstatement, those cases that workers

may file involving wages, rates of pay, hours of work and other terms andconditions of employment;4. Claims for actual, moral, exemplary and other forms of damages arisingfrom the employer-employee relations;5. Cases arising from any violation of Article 264 of this Code, includingquestions involving the legality of strikes and lockouts; and6. Except claims for Employees Compensation, Social Security, Medicare andmaternity benefits, all other claims arising from employer-employeerelations, including those of persons in domestic or household service,involving an amount exceeding five thousand pesos (P5,000.00) regardlessof whether accompanied with a claim for reinstatement.

(b) The Commission shall have exclusive appellate jurisdiction over all cadecided by Labor Arbiters.

(c) Cases arising from the interpretation or implementation of collecbargaining agreements and those arising from the interpretationenforcement of company personnel policies shall be disposed of by Labor Arbiter by referring the same to the grievance machinery voluntary arbitration as may be provided in said agreements.

A. EXISTENCE OF EMPLOYER-EMPLOYEE RELATIONSHIP FOR TEXERCISE OF JURISDICTION

1. The existence of an ER-EE relationship is a pre-requisite for exercise of jurisdiction over a labor dispute by the Labor ArbiFor as long as the principal relief is to be granted under lalegislation or a CBA, the case falls within the exclusive jurisdictof the Labor Arbiters and the NLRC even though a claim damages might be asserted as an incident to such claim.

2. In the case of Atty. Andrea Uy vs. Bueno , this relationship jurisdictional in order for the provisions of the Labor Codeapply. And even if there is such relationship, if the cause of acdid not arise out of or was not incurred in connection with the EE relationship, Labor Arbiters have no jurisdiction thereover.

3. Not every dispute between an employer and employee involmatters that only the Labor Arbiters and the NLRC can resolv

the exercise of their adjudicatory or quasi-judicial powers. Actibetween employers and employees where the ER-EE relationsis merely incidental is within the exclusive original jurisdictionthe regular courts.

B. EXCEPTION TO (A)

Santiago vs. CF Sharp Crew Management, Inc. (GR No. 162419; July 2007) – a seafarer has already signed a POEA-approved employmcontract but was not deployed overseas. ISSUE: WON the Labor Arbiter

jurisdiction over the claims for damages for breach of contract? HELD: YThe jurisdiction of the Labor Arbiters is not limited to money claims arisfrom ER-EE relationship. Section 10 of RA No. 8042 (Migrant Workers aOverseas Filipino Act of 1995) states that the Labor Arbiters of the NLshall have original and exclusive jurisdiction to hear and decide the claarising out of an ER-EE relationship or by virtue of any law or contr

involving Filipino workers for overseas deployment includclaims for actual, moral, exemplary and other forms of damagConsidering that petitioner was not able to depart from the airportseaport in the point of hire, the employment contract did not commencebe effective and no ER-EE relationship was created between the partHowever, a distinction must be made between the perfection of employment contract and the commencement of the ER-EE relationship. perfection of a contract, which in this case coincided with the dateexecution thereof, occurred when petitioner and respondent agreed on object and the cause, as well as the rest of the terms and conditions forth therein. The commencement of the ER-EE relationship would htaken place had the petitioner been actually deployed from the point of hThus, even before the start of an ER-EE relationship, contemporaneous wthe perfection of the employment contract was the birth of certain rigand obligations, the breach of which may give rise to a cause of acagainst the erring party. Thus, if the reverse had happened, that is,

seafarer failed or refused to be deployed as agreed upon, he would hbeen liable for damages.

C. JURISDICTION OF LABOR ARBITER IS ORIGINAL AEXCLUSIVE meaning no other officers or tribunals can tcognizance of, or hear and decide, any of the cases enumerated un

Art. 217 of the Labor Code.

D. EXCEPTIONS TO (C)




1. Secretary of Labor and Employment – under Art. 263 (g) of theLabor Code to assume jurisdiction over national interest cases anddecide them himself;

2. NLRC – exercises its power of compulsory arbitration over nationalinterest cases as certified by the Secretary of Labor andEmployment pursuant to the exercise by the latter of hiscertification power under the same Art. 263(g);

3. Voluntary Arbitrator/Panel of Voluntary Arbitrators – to hear casesmutually submitted by parties for arbitration and adjudication.

E. REASONABLE CAUSAL CONNECTION RULE – if there is areasonable causal connection between the claim asserted and the ER-EE relations, then the case is within the jurisdiction of labor courts.(Dai-chi Electronics Manufacturing Corporation vs. Villarama, Jr.; GRNo. 112940; Nov. 21, 1994)

F. JURISDICTION OF NLRC

1. ORIGINAL JURISDICTIONa. Injunction in ordinary labor disputes to enjoin or restrain any

actual or threatened commission of an or all prohibited orunlawful acts or to require the performance of a particularact in any labor dispute which, if not restrained or performedforthwith, may cause grave or irreparable damage to anyparty.

b. Injunction in strikes or lockouts under Article 264 of theLabor Code.

c. Labor disputes causing or likely to cause a strike or lockout inan industry indispensable to the national interest certified toit by the Secretary of Labor and Employment for compulsoryarbitration.

2. EXCLUSIVE APPELLATE JURISDICTION a. All cases decided by the Labor Arbiter.b. Contempt cases decided by the Labor Arbiter.c. Cases decided by the DOLE Regional Directors or the duly

authorized hearing officers of the Department of Labor andEmployment involving recovery of wages, simple moneyclaims and other benefits under Art. 129 of the Labor Code.

G. INJUNCTIVE POWERS – while Labor Arbiters are not expresslygranted any injunction power under the Labor Code, Art. 218(e) of theLabor Code provides that the reception of evidence for the applicationof a writ of injunction may be delegated by the Commission to any of

its Labor Arbiters who shall conduct such hearings in such places as hemay determine to be accessible to the parties and their witnesses andshall submit thereafter his recommendation to the Commission.

H. CONTEMPT POWERS

1. A person guilty of misbehaviour in the presence of or so near theLabor Arbiter as to obstruct or interrupt the proceedings beforehim, including disrespect towards said official, offensivepersonalities toward others, or refusal to be sworn or to answer asa witness or to subscribe an affidavit or deposition when lawfullyrequired to do so may be summarily adjudged in direct contemptby said official.

2. PENALTY: (a) fine not exceeding P100 or (b) imprisonment notexceeding 1 day, or (c) both.

3. APPEAL: within 5 days from receipt of judgment to the

Commission. Judgment of the Commission shall be immediatelyexecutor and inappealable

4. INDIRECT CONTEMPT: Quasi-judicial agencies, including theCommission and the Labor Arbiters, have the power to citepersons for indirect contempt pursuant to Rule 71 of the Rules ofCourt only by initiating it in the proper RTC.

I. POWER TO CONDUCT OCULAR INSPECTIONS - The Labor Arbiters or their duly authorized representatives, under Art. 219 of theLabor Code, have the power to conduct ocular inspections: 1. At any time during WORKING HOURS;

2. On any ESTABLISHMENT, BUILDING, SHIP or VESSEL, PLACEPREMISES;

3. Including any WORK, MATERIAL, IMPLEMENT, MACHINE APPLIANCE or ANY OBJECT THEREIN; and

4. ASK any employee, labourer, or any person, as the case may for any INFORMATION or DATA concerning any matter question relative to the object of the investigation.

J. JURISDICTION OF VOLUNTARY ARBITRATORS OVTERMINATION DISPUTES

If the following requisites are present, the Voluntary Arbitrators not the Labor Arbiters have jurisdiction:

1. The employee terminated is employed in an establishment whthere is an existing CBA;

2. The termination case arose in or resulted from the interpretaand implementation of CBA and interpretation and enforcemencompany personnel policies;

3. The termination case was initially processed at the various stof the plant level grievance machinery provided under the Cand

4. The terminated employee is not satisfied with the outcome of resolution of his case before the grievance machinery.

Absent any of the above, the Labor Arbiter may take cognizance of illegal dismissal complaint.

K. SAN MIGUEL CORPORATION VS. NLRC (GR No. 108001; July 1995)

1. Petitioner cannot arrogate into the powers of the Volunt Arbitrators, the original and exclusive jurisdiction of Labor Arbiover unfair labor practices, termination disputes, and claimsdamages, in the absence of an express agreement betwthe parties in order for Art. 262 of the Labor Code (Jurisdiction

Voluntary Arbitrators) to apply in the case at bar.2. Discharges do not call for the interpretation or enforcement

company personnel policies and so they may not be considegrievable or arbitrable by virtue of Art. 217(c). Discharges to redundancy can hardly be considered company personpolicies and, therefore, need not directly be subject to grievance machinery nor to voluntary arbitration.

L.

LABOR ARBITER’S JURISDICTION OVER MONEY CLAIMS

1. Any money claim, regardless of amount, accompanied witclaim for reinstatement (par. [a] no. 3); - this presupposetermination because of the claim for reinstatement.

2. Any money claim, regardless of whether accompanied with a cfor reinstatement , exceeding the amount of P5,000 (no.Not necessarily arising from a termination, if the amount does exceed P5,000 it falls within the jurisdiction of the RegioDirector of the DOLE. (Art. 129)

M. JURISDICTION OVER CLAIMS FOR DAMAGES

1. Primero vs. Intermediate Appellate Court (GR No. L-72644; D14, 1987) – claims for damages as well as attorney’s fees in la

cases are cognizable by the Labor Arbiters, to the exclusion ofother courts. No matter how designated, for as long as the acprimarily involves an employer-employee relationship, the lacourt has jurisdiction over any damage claims.

2. Claims for actual, moral, exemplary and other forms of damathat may be lodged by overseas Filipino workers are cognizablethe Labor Arbiters (Sec. 10, RA 8042)

N. JURISDICTION OVER LEGALITY OF STRIKES AND LOCKOUTS




1. In general, Labor Arbiters have the power to determine questionsinvolving the legality or illegality of strikes or lockout.

2. However, under Art. 263(g), the Secretary of Labor andEmployment may assume jurisdiction over a labor dispute causingor likely to cause a strike or lockout in an industry indispensable tothe national interest. He may either (a) assume jurisdiction overthe labor dispute and decide it himself; or (b) to certify it to theNLRC for compulsory arbitration.

3. Before or at any stage of the compulsory arbitration processbefore a Labor Arbiter or the DOLE Secretary in assumed in casesor the NLRC in certified cases, the parties may still opt to submittheir dispute to voluntary arbitration (Art. 263[n]) where it is the

Voluntary Arbitrator or panel of Voluntary Arbitrators who shallhave jurisdiction over the same.

4. PROHIBITED ACTIVITIES during strikes or lockouts or anyviolations under Art. 264 of the Labor Code are under the

jurisdiction of the Labor Arbiter. 5. CRIMINAL AND OTHER CASES are within the jurisdiction of the

regular courts.

O. OTHER ISSUES ON JURISDICTION

1. Termination of corporate officers – is in the nature of anintra-corporate dispute and hence the Labor Arbiter or the NLRChave no jurisdiction;

2. Cases involving employees of GOCCs – GOCCs with originalcharters are covered by the Civil Service Law and cases arisingtherefrom are not within the jurisdiction of the Labor Arbiter.GOCCs without original charters are covered by the Labor Codeand are thus within the jurisdiction of the Labor Arbiter.

3. Cases involving an alien party – generally, parties to anemployment contract may select the law by which it is to begoverned (Cheshire, Private International Law, 187 [7 th edition]) .However, in Pakistan International Airlines Corporation vs. Ople ,the Supreme Court held that the parties cannot disregard theapplicability of Philippine labor laws to the subject matter of acase, i.e., employer-employee relationship. Especially where theflight attendants who filed for an illegal dismissal were Philippinecitizens and residents, while the petitioner, although a foreigncorporation, is licensed to do business and hence, is a resident inthe Philippines. Moreover, the contract was executed in thePhilippines and was partially performed herein. Furthermore, the

PIA did not undertake to plead and prove the contents of Pakistanlaw on the matter. It must, therefore, be presumed that theapplicable provisions of the law of Pakistan, as what has beenstipulated par. 10 of the employment contract, are the same asthe applicable provisions of Philippine law.

4. Cases involving entities immune from suits – Generally, theimmunity of foreign entities from suits extend to labor cases.However, in US vs. Rodrigo (GR No. 79470; Feb. 26, 1990) , theSupreme Court held that when the function of a foreign entityotherwise immune from suit partakes of the nature of a propriety activity, such as the restaurant services offered at John Hay AirStation undertaken by the US Government as a commercialactivity for profit and not in its governmental capacity, the casefor illegal dismissal filed by a Filipino cook working therein is wellwithin the jurisdiction of Philippine courts.

5. Doctrine of forum non conveniens a. In Pacific Consultants international Asia, Inc. vs. Schonfeld (GR

No. 166920; Feb. 19, 2007) the Supreme Court held that thisprinciple does not apply because (1) the Labor Code does notinclude forum non conveniens as a ground for the dismissal of acomplaint; and (2) the propriety of dismissing a case based onthis principle requires a factual determination; hence, it is properlyconsidered a defense.

b. The Manila Hotel Corporation and Manila Hotel InternationalLimited vs. NLRC (GR No. 120077; Oct. 13, 2000) - in this case,

the employee was retrenched after a political upheaval in Chseverely affected the operations of Palace Hotel in China whthe employee worked. The Supreme Court held that the maspects of the case transpired in two foreign jurisdictions and case involves purely foreign elements. Moreover, the employmcontract was not perfected in the Philippines. Furthermore, NLRC cannot determine the facts surrounding the illegal dismias all acts complained of took place in Beijing. The NLRC was in a position to determine whether the retrenchment was indcaused by the incident and is thus justified.

c. In PNB vs. Cabansag (GR No. 157010; June 21, 2005) , Supreme Court held that the Labor Arbiter has jurisdiction othe case involving the termination of an OFW. While she mhave been directly hired in Singapore by petitioner, respondlikewise applied for and secured an Overseas EmploymCertificate with the POEA and her employment was approvedthe bank’s president whose principal office is here in Manila.

6. Cases involving priests and ministers - The minister bedismissed and not excommunicated or expelled from membership of the church is a purely secular act where the La

Arbiter has jurisdiction (Austria vs. Hon. NLRC and Cebu Central Philippines Union Mission Corporation of the Seventh

Adventist [GR No. 124382; Aug. 16, 1999) .

7. Cases involving cooperatives – Members of cooperatives not employees and termination of such members are not withe jurisdiction of the Labor Arbiter.

8. Cases involving local water districts – Local water distrare considered quasi-public corporations and termination of temployees are governed by the Civil Service Laws.

Article. 218. Powers of the Commission . - The Commission shall hthe power and authority:

(a) To promulgate rules and regulations governing the hearing disposition of cases before it and its regional branches, as well as thpertaining to its internal functions and such rules and regulations as maynecessary to carry out the purposes of this Code; (As amended by Sec10, Republic Act No. 6715, March 21, 1989).

(b) To administer oaths, summon the parties to a controversy, issubpoenas requiring the attendance and testimony of witnesses or

production of such books, papers, contracts, records, statement of accouagreements, and others as may be material to a just determination of matter under investigation, and to testify in any investigation or hearconducted in pursuance of this Code;

(c) To conduct investigation for the determination of a question, mattecontroversy within its jurisdiction, proceed to hear and determine disputes in the absence of any party thereto who has been summonedserved with notice to appear, conduct its proceedings or any part thereopublic or in private, adjourn its hearings to any time and place, retechnical matters or accounts to an expert and to accept his reportevidence after hearing of the parties upon due notice, direct parties to

joined in or excluded from the proceedings, correct, amend, or waive error, defect or irregularity whether in substance or in form, give all sdirections as it may deem necessary or expedient in the determinationthe dispute before it, and dismiss any matter or refrain from further hear

or from determining the dispute or part thereof, where it is trivial or whfurther proceedings by the Commission are not necessary or desirable; an

(d) To hold any person in contempt directly or indirectly and impappropriate penalties therefor in accordance with law.

A person guilty of misbehavior in the presence of or so near the Chairmaany member of the Commission or any Labor Arbiter as to obstructinterrupt the proceedings before the same, including disrespect toward sofficials, offensive personalities toward others, or refusal to be sworn, oanswer as a witness or to subscribe an affidavit or deposition when lawf




required to do so, may be summarily adjudged in direct contempt by saidofficials and punished by fine not exceeding five hundred pesos (P500) orimprisonment not exceeding five (5) days, or both, if it be the Commission,or a member thereof, or by a fine not exceeding one hundred pesos (P100)or imprisonment not exceeding one (1) day, or both, if it be a Labor Arbiter.The person adjudged in direct contempt by a Labor Arbiter may appeal tothe Commission and the execution of the judgment shall be suspendedpending the resolution of the appeal upon the filing by such person of abond on condition that he will abide by and perform the judgment of theCommission should the appeal be decided against him. Judgment of theCommission on direct contempt is immediately executory and unappealable.Indirect contempt shall be dealt with by the Commission or Labor Arbiter inthe manner prescribed under Rule 71 of the Revised Rules of Court; and (Asamended by Section 10, Republic Act No. 6715, March 21, 1989).

(e) To enjoin or restrain any actual or threatened commission of any or allprohibited or unlawful acts or to require the performance of a particular actin any labor dispute which, if not restrained or performed forthwith, maycause grave or irreparable damage to any party or render ineffectual anydecision in favor of such party: Provided, That no temporary or permanentinjunction in any case involving or growing out of a labor dispute as definedin this Code shall be issued except after hearing the testimony of witnesses,with opportunity for cross-examination, in support of the allegations of acomplaint made under oath, and testimony in opposition thereto, if offered,and only after a finding of fact by the Commission, to the effect:

(1) That prohibited or unlawful acts have been threatened and will becommitted and will be continued unless restrained, but no injunction or

temporary restraining order shall be issued on account of any threat,prohibited or unlawful act, except against the person or persons,association or organization making the threat or committing theprohibited or unlawful act or actually authorizing or ratifying the sameafter actual knowledge thereof;

(2) That substantial and irreparable injury to complainant’s property willfollow;

(3) That as to each item of relief to be granted, greater injury will beinflicted upon complainant by the denial of relief than will be inflictedupon defendants by the granting of relief;

(4) That complainant has no adequate remedy at law; and

(5) That the public officers charged with the duty to protect complainant’s

property are unable or unwilling to furnish adequate protection.

Such hearing shall be held after due and personal notice thereof has beenserved, in such manner as the Commission shall direct, to all knownpersons against whom relief is sought, and also to the Chief Executiveand other public officials of the province or city within which the unlawfulacts have been threatened or committed, charged with the duty toprotect complainant’s property: Provided, however, that if a complainantshall also allege that, unless a temporary restraining order shall be issuedwithout notice, a substantial and irreparable injury to complainant’sproperty will be unavoidable, such a temporary restraining order may beissued upon testimony under oath, sufficient, if sustained, to justify theCommission in issuing a temporary injunction upon hearing after notice.Such a temporary restraining order shall be effective for no longer thantwenty (20) days and shall become void at the expiration of said twenty(20) days. No such temporary restraining order or temporary injunction

shall be issued except on condition that complainant shall first file anundertaking with adequate security in an amount to be fixed by theCommission sufficient to recompense those enjoined for any loss,expense or damage caused by the improvident or erroneous issuance ofsuch order or injunction, including all reasonable costs, together with areasonable attorney’s fee, and expense of defense against the order oragainst the granting of any injunctive relief sought in the sameproceeding and subsequently denied by the Commission.

The undertaking herein mentioned shall be understood to constitute anagreement entered into by the complainant and the surety upon which an

order may be rendered in the same suit or proceeding against scomplainant and surety, upon a hearing to assess damages, of whhearing, complainant and surety shall have reasonable notice, the scomplainant and surety submitting themselves to the jurisdiction of Commission for that purpose. But nothing herein contained shall deprive party having a claim or cause of action under or upon such undertakfrom electing to pursue his ordinary remedy by suit at law or in equProvided, further, That the reception of evidence for the application of a of injunction may be delegated by the Commission to any of its La

Arbiters who shall conduct such hearings in such places as he mdetermine to be accessible to the parties and their witnesses and ssubmit thereafter his recommendation to the Commission.

A. POWERS OF THE COMMISSION

1. Rule-making power – the Commission is empowered to promulgaa. Rules and regulations governing the hearing and disposition

cases before it and its regional branches; b. Rules and regulations governing its internal functions; c. Rules and regulations as may be necessary to carry out

purpose of the Labor Code.

2. Power to issue compulsory processes and administer oatThe Commission is vested with the power to: a. Administer oaths;b. Summon parties to a controversy; andc. Issue subpoena ad testificandum and duces tecum.

3.

Power to investigate a question, matter or controversy witits jurisdiction – The Commission has the power under Art. 218(cthe Labor Code: a. To conduct investigation for the determination of a quest

matter or controversy within its jurisdiction;b. To proceed to hear and determine the disputes in the absence

any party thereto who has been summoned or served with noto appear;

c. To conduct its proceedings or any part thereof in public orprivate;

d. To adjourn its hearings to any time and place;e. To refer technical matters or accounts to an expert and to acc

his report as evidence after hearing of the parties upon dnotice;

f. To direct parties to be joined in or excluded from the proceedincorrect, amend, or waive any error, defect or irregularity whet

in substance or in form;g. To give all such directions as it may deem necessary or expedin the determination of the dispute before it; and

h. To dismiss any matter or refrain from further hearing or frdetermining the dispute or part thereof, where it is trivial or whfurther proceedings by the Commission are not necessarydesirable

4. Power to hear labor disputes;

5. Contempt power a. Direct Contempt - the Chairman or any Commissioner m

summarily adjudge guilty of direct contempt any percommitting any act of misbehaviour in the presence of or so nthe Chairman or any Commissioner as to obstruct or interrupt proceedings before the same, including disrespect towards s

officials, offensive act towards others, or refusal to be sworn oanswer as a witness or to subscribe to an affidavit or deposiwhen lawfully required to do so. PENALTY: fine not exceedP500 or imprisonment not exceeding 5 days, or both.

judgment of the Commission on direct contempt shall IMMEDIATELY EXECUTORY AND INAPPEALABLE.

b. Indirect Contempt – quasi-judicial agencies that the power to persons for indirect contempt can only do so by initiating it in proper RTC.




6. Injunction power – The Commission has the power to issueinjunction in the following cases: a. Injunction in ordinary labor disputes;b. Injunction in picketing; andc. Injunction in strike or lockout – i. GENERAL RULE: no injunction may be issued against a strike

although it may appear to be illegal in character because a strikeis treated as a weapon the law guarantees to employees for theadvancement of their interest for their protection.

ii. EXCEPTIONS: When the strike is (1) based on non-strikeablegrounds (SMC vs. NLRC) ; (2) held in violation of the law (IBM vs.NLRC); (3) held to compel the employer to ignore the law(Bulleting Publishing vs. Sanchez); and (4) staged after the notice

of strike had been converted into a preventive mediation.

7. Appellate power (see page 5 on Jurisdiction of NLRC) – no appellate jurisdiction over cases decided by Voluntary Arbitrators or Panel of Voluntary Arbitrators, the same is appealable directly to the CA underthe Revised Administrative Circular No. 1-95.

Article. 219. Ocular inspection. - The Chairman, any Commissioner,Labor Arbiter or their duly authorized representatives, may, at any timeduring working hours, conduct an ocular inspection on any establishment,building, ship or vessel, place or premises, including any work, material,implement, machinery, appliance or any object therein, and ask anyemployee, laborer, or any person, as the case may be, for any informationor data concerning any matter or question relative to the object of theinvestigation.

OCCULAR INSPECTION, being a mere auxillary remedy, may be resortedto only for the purpose of helping the NLRC in clearing a doubt, reaching aconclusion or finding the truth. It is not the main trial nor does it precludethe presentation of other evidence which the parties may deem necessary toestablish their case. (Philippine Movie Pictures Workers Association vs.Premier Productions; GR No. L-5621; March 25, 1953)

Article. 220. Compulsory arbitration. - The Commission or any LaborArbiter shall have the power to ask the assistance of other governmentofficials and qualified private citizens to act as compulsory arbitrators oncases referred to them and to fix and assess the fees of such compulsoryarbitrators, taking into account the nature of the case, the time consumed inhearing the case, the professional standing of the arbitrators, the financialcapacity of the parties, and the fees provided in the Rules of Court.

Article. 221. Technical rules not binding and prior resort toamicable settlement.- In any proceeding before the Commission or any ofthe Labor Arbiters, the rules of evidence prevailing in courts of law or equityshall not be controlling and it is the spirit and intention of this Code that theCommission and its members and the Labor Arbiters shall use every and allreasonable means to ascertain the facts in each case speedily andobjectively and without regard to technicalities of law or procedure, all in theinterest of due process. In any proceeding before the Commission or anyLabor Arbiter, the parties may be represented by legal counsel but it shall bethe duty of the Chairman, any Presiding Commissioner or Commissioner orany Labor Arbiter to exercise complete control of the proceedings at allstages.

Any provision of law to the contrary notwithstanding, the Labor Arbiter shallexert all efforts towards the amicable settlement of a labor dispute within hisjurisdiction on or before the first hearing. The same rule shall apply to the

Commission in the exercise of its original jurisdiction.

A. In a catena of cases, the Supreme Court has construed Art. 221 of theLabor Code as permitting the Labor Arbiter or the NLRC to decide acase on the basis of position papers and other documents submittedwithout necessarily resorting to technical rules of evidence as observedin the regular courts of justice.

B. RATIONALE: to free the NLRC or any of its Labor Arbiters from therigors and compulsion of technical rules. Consequently, evidence whichwould otherwise be incompetent and not be admissible in judicial

proceedings would be given weight and admissibility in administrative proceeding.

C. ON FORUM SHOPPING: It is well-settled that compliance with rule on forum-shopping is mandatory even in labor cases (Conutovs. NLRC; GR No. 110914; June 28, 2011) . However, in PacquingCoca-Cola Philippines, Inc. (GR No. 157996; Jan. 31, 2008) , Supreme Court disregarded the fact that not all petitioners signed verification and certificate of non-forum shopping in their appeal to NLRC, stating that it is more in accord with substantial justice aequity to overlook petitioners’ procedural lapses. Still, howeverBecton Dickinson Phils, Inc. vs. NLRC (GR No. 159969 and 1601Nov. 15, 2005) , the Supreme Court affirmed the NLRC’s dismissapetitioners’ appeal due to lack of certification of non-forum shoppingrequired under the NLRC rules. As it is, no grave abuse of discretmay be imputed upon NLRC which merely abides by its own ruleprocedure.

D. PROCEEDINGS BEFORE THE LABOR ARBITER; NATURE – proceedings before the Labor Arbiter are non-litigious in natuSubject to the requirements of due process, the technicalities of and procedure and the rules obtaining in the courts of law shall strictly apply thereto. The Labor Arbiter may avail himself of reasonable means to ascertain the facts of the controversy speedincluding ocular inspection and examination of well-informed person

Article. 222. Appearances and Fees . - (a) Non-lawyers may app

before the Commission or any Labor Arbiter only:

1. If they represent themselves; or2. If they represent their organization or members thereof.

(b) No attorney’s fees, negotiation fees or similar charges of any kind arisfrom any collective bargaining agreement shall be imposed on any individmember of the contracting union: Provided, However, that attorney’s fmay be charged against union funds in an amount to be agreed upon by parties. Any contract, agreement or arrangement of any sort to the contrshall be null and void.

Chapter III: APPEAL

Article. 223. Appeal . - Decisions, awards, or orders of the Labor Arbare final and executory unless appealed to the Commission by any or b

parties within ten (10) calendar days from receipt of such decisions, awaor orders. Such appeal may be entertained only on any of the followgrounds:

(a) If there is prima facie evidence of abuse of discretion on the part of Labor Arbiter;(b) If the decision, order or award was secured through fraud or coercincluding graft and corruption;(c) If made purely on questions of law; and(d) If serious errors in the findings of facts are raised which would cagrave or irreparable damage or injury to the appellant.

In case of a judgment involving a monetary award, an appeal by employer may be perfected only upon the posting of a cash or surety bissued by a reputable bonding company duly accredited by the Commissin the amount equivalent to the monetary award in the judgment appea

from.

In any event, the decision of the Labor Arbiter reinstating a dismissedseparated employee, insofar as the reinstatement aspect is concerned, simmediately be executory, even pending appeal. The employee shall eitbe admitted back to work under the same terms and conditions prevaiprior to his dismissal or separation or, at the option of the employer, mereinstated in the payroll. The posting of a bond by the employer shall stay the execution for reinstatement provided herein.

To discourage frivolous or dilatory appeals, the Commission or the La




Arbiter shall impose reasonable penalty, including fines or censures, uponthe erring parties.

In all cases, the appellant shall furnish a copy of the memorandum of appealto the other party who shall file an answer not later than ten (10) calendardays from receipt thereof.

The Commission shall decide all cases within twenty (20) calendar days fromreceipt of the answer of the appellee. The decision of the Commission shallbe final and executory after ten (10) calendar days from receipt thereof bythe parties.

Any law enforcement agency may be deputized by the Secretary of Laborand Employment or the Commission in the enforcement of decisions, awardsor orders.

A. APPLICABILITY: This Article applies only to appeals from the Labor Arbiter’s decision to the NLRC and not to appeals or decisions, awardsor orders of the NLRC to the Court of Appeals (Tomas Claudio MemorialCollege, inc. vs. CA; GR No. 152568; Feb. 16, 2004)

B. PLACE FILED: Regional Arbitration Branch of the NLRC or RegionalOffice where the case was heard and decided.

C. MOTION FOR RECONSIDERATION is unavailing as a remedyagainst the decision of the Labor Arbiter. Said motion should be treatedas an appeal to the NLRC. (R eyes vs. Maxim’s Tea House; GR No.140853; Feb. 27, 2003)

D. PETITION FOR RELIEF – in New Pacific Timber & Supply Co., Inc.vs. NLRC (GR No. 124224; March 17, 2000) the Supreme Court allowedan appeal initiated by private respondents denominated as “petition forrelief”. Said pleading to be treated as a valid appeal in the interest ofsubstantial justice.

E. AFFIRMATIVE RELIEF; FAILURE TO APPEAL – Generally, a partywho does not appeal from a decision of a court cannot obtainaffirmative relief other than that granted in the appealed decision(Radiowealth Finance Company vs. Del Rosario; GR No. 138739) .However in Catholic Vicariate, Baguio City vs. Hon. Sto. Tomas (GR No.167334; March 7, 2008) the Supreme Court allowed the grant ofaffirmative relief to those who did not appeal saying that the Court isimbued with sufficient authority and discretion to review matters nototherwise assigned as errors on appeal, if it finds that their

consideration is (1) necessary in arriving at a complete and justresolution of the case or (2) to service the interests of justice or (3) toavoid dispensing piecemeal justice.

F. GROUNDS FOR APPEAL UNDER ART. 223

1. If there is prima facie evidence of abuse of discretion on the partof the Labor Arbiter;

2. If the decision, order or award was secured through fraud orcoercion, including graft and corruption;

3. If made purely on questions of law; and/or4. If serious errors in the findings of fact are raised which, if not

corrected, would cause grave or irreparable damage or injury tothe appellant.

G. CERTIORARI - while Art. 223 seems to provide only for the remedy of

appeal as that term is understood in procedural law and asdistinguished from the office of certiorari , nonetheless, a closer readingthereof reveals that it is not so limited. Abuse of discretion isadmittedly within the ambit of certiorari and its grant thereof to theNLRC indicates the lawmakers’ intention to broaden the meaning ofappeal as the term is used in the Labor Code (Air Services Cooperativevs. CA; GR No. 118693; July 23, 1998) .

H. PERFECTION OF APPEAL; REQUISITES:

1. The appeal should be filed within the reglementary period;

2. The appeal should be verified by appellant himself in accordawith Sec. 4, Rule 7 of the Rules of Court;

3. There should be proof of payment of the required appeal fee4. The cash or surety bond should posted if judgment invo

monetary award;5. The appeal should be accompanied by a memorandum

appeal in 3 legibly written copies which shall state (a) grounds relied upon and the arguments in support thereof, (b)relief prayed for, (c) a statement of the date when the appelreceived the appealed decision, resolution or order and (dcertificate of non-forum shopping; and

6. There should be proof of service of the appeal memorandumthe other party.

I. PERFECTION OF APPEAL; EFFECT: the Labor Arbiter loses jurisdiction over the case. All pleadings and motions pertaining to appealed case should thereafter be addressed to and filed with Commission. EXCEPT: REINSTATEMENT, where the Labor Arbfound the employee to be illegally dismissed and ordered such, perfection of the appeal shall not affect his continued exercise

jurisdiction over this particular aspect of the decision. Accordingly,shall continue to have jurisdiction over the enforcement and execuof his reinstatement order even at the time when the appeal from decision was timely filed and duly perfected.

J. PERFECTION OF APPEAL; JURISDICTIONAL: The perfection oappeal in the manner and within the reglementary period prescribedlaw is not only mandatory but also jurisdictional.

K. REGLEMENTARY PERIOD TO PERFECT AN APPEAL:

1. Within 10 days from receipt of the decision, award or ordethe Labor Arbiter;

Exceptions:a. When there is an acceptable reason to excuse tardines

taking the appeal or where there are compelling reasons to subserve justice;

b. When the 10th day falls on a Saturday, Sunday or Holiday;c. When the NLRC exercises its power to “correct, amend

waive any error, defect or irregularity whether in substaor form” in the exercise of its appellate jurisdiction under 218 (c).

d. Reliance on erroneous notice of decision (e.g., when

decision stated that the party can appeal within 10 “workdays);

2. Appeal to the NLRC from the decision of the Labor Arbadjudging a person guilty of direct contempt is within 5 da

3. Appeal to the NLRC from the decisions, awards or orders of DOLE Regional Directors or his duly authorized HeaOfficers is 5 calendar days from receipt thereof.

4. No MOTION FOR EXTENSION OF TIME TO PERFECT AN APPor FILE MEMORANDUM OF APPEAL or FILE APPEAL BONDallowed (Sec. 1, Rule VI, 2005 Revised Rules of Procedure of NLRC) . To extend the period of appeal is to prolong the resoluof the case, a circumstance which would give the employer opportunity to wear out the energy and meagre resources of

worker to the point that he would be constrained to give upless than what he deserves in law. (Globe General Services Security Agency vs. NLRC; GR No. 106477; Oct. 23, 1995)

L. MEMORANDUM OF APPEAL

1. Requisites: The appeal should be accompanied by a memorandof appeal in 3 legibly typewritten copies which shall state:a. The grounds relied upon and the arguments in supp

thereof;b. The relief prayed for;



10Cesar Nickolai F. Soriano Jr. Arellano University School of Law 2011-0303LABOR RELATIONS

c. A statement of the date when the applicant received theappealed decision or order; and

d. A certificate of non-forum shopping with proof of service onthe other party of such memorandum of appeal.

2. Mere notice of appeal is not sufficient and will not stop therunning of the period for perfecting an appeal.

3. Lack of verification in an appeal is not a factual defect and can beeasily corrected by requiring an oath. (Gaerlon vs. NLRC; GR No.L-66526)

M. APPEAL FEE1. Appeal fee is P150 and paid to the Regional Arbitration Branch or

Regional Office, and the official receipt of such payment should beattached to the records of the case (Sec. 5, Rule VI, 2005 RevisedRules of Procedure of the NLRC)

2. As a general rule, the appeal fee must be paid since this is anessential requirement in the perfection of an appeal and by nomeans a mere technicality (Acda vs. Ministry of Labor)

3. However, in other cases, it was pronounced that the failure to paythe appeal docketing fee confers a directory and not a mandatorypower to dismiss an appeal and such power must be exercisedwith sound discretion and with great deal of circumspectionconsidering all attendant circumstances. (Manila MandarinEmployees Union vs. NLRC; GR No. 108556; Nov. 19, 1996)

4. In the case of Aba vs. NLRC (1999) , it was ruled that the paymentof the docketing fee is nowhere written as necessary for theperfection of an appeal. However, in Workers of Antique ElectricCooperative vs. NLRC (2000) , it was ruled that an appeal isperfected only when there is proof of payment of the appeal fee.

5. In instances where the appeal fee was paid belatedly, it was heldthat the broader interest of justice and the desired objective indeciding the case on the merits demand that the appeal be givendue course (Philamlife Insurance Co. vs. Edna Bonto-Perez; GRNo. 83699; Feb. 21, 1989)

N. REINSTATEMENT

1. CONCEPT: to restore the illegally dismissed employee to a stateor condition from which he has been removed or separated.

2. PENDING APPEAL: An order of reinstatement by the Labor Arbiter is immediately executory even pending appeal.

3. REINSTATEMENT UNDER ART. 279 – presupposes that the

judgment granting it has already become final and executor; whilethe reinstatement under Art. 223 is immediately available andexecutor even while the judgment of the Labor Arbiter is stillbeing appealed to the NLRC or to any superior courts.

4. POSTING A BOND; EFFECT: The posting of a bond does notstay the execution of the reinstatement aspect of the decision ofthe Labor Arbiter.

5. MINISTERIAL DUTY : Unless there is a restraining order issued,it is ministerial upon the Labor Arbiter to implement his order ofreinstatement.

6. ISSUANCE OF PARTIAL WRIT: in case the employer disobeysan order of reinstatement or refuses to reinstate the dismissedemployee, the Labor Arbiter should immediately issue a writ of

execution, even pending appeal.

7. NO WRIT OF EXECUTION REQUIRED: the reinstatementaspect of the Labor Arbiter’s decision does not need a writ ofexecution as it is self-executory.

8. OPTIONS OF THE EMPLOYER – the employer is practically leftwith no effective remedy that may forestall or stay the executionof an order of reinstatement. His only two options are: a. ACTUAL REINSTATEMENT – the employee is reinstated to

his position which he occupies prior to his illegal dismissal

under the same terms and conditions prevailing prior todismissal or separation or, if no longer available, tosubstantially equivalent position;

b. PAYROLL REINSTATEMENT – reinstatement in the payof the company without requiring him to report back towork.

9. NLRC CANNOT EXERCISE OPTION PENDING APPEAL – NLRC cannot arrogate unto itself the right to choose whetheadmit the dismissed employee back to work or to reinstate hethe payroll, which right properly pertains to the employer.

10. DISMISSAL IS LATER ON FOUND TO BE LEGAL:

a. THERE IS A WRIT/ORDER OF EXECUTION: Employeentitled to the salaries for the period that he was ordereinstated. In Roquero vs. Philippine Air Lines, Inc. (GR 152329; April 22, 2003) , the Supreme Court held that unjustified refusal of the employer to reinstate the dismthe employee entitles the latter to payment of his salaeffective from the time the employer failed to reinstate despite the issuance of a writ of execution. Unless there restraining order, it is ministerial upon the Labor Arbiteimplement the order of reinstatement. Having failedreinstate the employee, the employer must pay the latter salaries he is entitled to, as if he was reinstated.

b. THERE IS NO WRIT: In Pamuncillo vs. CAP PhilippinInc. (GR o. 161305; Feb. 9, 2007) , the SC ruled that dismissed employee is not entitled to collect any backwafrom the time the NLRC decision became final and execusince “it does not appear that a writ of execution was issfor the implementation of the NLRC order of reinstatemeHowever, in Triad Security & Allied Services, Inc. vs. Ort(GR No. 160871;Feb. 6, 2006), the SC still ordered payment of bakwages for the period the employees shohave been reinstated by order of the Labor Arbiter. It poinout that an order of reinstatement is not the same as actreinstatement. Thus, until the employer continuously failsactually implement the reinstatement aspect of the decisby the Labor Arbiter, its obligation to the dismisemployees, insofar as accrued backwages and other beneare concerned continues to accumulate.

c. PAYROLL REINSTATED EMPLOYEES: The RulingRoquero (supra) , was qualified by the SC in its ruling in 2007 case of Genuino vs. NLRC (GR No. 142732-33; Dec

2007) , saying that “if the decision of the Labor Arbiter is lreversed on appeal upon finding that the ground dismissal is valid, then the employer has the right to reqthe dismissed employee on payroll reinstatement to refthe salaries he/she received while the case was pendappeal, or it can be deducted from the accrued benefits tthe dismissed employee was entitled to receive from his/employer under existing laws, CBA provisions and comppractices.

d. ACTUALLY REINSTATED EMPLOYEE: The above rumade a further qualification on employees ACTUAreinstated. Thus, “if the employee was reinstated to wduring the pendency of the appeal, then the employeeentitled to the compensation received for actual servrendered without need of refund”.

11. WRIT OF EXECUTION REQUIRED FOR NLRC – while it is necessary to implement the reinstatement order by a La

Arbiter, it is however, required to be secured from the La Arbiter a quo, if the reinstatement order is issued by the NLRCappeal.

12. TWO SUCCESSIVE DISMISSALS: in Sevilla vs. NLRC (GR 108878; Sept. 20, 1994) , the SC held that the orderreinstatement pending appeal under Art. 223 issued in the case of dismissal shall apply only to the first case and should affect the second dismissal.




13. FORMER POSITION ALREADY FILLED-UP: the employeeordered reinstated should be admitted back to work in asubstantially equivalent position. (Medina vs. ConsolidatedBroadcasting System; GR No. 99054-56; May 29, 1993)

14. REINSTATEMENT TO A POSITION LOWER IN RANK : inPanuncillo vs. CAP Philippines, Inc. (GR No. 161305; Feb. 9,2007) , the SC held that the Labor Arbiter’s order reinstating thepetitioner to a lower position is a demotion which is not in accordwith the 3rd paragraph of Art. 223 which clearly mandates that theemployee who is ordered reinstated must be accepted back towork under the same terms and conditions prevailing prior to hisdismissal.

15. ANTIPATHY AND ANTAGONISM: where the dismissedemployee’s reinstatement would lead to a strained relationbetween him and his employer or to an atmosphere of antipathyand antagonism, the exception to the twin remedies ofreinstatement and payment of backwages can be invoked andreinstatement, which might become anathema to industrial peace,could be held back pending appeal. (Equitable BankingCorporation vs. NLRC; GR No. 102467; June 13, 1997)

16. REINSTATEMENT NOT STATED IN LABOR ARBITER’SDECISION: When neither the dispositive portion nor the text ofthe Labor Arbiter’s decision ordered reinstatement, suchreinstatement cannot be presumed. It must be specificallydeclared. (Filflex Industrial and Manufacturing Corporation vs.NLRC; GR No. 115395; Feb. 12, 1998)

17. ISSUANCE OF TRO; EFFECT: The issuance of a TRO does notnullify the right of the employees to reinstatement but merelysuspends the same. (Zamboanga City Water District vs. Buat; GRNo. 104389; May 27, 1994)

O. APPEAL INVOLVING MONETARY AWARD; BONDS1. PERFECTION OF APPEAL is only upon posting of a cash or

surety bond within the reglementary period of 10 days fromreceipt of the decision of the Labor Arbiter.

2. AMOUNT OF BOND: Equivalent to the monetary award stated inthe judgment appealed from (Art. 223) , exclusive of damages andattorney’s fees. (Navarro vs. NLRC; GR No. 116464; March 1,

2000) . Accordingly, if there was no monetary award, no appealbond is necessary. (Aba vs. NLRC; GR No. 122627; July 28, 1999)

3. FAILURE TO POST A BOND: is fatal on the appeal andconsequently, the NLRC will not acquire jurisdiction thereto. Theemployee, therefore, may file a motion to dismiss the appeal andnot a petition for mandamus for the issuance of a writ ofexecution.

4. EFFECTIVITY OF THE BOND: Sec. 6, Rule VI of the 2005 Rulesof Procedure of the NLRC states that the cash or surety bondposted in appeals involving monetary awards “shall be in effectuntil final disposition of the case” which should be construed asuntil finality and execution of judgment.

5. REAL PROPERTY BOND: In UERM Memorial Medical Center vs.

NLRC (GR No. 110419; March 3, 1997) , the posting of the realproperty bond in lieu of cash or surety bond was held sufficientprotection for the interest of the employees should they finallyprevail.

6. BANK CERTIFICATION/GUARANTEE: does not come close tothe cash or surety bond required by law. It does not, in any way,ensure that the Labor Arbiter’s award will be paid should theappeal fail. (Cordova vs. Keysa’s Botique; GR No. 156379; Sept.26, 2005)

7. MOTION TO REDUCE BOND a. REQUISITES: (1) the motion to reduce bond should

based on meritorious grounds; (2) A reasonable amounrelation to the monetary award should be posted by appellant; and (3) must be made within the reglementperiod of perfecting an appeal.

b. GROUNDS: (1) the Labor Arbiter’s decision failed to state the exact tamount due; (Your Bus Line vs. NLRC; GR No. 93381; S28, 1990)(2) the Labor Arbiter erroneously included the moral exemplary damages in the computation of appeal bo(Erectors, Inc. vs. NLRC; GR No. 93690; Oct. 10, 1991)

(3) insolvency and poverty of appellant (Cabalan PastuNegrito Labor Association vs. NLRC; GR No. 106108; Feb.1995) but this reason was not sustained in AccessoSpecialist Inc. vs. Alabanza (GR No. 168985; July 23, 2008(4) belated issuance of the Bonding Company of the bondaccount of holidays (Nueva Ecija I Electric Cooperative, Employees Association vs. NLRC; GR No. 116066; Jan. 2000)

8. All told, THE RULES ON THE BOND REQUIREMENT MAY RELAXED IN THE FOLLOWING INSTANCES (Nicol vs. FooIndustrial Corp; GR No. 159372; July 27, 2007) :a. There was substantial compliance with the Rules;b. Surrounding facts and circumstances constitute meritori

grounds to reduce the bond;c. A liberal interpretation of the requirement of an appeal b

would serve the desired objective of resolving controveron the merits; or

d. The appellants, at the very least, exhibited their willingnand/or good faith by posting a partial bond during reglementary period.

9. MONETARY AWARD IN FOREIGN CURRENCY: the conversrate to be used is the rate on the date of the rendition of decision.

P. REVIEW OF UNASSIGNED ERRORS ON APPEAL – an appelcourt or appellate administrative agency, such as the NLRC, is imbwith sufficient discretion to review matters not otherwise assignederrors on appeal in the following instances: 1. Grounds not assigned as errors but affecting jurisdiction of

court over the subject matter; 2. Those which are evidently plain or clerical errors within contemplation of law;

3. When necessary in arriving at a just decision and compresolution of the case or to serve the interests of justice oavoid dispensing piecemeal justice;

4. Those raised in the trial court and are matters of record havsome bearing on the issue submitted which the parties failedraise or which the lower court ignored;

5. Those closely related to an error assigned; 6. Where the determination of a question properly assigned

dependent.

Q. MOTION FOR RECONSIDERATION is both mandatory jurisdictional. The law intends to afford the NLRC an opportunityrectify such errors or mistakes it may have lapsed into before resor

the courts of justice can be had.

Article. 224. Execution of decisions, orders or awards.- (a) Secretary of Labor and Employment or any Regional Director, Commission or any Labor Arbiter, or Med-Arbiter or Voluntary Arbitramay, motu proprio or on motion of any interested party, issue a writexecution on a judgment within five (5) years from the date it becomes fand executory, requiring a sheriff or a duly deputized officer to executeenforce final decisions, orders or awards of the Secretary of Labor aEmployment or regional director, the Commission, the Labor Arbiter or marbiter, or voluntary arbitrators. In any case, it shall be the duty of




responsible officer to separately furnish immediately the counsels of recordand the parties with copies of said decisions, orders or awards. Failure tocomply with the duty prescribed herein shall subject such responsible officerto appropriate administrative sanctions.

(b) The Secretary of Labor and Employment, and the Chairman of theCommission may designate special sheriffs and take any measure underexisting laws to ensure compliance with their decisions, orders or awardsand those of the Labor Arbiters and voluntary arbitrators, including theimposition of administrative fines which shall not be less than P500.00 normore than P10,000.00.

A. GENERAL RULE: It is well settled that once a decision or orderbecomes final and executor, it is removed from the power or

jurisdiction of the court which rendered it to further alter or amend.

B. EXCEPTIONS: 1. When there are clerical errors or mistakes;2. When the amendment or correction is meant to harmonize it with

justice and the facts;3. When the judgment is void;4. When it becomes necessary to accomplish the aims of justice;5. When there are supervening events justifying the amendment or

correction;6. Nunc pro tunc entries which cause no prejudice to any party; void

judgments and whenever circumstances transpire after the finalityof the decision rendering its execution unjust and inequitable.

C.

WRIT OF EXECUTION: must be made within 5 years from the datethe decision becomes final and executor, either motu propio or uponmotion of any interested party.

D. AFTER 5 YEARS FROM FINALITY: the decision may only beenforced by an INDEPENDENT ACTION and not by a mere motion.However, in Philippine Rabbit Bus Lines, Inc. vs. NLRC (GR No. 122078;

April 21, 1999) , the SC held the petitioner cannot legally invoke in thiscase the strict application of the rule limiting execution of judgment bymere motion within a period of 5 years only. In this case, the delaywas caused or occasioned by actions of the judgment debtor and/orincurred for his benefit or advantage. The law bends over backwards,under the policy of social justice, to accommodate the interests of theworking class on the humane justification that those with less privilegein life should have more in law.

E. NLRC JURISDICTION: NLRC has jurisdiction over actions for therevival of judgment.

Article. 225. Contempt powers of the Secretary of Labor .- In theexercise of his powers under this Code, the Secretary of Labor may hold anyperson in direct or indirect contempt and impose the appropriate penaltiestherefor.

See Contempt Powers in page 7

Title IIIBUREAU OF LABOR RELATIONS

Article. 226. Bureau of Labor Relations . - The Bureau of LaborRelations and the Labor Relations Divisions in the regional offices of theDepartment of Labor, shall have original and exclusive authority to act, at

their own initiative or upon request of either or both parties, on all inter-union and intra-union conflicts, and all disputes, grievances or problemsarising from or affecting labor-management relations in all workplaces,whether agricultural or non-agricultural, except those arising from theimplementation or interpretation of collective bargaining agreements whichshall be the subject of grievance procedure and/or voluntary arbitration.

The Bureau shall have fifteen (15) working days to act on labor casesbefore it, subject to extension by agreement of the parties.

A. BUREAU OF LABOR RELATIONS (BLR): within the context of larelations, the term “Bureau” shall refer to the BLR.

B. LABOR RELATIONS DIVISION (LRD): refers to the following uin the DOLE Regional Office: 1. Labor Organization and CBA Registration Unit – is in cha

of processing the applications for registration of independunions, chartered locals (now known as “local chapters”), workassociations and CBAs, maintaining said records and all otreports and incidents pertaining to labor organizations workers’ associations.

2. Med-Arbitration Unit – conducts hearings and decicertification election or representation cases, inter-union intra-union and other related labor relations disputes.

C. CONCURRENT JURISDICTION OF BLR AND LRD:1. Inter-union disputes or “representation dispute” refers t

case involving a petition for certification election filed by a dregistered labor organization which is seeking to be recognizedthe sole and exclusive bargaining agent of the rank-andemployees or supervisory employees, as the case may be, in appropriate bargaining unit of a company, firm or establishmen

Broadly, it refers to any conflict between and among legitimlabor unions involving representation questions for purposescollective bargaining or to any other conflict or dispute betwlegitimate labor unions.

2. Intra-union disputes or “internal union dispute” refers to conflict between and among union members, including grievanarising from any violation of the rights and conditionsmembership, violation or disagreement over any provision of union’s constitution and by-laws or disputes arising fchartering or affiliation of a union.

It refers to a case involving the control, supervision amanagement of the internal affairs of a duly registered launion such as those relating to specific violations of the unioconstitution and by-laws.

D. PLACE OF FILING COMPLAINTS OR PETITIONS: the RegioOffice that issued their certificates of registration.

NATIONAL CONCILIATION AND MEDIATION BOARD (NCMB)

A. BOARD: The word “Board” as used in the Labor Code refers to NCMB established under EO 126.

B. CONCILIATOR-MEDIATOR – refers to an officer of the NCMB whprincipal function is to assist in the settlement and disposition of labmanagement disputes.

C. CONCILIATION/MEDIATION – is a process whereby a third perintervenes in a dispute involving two or more conflicting parties for purpose of reconciling their differences or persuading them adjusting or settling their dispute.

D. JURISDICTION: under Sec. 22 of EO 126, the conciliation, mediatand voluntary arbitration functions of the BLR were all absorbed by NCMB.

E. COMPOSITION: Administrator and 2 Deputy Administrators who sbe appointed by the President upon recommendation of the Secret

of Labor and Employment.

Article. 227. Compromise agreements. - Any compromise settlemincluding those involving labor standard laws, voluntarily agreed upon byparties with the assistance of the Bureau or the regional office of Department of Labor, shall be final and binding upon the parties. TNational Labor Relations Commission or any court, shall not assu

jurisdiction over issues involved therein except in case of non-compliathereof or if there is prima facie evidence that the settlement was obtaithrough fraud, misrepresentation, or coercion.




A. FORM OF COMPROMISE AGREEMENTS: must be reduced inwriting and signed in the presence of the Director of the BLR or theDOLE Regional Director or his duly authorized representative.

B. UNCONSCIONABLE TERMS: Even if the quitclaim and waiverdocument is executed before the DOLE Regional Director, it is not validif the terms of the settlement are unconscionable on their face.

C. NLRC JURISDICTION: The NLRC has no jurisdiction over issuedinvolved in the compromise settlement, except: 1. In case of non-compliance with the terms and conditions of the

compromise agreement;2. If there is a prima facie evidence that the settlement was obtained

through fraud, coercion or misrepresentation.

D. EFFECT OF OFFER OF COMPROMISE: Offers to buy peace andavoid litigations are never taken against the offeror. Otherwise, suchlaudable policy would be negated as parties will refrain from makingany offer knowing that even if rejected, the same would later on beused against them and worse, still will be enforced after the opposingside has lost the very litigation sought to be avoided by the offer.

E. VALID COMPROMISE AGREEMENT: has all the force and effect ofany other judgment. Hence, it is conclusive upon the parties theretoand their privies. Accordingly, a compromise has, upon the parties, theeffect and authority of res judicata but there shall be no executionexcept in compliance with a judicial compromise.

F. REQUISITES OF A VALID QUITCLAIM:1. That there was no fraud or deceit on the part of any of the

parties; 2. That the consideration for the quitclaim is credible and

reasonable; and 3. That the contract is not contrary to law, public order, public

policy, morals or good customs or prejudicial to a third personwith a right recognized by law.

ART. 228. Indorsement of cases to Labor Arbiters . - (a) Except asprovided in paragraph (b) of this Article, the Labor Arbiter shall entertainonly cases endorsed to him for compulsory arbitration by the Bureau or bythe Regional Director with a written notice of such indorsement or non-indorsement. The indorsement or non-indorsement of the Regional Directormay be appealed to the Bureau within ten (10) working days from receipt ofthe notice.

(b) The parties may, at any time, by mutual agreement, withdraw a casefrom the Conciliation Section and jointly submit it to a Labor Arbiter, exceptdeadlocks in collective bargaining.

This Article was repealed completely by Sec. 16 of BP Blg. 130. Resultantly,written indorsement or non-indorsement for compulsory arbitration by theBLR or DOLE Regional Directors in order for the Labor Arbiters to entertaincases falling under their jurisdiction is no longer required. The complainingemployees may file their complaints directly with the Labor Arbiters.

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

NATURE AND EXTENT: The power of the BLR to issue subpoenas extendsonly to matters relevant to a labor dispute which squarely falls within itsjurisdiction. Such power may be exercised upon the instance of anyinterested party or on its own initiative.

Article. 230. Appointment of bureau personnel. - The Secretary ofLabor and Employment may appoint, in addition to the present personnel ofthe Bureau and the Industrial Relations Divisions, such number of examinersand other assistants as may be necessary to carry out the purpose of theCode.

Article. 231. Registry of unions and file of collective bargainagreements . - The Bureau shall keep a registry of legitimate laorganizations. The Bureau shall also maintain a file of all collecbargaining agreements and other related agreements and recordssettlement of labor disputes and copies of orders and decisions of voluntarbitrators. The file shall be open and accessible to interested parties unconditions prescribed by the Secretary of Labor and Employment, provithat no specific information submitted in confidence shall be disclosed unauthorized by the Secretary, or when it is at issue in any judicial litigationwhen public interest or national security so requires.

Within thirty (30) days from the execution of a Collective Bargain Agreement, the parties shall submit copies of the same directly to Bureau or the Regional Offices of the Department of Labor and Employmfor registration, accompanied with verified proofs of its posting in tconspicuous places in the place of work and ratification by the majority othe workers in the bargaining unit. The Bureau or Regional Offices shallupon the application for registration of such Collective Bargaining Agreemwithin five (5) calendar days from receipt thereof. The Regional Offices sfurnish the Bureau with a copy of the Collective Bargaining Agreemwithin five (5) days from its submission.

The Bureau or Regional Office shall assess the employer for every CollecBargaining Agreement a registration fee of not less than one thousand pe(P1,000.00) or in any other amount as may be deemed appropriate anecessary by the Secretary of Labor and Employment for the effective efficient administration of the Voluntary Arbitration Program. Any amocollected under this provision shall accrue to the Special Volunt

Arbitration Fund.

The Bureau shall also maintain a file and shall undertake or assist in publication of all final decisions, orders and awards of the Secretary of Laand Employment, Regional Directors and the Commission.

Article. 232. Prohibition on certification election. - The Bureau snot entertain any petition for certification election or any other action whmay disturb the administration of duly registered existing collecbargaining agreements affecting the parties except under Articles 253, 2

A and 256 of this Code.

CONTRACT-BAR RULE: Once a CBA is duly registered and valsubsisting in compliance with the legal mandate of Art. 231 of the LaCode, the BLR should not entertain any petition for certification electionany other action which may disturb the administration of the duly registe

existing CBA affecting the parties. Neither party should terminate nor mosuch agreement during its lifetime.

REASON FOR THE CONTRACT-BAR RULE: to prevent the proliferatiounion politics which may be deleterious to the smooth administration of CBA. The stability of the CBA is thus preserved. (Foamtex Labor UnionNoriel; GR No. L-42349; Aug. 17, 1976) No petition for certification elecmay be entertained if filed outside the 60 day freedom period to ensindustrial peace between the employer and its employees during existence of the CBA (Republic Planters Bank General Services EmployUnion-NATU vs. Laguesma)

EXCEPTIONS: 1. During the 60-day freedom period prior to the expiry date of a CBA

enunciated in Art. 253, 253-A and 256;2. When the CBA is not registered with the BLR or any of the DO

Regional Offices;3. When the CBA, although registered, contains provisions lowers t

the standards fixed by law;4. When the documents supporting the CBA’s registration are falsif

fraudulent or tainted with misrepresentation;5. When the CBA is not complete as it does not contain any of

requisite provisions which the law requires. Such kind of agreemcannot promote industrial peace as it leaves out matters which parties should have stipulated;

6. When the CBA was entered into prior to the 60 day freedom perThe agreement in this case is deemed hastily entered into in orde




frustrate the will of the employees in choosing their bargainingrepresentative;

7. When there is a schism in the union resulting in an industrial disputewherein the CBA can no longer foster industrial peace. The conduct ofa certification election is such a situation becomes imperative to clearany doubt as to the real and legitimate representative of theemployees.

Article. 233. Privileged communication. - Information and statementsmade at conciliation proceedings shall be treated as privilegedcommunication and shall not be used as evidence in the Commission.Conciliators and similar officials shall not testify in any court or bodyregarding any matters taken up at conciliation proceedings conducted bythem.

Title IVLABOR ORGANIZATIONS

Chapter I: REGISTRATION AND CANCELLATION

Article 234. Requirements of registration. - A federation, nationalunion or industry or trade union center or an independent union shallacquire legal personality and shall be entitled to the rights and privilegesgranted by law to legitimate labor organizations upon issuance of thecertificate of registration based on the following requirements:

(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 ofthe workers who participated in such meetings;(c) In case the applicant is an independent union, the names of all itsmembers comprising at least twenty percent (20%) of all the employees inthe bargaining unit where it seeks to operate;(d) If the applicant union has been in existence for one or more years,copies of its annual financial reports; and(e) Four copies of the constitution and by-laws of the applicant union,minutes of its adoption or ratification, and the list of the members whoparticipated in it.

A. COVERAGE: The above provision covers: 1. FEDERATION – or national union or industry union – refers to a

group of legitimate labor organizations in private establishmentsorganized for collective bargaining purposes or for dealing withemployers concerning the terms and conditions of employment of

its member-unions or for participating in the formulation of socialand employment policies, standards and programs and isregistered with the BLR.

2. TRADE UNION CENTER – is any group of registered nationalunions or federations organized for the mutual aid and protectionof its members, for assisting such members in collectivebargaining, or for participating in the formulation of social andemployment policies, standards, and programs, and is dulyregistered with the BLR.

3. INDEPENDENT UNION – refers to any labor organization at theenterprise level which acquired legal personality throughindependent registration under Art. 234 of the Labor Code andRule III, Section 2-A, Book V of the Rules to Implement the LaborCode.

B. ACQUISITION OF LEGAL PERSONALITY: upon issuance of the

certificate of registration.

C. 20% MEMBERSHIP REQUIREMENT: This requirement applies onlyto independent unions. Hence, a federation, a national union, industryunion or a trade union center need not comply.

D. PURPOSES OF A LABOR ORGANIZATION 1. COLLECTIVE BARGAINING – is actually a right granted by

virtue of registration of a labor organization with the DOLE.Consequent to such registration, it becomes a legitimate labor

organization possessed of all the rights and privileges ordained Art. 242 of the Labor Code.

2. Dealing with the employer – necessarily means no less tinteractive relations between the employer and the employrespecting all aspects of the employment relationship. Acollective bargaining, the labor organization is tasked, in ccoordination with the employer, to administer and implement CBA’s provisions on wages, hours of work as well as all otbenefits flowing therefrom, adjust and resolve grievances other issues it may have with the employer and participatepolicy and decision-making processes affecting the welfare of employees, among others.

E. REGISTRATION is the process of determining whether the applicafor registration of a labor organization or workers’ association compwith the documentary requirements for registration prescribed by law

PURPOSE: to protect labor and the public against abuses, fraudimpostors who pose as organizers, although not truly accreditedagents of the union they purport to represent. Such requirement valid exercise of police power because the activities in which laorganizations, associations and unions of workers are engaged afpublic interest, which should be protected. (Philippine AssociationFree Labor Union vs. Secretary of Labor; 27 SCRA 40)

F. LEGITIMATE LABOR ORGANIZATION refers to any laorganization in the private sector registered or reported with the DOin accordance with the Labor Code and its implementing rules.

G. IMPORTANCE OF LEGITIMATE STATUS: Only legitimate laorganizations have exclusive rights under the law which cannotexercised by non-legitimate unions, one of which is the right tocertified as the exclusive bargaining representative of all the employin an appropriate bargaining unit for purposes of collective bargainin

H. INCORPORATION UNDER THE CORPORATION CODE of a laorganization as a non-stock corporation is inconsequential as it dNOT make it a “legitimate labor organization”. It does not confer rights and privileges accorded by law to legitimate labor organizatio(Philippine Land-Sea-Air Labor Union vs. CIR; GR Nos. L-5664 &5698; Sept. 17, 1953)

I. INDEPENDENT UNIONS; WHERE TO FILE APPLICATION: DORegional Office where the applicant principally operates. It shall

processed by the LRD at the Regional Office.

J. FEDERATIONS, NATIONAL UNIONS OR WOKE ASSOCIATION OPERATING IN MORE THAN ONE REGIOWHERE TO FILE APPLICATION: BLR or the Regional Offices.

K. CHANGE OF NAME; EFFECT: the change of name shall not afthe legal personality of the union. All the rights and obligations olabor organization under its old name shall continue to be exercisedthe labor organization under its new name. (Sec. 9, Rule IV, Book V)

Article 234-A. Chartering and creation of a local chapter. - A dregistered federation or national union may directly create a local chapteissuing a charter certificate indicating the establishment of the local chapThe chapter shall acquire legal personality only for purposes of filingpetition for certification election from the date it was issued a cha

certificate.

The chapter shall be entitled to all other rights and privileges of a legitimlabor organization only upon the submission of the following documentaddition to its charter certificate:

(a) The names of the chapter’s officers, their addresses, and the princoffice of the chapter; and(b) The chapter’s constitution and by-laws: Provided, That where chapter’s constitution and by-laws are the same as that of the federationthe national union, this fact shall be indicated accordingly.




The additional supporting requirements shall be certified under oath by thesecretary or treasurer of the chapter and attested by its president.

A. LOCAL CHAPTER: a labor organization in the private sector operatingat the enterprise level that acquired legal personality throughregistration with the Regional Office of the DOLE in accordance withRule III, Sec. 2-E, Book V.

B. CREATION:1. Only partial legal personality is acquired by a local chapter upon

the issuance to it of a charter certificate by a federation ornational union. It is partial in the sense that the legal personalityso acquired is only meant for one purpose, that is, to file apetition for certification election.

2. Full legal personality is accorded to a local chapter only uponcompliance with the all-too important requirement of submissionof its charter certificate and the documents required under Art.234-A to the DOLE.

C. ACQUISITION OF LEGAL PERSONALITY: is upon submission of thedocumentary requirements.

D. TRADE UNIONS NOT ALLOWED TO DIRECTLY CHARTER LOCALCHAPTERS: Only a duly registered federation or national union whichis empowered to directly issue a charter certificate. Although Art. 234now includes “trade union center” as among the organizations whichmay register as a legitimate labor organization but interestingly, Art.234-A does not mention trade union center as among the labor

organizations which may charter a local chapter.

Thus, applying the latin maxim expression unius est exclusion alterius ,it was held in the case of San Miguel Corporation Employees Union- PTGWO vs. San Miguel Packaging Products Employees-Union-PMDP(GR No. 171153; Sept. 12, 2007) , that trade union centers are notallowed to charter directly a local or a chapter.

E. AFFILIATE refers to: 1. An independent union affiliated with a federation or a national

union; or2. A local chapter which has been subsequently granted independent

registration but did not disaffiliate from the federation or nationalunion which created it.

PURPOSE: in order to further strengthen their collective bargaining

leverage.

NATURE AND EXTENT: in Progressive Development Corporation vs.Secretary, DOLE (GR No. 96425; Feb. 4, 1992) , the SC clarified that

“the mother union, acting for and in behalf of its affiliate, has thestatus of an agent while the local union remains the basic unit of theassociation free to serve the common interest of all its memberssubject only to the restraints by the constitution and by-laws of theassociation.”

The affiliate union, being an independently registered union, does notowe its existence to the federation with which it is affiliated. It is aseparate and distinct voluntary association owing its creation to the willof its members. It does not give the mother federation the license toact independently of the affiliate union. It only gives rise to a contractof agency, where the former acts in representation of the latter.

(Coastal Subic Bay Terminal vs. DOLE-Office of the Secretary)

The concept of principal and agent relationship also applies even in thecase of a local chapter created by a federation or a national union.

DISAFFILIATION: of an independently-registered union does notaffect its legitimate status as a labor organization. However, the samething may not be said of a local chapter which has no independentregistration since its creation was effected pursuant to the chartercertificate issued to it by the federation or national union.

Article 235. Action on application. - The Bureau shall act onapplications for registration within thirty (30) days from filing.

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

IN CASE OF REFUSAL TO REGISTER A UNION: the proper remedy labor organization which complies with all the requirements is mandam(Umali vs. Lovina; GR No. L-2771; April 29, 1950)

Certiorari is not the proper remedy since the approval of applicationregistration is not a judicial function. (Brillo vs. Buklatan; GR No. L-22Oct. 14, 1950)

Article 236. Denial of registration; appeal. - The decision of the LaRelations Division in the regional office denying registration may appealed by the applicant union to the Bureau within ten (10) days frreceipt of notice thereof.

MODE OF APPEAL: 1. Appeal to the BLR, if the denial is made by the Regional Office; or2. Appeal to the DOLE Secretary, if the denial is made by the BLR.

Article 237. Additional requirements for federations or natiounions. - Subject to Article 238, if the applicant for registration ifederation or a national union, it shall, in addition to the requirements of preceding Articles, submit the following:

(a) Proof of the affiliation of at least ten (10) locals or chapters, eachwhich must be a duly recognized collective bargaining agent in establishment or industry in which it operates, supporting the registratiosuch applicant federation or national union; and

(b) The names and addresses of the companies where the locals or chapoperate and the list of all the members in each company involved.

Article 238. Cancellation of registration. - The certificate of registraof any legitimate labor organization, whether national or local, may cancelled by the Bureau, after due hearing, only on the grounds specified

Article 239 hereof.

CANCELLATION PROCEEDINGS: refers to the legal process leadingthe revocation of the legitimate status of a union or a workers’ associatio

WHERE TO FILE PETITION: 1. Independent union or local chapter or workers’ association – DO

Regional Director;2. Federation or national or industry union or trade union center –

Director.

WHO MAY FILE: Any party-in-interest may commence a petition cancellation of registration, except in actions involving violations of Art. 2which can be commenced only by the members of the labor organizaconcerned.

APPEAL IN CANCELLATION OF UNION REGISTRATION: 1. The decision of the Regional Director – BLR Director within 10 days.2. The decision of the BLR Director in the exercise of his orig

jurisdiction – Office of the DOLE Secretary within 10 days.

APPELLATE JURISDICTION OF REGIONAL DIRECTOR AND BDIRECTOR DISTINGUISHED: in the case of Abbott LaboratoPhilippines, Inc. vs. Abbot Laboratories Employees Union (GR No. 1313Jan. 26, 2000) , the High Court held explained that, the appellate jurisdicof the DOLE Secretary is limited only to a review of cancellation proceedidecided by the BLR in the exercise of the latter’s exclusive and orig

jurisdiction. The DOLE Secretary has no jurisdiction to review the decisof the Regional Directors in cancellation cases, said decisions being final inappealable.




Simply stated, there are 2 situations contemplated, thus:1. First situation involves a petition for cancellation of union registration

which is filed with a Regional Office;2. Second situation involves a petition for cancellation filed directly with

the BLR.

Article 238-A. Effect of a petition for cancellation of registration. - Apetition for cancellation of union registration shall not suspend theproceedings for certification election nor shall it prevent the filing of apetition for certification election.

In case of cancellation, nothing herein shall restrict the right of the union toseek just and equitable remedies in the appropriate courts.

EFFECT OF CANCELLATION DURING THE PENDENCY OF A CASE: thelabor organization whose registration is cancelled may still continue to be aparty to the case without necessity for substitution. However, whateverdecision may be rendered therein shall only be binding on the members ofthe union who have not signified their desire to withdraw from the casebefore its trial and decision on the merits.

Article 239. Grounds for cancellation of union registration.- Thefollowing may constitute grounds for cancellation of union registration:

(a) Misrepresentation, false statement or fraud in connection with theadoption or ratification of the constitution and by-laws oramendments thereto, the minutes of ratification, and the list of memberswho took part in the ratification;

(b) Misrepresentation, false statements or fraud in connection with theelection of officers, minutes of the election of officers, and the list ofvoters;

(c) Voluntary dissolution by the members.

The legal grounds to cancel union registration was narrowed down by Sec. 5of RA No. 9481 to the 3 enumerated under Art. 239 of the Labor Code.

COLLATERAL ATTACK: The legal personality of a legitimate organizationcannot be subject to a collateral attack. It may be questioned only in anindependent petition for cancellation in accordance with rules.

Article 239-A. Voluntary cancellation of registration. - The

registration of a legitimate labor organization may be cancelled by theorganization itself: Provided, That at least two-thirds of its generalmembership votes, in a meeting duly called for that purpose to dissolve theorganization: Provided, further, That an application to cancel registration isthereafter submitted by the board of the organization, attested to by thepresident thereof.

REQUISITES FOR VOLUNTARY CANCELLATION: 1. At least 2/3 of its general membership votes to dissolve the labor

organization, in a meeting duly called for that purpose; and2. An application to cancel registration is thereafter submitted by the

board of the labor organization duly attested by its president.

Article 240. Equity of the incumbent. – All existing federations andnational unions which meet the qualifications of a legitimate labororganization and none of the grounds for cancellation shall continue to

maintain their existing affiliates regardless of the nature of the industry andthe location of the affiliates.

The above article, as amended by EO No. 111, removed the “one industry,one union” policy. The right of federation or national unions to maintaintheir existing affiliates, irrespective of the nature of the industry and locationof their affiliates, is thus affirmed.

Chapter II: RIGHTS AND CONDITIONS OF MEMBERSHIP

Article 241. Rights and conditions of membership in a laorganization. – The following are the rights and conditions of membersin a labor organization:

(a) No arbitrary or excessive initiation fees shall be required of the membof a legitimate labor organization nor shall arbitrary, excessive or oppresfine and forfeiture be imposed;

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

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

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

(e) No labor organization shall knowingly admit as members or continuemembership any individual who belongs to a subversive organization or wis engaged directly or indirectly in any subversive activity;

(f) No person who has been convicted of a crime involving moral turpitshall be eligible for election as a union officer or for appointment to aposition in the union;

(g) No officer, agent or member of a labor organization shall collect fees, dues, or other contributions in its behalf or make any disbursemenits money or funds unless he is duly authorized pursuant to its constituand by-laws;

(h) Every payment of fees, dues or other contributions by a member shalevidenced by a receipt signed by the officer or agent making the collec

and entered into the record of the organization to be kept and maintainfor the purpose;

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

(j) Every income or revenue of the organization shall be evidenced brecord showing its source, and every expenditure of its funds shall evidenced by a receipt from the person to whom the payment is mawhich shall state the date, place and purpose of such payment. Such recor receipt shall form part of the financial records of the organization.

Any action involving the funds of the organization shall prescribe after th(3) years from the date of submission of the annual financial report to

Department of Labor and Employment or from the date the same shohave been submitted as required by law, whichever comes earlier: ProvidThat this provision shall apply only to a legitimate labor organization whhas submitted the financial report requirements under this Code: Providfurther, that failure of any labor organization to comply with the periofinancial reports required by law and such rules and regulations promulgathereunder six (6) months after the effectivity of this Act shall automaticresult in the cancellation of union registration of such labor organization;amended by Section 16, Republic Act No. 6715, March 21, 1989).

(k) The officers of any labor organization shall not be paid




compensation other than the salaries and expenses due to their positions asspecifically provided for in its constitution and by-laws, or in a writtenresolution duly authorized by a majority of all the members at a generalmembership meeting duly called for the purpose. The minutes of themeeting and the list of participants and ballots cast shall be subject toinspection by the Secretary of Labor or his duly authorized representatives.Any irregularities in the approval of the resolutions shall be a ground forimpeachment or expulsion from the organization;

(l) The treasurer of any labor organization and every officer thereof who isresponsible for the account of such organization or for the collection,management, disbursement, custody or control of the funds, moneys andother properties of the organization, shall render to the organization and toits members a true and correct account of all moneys received and paid byhim since he assumed office or since the last day on which he rendered suchaccount, and of all bonds, securities and other properties of the organizationentrusted to his custody or under his control. The rendering of such accountshall be made:

(1) At least once a year within thirty (30) days after the close of its fiscalyear;(2) At such other times as may be required by a resolution of the majorityof the members of the organization; and(3) Upon vacating his office.

The account shall be duly audited and verified by affidavit and a copythereof shall be furnished the Secretary of Labor.

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

(n) No special assessment or other extraordinary fees may be levied uponthe members of a labor organization unless authorized by a writtenresolution of a majority of all the members in a general membershipmeeting duly called for the purpose. The secretary of the organization shallrecord the minutes of the meeting including the list of all members present,the votes cast, the purpose of the special assessment or fees and therecipient of such assessment or fees. The record shall be attested to by thepresident.

(o) Other than for mandatory activities under the Code, no specialassessments, attorney’s fees, negotiation fees or any other extraordinaryfees may be checked off from any amount due to an employee without an

individual written authorization duly signed by the employee. Theauthorization should specifically state the amount, purpose and beneficiaryof the deduction; and

(p) It shall be the duty of any labor organization and its officers to inform itsmembers on the provisions of its constitution and by-laws, collectivebargaining agreement, the prevailing labor relations system and all theirrights and obligations under existing labor laws.

For this purpose, registered labor organizations may assess reasonable duesto finance labor relations seminars and other labor education activities.

Any violation of the above rights and conditions of membership shall be aground for cancellation of union registration or expulsion of officers fromoffice, whichever is appropriate. At least thirty percent (30%) of themembers of a union or any member or members specially concerned may

report such violation to the Bureau. The Bureau shall have the power tohear and decide any reported violation to mete the appropriate penalty.

Criminal and civil liabilities arising from violations of above rights andconditions of membership shall continue to be under the jurisdiction ofordinary courts.

NATURE OF RELATIONSHIP BETWEEN UNION AND ITS MEMBERS: The relationship between the union and its members is fiduciary incharacter. The union is but an agent of its members for the purpose ofsecuring for them fair and just wages and proper good working conditions.

It includes the obligation to give its members as its principals, all informarelevant to the union and labor matters entrusted to it.

RIGHT TO UNION MEMBERSHIP 1. NOT ABSOLUTE: Although the right to self-organization and collec

bargaining is duly guaranteed under the Constitution, it is subjhowever, to regulation by the State. For instance, it is mandated by that no labor organization shall knowingly admit as membercontinue in membership, any individual who belongs to a subverorganization or who is engaged directly or indirectly in any subversactivity.

2. FREEDOM OF CHOICE: An employee has the right to join or not a labor union. A member of a labor union may leave and cancelmembership at any time. (Basa vs. FOITAF; GR No. L-27113; Nov. 1974)

However, in case there is a valid union security clause such aclosed-shop or union-shop arrangement, the employee concernedduty-bound to keep his union membership for the duration of the Cas a condition for his continued employment. The only exceptthereto is on the ground of religious belief. (Victoriano vs. Elizalde RWorkers Union)

3. ACQUIRED FROM THE FIRST DAY OF EMPLOYMENT: Under 277(c), any employee, whether employed for a definite period or shall, beginning on his first day of service, be considered an emplofor purposes of membership in any labor union.

RIGHTS OF UNION MEMBERS UNDER ART. 241:1. FISCAL RIGHTS:

a. Right against arbitrary, oppressive or excessive fees, fines forfeitures;

b. Right to full and detailed reports on all financial transactionsaccordance with the constitution and by-laws of the union;

c. Right against unauthorized collection of any fees, dues or otcontribution;

d. Right to claim receipt of every payment of fees, dues or tcontributions;

e. Right to prevent funds of the organization from being appliedany purpose or object other than those expressly provided by union’s constitution and by-laws or allowed expressly by writresolution adopted by the majority of the members at a genmeeting duly called for the purpose;

f. Right to demand or require that every income or revenue as was every expenditure of the union shall be recorded or receipt

which record or receipt shall form part of the financial recordsthe union; g. Right to demand unauthorized check-off for special assessme

attorney’s fees, negotiation fees or any other extraordinary fwithout an individual written authorization duly signed by employee;

h. Right to vote on the compensation of union officers; and i. Right against unreasonable assessments to finance labor relati

seminars and other labor education activities.

2. RIGHT TO INFORMATION:a. Right to require the treasurer and the other officers of the un

responsible for the account of the union as well as for collection, management, disbursement, custody or control of funds, moneys and other properties, to render a true and coraccount thereof, at least once a year within 30 days after

close of its fiscal year and at such other times as may be requby a resolution of the majority of the members of the union upon vacating his office;

b. Right to require that the account be duly audited and verifiedaffidavit and a copy thereof be furnished to the DOLE Secretary

c. Right to inspect the books of accounts and other financial recoof the union and to require full and detailed reports from tofficers and representatives on all financial transactions provided for in the constitution and by-laws of the organization

d. Right to be informed of the provisions of the constitution and laws, CBA, the prevailing labor system and all their rights




obligations under existing labor laws through the medium of laborrelations seminars or other labor education activities; and

e. Right to seek investigation of any irregularity.

3. POLITICAL RIGHTS:a. Right to vote and be voted for as an officer of the union, subject

to the qualifications and disqualifications mentioned in Art 241 ofthe Labor Code; and

b. Right to be appointed to appointive positions in the organization,subject to the qualifications and disqualifications mentioned in Art.241 of the Labor Code.

4. RIGHT TO PARTICIPATE IN DECISION-MAKING

a. Right to vote by secret ballot on any question of major policyaffecting the entire membership of the organization; and

b. Right to initiate and participate in impeachment or expulsionproceedings against an erring officer or member of the union.

ELECTION OF OFFICERS1. TERM OF OFFICE: 5 years unless a shorter period is stipulated in the

organization’s constitution and by-laws; 2. QUALIFICATIONS:

a. Member in good standing;b. No person who is not an employee or worker of a company or

establishment where a labor organization operates, shall beelected or appointed as an officer thereof.

3. DISQUALIFICATIONS: a. Conviction of a crime involving moral turpitude. “Moral turpitude”

consists of an act characterized with baseness, vileness ordepravity in the private or social duties which a man owes hisfellowmen, or to society, in general, contrary to accepted andcustomary rule of right and duty between man and man, orconduct contrary to justice, honesty, modesty or good morals.(Tak Ng vs. RP; GR No. L-13017; Dec. 23, 1959)

b. Membership in a subversive organization or engaging directly orindirectly, in any subversive activity.

4. DISPUTE OVER THE CONDUCT OF THE ELECTION OFOFFICERS: Where no election is held, at least 30% of the membersmay file a petition for conduct of election of their officers with theRegional Office that issued its certificate of registration or with whichthe registration documents were submitted. In case of federations,national or industry unions and trade union centers, the petition shouldbe filed with the BLR or the Regional Office but it shall be heard andresolved by the BLR. This rule also applies where the conduct of

election of officers is an affirmative relief or necessary consequence ofa petition for nullification of the election of officers, impeachment orexpulsion of officers, or such other petitions.

5. PERIOD TO FILE PROTEST: both the law and its implementing rulesare silent on the period governing protests of election of union officers.It was held that the 5 day period provided in the rules for certificationelection is inapplicable to the protests on election of officers. In theabsence of any specific period in the constitution or by-laws, theelection code cannot apply, and the protest cannot be said to haveprescribed. (PASUDECO Workers’ Union vs. BLR; GR No. 50241; Dec.19, 1980)

6. DEPRIVE MEMBERS TO VOTE: An election cannot acquire asemblance of legality if it was purposely done to pre-empt theresolution of a pending case by the BLR and to deprive certainmembers of their substantial right to participate in the election.(Verceles vs. BLR-DOLE; GR No. 152322; Feb. 15, 2005)

7. IMPEACHMENT OR EXPULSION OF OFFICERSa. GROUNDS:

i. Violation of the rights and conditions of membership in a labororganization;ii. Commission of irregularities in the approval of the resolutionsregarding compensation of union officers;iii. Failure to provide adequate labor education and researchservices to union members;iv. Misuse or illegal disbursement of labor education and researchfund;v. Membership in another labor organization.

b. PAST WRONGDOINGS: After the election of union officers, tmay not be expelled from the union as officers for pmalfeasance or misfeasance since this will render nugatory choice of the union members. It is apropos to recall the ruling twhere the people have elected a man to office, it must assumed that they did this with full knowledge of his life acharacter and that they disregarded or forgave his faultsmisconduct if he had been guilty of any.

c. INDEFINITE SUPSENSION imposed on union membaccused of spreading false rumors and creating disinformaamount its members without the benefit of proper investigatioillegal.

ASSESSMENTS AND CHECK-OFFS A. CHECK-OFF: means a method of deducting from the employee’s

at prescribed periods, any amount due for fees, fines or assessmentB. PURPOSE: Check-off is for the benefit of the union. It assures

union of continuous funding.C. REQUISITES FOR VALIDITY:

1. Authorization by a written resolution of the majority of all members at a general membership meeting duly called for purpose;

2. Secretar y’s record of the minutes of said meeting; and3. Individual written authorizations for check-off duly signed

the employees concerned.D. INDIVIDUAL WRITTEN AUTHORIZATIONS

1. Generally: the law strictly prohibits the check-off from any amodue an employee who is a member of the union withoutindividual written authorization duly signed by the employee.

2. When not required:a. Assessment from non-members of the bargaining agen

reasonable fees equivalent to the dues and other fees pby members of the recognized bargaining agent, if such nmembers accept the benefits under the CBA. This is so-ca

“agency fee”; b. Deductions for fees for mandatory activities such as la

relations seminars and labor education activities;c. Check-off for union service fees authorized by law;d. Deductions for withholding tax mandated under the NIRC;e. Deductions for withholding of wages because of employe

debt to the employer which is already due;f. Deductions made pursuant to a judgment against the wo

under circumstances where the wages may be the subjec

attachment or execution but only for debts incurred for foclothing, shelter and medical attendance;g. Deductions from wages ordered by the court;h. Deductions authorized by law such as for premiums

PhilHealth, Social Security, Pag-IBIG, employcompensation and the like.

E. ASSESSMENTS AFTER WITHDRAWAL OF AUTHORIZATIONnot valid. Even assuming that the special assessment was vallevied.

ACTIONS ARISING FROM ART. 241 are treated as intra-union dispuand should be heard by the Med-Arbiter.1. ACTIONS FOR THE CONDUCT OF EXAMINATION OF THE BOOKS

ACCOUNTS OF THE ORGANIZATION under Art. 274 is not treated aintra-union dispute and should be filed with the Regional Office tissued their certificates of registration or certifications of creation

chartered local.2. DECISION GRANTING THE CONDUCT OF AUDIT: is interlocutory

not appealable.3. FILING A COMPLAINT is not treated as a misconduct or disloyalty

violation of the rules and regulations of the union.4. PRESCRIPTION OF ACTIONS INVOLVING UNION FUNDS: is 3 ye

from the date of submission of the annual financial report to the DOor from the date the same should have been submitted as requiredlaw, whichever comes earlier.




EFFECT OF VIOLATION OF ART. 241: is either cancellation of unionregistration or expulsion of union officers.

CRIMINAL AND CIVIL LIABILITY: shall continue to be under thejurisdiction of ordinary courts.

Chapter III: RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS

Article 242. Rights of legitimate labor organizations. – A legitimatelabor organization shall have the right:

(a) To act as the representative of its members for the purpose of collectivebargaining;

(b) To be certified as the exclusive representative of all the employees in anappropriate bargaining unit for purposes of collective bargaining;

(c) To be furnished by the employer, upon written request, with its annualaudited financial statements, including the balance sheet and the profit andloss statement, within thirty (30) calendar days from the date of receipt ofthe request, after the union has been duly recognized by the employer orcertified as the sole and exclusive bargaining representative of theemployees in the bargaining unit, or within sixty (60) calendar days beforethe expiration of the existing collective bargaining agreement, or during thecollective bargaining negotiation;

(d) To own property, real or personal, for the use and benefit of the labororganization and its members;

(e) To sue and be sued in its registered name; and

(f) To undertake all other activities designed to benefit the organization andits members, including cooperative, housing, welfare and other projects notcontrary to law.

Notwithstanding any provision of a general or special law to the contrary,the income and the properties of legitimate labor organizations, includinggrants, endowments, gifts, donations and contributions they may receivefrom fraternal and similar organizations, local or foreign, which are actually,directly and exclusively used for their lawful purposes, shall be free fromtaxes, duties and other assessments. The exemptions provided herein maybe withdrawn only by a special law expressly repealing this provision. A. RIGHT TO REPRESENT MEMBERS FOR COLLECTIVE

BARGAINING essentially involves the RIGHT TO BE CERTIFIED ASTHE EXCLUSIVE REPRESENTATIVE – it must be pointed out thatalthough the union has every right to represent its members in thenegotiations regarding the terms and conditions, it cannot negate theirwishes on matters which are purely personal and individual to them.

B. RIGHT TO REQUEST FOR AUDITED FINANCIAL STATEMENTS under the following situations: 1. After it has been voluntarily recognized by the employer as the

sole and exclusive bargaining representative of the employees inthe bargaining unit; or

2. After it has been certified as the sole and exclusive bargainingrepresentative by the DOLE;

3. Within the 60 day freedom period prior to the expiration of theCBA; or

4. During and in the course of the CB negotiations.

C. RIGHT TO OWN PROPERTY – such properties so acquired should bein the name of the labor organization.

D. RIGHT TO SUE AND BE SUED IN THE UNION’S REGISTEREDNAME – the action should be brought in behalf of its members and notin the name of the union president. (Brillo vs. Buklatan; GR No. L-2213;Oct. 14, 1950)

Were the individual benefits accrue to the members of a union from afavourable judgment of a court, the members themselves become the

real parties-in-interest and it is for them to accept or reject individuthe fruits of the litigation, and not the union of which they members. (Producers Bank of the Philippines vs. NLRC; GR 118069; Nov. 16, 1998)

E. TAX FREE INCOME AND PROPERTIES provided they are actually; (2) directly and (3) exclusively used for their lawful purpose

Article 242-A. Reportorial requirements. - The following are documerequired to be submitted to the Bureau by the legitimate labor organizaconcerned:

(a) Its constitution and by-laws, or amendments thereto, the minutesratification, and the list of members who took part in the ratification of constitution and by-laws within thirty (30) days from adoption or ratificaof the constitution and by-lam or amendments thereto;(b) Its list of officers, minutes of the election of officers, and list of votwithin thirty (30) days from election;(c) Its annual financial report within thirty (30) days after the close of evfiscal year; and(d) Its list of members at least once a year or whenever required by Bureau.

Failure to comply with the above requirements shall not be a groundcancellation of union registration but shall subject the erring officersmembers to suspension, expulsion from membership, or any approprpenalty.

NON-COMPLIANCE with the above provision is not a ground cancellation of registration of the union but will subject the erring officermembers to suspension, expulsion from membership or any approprpenalty therefor.

Title VCOVERAGE

Article 243. Coverage and employees’ right to self -organization All persons employed in commercial, industrial and agricultural enterprand in religious, charitable, medical, or educational institutions, whetoperating for profit or not, shall have the right to self-organization andform, join, or assist labor organizations of their own choosing for purpoof collective bargaining. Ambulant, intermittent and itinerant workers, semployed people, rural workers and those without any definite employmay form labor organizations for their mutual aid and protection.

RULES ON WHO MAY JOIN LABOR ORGANIZATIONS AWORKERS’ ASSOCIATIONS 1. SUPERVISORS – may form, join or assist a labor organiza

provided that they are not to become members of a labor uncomposed of rank-and-file employees;

2. MANAGERIAL – are absolutely prohibited from forming, joiningassisting labor unions for purposes of collective bargaining.

3. ALIEN EMPLOYEES – with valid working permits issued by the DOmay exercise their right to self-organization provided that the counwhich they are nationals grants the same right/s to Filipino workerscertified by the DFA.

4. WORKING CHILDREN – have the same freedom as adults to join collective bargaining union of their own choosing in accordance wexisting law and they shall not be threaten or coerce working childto join, continue or withdraw as members of such union.

5. HOMEWORKERS – have the right to form, join or assist organizatiof their own choosing in accordance with law

6. EMPLOYEES OF CONTRACTORS/SUBCONTRACTORS – contractual employee of a legitimate independent contractor or scontractor is entitled to all the rights and privileges due a regemployee as provided in the LC, including the right to self-organizatcollective bargaining and peaceful concerted action.

7. MEMBERS OF COOPERATIVES – have no right to form or join laorganizations for purposes of collective bargaining for being themseco-owners of the cooperatives. This prohibition covers employeesthe cooperative who are at the same time members there




bargain collectively and otherwise deal with each other in an atmosphere offreedom and mutual respect, disrupt industrial peace and hinder thepromotion of healthy and stable labor-management relations.

Consequently, unfair labor practices are not only violations of the civil rightsof both labor and management but are also criminal offenses against theState which shall be subject to prosecution and punishment as hereinprovided.

Subject to the exercise by the President or by the Secretary of Labor andEmployment of the powers vested in them by Articles 263 and 264 of thisCode, the civil aspects of all cases involving unfair labor practices, whichmay include claims for actual, moral, exemplary and other forms ofdamages, attorney’s fees and other affirmative relief, shall be under thejurisdiction of the Labor Arbiters. The Labor Arbiters shall give utmostpriority to the hearing and resolution of all cases involving unfair laborpractices. They shall resolve such cases within thirty (30) calendar daysfrom the time they are submitted for decision.

Recovery of civil liability in the administrative proceedings shall bar recoveryunder the Civil Code.

No criminal prosecution under this Title may be instituted without a finaljudgment finding that an unfair labor practice was committed, having beenfirst obtained in the preceding paragraph. During the pendency of suchadministrative proceeding, the running of the period of prescription of thecriminal offense herein penalized shall be considered interrupted: Provided,however, that the final judgment in the administrative proceedings shall not

be binding in the criminal case nor be considered as evidence of guilt butmerely as proof of compliance of the requirements therein set forth.

ELEMENTS OF AN UNFAIR LABOR PRACTICE: 1. There should exist an employer-employee relationship

between the offended party and the offender – the ULP may onlybe committed in connection with the right of self-organization andcollective bargaining by employees. Necessarily, there must be anemployment relationship in order for the organizational right to bevalidly and lawfully invoked.

2. The act complained of must be expressly mentioned anddefined in the Labor Code as an unfair labor practice – if an actis not covered by any of the grounds expressly mentioned in the law, itcannot be deemed an unfair labor practice act.

CIVIL ASPECT: includes claims for actual, moral and exemplary damages,

attorney’s fees and other affirmative reliefs – falls under the original andexclusive jurisdiction of Labor Arbiters. See p. 4 for exceptions to theoriginal and exclusive jurisdiction of the Labor Arbiter.

CRIMINAL ASPECT: falls within the jurisdiction of the regular courts.

PRESCRIPTION: within 1 year from the accrual thereof; otherwise theyshall be forever barred.

FINAL JUDGMENT IN ADMINISTRATIVE PROCEEDING: is notbinding in the criminal case nor is it considered as evidence of guilt butmerely as proof of compliance with the pre-requisite that the administrativeproceedings over the same unfair labor practice have been instituted andthat a final judgment therein was rendered prior to the institution of thecriminal action.

Chapter II: UNFAIR LABOR PRACTICES OF EMPLOYERS

Article 248. Unfair labor practices of employers. – It shall be unlawfulfor an employer to commit any of the following unfair labor practice:

(a) To interfere with, restrain or coerce employees in the exercise of theirright to self-organization;

(b) To require as a condition of employment that a person or an employeeshall not join a labor organization or shall with-draw from one to which hebelongs;

(c) To contract out services or functions being performed by union membwhen such will interfere with, restrain or coerce employees in the exercistheir rights to self-organization;

(d) To initiate, dominate, assist or otherwise interfere with the formationadministration of any labor organization, including the giving of financiaother support to it or its organizers or supporters;

(e) To discriminate in regard to wages, hours of work and other terms aconditions of employment in order to encourage or discourage membersin any labor organization. Nothing in this Code or in any other law shall sthe parties from requiring membership in a recognized collective bargainagent as a condition for employment, except those employees who already members of another union at the time of the signing of collective bargaining agreement. Employees of an appropriate bargainunit who are not members of the recognized collective bargaining agent mbe assessed a reasonable fee equivalent to the dues and other fees paidmembers of the recognized collective bargaining agent, if such non-unmembers accept the benefits under the collective bargaining agreemeProvided, that the individual authorization required under Article 2paragraph (o) of this Code shall not apply to the non-members of recognized collective bargaining agent;

(f) To dismiss, discharge or otherwise prejudice or discriminate againstemployee for having given or being about to give testimony under Code;

(g) To violate the duty to bargain collectively as prescribed by this Code;

(h) To pay negotiation or attorney’s fees to the union or its officersagents as part of the settlement of any issue in collective bargaining or other dispute; or

(i) To violate a collective bargaining agreement.

The provisions of the preceding paragraph notwithstanding, only the officand agents of corporations, associations or partnerships who have actuparticipated in, authorized or ratified unfair labor practices shall be hcriminally liable.

A. INTERFERENCE WITH, RESTRAIN OR COERCION EMPLOYEES IN THE EXERCISE OF THEI RIGHT TO SE

ORGANIZATION

1. TEST: whether the employer has engaged in conduct which mreasonably tend to interfere with the free exercise of employee’s rights. It is not necessary that there be direct evidethat any employee was in fact intimidated or coerced by statements or threats of the employer if there is a reasonainference that the anti-union conduct of the employer does han adverse effect on the exercise of the right to self-organizaand collective bargaining.

2. TOTALITY OF CONDUCT DOCTRINE: means the expressof opinion by an employer, though innocent in themselves, mbe held to constitute an unfair labor practice because of circumstances under which they were uttered, the history of particular employer’s labor relations or anti-union bias or becaof their connection with an established collateral plan of coerc

or interference.

B. YELLOW DOG CONTRACT is one which exacts from workers acondition of employment that they shall not join or belong to a laorganization, or attempt to organize one during their periodemployment or that they shall withdraw therefrom in case they already members of labor organization. It usually embodies following stipulations: 1. A representation by the employee that he is not a member o

labor organization;2. A promise by the employee that he will not join a union; and




3. A promise by the employee that upon joining a labor organization,he will quit his employment.

C. CONTRACTING OUT OF SERVICES AND FUNCTIONS beingperformed by union members is considered ULP.

GENERAL RULE: the above-act is not an unfair labor practice. Onlywhen the contracting out of a job, work or service being performed byunion members will interfere with, restrain or coerce employees in theexercise of their right to self-organization that it shall be unlawful andshall constitute ULP. Thus, it is not ULP to contract out work forreasons of business decline, inadequacy of facilities and equipment,reduction of cost and similar reasonable ground.

D. COMPANY UNION is formed when the employer initiates, dominates,assists or otherwise interferes with the formation or administration ofany labor organization including the giving of financial or other supportto it or its organizers or supporters.

E. DISCRIMINATION as to wages, hours of work and other terms andconditions of employment in order to encourage or discouragemembership in any labor organization

F. UNION SECURITY CLAUSE allows the parties thereto to enter intoan agreement requiring membership in the exclusive collectivebargaining agent which successfully negotiated said CBA as a conditionfor continued employment with the EXCEPTION of employees who arealready members of another union at the time of the signing of theCBA.

1. CLOSED SHOP may be defined as an enterprise in which, byagreement between the employer and its employees or theirrepresentatives, no person may be employed in any or certainagreed departments of the enterprise unless he or she is,becomes, and, compromised of or of which the employees ininterest are at par.

This applies to workers who are not members of the bargainingagent at the time of the conclusion of the CBA. But it does notapply to members of the union at the time of the signing of theCBA.

2. MAINTENANCE OF MEMBERSHIP AGREEMENT stipulatesthat those who are members of the union at the time of the

execution of the CBA and those who may, after its execution, ontheir own, voluntarily join the bargaining agent, should maintaintheir membership in good standing therein for the whole durationof the CBA as a condition for their continued employment untilthey are promoted or transferred out of the bargaining unit or theagreement is terminated.

3. UNION SHOP AGREEMENT – the employer is given thefreedom to hire and employ any person who is not a member ofthe bargaining agent. Once such person becomes an employee,he is required to become a member of the bargaining agent andto remain as such member in good standing for the whole periodof the effectivity of the CBA as a condition for his continuedemployment. In other words, there is union shop when all newregular employees are required to join the union within a certainperiod as a condition for their continued employment.

4. MODIFIED UNION SHOP AGREEMENT employees who arenot union members at the time of the signing or execution of theCBA are not required to join the bargaining union. However, anyand all workers hired or employed after the signing or executionare required to join the bargaining union.

5. EXCLUSIVE BARGAINING AGENT AGREEMENT the unionwhich negotiated and concluded the CBA with management isconsidered and recognized as the sole and executive bargaining

agent of all the covered employees in the bargaining unit, whetthey be members or not of the said agent.

6. BARGAINING FOR MEMBERS ONLY AGREEMENT the unwhich negotiated and concluded the CBA with managemenrecognized as the bargaining agent only for its own members.

7. AGENCY SHOP AGREEMENT – there is no requirement for nmembers of the bargaining agent to become its membHowever, it is required that such non-union members should to the bargaining agent an agency fee as a condition for thcontinued employment.

8. PREFERRENTIAL HIRING AGREEMENT the employer gpreference in hiring to the members of the bargaining agent eqcircumstances and qualifications. Once hired or employed, tare required to maintain their membership in good standing in bargaining agent for the duration of the CBA as a conditiontheir continued employment.

DISMISSAL BASED ON UNION SECURITY CLAUSE is valid annot unfair labor practice. However, it must be stressed that sagreement does not justify the request by the union to dismiss employee whom it arbitrarily refused to admit as member. (SalvingaCIR; GR No. L-22456; Sept. 27, 1967)

EMPLOYER IS OBLIGATED TO ACT UPON BEING DEMANDEDTHE UNION TO TERMINATE THE EMPLOYMENT OF ERRAEMPLOYEES in order to avoid incurring breach of the union secuclause. The employer must conduct its own inquiry on the factual legal bases of such demand in order to satisfy itself that there exsufficient basis to dismiss the employees.

REQUISITES FOR VALID TERMINATION BASED ON UNISECURITY CLAUSE: 1. The union security clause is applicable;2. The union is requesting for the enforcement of the union secu

provisions in the CBA; and3. There is sufficient evidence to support the union’s decision

expel the employee from the union.

EMPLOYER’S LIABILITY FOR BACKWAGES IN ILLEGDIMISSAL CASES BASED ON THE UNION SECURITY CLAUSE:1. The employer is liable for the payment of backwages if it

acted in bad faith in effecting the dismissal of the employbased on the union security clause in the CBA. (Liberty CoMills Workers Union vs. Liberty Cotton Mills; GR No. L-339Sept. 4, 1975)

2. In the case of Del Monte Philippines, Inc. vs. Saldivar (GR 158620; Oct. 11, 2006) , the SC held that the stipulation in CBA where the union assumes full responsibility for terminatand agrees to hold Del Monte free from any liability by judgmof a competent authority for claims arising out of dismissals mupon demand of the union, and latter shall reimburse the formof such sums as it shall have paid therefor, presents a causeaction in Del Monte’s favour should it be held financially liablethe dismissal of an employee by reason of expulsion from union.

D. CHECK-OFF OF AGENCY FEES FROM NON-MEMBES OF T

BARGAINING AGENT – an agency fee may be assessed from nbargaining union members within the bargaining unit who accept avail of the benefits flowing from the CBA without need of individwritten authorization under Art. 248(e).

E. FILING OF CHARGES OR GIVING OF TESTIMONY – the oground under Art. 248 which need not relate to the exercise of employees’ right to self -organization and collective bargaining.

F. VIOLATION OF THE CBA OR REFUSAL TO COMPTHEREWITH:




1. To violate the duty to bargain collectively as prescribed in the LCwhich may include: a. Surface bargaining – going through the motions of

negotiating without any legal intent to reach an agreement; b. Blue-sky bargaining – making exaggerated or unreasonable

proposals. 2. To pay negotiation or attorney’s fees to the union or its officers or

agents as part of the settlement of any issue in collectivebargaining or any other dispute;

3. To violate a CBA under Art. 248(i) must be read in relation to Art.261 where violations of a CBA, except those which are gross incharacter, shall no longer be treated as an unfair labor practiceand shall be resolved grievances under the CBA.

G. RUNAWAY SHOP is an industrial plant moved by its owners from onelocation to another to escape union labor regulations or state laws.

Chapter III: UNFAIR LABOR PRACTICES OF LABORORGANIZATIONS

Article 249. Unfair labor practices of labor organizations. - It shall beunfair labor practice for a labor organization, its officers, agents orrepresentatives:

(a) To restrain or coerce employees in the exercise of their right to self-organization. However, a labor organization shall have the right to prescribeits own rules with respect to the acquisition or retention of membership;

(b) To cause or attempt to cause an employer to discriminate against anemployee, including discrimination against an employee with respect towhom membership in such organization has been denied or to terminate anemployee on any ground other than the usual terms and conditions underwhich membership or continuation of membership is made available to othermembers;

(c) To violate the duty, or refuse to bargain collectively with the employer,provided it is the representative of the employees;

(d) To cause or attempt to cause an employer to pay or deliver or agree topay or deliver any money or other things of value, in the nature of anexaction, for services which are not performed or not to be performed,including the demand for fee for union negotiations;

(e) To ask for or accept negotiation or attorney’s fees from employers aspart of the settlement of any issue in collective bargaining or any otherdispute; or

(f) To violate a collective bargaining agreement.

The provisions of the preceding paragraph notwithstanding, only theofficers, members of governing boards, representatives or agents ormembers of labor associations or organizations who have actuallyparticipated in, authorized or ratified unfair labor practices shall be heldcriminally liable.

ART. 249(a) The above provision is substantially similar to Art. 248 of theLabor Code involving the unfair labor practices of employers except that theterm “interfere” is not included therein. Interference of labor organizationswith the exercise of the employees’ right to self -organization is not unlawful

since without it, labor organizations cannot be expected to organize andrecruit members. It becomes unlawful only when it amounts to restraint orcoercion.

FEATHERBEDDING – to cause or to attempt to cause an employer to payor deliver or agree to pay or deliver any money or other things of value, inthe nature of an exaction, for services which are not performed or not to beperformed, including the demand for fee for union negotiations.

labrel midterms

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