MODULE 9 other employees in the civil service shall have the right

to form associations for purposes not contrary to law.

BOOK V LABOR RELATIONS
Do managerial employees have the right to self-
RIGHT TO SELF-ORGANIZATION & UNFAIR organization?
LABOR PRACTICE No. The law provides that Managerial employees are not
eligible to join, assist or form any labor organization.
What is the right to self-organization? Supervisory employees shall not be eligible for
The right to self-organization is the entitlement given to membership in a labor organization of the rank-and-file
all employees to form, join or assist in the formation of employees but may join, assist or form separate labor
labor organizations (labor union) or workers association. organizations of their own.
What is “Unfair Labor Practice?”
Who are accorded the right to self-organization? Unfair labor practices violate the constitutional right of
Article 243 of the Labor Code provides: All persons workers and employees to selforganization, are inimical
employed in commercial, industrial and agricultural to the legitimate interests of both labor and management,
enterprises and in religious, charitable, medical, or including their right to bargain collectively and
educational institutions, whether operating for profit or otherwise deal with each other in an atmosphere of
not, shall have the right to self-organization and to form, freedom and mutual respect, disrupt industrial peace and
join, or assist labor organizations of their own choosing hinder the promotion of healthy and stable labor-
for purposes of collective bargaining. Ambulant, management relations. Consequently, unfair labor
intermittent and itinerant workers, self-employed people, practices are not only violations of the civil rights of
rural workers and those without any definite employers both labor and management but are also criminal
may form labor organizations for their mutual aid and offenses against the State which shall be subject to
protection. prosecution and punishment as provided by law.

Article 246 further provides: It shall be unlawful for any Who can commit unfair labor practice?
person to restrain, coerce, discriminate against or unduly ULP can be committed by:
interfere with employees and workers in their exercise of 1. Employers and
the right to self-organization. Such right shall include the 2. Labor organizations
right to form, join, or assist labor organizations for the
purpose of collective bargaining through representatives What are the unfair labor practices of employers?
of their own choosing and to engage in lawful concerted The law provides that it shall be unlawful for employers
activities for the same purpose for their mutual aid and to commit the following ULP:
protection, subject to the provisions of Article 264 of a. To interfere with, restrain or coerce employees in
this Code. the exercise of their right to selforganization;

What does the right to self-organization include? b. To require as a condition of employment that a
The right carries with it: person or an employee shall not join a labor
1. The right to abstain from joining a union organization or shall withdraw from one to
2. To choose which union he would join which he belongs (yellow dog contract);
3. To cancel his membership with the union
These rights, however, cannot be exercised, as a general c. To contract out services or functions being
rule, where a labor union and an employer have agreed performed by union members when such will
on a union security arrangement whereby the interfere with, restrain or coerce employees in
employer is bound to employ only members of the the exercise of their rights to selforganization;
contracting union in order to keep their jobs.
d. To initiate, dominate, assist or otherwise
Do government employees have the right to self- interfere with the formation or administration of
organization? any labor organization, including the giving of
Yes. Article 244 of the Labor Code provides: Employees financial or other support to it or its organizers
of government corporations established under the or supporters (Company-denominated union
Corporation Code shall have the right to organize and to or company union);
bargain collectively with their respective employers. All
e. To discriminate in regard to wages, hours of agreement during the 60-day period and/or until
work and other terms and conditions of a new agreement is reached by the parties.
employment in order to encourage or discourage
membership in any labor organization. Nothing h. To pay negotiation or attorney’s fees to the union
in this Code or in any other law shall stop the or its officers or agents as part of the settlement
parties from requiring membership in a of any issue in collective bargaining or any other
recognized collective bargaining agent as a dispute; or
condition for employment, except those
employees who are already members of another i. To violate a collective bargaining agreement.
union at the time of the signing of the collective (The violation must be gross in character, i.e.
bargaining agreement. Employees of an flagrant and/or malicious refusal to comply with
appropriate bargaining unit who are not the economic provisions of the CBA; If it is not
members of the recognized collective bargaining gross in character, the violation of the CBA are
agent may be assessed a reasonable fee merely considered as ordinary grievance to be
equivalent to the dues and other fees paid by resolved under the grievance machinery of the
members of the recognized collective bargaining CBA.
agent, if such non-union members accept the The provisions of the preceding paragraph
benefits under the collective bargaining notwithstanding, only the officers and agents of
agreement: Provided, that the individual corporations, associations or partnerships who have
authorization required under Article 242, actually participated in, authorized or ratified unfair
paragraph (o) of this Code shall not apply to the labor practices shall be held criminally liable.
non-members of the recognized collective
bargaining agent; What are ULP of labor organizations?
It shall be unfair labor practice for a labor organization,
f. To dismiss, discharge or otherwise prejudice or its officers, agents or representatives:
discriminate against an employee for having a. To restrain or coerce employees in the exercise
given or being about to give testimony under this of their right to self-organization. However, a
Code; labor organization shall have the right to
prescribe its own rules with respect to the
g. To violate the duty to bargain collectively as acquisition or retention of membership;
prescribed by this Code
Notes: The duty to bargain collectively means b. To cause or attempt to cause an employer to
the performance of a mutual obligation to meet discriminate against an employee, including
and convene promptly and expeditiously in good discrimination against an employee with respect
faith for the purpose of negotiating an agreement to whom membership in such organization has
with respect to wages, hours of work and all been denied or to terminate an employee on any
other terms and conditions of employment ground other than the usual terms and conditions
including proposals for adjusting any grievances under which membership or continuation of
or questions arising under such agreement and membership is made available to other members;
executing a contract incorporating such
agreements if requested by either party but such c. To violate the duty, or refuse to bargain
duty does not compel any party to agree to a collectively with the employer, provided it is the
proposal or to make any concession. representative of the employees;
When there is a collective bargaining d. To cause or attempt to cause an employer to pay
agreement, the duty to bargain collectively shall or deliver or agree to pay or deliver any money
also mean that neither party shall terminate nor or other things of value, in the nature of an
modify such agreement during its lifetime. exaction, for services which are not performed
However, either party can serve a written notice or not to be performed, including the demand for
to terminate or modify the agreement at least fee for union negotiations (Featherbedding);
sixty (60) days prior to its expiration date. It
shall be the duty of both parties to keep the e. To ask for or accept negotiation or attorney’s
status quo and to continue in full force and fees from employers as part of the settlement of
effect the terms and conditions of the existing any issue in collective bargaining or any other
dispute; or
 1. Managerial employees
f. To violate a collective bargaining agreement. 2. Confidential employees who have access to
The provisions of the preceding paragraph labor relations information
notwithstanding, only the officers, members of 3. Employees who are at the same time members of
governing boards, representatives or agents or members a cooperative.
of labor associations or organizations who have actually
participated in, authorized or ratified unfair labor
practices shall be held criminally liable. What is a legitimate labor organization?
A legitimate labor organization is one which acquired
LABOR ORGANIZATIONS legal personality through independent registration with
the DOLE or affiliation with a duly registered federation
What is a labor organization? or national union.
A labor organization (or labor union) is an association of
employees created for the purpose of collective What are the procedures for acquiring a certificate of
bargaining or dealing with employers concerning terms registration as a legitimate labor organization?
and conditions of employment. Any applicant labor organization, association or group of
unions or workers shall acquire legal personality and
Who are qualified to form or join a labor shall be entitled to the rights and privileges granted by
organization? law to legitimate labor organizations upon issuance of
The right to form or join labor organizations is available the certificate of registration based on the following
only to: requirements.
1. Rank-and-file employees (Those who are neither
managerial nor supervisory) 1. Fifty pesos (P50.00) registration fee;
2. Supervisory employees (Those who, in the
interest of the employer, effectively recommend 2. The names of its officers, their addresses, the
the laying down and execution of management principal address of the labor organization, the
policies and/or hiring, transfer, suspension, lay- minutes of the organizational meetings and the
off, recall, discharge, assignment or discipline of list of the workers who participated in such
employees. meetings;

Can Supervisory employees join the union of rank- 3. The names of all its members comprising at least
and-file employees? twenty percent (20%) of all the employees in the
No. The law provides that Supervisory employees shall bargaining unit where it seeks to operate; (As
not be eligible for membership in a labor organization of amended by Executive Order No. 111, December
the rank-and-file employees but may join, assist or form 24, 1986)
separate labor organizations of their own. But the rank-
and-file union and the supervisors’ union operating 4. If the applicant union has been in existence for
within the same establishment may join the same one or more years, copies of its annual financial
federation or national union. reports; and

Can a non-resident alien employee join a labor 5. Four (4) copies of the constitution and by-laws
organization? of the applicant union, minutes of its adoption or
The law provides that aliens working in the country with ratification, and the list of the members who
valid permits issued by the Department of Labor and participated in it.
Employment, may exercise the right to self-organization
and join or assist labor organizations of their own The Bureau shall act on all applications for registration
choosing for purposes of collective bargaining: within thirty (30) days from filing.
Provided, further, That said aliens are nationals of a
country which grants the same or similar rights to All requisite documents and papers shall be certified
Filipino workers. under oath by the secretary or the treasurer of the
organization, as the case may be, and attested to by its
Who are disqualified from forming or joining a labor president.
organization?
The following cannot form, join or assist in the The decision of the Labor Relations Division in the
formation of a labor organization: regional office denying registration may be appealed by
the applicant union to the Bureau within ten (10) days a. To act as the representative of its members for
from receipt of notice thereof. the purpose of collective bargaining;

The certificate of registration of any legitimate labor b. To be certified as the exclusive representative of
organization, whether national or local, shall be all the employees in an appropriate bargaining
cancelled by the Bureau if it has reason to believe, after unit for purposes of collective bargaining;
due hearing, that the said labor organization no longer
meets one or more of the requirements herein prescribed. c. To be furnished by the employer, upon written
request, with its annual audited financial
What are the grounds for the denial or cancellation of statements, including the balance sheet and the
registration of a labor organization? profit and loss statement, within thirty (30)
The following shall constitute grounds for cancellation calendar days from the date of receipt of the
of union registration: request, after the union has been duly recognized
a. Misrepresentation, false statement or fraud in by the employer or certified as the sole and
connection with the adoption or ratification of exclusive bargaining representative of the
the constitution and by-laws or amendments employees in the bargaining unit, or within sixty
thereto, the minutes of ratification and the list of (60) calendar days before the expiration of the
members who took part in the ratification; existing collective bargaining agreement, or
b. Failure to submit the documents mentioned in during the collective bargaining negotiation;
the preceding paragraph within thirty (30) days d. To own property, real or personal, for the use
from adoption or ratification of the constitution and benefit of the labor organization and its
and by-laws or amendments thereto; members;
c. Misrepresentation, false statements or fraud in e. To sue and be sued in
connection with the election of officers, minutes its registered name; and
of the election of officers, the list of voters, or f. To undertake all other activities designed to
failure to submit these documents together with benefit the organization and its members,
the list of the newly elected/appointed officers including cooperative, housing, welfare and
and their postal addresses within thirty (30) days other projects not contrary to law.
from election; Notwithstanding any provision of a general or special
d. Failure to submit the annual financial report to law to the contrary, the income and the properties of
the Bureau within thirty (30) days after the legitimate labor organizations, including grants,
closing of every fiscal year and endowments, gifts, donations and contributions they
misrepresentation, false entries or fraud in the may receive from fraternal and similar organizations,
preparation of the financial report itself; local or foreign, which are actually, directly and
e. Acting as a labor contractor or engaging in the exclusively used for their lawful purposes, shall be free
“cabo” system, or otherwise engaging in any from taxes, duties and other assessments. The
activity prohibited by law; exemptions provided herein may be withdrawn only by a
f. Entering into collective bargaining agreements special law expressly repealing this provision.
which provide terms and conditions of
employment below minimum standards How does a labor organization become a collective
established by law; bargaining agent?
g. Asking for or accepting attorney’s fees or The labor organization becomes a collective bargaining
negotiation fees from employers; agent either through voluntary recognition by the
h. Other than for mandatory activities under this employer or through certification election.
Code, checking off special assessments or any
other fees without duly signed individual written What happens next after a labor organization
authorizations of the members; becomes a collective bargaining agent? Once the
i. Failure to submit list of individual members to legitimate labor organization is voluntarily recognized or
the Bureau once a year or whenever required by certified as the collective bargaining agent, it has to start the
the Bureau; and collective bargaining negotiations with the employer within
j. Failure to comply with requirements one year from the holding of a valid certification election or
within one year from recording of voluntary recognition.
What are the rights of a legitimate labor
The following procedures shall be observed in collective
organization?
bargaining:
A legitimate labor organization shall have the right:
 a. When a party desires to negotiate an agreement, it 3. It should comply with the requirements prescribed by
shall serve a written notice upon the other party with law to wit:
a statement of its proposals. The other party shall a. Notice of strike filed with the NCMB
make a reply thereto not later than ten (10) calendar b. Strike vote of majority of the total union
days from receipt of such notice; membership
c. Strike vote report submitted to the NCMB
b. Should differences arise on the basis of such notice *The Strike will be staged after the cooling off period
and reply, either party may request for a conference of 15 days from filing of notice of strike if based on
which shall begin not later than ten (10) calendar ULP or 30 days if based on deadlock in collective
days from the date of request. bargaining, and after the lapse of the 7-day strike ban
c. If the dispute is not settled (deadlock), the Board shall (this is the 7-day period reckoned from the
intervene upon request of either or both parties or at submission of the strike vote report).
its own initiative and immediately call the parties to 4. It should have a lawful purpose and carried out
conciliation meetings. The Board shall have the through lawful means.
power to issue subpoenas requiring the attendance of
the parties to such meetings. It shall be the duty of the Can an employee be dismissed for participating in a lawful
parties to participate fully and promptly in the strike?
conciliation meetings the Board may call; No. Mere participation of a worker in a lawful strike shall not
d. During the conciliation proceedings in the Board, the constitute sufficient ground for termination of his
parties are prohibited from doing any act which may employment, even if a replacement had been hired by the
disrupt or impede the early settlement of the disputes; employer during such lawful strike.
and
e. The Board shall exert all efforts to settle disputes Are strikers entitled to wages during strike?
amicably and encourage the parties to submit their No, the strikers are not entitled to wages under the principle of
case to a voluntary arbitrator. “a fair day’s wage for a fair day’s labor” or the no-work-no-
pay policy.
If the parties are able to come to an agreement, the union
officers and the representatives of the management will sign What is a lockout?
the CBA. After signing, the CBA should be posted for 5 days Lockout is the temporary refusal of an employer to furnish
in at least 2 conspicuous places in the establishment. Five days work as a result of an industrial or labor dispute.
after posting, the CBA should be submitted to the employees
covered by the collective bargaining unit for ratification. What are the limitations on the right to lockout?
Thereafter, the CBA should be submitted to the DOLE for Under the law, a lockout cannot be declared:
registration. 1. Without first having bargained collectively.
2. Without first having filed the notice of lockout
How long is the term of the CBA?
3. Without conducting a lockout vote and submitting a
The term of the CBA insofar as the representation aspect is
lockout vote report
concerned, is 5 years reckoned from the date of its effectivity.
This means that during the 5 year period, no union can file a 4. After assumption of jurisdiction by the Secretary of
petition for certification election except during the last 60 days Labor
of the 5-year period (freedom period). 5. After the certification or submission of the dispute to
arbitration
What are the courses of action in case of a deadlock in 6. During the pendency of cases involving the same
CBA negotiation? grounds for the lockout
If negotiations result in a deadlock, the parties can do any of 7. On inter-union or intra-union disputes
the following courses of action:
1. Bring the matter to the NCMB for conciliation
2. Submit the matter for arbitration
3. Declare a strike or lockout

What is a strike?
Strike is any temporary stoppage of work by the concerted
action of employees as a result of a labor dispute.

What are the requisites of a valid strike?

The following are the requisites:
1. It should be staged by a legitimate labor organization
2. It should be declared only on the grounds of deadlock
in collective bargaining and ULP.