INTRODUCTION

Social Justice As Aim Promotion of the welfare of the people - Dr. Jose P. Laurel Neither communism. Nor despotism, nor atomism, nor anarchy, but the humanization of laws and the equalization of social and economic forces of the state so that justice in its rational and objectively secular conception may at least be approximated. Achieved through the maintenance of proper economic and social equalization in the interrelations of the member community, constitutionality, through the exercise of powers underlying the existence of all governments, at the same time honoured principle of salus populi est suprema lex.

Purpose of Labor Legislation an exercise of the police power to regulate the relation b/w employers and employees respecting the terms and conditions of employment, either by providing for certain standards or for a legal framework w/in w/c better terms and conditions of work could be negotiated through Collective Bargaining. (correcting inherent injustices in Er-Ee relationship) Related Laws to Labor (1) New Civil Code 1700 relation between capital and labor are not merely contractual. - contracts must yield for the common good 1701 neither capital nor labor shall act oppressively against the other, or impair the interest or convenience of the public 1702 in case of doubt, labor legislation and all labor contracts shall be construed in favor of the safety and decent living of the labourer 1703 Involutary Servitude (2) RPC Art. 289 Involuntary Servitude (3) R.A. 10395 Tripartism EMPLOYER-EMPLOYEE RELATIONSHIP EMPLOYER-EMPLOYEE RELATIONSHIP ESSENTIAL The existence of employer-employee relationship, as explained in Book III, is determined by the presence of the following elements, namely: (a) selection and engagement of the employee; (b) payment of wages; (c) power to dismiss; and (d) power to control the employees conduct. The fourth is the most important element. WHO ARE EMPLOYEES The term employee: (1) shall include any employee (2) and shall not be limited to the employee of any particular employer, unless the Act so explicitly states otherwise (3) and shall include any individual (a) whose work has ceased as a result of, or in connection with any current labor dispute (b) and who has not obtained any other substantially equivalent and regular employment. Employee refers to any person working for an employer. It includes one whose work has ceased in connection with any current labor dispute or because of any unfair labor practice and one who has been dismissed from work but the legality of the dismissal is being contested in a forum of appropriate jurisdiction.

Both a Juridical Principle and a Societal Goal Juridical Principle prescribes equality of the people, rich or poor, before the law Social Goal attainment of decent quality of life of the masses through humane productive efforts Legal equality opens opportunities that strengthen equality that creates more opportunities - Making the rich share w/ government the responsibility of realizing social justice as an end (Article 2, Sec. 9 and 10 of 1987 Constitution) Attainment of Social Justice through industrial peace and progress Social Legislation those laws that provide particular kinds of protection or benefits to society or segments thereof in furtherance of Social Justice Labor Law (1) Labor Standards - Minimum terms and conditions of employment prescribed by existing laws, rules, and regulations relating to wages, hours of work, cost-of-living allowances, and other monetary and welfare benefits - Answers the question WHAT? (content) - i.e. 13th month pay (2) Labor Relations - Concerned w/ stabilization of relations of employer and employees and seek to forestall and adjust the differences b/w them by encouragement of CBA and the settlement of labor disputes through reconciliation, mediation and arbitration - Answers the question HOW? (process) - i.e. additional allowance pursuant to CBA IN A SENSE, LABOR LAW ARE SOCIAL LEGISLATIONS Labor laws are narrower in concept and directly affect employment. Social Legislation are broader and governs the effect of employment

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Employer refers to any person or entity who employs the services of others, one for whom employees work and who pays their wages or salaries. An employer includes any person directly or indirectly acting in the interest of an employer. It shall also refer to the enterprise where a labor organization operates or seeks to operate. An employer may be brought into bargaining and economic relationship with persons not in his actual employ; such persons are given the status and tights of employees in relation to him, in order to accord to them the protection of the Act. Thus, The nature of a labor dispute does not require that the disputants should stand in the proximate relation of employer and employee, with consequent protection of concerted activities carried out by many persons belonging to several employers.

Legitimate Workers Association workers association duly

registered w/ the Department in accordance w/ Rule 3, Section 2C and 2D of these rules.

Distinction b/w Collective Bargaining and dealing w/ Employer BOTH ARE CONCERNED WITH THE TERMS AND CONDITIONS OF EMPLOYMENT To Bargain Collectively a right that may be acquired by the labor organization after registering itself w/ the DOLE and after being recognized and certified by the DOLE as the EBR of the employees Dealing w/ employer generic description of interaction b/w Er and Ee concerning grievances, wages, work hours and other terms and conditions of employment, even if the employees group is not registered w/ DOLE. explains why labor org. does not always have to be a labor union and why Er-Ee collective interactions are not always collective bargaining Labor Management Council -when there is no labor union, consultation should be made w/ the labor management council (consultation concerning policies of management and of the Er. LABOR ORGANIZATION NOT NECESSARILY A UNION Workers may opt something shorn of the rigidity and formality of a labor union Labor Management Committee -medium of the Er-Ee interaction in the establishment through w/c problems or disputes or potential dispute may be resolved by consensus, compromise or other constructive voluntary mode CLASSIFICATION OF LABOR ORGANIZATIONS (A) At the National Level (1) National Union/Federatioon (NU) -any labor org. w/ at least 10 local/chapters or affiliates each of w/c must be duly certified or recognized CB Agents. (2) Industry Union (IU) -any group of LLO operating w/in an identified industry, organized for CB or dealing w/ employees concerning terms and conditions of employment w/in an industry (3) Trade Union Center (TUC) -refer to group of national unions or unions organized for the mutual aid and protection of its members, for assisting such members in CB, or for participating in the formulation of social and employment policies, standards or programs. (4) Alliance -aggregation of unions existing in one line of industry or in a conglomerate, a group of franchises, a geographical area, or an industry center

LABOR ORGANIZATION
CHAPTER I REGISTRATION AND CANCELLATION Granted by the Constitution Art. 3, Sec. 8 Right to form association is the freedom to organize as to be member of any group or association, union or society and to adopt rules w/c the members judge most appropriate to achieve their purpose. Art. 13, Sec. 3 Labor Organization; 2 Broad Purpose (1) Collective Bargaining (2) Dealing w/ employers concerning terms and conditions of employment Definition

Labor Organizations any union or association of employees in

the private sector w/c exists in whole or in part for the purpose of collective bargaining, mutual aid, interest, cooperation, protection or other lawful purpose

Legitimate Labor Organization any labor organization in the

private sector registered or reported w/ the department in accordance w/ Rule 3 and 4 of the Rules No such thing as illegitimate labor organization

Exclusive Bargaining Agent (EBR) legitimate labor union

duly recognized or certified as the sole and exclusive bargaining representative or agent of all the employees in a bargaining unit.

Bargaining Unit refers to a group of employees sharing

mutual interest w/in a given employer unit comprised of all or less than all of the entire body of employees in the employer unit or any specific occupational or geographical grouping w/in such employer unit.

Workers Association refers to an association of workers

organized for a mutual aid and protection of its members or for any legitimate purpose other than Collective Bargaining.

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(5) Company-Union -labor org in w/c, in whole or in part is Er-controlled or Er-dominated

(B) At the Enterprise Level

Union at the enterprise level may be created either through (1) independent registration; or (2) chartering

(c) In case the applicant is an Independent Union (IndU) the name of all its members comprising at least 20% of all the employees in the bargaining unit where it seeks to operate; (d) If the applicant has been in existence for one or more years, copies of its annual financial reports; and (e) Four copies of the CBL of the applicant union, minutes of its adoption or ratification, and the list of the members who participated in it Rule III of the Rules Implementing Book V (under D.O. No. 40-03)

(1) Independent (IndU) -if created by independent registration -obtained through their own action -has legal personality of its own (but may affiliate w/ a federation/national union) (2) Chapter -if created through chartering -through issuance of a charter by a federation or national union RECENT CHANGES BY R.A. 9481 (1) No required number (2) Tentative legal personality (3) Specified grounds of Cancellation (4) PCE proceeds despite petition to cancel union registration (5) Only 3 grounds to cancel (6) Cancellation by Action of the members (7) Reportorial Requirements (8) Affiliation w/ some federation (9) Commingling (10) Non-disclosure of Identity (11) Non-disclosure even in unionized company (12) Employer, as by-stander REGISTRATION RATIONALE For attainment of Legal Personality EFFECT OF REGISTRATION UNDER THE CORPORATION LAW -has only effect of giving to it juridical personality before regular courts of justice. Such incorporation does not grant the rights and privileges of legitimate labor organizations WHERE TO REGISTER (1) Regional Offices independent labor unions; chartered local and workers association WHERE THE APPLICANT PRINCIPALLY OPERATES (2) BLR/Regional offices (then to BLR) federation/national union or workers association operating in more than one region REGISTRATION REQUIREMENTS R.A. 9481 (Fed/NU/IU/TUC/IndU)

Federation or National Union

1)

a statement indicating the name of the applicant labor union, its principal address, the name of its officers and their respective addresses; the minutes of the organizational meeting(s) and the list of employees who participated in the said meeting(s); the annual financial reports if the applicant union has been in existence for one or more years, unless it has not collected any amount from the members, in which case a statement to this effect shall be included in the application; the applicant union's constitution and by-laws, minutes of its adoption or ratification, and the list of the members who participated in it. The list of ratifying members shall be dispensed with where the constitution and by-laws was ratified or adopted during the organizational meeting(s). In such a case, the factual circumstances of the ratification shall be recorded in the minutes of the organizational meeting(s); the resolution of affiliation of at least ten (10) legitimate labor organizations, whether independent unions or chartered locals, each of which must be a duly certified or recognized bargaining agent in the establishment where it seeks to operate; and the name and addresses of the companies where the affiliates operate and the list of all the members in each company involved.

2) 3)

4)

5)

6)

Labor Orgs. Operating w/in an identified industry may also apply as federation or national union by submitting the same required documents to the Bureau.

Independent Union
1)

the name of the applicant labor union, its principal address, the name of its officers and their respective addresses, approximate number of employees in the bargaining unit where it seeks to operate, with a statement that it is not reported as a chartered local of any federation or national union; the minutes of the organizational meeting(s) and the list of employees who participated in the said meeting(s); the name of all its members comprising at least 20% of the employees in the bargaining unit;

2) (a) Fifty pesos registration fee (b) Names of officers, their addresses, the principal address of the labor organization, the minutes of org meeting and the list of workers who participated in such meeting 3)

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4)

the annual financial reports if the applicant has been in existence for one or more years, unless it has not collected any amount from the members, in which case a statement to this effect shall be included in the application; the applicant's constitution and by-laws, minutes of its adoption or ratification, and the list of the members who participated in it. The list of ratifying members shall be dispensed with where the constitution and by-laws was ratified or adopted during the organizational meeting. In such a case, the factual circumstances of the ratification shall be recorded in the minutes of the organizational meeting(s).

5)

(b) The names of the local/chapter's officers, their addresses, and the principal office of the local/chapter; and (c) The local/chapter's constitution and by-laws, provided that where the local/chapter's constitution and by-laws is the same as that of the federation or national union, this fact shall be indicated accordingly.

Legal Personality only to file PCE

A charter acquires legal personality on the date it was issued a charter certificate by its mother federation or NU . The acquisition of legal personality seems to happen automatically, but only for purposes of filing a petition for a certificate election.

Submission of Confirming Documents

Workers Association
1) 2) 3) the name of the applicant association, its principal address, the name of its officers and their respective addresses; the minutes of the organizational meeting(s) and the list of members who participated therein; the financial reports of the applicant association if it has been in existence for one or more years, unless it has not collected any amount from the members, in which case a statement to this effect shall be included in the application; the applicant's constitution and by-laws to which must be attached the names of ratifying members, the minutes of adoption or ratification of the constitution and by-laws and the date when ratification was made, unless ratification was done in the organizational meeting(s), in which case such fact shall be reflected in the minutes of the organizational meeting(s).

The acquired personality, moreover, is tentative because it needs to be confirmed by submission of additional requirements otherwise the chapter does not become entitled to all other rights and privileges of an LLO. The article does not fix a time limit for submitting those additional requirements because, presumably, a chapter want to become a bargaining agent will waste no time to permanently legitimize its status. Med-arbiter may dismiss the petition for certification election if the union is not listed in DOLEs registry of legitimate unions of if it fails to attach to its petition a duly issued charter certificate.

A Trade Union Center Cannot Create a Chapter

4)

Whether a trade union center could create a local chapter (SC decided) The Court said no, and the ruling conforms with the new Article 234-A under w/c only duly registered federations or NU may create chapters.

When does a Chapter Become an LLO?

The application of registration of a workers union operating than one region shall be accompanied (+ the requirement above) by a resolution of membership of each member association, duly approved by its board of directors.

Chartered Local

D.O. No. 9 (1997) Section3. Acquisition of legal personality by local/chapter. - A local/chapter constituted in accordance with Section 1 of this Rule shall acquire legal personality from the date of filing of the complete documents enumerated therein. Upon compliance with all the documentary requirements, the Regional Office or Bureau shall issue in favor of the local/chapter a certificate indicating that it is included in the roster of legitimate labor organizations.

A union created through chartering is called a local, a chapter, or a chartered local in the employer enterprise where the union officers and members are employees. Under D.O. 40-03 a chartered local is defined as labor organization in the private sector operating at the enterprise level that acquired legal personality through registration with the Regional Office in accordance with Rule III, Section 2-E of these Rules.

Recognition by BLR not a Ministerial Duty

The shift from the date of submission of documents to date of issuance of certificate of registration is in line with the courts ruling in 1997 that registering a union is NOT a ministerial duty. If its application for registration is vitiated by falsifica tion and serious irregularities, especially those appearing on the face of the application and the supporting documents, a labor organization should be denied recognition as a legitimate labor organization. (Progressive Development Corp.-Pizza Hut vs. Laguesma, et al.) (Note: Subsequent to the Progressive Development ruling, R.A. 9481, Article 258-A, no longer allows employer to oppose petition for CE.)

Chartered Local; Requirements

A duly-registered federation or national union may directly create a chartered local by submitting to the Regional Office two (2) copies of the following: (a) A charter certificate issued by the federation or national union indicating the creation or establishment of the local/chapter;

Union Legitimacy not Subject to Collateral Attack

After stating that the union acquires legal personality on the date its registration certificate is issued, Section 8, Rule IV of D.O. 4003 further states: Such legal personality may be questioned only

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through an independent petition and not by way of collateral; attack in [the] petition for certification election proceedings under Rule VIII. COLLECTIVE BARGAINING AGREEMENT Bargaining Unit refers to a group of employees sharing mutual interest within given employer unit, comprised of all or less than all of the entire body of employees in the employer unit or any specific occupational or geographical grouping within such employer unit. The bargaining unit is always a group of employees. It may be all the supervisors or all the rank-and-file in the company, but the law does not allow supervisors and rank-and-file to belong to the same bargaining unit. Or the unit may be an identifiable smaller group of supervisors or smaller group of rank-and-file workers. In every case the composition of the unit must be appropriate meaning the members share common concerns of common interest. The unit may be numerous as thousands of employees or as few as less than a hundred. The law fixes no minimum or maximum number. Whatever the number, 20% thereof should be member of the independent union applying for registration. The CBU is different from and bigger than a union. Union members come from the CBU and there can be several rival unions within a CBU. A union represents a CBU. The representative is the union; the group represented is the CBU. The representative union, once determined, will represent even the members of other unions as long as they are part of the CBU. This is why the representative union is called exclusive bargaining representative (EBR). CONSTITUTION, BY-LAWS, AND REGULATION Labor unions have the right to adopt constitution, rules, and bylaws within the scope of the lawful purposes of the union and bind their members thereby, provided they are reasonable, uniform, and not discriminatory, and provided they are not contrary to public policy or the law of the land. Constitutes a contract between the members which the courts will enforce, if not immoral or contrary to public policy or the law of the land. A rule of a labor union which violates the staute is, of illegal. A unions constitution and by -laws govern the relationship b/w and among the members. As in the interpretation of contracts, if the terms are clear and leave no doubt as to the intention of the parties, the literal meaning of the stipulation shall control. Johnson and Johnson Labor Union-FFW, et al. vs. Director of Labor Relations The union constitution is a covenant between the union and its members and among the members. There is nothing in the constitution which leaves the legal interpretation of its terms unilaterally to the union or its officer or even the general membership.

The fact that the union-officers impleaded since the inception of the case acted in a representative capacity on behalf of the entire unions membership substantially meets the requirements of due process with respect to the said union. SOME REASOS FOR JOINING A UNION (1) Need to improve conditions (2) Discontent of wages (3) Inadequate benefits (4) No feelings of justice (5) Insecurity (6) Poor supervision (7) Lack of communication

Limitation to by-laws

A statute providing that labor unions may devise and adopt ways and means to make their rules, regulations, by-laws and resolutions effective does not sanction rules, regulations, by-laws or resolutions to commit wrong, nor does it authorize interference with the constitutional right of others. Constitution and by-laws should be democratically ratified.

Amendments

A unions constitution and by -laws may be amended, modified and extended by the duly constituted union authorities under the laws of the state. In the absence of other requirements, and subject to the vested rights, a union constitution may be made, changed, unmade, or superseded by a majority vote of the members or its subsequent constituent body. PROVISIONS COMMON TO THE REGISTRATION OF LABOR ORGANIZATIONS AND WORKERS ASSOCIATION Attestation Fee, Copies of Documents -application for org of labor unions and workers assoc., notice for change of name, merger, consolidation and affiliation including all the accompanying documents, shall be certified under oath by its Secretary or Treasurer, as the case may be, and attested to by its President. Submitted to the Regional Office or the Bureau Action on the Application/Notices -Regional offices of the BLR shall act on all application for registration or notice of change of name, affiliation, merger and consolidation WITHIN 10 DAYS FROM RECEIPT either by: (a) Approving the application and issuing the certificate of registration/acknowledging the notice/report; (b) Denying the application/notice for failure of the applicant to comply with the requirements for registration/notice. Denial of Application/Return of Notice When the documents for application are incomplete or do not contain the required certification and attestation, the Regional Office of the BLR shall w/in 5days from receipt of the application of notice, notify the applicant/labor org concerned in writing of the necessary requirement and complete the same w/in 30days from receipt of notice. failure of compliance = deny the application

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 The order of the regional office of BLR denying the application for registration/returning the notice of change of name, affiliation, meger, or consolidation shall be in writing, stating in clear terms the reason for the denial or return. Appeal Denial of Regional Office appeal to BLR CA Denial of BLR appeal to Secretary of DOLE CA The memorandum of appeal shall be filed w/ the regional office of the BLR that issued the denial/return of notice. The memorandum of appeal together w/ the complete records of the application registration/notice of change of name, affiliation, merger or consolidation shall be transmitted by the Regional Office to the BLR, or by the BLR to the office of the Secretary w/in 24hrs from receipt of the memo of appeal. BLR or Secretary shall decide the appeal w/in 20days from receipt of the records of the case. AFFILIATION Affiliate an independently registered union that enters into an agreement w/ a federation or a national union. -also refers to a chartered local w/c applies for and is granted an independent registration but does not disaffiliate from its member federation or national union.

DISAFFILIATION A local union, being a separate and voluntary association, is free to serve the interest of all its members including the freedom to disaffiliate when circumstances warrant (consistent w/ the constitutional grant of freedom of association) The local unions remain the basic unit of association, free to serve their own interests SUBJECT TO THE RESTRAINT IMPOSED BY THE CBL OF THE NATIONAL FEDERATIONS and free also to renounce the affiliation UPON THE TERMS LAID DOWN IN THE AGREEMENT w/c brought such affiliation to existence. To disaffiliate is a right, but to observe the terms of affiliation is an obligation Disaffiliation is NOT an act of disloyalty, w/c is a sufficient ground for dismissal from employment

When to Disaffiliate

Generally A labor union may disaffiliate from the mother union to form a local or independent union only during the 60-day freedom period immediately preceeding the expiration of the CBA. But even before the onset of the freedom period (and despite the closed-shop provision in the CBA between the mother union and mgmt.) disaffiliation may still be carried out, but such disaffiliation must be effected by a majority of the members in the Bargaining unit. OPINION: True only if the contract of affiliation does not specify the period for possible disaffiliation. If it does, the stipulation MUST BE OBSERVED.

Why enter/join federation:

(1) To secure support or assistance particularly during the formative stage of the unionization (2) To utilize expertise in preparing and pursuing bargaining proposals (3) To marshal mind and manpower in the source of a group action such as a strike Relationship as that of Agency o Charter/Local Union Principal o Federation/NU Agent

Disaffiliation must b by Majority Decision

-has to be decided by the entire membership through secret balloting A member or any number of members may disaffiliate from their mother union during the freedom period. But disaffiliating the union itself from its mother union must be supported by the majority of the members. If done by minority, even during the freedom period may constitute disloyalty.

Report Affiliation: Requirements

Report shall be filed w/ the RO that issued its certificate of registration The report of affiliation shall be accompanied by the ff. documents: (a) Resolution of the labor unions board of directors approving the certification; (b) Minutes of general memberships meeting approving the affiliation; (c) Total numbers of members compromising the labor union and the names of the members who approved the affiliation; (d) The certification issued by the federation in favor of the independently registered labor union; and (e) Written notice to the employer concerned if the affiliating union is the incumbent bargaining agent.

Disaffiliation: Effect on Legal Status

If not independently registered: not entitled to the rights and privileges granted to a LLO. -cannot file a petition for CE

Disaffiliation: Effect on Union Dues

The federation is entitled to receive the dues from the employer only as long as the local union is affiliated w/ the federation. Without said affiliation, the employer has no link to the mother union. The obligation of an employer to pay union dues is coterminous w/ the his affiliation of membership.

A local which has validly withdrawn from its affiliation w/ the present association and w/c continues to represent the

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employees of an employer is entitled to check-off dues under a collective bargaining contract.

Notice of Merger/Consolidation of Labor Organization; where to file

Disaffiliation: Effect on existing CBA; the Substitutionary Doctrine

CBA continues to bind the members of the new of disaffiliated and independent union up to the CBAs expiration date

Independent Labor Union, chartered locals and workers association Regional Office that issued the certificate of registration/certificate of creation of chartered local of either the merging or consolidating labor org Federation/NU filed and recorded by the Bureau

Subtitutionary Doctrine provides that the employee cannot revoke the validly executed collective bargaining contract w/ their employer by the simple expedient of changing their bargaining agent. The employees, thru their new bargaining agent, cannot renege on the collective bargaining contract, except to negotiate w/ management for the shortening thereof.

Requirements of Notice of Merger/Consolidation

(1) The minutes of merger/consolidation convention or general membership meeting(s) of all the merging/consolidating labor organizations, with the list of their respective members who approved the same. (2) The amended CBL and minutes of its ratification, unless ratification transpired in the merger/consolidation convention, which fact shall be indicated accordingly

REVOCATION OF CHARTER A federation, NU or workers association may revoke the charter issued to a local/chapter or branch by serving on the latter a verified notice of revocation, copy furnished the bureau, on the ground of disloyalty or such other grounds may be specified in the CBL of the federation, NU or workers association. The revocation shall divest the local/chapter of its legal personality upon receipt of the notice by the Bureau, unless in the meantime the local/chapter has acquired independent registration in accordance with the Rules.

Certificate of Registration

issued to the merged labor organizations shall bear the registration number of one of the merging labor organizations as agreed upon by the parties Certificate of registration shall indicate the ff: (a) The new name of the merged/consolidated labor organization (b) The fact that it is merger/consolidation of two or more labor organizations (c) The name of the labor organizations that were merged or consolidated (d) Its office or business address (e) The date when each of the merging/consolidating labor org acquired legitimate personality as stated in their respective original certificate of registration CHANGE OF NAME Notice of Change of Name of a Registered Labor Org shall be filed with the Bureau or Regional Office where the concerned labor organizations certificate of registration or certificate of creation of a chartered local was issued. shall be accompanied by the proof of approval or ratification of change of name; and the amended CBL

Effect of Cancellation of Registration of Federation or NU on Locals/Chapters

(1) Divest its local chapter of their status as LLO (2) Unless the locals/chapters are covered by a duly registered CBA, the locals/chapters shall be allowed to register as independent unions, failing which shall lose their legitimate status upon the expiration of the CBA.

MERGER OR CONSOLIDATION New Concept in the PH Merger (absorption) process where a labor organization absords another, resulting in the cessation of the absorbed labor organizations existence and the continued existence of the absorbing labor organization. Effect: transfer to the absorbing organization all the rights, interest and obligations of the absorbed organization Consolidation (amalgamation) refers to the creation or formation of a new union arising from the unification of two or more unions. Effect: the newly created labor org acquires all the rights interests and obligations of the consolidating labor aorganizations. Why do unions merge? (1) to gain access to greater resources and expertise (2) to eliminate interorganizational conflicts (3) to maintain job security and institutional survival Experience, however, confirms that union merger/consolidation does not easily happen. (Political, no less than the economic considerations, are central)

Effect of Change of Name

The change of name of a labor org shall not affect its legal personality. All the rights and obligations of a labor org under its old name shall continue to be exercised by the labor org under its new name. CANCELLATION OF REGISTRATION; GROUNDS Cancellation the governments act that divests the organization its status. It thereby reverts to its character prior to the registration. Although it does not cease to exist or become an unlawful organization, its juridical personality as well as its statutory rights and privileges is suspended. Grounds: (1) Misrepresentation about the union CBL (2) Misrepresentation about the election (3) Desire of the union (to dissolve) themselves; 4 requisites

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(a) The members desire to dissolve or cancel the registration of their union should have been voted upon through secret balloting, applying the rule in Art. 214(d) (b) The balloting should take place in ameeting duly called for the purpose of deciding whether or not to dissolve the union (c) The vote to dissolve should represent 2/3 affirmative vote of the general membership, not just of the quorum. (d) The members resolution should be followed by an application for cancellation passed and submitted by the unions governing board, which application must be attested to by the president (Note: 4th requisite, however, raises the question Can the decision of the general membership be defeated by lack of action by the board? Is there no time limit for the board to submit the application to cancel the registration?)

(e) updated list of its chartered locals and affiliates or member organizations, collective bargaining agreements executed and their effectivity period, in the case of federations or national unions, within thirty (30) days after the close of each fiscal year, as well as the updated list of their authorized representatives, agents or signatories in the different regions of the country. The fiscal year of labor org shall coincide with the calendar year, unless a different period is prescribed in the CBL. Failure of the labor org to submit the reports mentioned above for 5 consecutive years authorizes the bureau to institute cancellation proceedings upon its own initiative or upon complaint by any party-in-interest.

Invalid Grounds (some)

(1) Having held an illegal strike (2) Nonrenewal of registration/permit will not cause dismissal of the case by the union, provided that when it filed the petition it had juridical personality and the court had acquired jurisdiction over the case.

WHO FILES FOR PETITION FOR CANCELLATION Any party-in-interest may commence a petition for cancellation of a unions registration, except in actions involving violations of Art. 241 which can only be commenced by members of the labor org concerned. But such petition, as already explained, should be a SEPARATE ACTION; it cannot be entertained in the petition for certification election filed by the union. WHERE TO FILE THE PETITION Upon the filing of an independent complaint or petition for cancellation: Regional Director may cancel the registration of any legitimate labor union, chartered local and workers association -decision by the RD are appealable to the BLR, not appealable to the DOLE Secretay but appealable to the CA (by certiorari) Bureau Director in case of federations, national or industry unions and trade union centers -decision by the BD appealable to the DOLE Secretary then to CA by certiorari Article 240. Equity of the incumbent. All existing federations and national unions which meet the qualifications of a legitimate labor organization and none of the grounds for cancellation shall continue to maintain their existing affiliates regardless of the nature of the industry and the location of the affiliates. CHAPTER II RIGHTS AND CONDITION OF MEMBERSHIP DEMOCRATIZATION OF UNIONS The governing philosophy is ownership of private property, not popular sovereignty, and the traditional norm is superiorsubordinate relationship, not egalitarianism. The workers, generally do not and cannot select their superiors, and neither do they decide policy questions or control the making of rules. Realizing that there is strength in unity, they unionize to match somehow the power of their corporate superiors. NATURE OF RELATIONSHIP B/W UNION AND ITS MEMBERS

Cabo and Other Grounds Deleted

Cabo refers to a person or group of persons or to a labor group which, in the guise of a labor org, supplies workers to an employer, with or without monetary or other consideration whether in the capacity of an agent of the employer or as an ostensible independent contractor. Also deleted sweetheart contract or a CBA which provides for terms and conditions of employment below the minimum standards established by law Also abandoned by Art. 239 as amended is asking for or accepting attorneys fees or negotiation fees from the employer (but, this cause of union cancellation still exists because the Labor Code itself in Art. 249 prohibits it as a ULP act)

Administrative Cancellation; the reportorial requirements

It shall be the duty of every legitimate labor unions and workers associations to submit to the Regional Office or the Bureau which issued its certificate of registration or certificate of creation of chartered local, as the case may be, two (2) copies of each of the following documents: (a) any amendment to its constitution and by-laws and the minutes of adoption or ratification of such amendments, within thirty (30) days from its adoption or ratification; (b) annual financial reports within thirty (30) days after the close of each fiscal year or calendar year; (c) updated list of newly-elected officers, together with the appointive officers or agents who are entrusted with the handling of funds, within thirty (30) days after each regular or special election of officers, or from the occurrence of any change in the officers of agents of the labor organization or workers association; (d) updated list of individual members of chartered locals, independent unions and workers' associations within thirty (30) days after the close of each fiscal year; and

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(1) The degree of dependence of the individual on the union organization; (2) The comprehensive power vested in the union with respect to the individual

Duty of the Court to protect Laborers from Unjust Exploitation by Oppressive Employers and Union Leaders
Court has stricken down unjust exploitation of labourers by oppressive employers, so it will strike down their unfair treatment by their own unworthy leaders. Fair dealings is equally demanded of unions as well as of employers in their dealings with employees. RIGHTS OF THE UNION MEMBERS (1) Political right the members right to vote and be voted for, subject to lawful provisions on qualifications and disqualifications (2) Deliberative right the members right to participate in deliberations on major policy questions and decide them by secret ballot. (3) Rights over money matters the members right against excessive fees; rights against unauthorized collection of contributions or unauthorized disbursements; etc. (4) Rights to information the members right to be informed about the organizations CBL and CBA and about labor laws.

election committee, but its rules and actions cannot contradict the Labor Code mandates. If the officers with expired term do not call an election, the remedy, according to Rule XII, is for at least 30% of the members to file a petition with the DOLE Regional Office.

The members frustration over the performance of the union officers as well as their fear of fraudulent election to be hel d under the latters supervision does not justify disregard of the unions CBL (UST Faculty Union, et al. vs. Bitonio, Jr. et al.). The ratification of the new CBA executed b/w the petitioners and the UST management did not validate the void October 4, 1996 election. Ratified were the terms of the new CBA, not the issue of union leadership matter that should be decided only by union members in the proper forum at the proper time and after observance of proper procedure.

Eligibility of Voters

Only members of the union can take part in the election of union officers A labor org may prescribe reasonable rules and regulations with respect to voting eligibility. Thus, it may, in appropriate circumstances, defer eligibility to vote by requiring a reasonable period of prior membership, such as 6 months or a year. A labor organization may condition the exercise of the right to vote on the payment of dues, since paying dues is a basic obligation of membership but is subject to 2 qualifications: (1) Any rule demanding dues-delinquent members the right to vote must be applied uniformly; (2) Members must be afforded a reasonable opportunity to pay dues, including a grace period during w/c dues may be paid w/o any loss of rights

Eligibility of Membership

Membership depends on the unions CBL inasmuch as Article 249 gives a labor org the right to prescribe its own rules for acquisition or retention of membership. Under Art 277, an employee is already qualified for union membership starting on his first day of service. Employees membership in a union does not necessary mean coverage by the CBA. The CBA defines its coverage as agreed by the parties. Qualifying for union membership, therefore, does not necessarily mean inclusion in the coverage of the CBA. Vice versa, membership in the CBA does not automatically membership in the union Members of certain religious sects do not join unions although they are members of a bargaining unit CBU Members vote for ratification of CBA Only Union Members vote for their union official

Union Officer Must be an Employee

One should be employed in the company to qualify as officer of a union in that company. Although subsequent department orders deleted this provision, the membership qualification remains because it is required in the Code itself, in Art 241 (c), 2 nd sentence.

Disqualification of Union Officers

No person who has been convicted of a crime involving moral turpitude shall be eligible for election as a union officer or for appointment to any position in the union. A crime involving moral turpitude is one characterized by an act of baseness, vileness, or depravity in the private or social duties w/c a man owes his fellowmen, or to society in general, contrary to accepted and customary rule of right and duty between man and man, or conduct contrary to justice, honesty, modesty, or good morals. Disqualification to membership in a union involving subversive activity also applies to disqualification of candidates in union election, in other words, one who cannot even be a member cannot be a candidate for an office.

ELECTION OF UNION OFFICER Union officers are elected directly by the members in secret balloting. The election takes place at intervals of 5 years w/ the term of office of the union officer including those of a NU, federation or TUC. What positions to fill up, where, and how the election should be done are matters left by law to the unions CBL. In the absence thereof, IRR of Book V shall apply. IRR requires the incumbent president to create an election committee w/in 60days before expiration of the incumbent officers term. The Rules specify the composition as well as the powers and duties of the

Union Election Protest: Proclamation of Winners

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treated as intra-interunion dispute (Rule XI of D.O. 40-03 shall apply) ACTION AGAINST UNION OFFICERS The remedy against erring union officers is not referendum but union expulsion. If the union officers were guilty of the alleged acts imputed against them, the public respondent [DOLE Secretary], pursuant to Art 242 of the New Labor Code and in the light Our ruling in Duyag v. Inciong should have meted out the appropriate penalty on them, i.e. to expel them from the Union, as prayed for, and not call for a referendum to decide the issue. DUE PROCESS IN IMPEACHMENT Litton Mill Employment Association-Kapatiran v. Ferrer-Calleja As to the impeachment of a union officer, Section 2, Article XV of the petitioner unions CBL provides the procedures to be followed, to wit: (1) Impeachment should be initiated by petition by at least 30% of all bona fide members of the union, and addressed to the Chairman of the Executive Board; (2) A general membership meeting shall be convened by the Board Chairman to consider the impeachment of an officer; (3) Before any impeachment vote is finally taken, the union officer againsy whom the impeachment charges have been filed shall be given ample opportunity to defend himself; and (4) A majority of all the members of the union shall be required to impeach or recall union officers. Nevertheless despite the practical difficulties in complying with the said procedure, petitioners should have shown compliance with said impeachment procedure, by giving Umali ample opportunity to defend himself, as contrasted to an outright impeachment, right after he failed to appear before the first and only investigation scheduled on August 25, 1986 in the Litton Canteen. EXPULSION OF MEMBER The court explicitly ruled that a member of a labor union may be expelled only for a valid cause by following the procedure outlined in the CBL of the union. Ferrer, et al. v. NLRC The union has a specific provision for the permanent or temporary expulsion of its erring members in its CBL. No hearing was ever conducted by the SAMAHAN to look into petitioners explanation of their moves to oust the union leadership under Capitle, or their subsequent affiliation with the FEDLU. The SAMAHAN should have observed its own CBL by giving petitioners an opportunity to air their side and explain their moves. RELIEF WITHIN THE UNION GR Generally, redress first must be sought w/in the union itself in accordance with its CBL. XPN Where the exhaustion of remedies within the union itself would practically amount to denial of justice, it would not be insisted upon as a condition to the right to invoke the aid of a court. CONSEQUENCES OF VIOLATION OF RIGHTS

If the condition of membership, or the right of the members, are violated, the violation may result in the cancellation of the union registration or the expulsion of the capable officers. Under D.O. 40-03, any complaint or petition with allegation of mishandling, appropriation or non-accounting of funds in violation of Art 241 shall be treated as an intra-union dispute. It shall be heard and resolved by the Med-Arbiter.

Exception: When 30% Not Required

GR 30% of the members to report a violation of the labor organization procedures XPN When such violation directly affects only one or two members, then only one or two members would be enough to report such violation. (Note: In view of Art 238 and 239 that limit to only 3 the grounds of cancellation of union registration and violation of Art 241 is not one of the three, the 30% requirement is now of doubtful relevance to the particular issue of union cancellation.) VISTORIAL POWER Art 274 authorizes the Secretary of Labor and Employment or his duly authorized representative to inquire into the financial activities of any labor organization on the basis of a complaint under oath, supported by 20% of the membership in order to determine compliance or noncompliance with the laws and to aid in the prosecution of any violation thereof. CHECK-OFFS AND ASSESSMENT Check-off is a method of deducting from an employees pay at prescribed period, the amount due the union fees, fines or assessments. The right of a union to collect union dues is recognized under Art 277(a). Under Art 113, one of the lawful deductions from the employees wage is for union dues, in cases where the right of the worker or his union to check-off has been recognized by the employer or authorized in writing by the individual by the individual worker concerned. Amount of union dues should be reasonable.

Assessments, like dues, may also be Checked-Off

Dues are defined as payments to meet the unions general and current obligations. The payment must be regular, periodic, and uniform. Assessments payments used for a special purpose, especially if required only for a limited time Under Art 241, other than for mandatory activities under the Code, no special assessments, attorneys fees, negotiation fees, or any other extraordinary fees may be checked off from any amount due an employee w/o individual written authorization duly signed by the employee. The authorization should specifically state the amount, purpose, and beneficiary of the deduction. Attorneys fees may not be deducted or checked off from any amount due to an employee without his written consent, except for mandatory activities under the Code.

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Mandatory Activity judicial process of settling dispute laid down by the law. An amicable settlement entered into by the management and the union is not a mandatory activity under the Code. Moreover, the law explicitly requires the individual written authorization of each employee concerned, to make the deduction of attorneys fees valid. Pulacol v. Pura Ferrer-Calleja, et al. (1) Requirements The failure of the Union to comply strictly with the requirements set out by the law invalidates the questioned special assessment. Substantial compliance is not enough in view of the fact that the special assessment will diminish the compensation of the union members. Their express consent is required, and this consent must be obtained in accordance with the steps outlined by law, which must be followed to the letter. No shortcuts allowed. (2) Effects of withdrawal of authorization Paragraph (o), on the hand, requires an individual written authorization duly signed by every employee in order that a special assessment may be validly checked-off. The withdrawal of authorization is equivalent to no authorization at all. (3) Forms of disauthorizations The union points out that disauthorizations are not valid being collective in form no merit. There is nothing in law which requires that the disauthorization must be in individual form. (4) Purpose of the special assessment only the collection of a special fund for labor and education research is mandated. The two other purposes, namely, the purchase of vehicles and other items for the benefits of the union officers and the general membership,a nd the payment of services rendered by union officers, consultants, and others should not be supported by the regular union dues, there being no showing that the latter are not sufficient to cover the same.

Illegal Check-off Ground for Cancellation

Violation of the law on check-off of special assessments was one of the grounds for cancellation of union registration On the part of employer, illegal check-off may give rise to a charge of illegal decution, in violation of Article 113.

Employers Liability in Check-off Arrangement

No provision of law makes the employer directly liable for the payment to the labor organization of union dues and assessments that the former fails to deduct from its employees salaries and wages pursuant to a check-off stipulation. The employers failure to make the requisite deductions may constitute violation of a contractual commitment for which it may incur liability for ULP. But the employer, does not, by that omission, incur liability to the union for the aggregate of dues or assessments uncollected from the union members, or agency fees for non-union employees. Check-offs in truth impose an extra burden to the employer in the form of additional administrative and bookkeeping costs. The only obligation of the employer under a check-off is to effect the deductions and remit the collections to the union.

Jurisdiction over Check-off disputes

Regional Director of DOLE, not the labor arbiter, has jurisdiction over check-off disputes.

Three Requisites to Collect Special Assessment

(1) Authorization by a written resolution of the majority of all the members at the general membership meeting duly called for the purpose; (2) Secretarys record of the minutes of the meeting (3) Individual written authorization for check-off duly signed by the employee concenred

Art 241 (n and o): Authorization should proceed from free consent

The authorization, embodied in the ratification of the employerunion memo of agreement, is a vitiated authorization because it could be assumed that the union members felt it difficult to turn down the substantial and lucrative award of Php 42million economic package. They had no free choice: they had to sign the ratification w/c also embodies the deduction of the union dues and special assessments. Such situation militated against the legitimacy or genuine consent that should characterize the authorization.

Check-off of Agency Fee

Agency fee an amount, equivalent to union dues, w/c nonunion member pays to the union because he benefits from the CBA negotiated by the union. Another allowable deduction from the employees wage

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