Spectra Notes Labor Relations Vol2 UPDATED 1 1 PDF

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Labor
Relations
Compilation
Based on the outline of: Atty. Jefferson Marquez
VOLUME 2
Compiled by: Spectra
UPDATED AS OF: SY: 2014 – 2015 2nd Sem
Societas Spectra Legis

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Table of Contents
TOPIC 12: RIGHT TO SELF-ORGANIZATION ............................................................................................................................ 6
UNIONISM, POLICY OF STATE, CONSTITUTIONAL GUARANTEE ......................................................................................................................................6
SCOPE AND NATURE OF EMPLOYEE’S RIGHTS ................................................................................................................................................................7
CONSTITUTIONAL BASIS .................................................................................................................................................................................................7
STATUTORY BASIS...........................................................................................................................................................................................................7
TWO CONCEPTS OF RIGHT TO ASSOCIATION .................................................................................................................................................................8
UNION SECURITY CLAUSE OR CLOSED SHOP AGREEMENT .............................................................................................................................................8
PURPOSE OF EXERCISE OF RIGHT: TWO FOLD PURPOSE/S .............................................................................................................................................9
REPUBLIC ACT NO. 9481 ................................................................................................................................................................................................9
NON-ABRIDGEMENT OF RIGHT TO SELF-ORGANIZATION.............................................................................................................................................11
UNION MEMBERSHIP AND FORMATION OF UNION: WHO ARE QUALIFIED AND DISQUALIFIED ..................................................................................11
DOCTRINE OF NECESSARY IMPLICATION ......................................................................................................................................................................14
CASE: SMC Supervisors and Exempt Union vs. Hon. Laguesma ............................................................................................................................................................. 15
REGISTRATION OF UNION; JURISDICTION AND PROCEDURE, JURIDICAL PERSONALITY ...............................................................................................15

JURISDICTION AND PROCEDURE ..................................................................................................................................................................................21
RIGHTS OF LEGITIMATE LABOR ORGANIZATION ..........................................................................................................................................................23
RIGHTS AND DUTIES OF UNION MEMBERS & NON-UNION MEMBERS (ART. 241) AND QUALIFICATIONS ...................................................................24
RIGHTS..........................................................................................................................................................................................................................25
DUTIES ..........................................................................................................................................................................................................................27
ELECTION OF UNION OFFICERS AND QUALIFICATIONS ................................................................................................................................................27
CHECK- OFF PROVISION (ART. 113(B)) ..........................................................................................................................................................................31
DISAFFILIATION: MEMBERS & UNION ..........................................................................................................................................................................32
INTRA- UNION & INTER-UNION DISPUTES: JURISDICTION OF BLR (ART. 226); OTHER MATTERS .................................................................................33
CANCELLATION OF UNION REGISTRATION; GROUNDS; JURISDICTION & PROCEDURE ................................................................................................35
INQUIRY INTO UNION’S FINANCIAL ACTIVITIES: VISITORIAL POWER (ART. 274) ..........................................................................................................40
OTHER POWER OF SECRETARY OF LABOR (ART. 273) ...................................................................................................................................................41
OTHER SPECIAL LAWS:..................................................................................................................................................................................................42
RA 7916, CHAP. 4 (SPECIAL ECONOMIC ZONE ACT OF 1995) .......................................................................................................................................42
PART I, RULE II, SEC 2....................................................................................................................................................................................................42
PART IX, RULE XXIII, SEC. 1-7 ........................................................................................................................................................................................42
ATTY. MARQUEZ’ DISCUSSION .....................................................................................................................................................................................43
TOPIC 13: RIGHTS OF LEGITIMATE LABOR ORGANIZATION ................................................................................................ 53

RIGHTS IN GENERAL (ART. 242, AS AMENDED) ............................................................................................................................................................53
EXCLUSIVE BARGAINING AGENT...................................................................................................................................................................................54
PURPOSE OF AN EXCLUSIVE BARGAINING AGENT ........................................................................................................................................................54
CERTIFICATION PROCESS: CERTIFICATION ELECTION AND VOLUNTARY RECOGNITION ...............................................................................................54
RULES IN THE CONDUCT OF CERTIFICATION ELECTION (UNDER DO 40-03) .................................................................................................................54
VOLUNTARY RECOGNITION ..........................................................................................................................................................................................56
CERTIFICATION ELECTION.............................................................................................................................................................................................57
WHO MAY FILE FOR CERTIFICATION ELECTION ............................................................................................................................................................63
PRINCIPLE OF PRECLUSION OR COLLATERAL ATTACK...................................................................................................................................................69
INCLUSION-EXCLUSION PROCEEDINGS.........................................................................................................................................................................69
CONTRACT BAR RULE ...................................................................................................................................................................................................69
EXCEPTIONS TO THE CONTRACT BAR RULE ..................................................................................................................................................................69
DEADLOCK BAR RULE ...................................................................................................................................................................................................70
University of San Carlos - School of Law and Governance | Based on the Outline of JMM Page 2
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CERTIFICATION YEAR RULE ...........................................................................................................................................................................................70

VALID ELECTION AND DOUBLE MAJORITY RULE ...........................................................................................................................................................70
FAILURE OF ELECTION ..................................................................................................................................................................................................71
RUN-OFF ELECTIONS ....................................................................................................................................................................................................71
PRINCIPLE OF FAIR REPRESENTATION ..........................................................................................................................................................................71
SCOPE: BARGAINING UNIT ...........................................................................................................................................................................................71
JURISDICTIONAL PRECONDITIONS TO COLLECTIVE BARGAINING .................................................................................................................................72
DUTY TO BARGAIN WITH OR WITHOUT A CBA .............................................................................................................................................................72
FOUR (4) FORMS OF VIOLATION OF DUTY TO BARGAIN...............................................................................................................................................73
RIGHT TO COLLECTIVE BARGAINING ............................................................................................................................................................................74
SINGLE ENTERPRISE BARGAINING/DECENTRALIZED BARGAINING ...............................................................................................................................74
MULTI-EMPLOYER BARGAINING/INDUSTRY-WIDE BARGAINING .................................................................................................................................74
WHEN TO BARGAIN ......................................................................................................................................................................................................76
CONTENTS OF CBA .......................................................................................................................................................................................................76
GRIEVANCE MACHINERY – ...........................................................................................................................................................................................76
UNION SECURITY CLAUSE .............................................................................................................................................................................................79
DRUG-FREE WORKPLACE ..............................................................................................................................................................................................80
MANDATORY SUBJECTS OF BARGAINING .....................................................................................................................................................................80
IMPASSE .......................................................................................................................................................................................................................81
BOULWARISM ..............................................................................................................................................................................................................81
RATIFICATION OF CBA: WHEN NEEDED? .....................................................................................................................................................................81
RATIFICATION OF CBA: WHEN NOT NEEDED? .............................................................................................................................................................82
REGISTRATION OF CBA .................................................................................................................................................................................................82
TERM OF CBA: REPRESENTATION ASPECT ....................................................................................................................................................................83
RENEGOTIATION / RETROACTIVITY OF CBA..................................................................................................................................................................84
SUBSTITUTIONARY DOCTRINE ......................................................................................................................................................................................85
RIGHT TO FINANCIAL STATEMENTS ..............................................................................................................................................................................85
RIGHT TO PARTICIPATE IN POLICY AND DECISION MAKING PROCESS ..........................................................................................................................86
PRINCIPLE OF CO-DETERMINATION .............................................................................................................................................................................86
RIGHT TO ENGAGE IN PEACEFUL CONCERTED ACTIVITIES............................................................................................................................................86
FORMS OF CONCERTED ACTIVITIES ..............................................................................................................................................................................88
STRIKE AND LOCKOUT ..................................................................................................................................................................................................88
CONSTITUTIONAL AND STATUTORY BASIS ...................................................................................................................................................................89
KINDS OF STRIKE...........................................................................................................................................................................................................90
CATEGORIES OF ILLEGAL STIKE .....................................................................................................................................................................................91
NCMB MANUAL OF PROCEDURE FOR CONCILIATION AND PREVENTIVE MEDIATION ..................................................................................................91
STRIKE...........................................................................................................................................................................................................................91
FORM NOTICE OF STRIKE AND LOCKOUTS; CONTENTS ................................................................................................................................................91
WHERE TO FILE .............................................................................................................................................................................................................92
WHO MAY FILE .............................................................................................................................................................................................................92
GROUNDS FOR STRIKE AND LOCK-OUT ........................................................................................................................................................................92
VALIDITY OF "NO STRIKE" CLAUSE ................................................................................................................................................................................94
STRIKEABLE ISSUES .......................................................................................................................................................................................................94
NON-STRIKEABLE ISSUES ..............................................................................................................................................................................................94
ASSUMPTION OF JURISDICITON/SEC./DOLE (ART. 263(G))...........................................................................................................................................95
DO-40-H-13, S. 2013, ....................................................................................................................................................................................................95
NATURE OF POWER; SCOPE .........................................................................................................................................................................................96
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EFFECT OF ASSUMPTION ..............................................................................................................................................................................................96

APPEAL TO OFFICE OF THE PRESIDENT; WHEN ALLOWED & PROCEDURE ...................................................................................................................97
PROHIBITED ACTIVITIES ................................................................................................................................................................................................99
STRIKE AREA .................................................................................................................................................................................................................99
IMPROVED OFFER BALLOTING .....................................................................................................................................................................................99
CONSEQUENCES OF LEGAL AND ILLEGAL STRIKE ........................................................................................................................................................ 100
IN PARI DELICTO RULE ................................................................................................................................................................................................ 100
ARREST AND DETENTION OF UNION MEMBERS ......................................................................................................................................................... 100
JOINT DOLE-PNP-PEZA GUIDELINES IN THE CONDUCT OF PNP PERSONNEL, ECONOMIC ZONE POLICE AND SECURITY GUARDS,
COMPANY SECURITY GUARDS AND SIMILAR PERSONNEL DURING LABOR DISPUTES ................................................................................................ 102
LEGAL REMEDIES OF EMPLOYER & UNION IN CASE OF STRIKE/LOCKOUT.................................................................................................................. 102
JURISDICTION & PROCEDURE BEFORE THE LABOR ARBITER & THE SECRETARY OF LABOR ........................................................................................ 102
INNOCENT BY-STANDER RULE .................................................................................................................................................................................... 102
ANTI-INJUNCTION BAN............................................................................................................................................................................................... 103
FREEDOM AT WORKPLACE ......................................................................................................................................................................................... 104
ATTY. MARQUEZ’ DISCUSSION (2014-2015 2nd Sem) .................................................................................................................................................. 109
TOPIC 14: REVISED GUIDELINES OF THE NCMB FOR THE CONDUCT OF VOLUNTARY ARBITRATION
PROCEEDINGS……………………………………………………………………………………………………………………………………………….120
ART. 260, 261, 262, 262-A, 262-B ............................................................................................................................................................................... 120
DO-40-03 .................................................................................................................................................................................................................... 121
ART. 211 (G), LABOR CODE & SEC. 3, ART XIII, 1987 CONSTITUTION .......................................................................................................................... 123
Art. 255 & ART. 277 (G) & (H) ..................................................................................................................................................................................... 124
FRAMEWORK OF ALTERNATIVE DISPUTE RESOLUTION FOR DISPUTE PREVENTION: ................................................................................................. 125
1. CONCILIATION- MEDIATION ................................................................................................................................................................................... 125
2. VOLUNTARY ARBITRATION ..................................................................................................................................................................................... 125
3. GRIEVANCE HANDLING ........................................................................................................................................................................................... 125
4. WORKPLACE COOPERATION (LABOR- MANAGEMENT COUNCIL)........................................................................................................................... 126
5. EMPLOYEE INVOLVEMENT (EI) & EMPLOYMENT PARTICIPATION SCHEMES .......................................................................................................... 126
6. COLLECTIVE BARGAINING ....................................................................................................................................................................................... 128
STRIKE OR LOCK-OUT INTERVENTION ON THE PART OF DOLE: CONCILIATION/MEDIATION...................................................................................... 128
A. CONCILIATION/MEDIATION (NCMB), ..................................................................................................................................................................... 128
B. VOLUNTARY (ART. 262) .......................................................................................................................................................................................... 128
C. COMPULSORY ARBITRATION (ART. 217)................................................................................................................................................................. 128
D. ASSUMPTION OF JURISDICTION (ART. 263 (G)) ...................................................................................................................................................... 129
GRIEVANCE; CONCEPT; & SCOPE ................................................................................................................................................................................ 129
SUBMISSION AGREEMENT; NOTICE TO ARBITRATE; ARBITRATION CLAUSE ............................................................................................................... 130
GRIEVANCE MACHINERY; UNRESOLVED GRIEVANCES ............................................................................................................................................... 130
COLLECTIVE BARGAINING AGREEMENT & COMPANY PERSONNEL POLICIES (CONTRACT INTERPRETATION & ENFORCEMENT DISPUTE) ................ 130
DISPUTES INVOLVING PRODUCTIVITY INCENTIVE PROGRAMS UNDER RA 6971 (PRODUCTIVITY INCENTIVES ACT) .................................................. 131
GRIEVANCE PROCEDURE; GRIEVANCE COMMITTEE ................................................................................................................................................... 131
VOLUNTARY ARBITRATION; DISTINGUISHED FROM COMPULSORY ARBITRATION ..................................................................................................... 131
DESIGNATION OR APPOINTMENT OF VOLUNTARY ARBITRATOR; AD-HOC AND PERMANENT................................................................................... 132
JURISDICTION OF VOLUNTARY ARBITRATOR; ORIGINAL AND EXCLUSIVE; & CONCURRENT ...................................................................................... 132
POWERS AND DUTIES OF VOLUNTARY ARBITRATOR.................................................................................................................................................. 133
COST OF VOLUNTARY ARBITRATION AND FEES OF ARBITRATOR ............................................................................................................................... 134
NATURE OF PROCEEDINGS; INITIAL CONFERENCE; ARBITRATION ISSUES; GROUND RULES; FILING OF POSITION PAPERS AND OTHER
PLEADINGS; CLARIFICATORY HEARING; RECORDING OF PROCEEDINGS; ARBITRATION CONFERENCE ...................................................................... 134
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DECISION OF VOLUNTARY ARBITRATOR AND PROHIBITED MOTION; APPEAL PROCEDURE (RULE 43, RULES OF CIVIL PROCEDURE) AND
RULE 45 ...................................................................................................................................................................................................................... 136
COMPLIANCE OF AND EXECUTION OF DECISIONS OR ORDER OF VOLUNTARY ARBITRATOR ..................................................................................... 136
ATTY MARQUEZ’ DISCUSSION .................................................................................................................................................................................... 136
TOPIC 15: UNFAIR LABOR PRACTICE .................................................................................................................................. 141

REQUISITES ................................................................................................................................................................................................................. 141
CONDITIONS: .............................................................................................................................................................................................................. 141
ACTS OF UNFAIR LABOR PRACTICE: EMPLOYER & UNION .......................................................................................................................................... 141
TERMS ........................................................................................................................................................................................................................ 143
PRESCRIPTIVE PERIOD ................................................................................................................................................................................................ 144
PENAL PROVISION ...................................................................................................................................................................................................... 144
JURISDICTION ............................................................................................................................................................................................................. 144
PROCEDURE................................................................................................................................................................................................................ 145
RELIEF AGAINST UNFAIR LABOR PRACTICES ............................................................................................................................................................... 145
ATTY. MARQUEZ’ DISCUSSION ................................................................................................................................................................................... 146
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TOPIC 12: RIGHT TO SELF-ORGANIZATION

UNIONISM, POLICY OF STATE, CONSTITUTIONAL GUARANTEE
The State promotes unionism in Art. III Sec 8 and Art. XIII Sec 3 of the 1987 Constitution.
“ART III, Section 8. The right of the people, including those employed in the public and private sectors, to form
unions, associations, or societies for purposes not contrary to law shall not be abridged.”
“ART XIII, Section 3. The State shall afford full protection to labor, local and overseas, organized and
unorganized, and promote full employment and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and
peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to
security of tenure, humane conditions of work, and a living wage. They shall also participate in policy and
decision-making processes affecting their rights and benefits as may be provided by law.
The State shall promote the principle of shared responsibility between workers and employers and the
preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual
compliance therewith to foster industrial peace.
The State shall regulate the relations between workers and employers, recognizing the right of labor to its just
share in the fruits of production and the right of enterprises to reasonable returns to investments, and to
expansion and growth.”
The Constitution contains provisions which promote unionism and one of the provisions include:
1. the right to self-organization; (Art. 243)
2. the right to collective bargaining and negotiations; and (Art. 243; 244)
3. peaceful concerted activities (provision on strikes or lockouts Art. 263)
All three constitutional rights promote unionism
Why? The State promotes unionism for full protection of labor – more benefits are obtained because you are
given the opportunity to bargain for benefits and privileges. Therefore, there is a stronger voice to air out your
concerns, thus more chance that your request will be granted by the employers.
Employer and employee do not stand in equal footing in terms of collective bargaining because in order to
bargain you need education; skills and experience;
Individual bargaining is NOT as effective as collective bargaining
These rights are very important to the worker in terms of improving their conditions of employment because
they can raise concerns and make the employer aware of the lacking benefits.
It is better to have collective bargaining. There is no provision in the Constitution nor in the Labor Code which
promotes individual bargaining.
Constitutional right of employees to self-organization is recognized in the labor code (Art. 243 and 244)
It is not easy for an individual EE to bargain with the ER. All three rights should come together or be present in
order to be effective.
The workers may exercise collective bargaining when they have organized themselves as a labor organization.
Thru the exercise of this right they can negotiate with management in equal level and with more persuasion
than if they were to individually and independently bargain for the improvement of their conditions.
The ER and EE do not stand in equal footing that is why to balance this, the law gives more protection to labor
– to offset the social and economic imbalance.
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SCOPE AND NATURE OF EMPLOYEE’S RIGHTS
Both private and public EEs have a right to association.

Right to strike is only applicable to private establishments.
For Public employees, peaceful picketing is allowed (ex. Wearing arm bands) – during working hours, you
cannot march around, however, during lunch period or break time such is allowed.
On the right of collective bargaining, only those GOCCs without original charter established under the
Corporation Code are allowed.
Those under the Civil Service Law are not allowed to collectively bargain because the salary of those working in
the civil service is already fixed by law and thus cannot be subject to collective bargaining. What the
government EE can do is to lobby with Congress to enact laws which will improve their compensation and
benefits.
Private EEs enjoy broader rights than public EEs. However, as regards to the right to association, both exercise
such right.
CONSTITUTIONAL BASIS
Article III Section 8 (1987 Constitution)
The right of the people in the public and private sectors to form unions, associations or societies for purposes not
contrary to law shall not be abridged.
Article XIII Section 3 (1987 Constitution)
The State shall afford full protection to labor, local and overseas, organized and unorganized,
and promote full employment and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and
peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to security
of tenure, humane conditions of work, and a living wage. They shall also participate in policy and decision-making
processes affecting their rights and benefits as may be provided by law.
The State shall promote the principle of shared responsibility between workers and employers and the
preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual
compliance therewith to foster industrial peace.
The State shall regulate the relations between workers and employers, recognizing the right of labor to its just
share in the fruits of production and the right of enterprises to reasonable returns to investments, and to
expansion and growth.
STATUTORY BASIS
Article 243 Coverage and Employees’ Right to Self Organization
All persons employed in commercial, industrial and agricultural enterprises and in religious, charitable,
medical or educational institutions whether operating for profit or not shall have the right to self-organization
and to form join or assist labor organizations of their own choosing for purposes of collective bargaining.
Ambulant, intermittent and itinerant workers, self-employed people, rural workers and those without any definite
employers may form labor organizations for their mutual aid and protection.
Article 244 Right of the Employees in the Public Service
Employees of government corporations established under the Corporation Code shall have the right to
organize and to bargain collectively with their respective employers. All other employees in the civil service shall
have the right to form associations for purposes not contrary to law.
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DO. No. 40-03 Series of 2003, DO. No. 40-A-3, 40-B-03 and 40-C-05 are the implementing rules issued
by the DOLE to enforce the right to association.
Recently Congress enacted RA 9481 otherwise known as “AN ACT STRENGTHENING THE WORKERS'
CONSTITUTIONAL RIGHT TO SELF-ORGANIZATION, AMENDING FOR THE PURPOSE PRESIDENTIAL DECREE NO.
442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES”
TWO CONCEPTS OF RIGHT TO ASSOCIATION

NOTE: The right to association is broader than the right to self-organization
1.) Liberty or freedom – the absence of legal restraint whereby an employee may act for himself without
being circumvented by law.
 he may act as he or she pleases in the absence of legal restraint
 unless there is a specific law which prevents you from performing or doing a particular act, an EE
may act for himself without being circumvented or restrained by law.
2.) Power to join or not to join – a person may choose to join or not to join and which organization to
join and he may disassociate or withdraw from the organization
Freedom of association- the right to join an organization

Negative freedom of association – the right NOT to join an organization, but not absolute because of the
closed shop agreement.
Note: However in RA 3350 otherwise known as the Industrial Peace Act -“but such agreement shall not cover
members of any religious sects which prohibit affiliation of their members in any such labor organization.”…
The free exercise of religious profession or belief is superior to contract rights. In case of conflicts the latter
must yield to the former (Victoriano vs. Elizalde Rope Worker’s Union et al)
General Rule: Employee is free to join/not to join an association. An individual has a freedom of association
and the negative freedom of association (inherent right of every individual)
Exception to the negative freedom of association: Closed-shop agreement (as regulated by Art. 248 of Labor
Code and CBA) where employee, under pain of dismissal has no choice but to join the existing labor
organization.
Closed shop agreement- agreement between employer and union to require membership in a union for
purpose of continued employment
UNION SECURITY CLAUSE OR CLOSED SHOP AGREEMENT
Article 248 (e)

Nothing in this Code or in any other law shall stop the parties from requiring membership in the
recognized collective bargaining agent as a condition for employment except those employees who are already
members of another union at the time of the collective bargaining agreement.
Exceptions to the exception:

1. If employee is a member of a religious organization which prohibits employee from affiliating with any
labor organization then this right prevails over closed-shop provision. (Victoriano vs. Elizalde)
Currently: Iglesia ni Kristo allows its members to join labor unions but not allowed to join a strike
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2. If, at the time of the signing of the CBA, employee is already a member of another labor union. (Art.
248)
3. When it is expressly excluded in the CBA
PURPOSE OF EXERCISE OF RIGHT: TWO FOLD PURPOSE/S
1.) Collective Bargaining- this is the primary purpose (if absent, then it is a useless endeavour)
It is only when you are certified as sole and exclusive bargaining agent (vote of confidence is necessary)
can you then collectively bargain
2.) Mutual Aid and Protection- Members form an association wherein they give contributions for mutual
benefits.
Ex. Social organizations and cooperatives – they contribute to provide housing, scholarship, etc
REPUBLIC ACT NO. 9481

“AN ACT STRENGTHENING THE WORKERS' CONSTITUTIONAL RIGHT TO SELF-ORGANIZATION, AMENDING FOR THE
PURPOSE PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES”
SECTION 1. Article 234 of Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines, is
hereby further amended to read as follows:
"ART. 234. Requirements of Registration. - A federation, national union or industry or trade union center or an
independent union shall acquire legal personality and shall be entitled to the rights and privileges granted by law
to legitimate labor organizations upon issuance of the certificate of registration based on the following
requirements:
(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 of the workers who participated in such meetings;
(c) In case the applicant is an independent union, the names of all its members comprising at least twenty percent
(20%) of all the employees in the 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 who participated in it."
SEC. 2. A new provision is hereby inserted into the Labor Code as Article 234-A to read as follows:
"ART. 234-A. Chartering and Creation of a Local Chapter. - A duly registered federation or national union may
directly create a local chapter by issuing a charter certificate indicating the establishment of the local chapter. The
chapter shall acquire legal personality only for purposes of filing a petition for certification election from the date
it was issued a charter certificate.
The chapter shall be entitled to all other rights and privileges of a legitimate labor organization only upon the
submission of the following documents in addition to its charter certificate:
a. The names of the chapter's officers, their addresses, and the principal office of the chapter; and
b. The chapter's constitution and by-laws: Provided, That where the chapter's constitution and by-laws are the
same as that of the federation or the national union, this fact shall be indicated accordingly.
The additional supporting requirements shall be certified under oath by the secretary or treasurer of the chapter
and attested by its president."
SEC. 3. Article 238 of the Labor Code is hereby amended to read as follows:
"ART. 238. Cancellation of Registration. - The certificate of registration of any legitimate labor organization,
whether national or local, may be cancelled by the Bureau, after due hearing, only on the grounds specified in
Article 239 hereof."
SEC. 4. A new provision is hereby inserted into the Labor Code as Article 238-A t o read as follows:
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"ART. 238-A. Effect of a Petition for Cancellation of Registration. - A petition for cancellation of union registration
shall not suspend the proceedings for certification election nor shall it prevent the filing of a petition for
certification election.
In case of cancellation, nothing herein shall restrict the right of the union to seek just and equitable remedies in
the appropriate courts."
SEC. 5. Article 239 of the Labor Code is amended to read as follows:
"ART. 239. Grounds for Cancellation of Union Registration. - The following may constitute grounds for
cancellation of union registration:
a. Misrepresentation, false statement or fraud in connection with the adoption or ratification of the
constitution and by-laws or amendments thereto, the minutes of ratification, and the list of members who
took part in the ratification;
b. Misrepresentation, false statements or fraud in connection with the election of officers, minutes of the
election of officers, and the list of voters;
c. Voluntary dissolution by the members."
SEC. 6. A new provision, Article 239-A is inserted into the Labor Code to read as follows:
"ART. 239-A. Voluntary Cancellation of Registration. - The registration of a legitimate labor organization may be
cancelled by the organization itself. Provided, That at least two-thirds of its general membership votes, in a
meeting duly called for that purpose to dissolve the organization: Provided, further, That an application to cancel
registration is thereafter submitted by the board of the organization, attested to by the president thereof."
SEC. 7. A new provision, Article 242-A is hereby inserted into the Labor Code to read as follows:
"ART. 242-A. Reportorial Requirements. - The following are documents required to be submitted to the Bureau by
the legitimate labor organization concerned:
a. Its constitution and by-laws, or amendments thereto, the minutes of ratification, and the list of members
who took part in the ratification of the constitution and by-laws within thirty (30) days from adoption or
ratification of the constitution and by-lam or amendments thereto;
b. Its list of officers, minutes of the election of officers, and list of voters within thirty (30) days from election;
c. Its annual financial report within thirty (30) days after the close of every fiscal year; and
d. Its list of members at least once a year or whenever required by the Bureau.
Failure to comply with the above requirements shall not be a ground for cancellation of union registration but
shall subject the erring officers or members to suspension, expulsion from membership, or any appropriate
penalty."
"ART. 245. Ineligibility of Managerial Employees to Join any Labor Organization; Right of Supervisory
Employees. - Managerial employees are not eligible to join, assist or form any labor organization. Supervisory
employees shall not be eligible for membership in the collective bargaining unit of the rank-and-file employees but
may join, assist or form separate collective bargaining units and/or legitimate labor organizations of their own.
The rank and file union and the supervisors' union operating within the same establishment may join the same
federation or national union."
SEC. 9. A new provision, Article 245-A is inserted into the Labor Code to read as follows:
"ART. 245-A. Effect of Inclusion as Members of Employees Outside the Bargaining Unit. - The inclusion as union
members of employees outside the bargaining unit shall not be a ground for the cancellation of the registration of
the union. Said employees are automatically deemed removed from the list of membership of said union."
"ART. 256. Representation Issue in Organized Establishments. - In organized establishments, when a verified petition
questioning the majority status of the incumbent bargaining agent is filed by any legitimate labor organization
including a national union or federation which has already issued a charter certificate to its local chapter participating
in the certification election or a local chapter which has been issued a charter certificate by the national union or
federation before the Department of Labor and Employment within the sixty (60)-day period before the expiration of
the collective bargaining agreement, the Med-Arbiter shall automatically order an election by secret ballot when the
verified petition is supported by the written consent of at least twenty-five percent (25%) of all the employees in the
bargaining unit to ascertain the will of the employees in the appropriate bargaining unit. To have a valid election, at
least a majority of all eligible voters in the unit must have cast their votes. The labor union receiving the majority of the
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valid votes cast shall be certified as the exclusive bargaining agent of all the workers in the unit. When an election
which provides for three or more choices results in no choice receiving a majority of the valid votes cast, a run-off
election shall be conducted between the labor unions receiving the two highest number of votes: Provided, That the
total number of votes for all contending unions is at least fifty percent (50%) of the number of votes cast. In cases
where the petition was filed by a national union or federation, it shall not be required to disclose the names of the local
chapter's officers and members.
At the expiration of the freedom period, the employer shall continue to recognize the majority status of the incumbent
bargaining agent where no petition for certification election is filed."
"ART. 257. Petitions in Unorganized Establishments. - In any establishment where there is no certified bargaining
agent, a certification election shall automatically be conducted by the Med-Arbiter upon the filing of a petition by any
legitimate labor organization, including a national union or federation which has already issued a charter certificate to
its 1ocal/chapter participating in the certification election or a local/chapter which has been issued a charter certificate
by the national union or federation. In cases where the petition was filed by a national union or federation, it shall not
be required to disclose the names of the local chapter's officers and members.”
SEC. 12. A new provision, Article 258-A is hereby inserted into the Labor Code to read as follows:
"ART. 258-A. Employer as Bystander. - In all cases, whether the petition for certification election is filed by an employer
or a legitimate labor organization, the employer shall not be considered a party thereto with a concomitant right to
oppose a petition for certification election. The employer's participation in such proceedings shall be limited to: (1)
being notified or informed of petitions of such nature; and (2) submitting the list of employees during the pre-election
conference should the Med-Arbiter act favorably on the petition."
NOTE: See also IRR under DO No. 40-03 as amended by DO Nos. 40-A-03, 40-B-03, 40-C-05, 40-D-05, 40-E-05 40-F-03, 40-
G-10 & 40-H-13.
NON-ABRIDGEMENT OF RIGHT TO SELF-ORGANIZATION

ART. 246
It shall be unlawful for any person to restrain, coerce, discriminate against or unduly interfere with employees and
workers in their exercise of the right to self-organization. Such right shall include the right to form, join or assist
labor organization for the purpose of collective bargaining through representatives of their own choosing and to
engage in lawful concerted activities for the same purpose or for their mutual aid or protection subject to the
provision in Article 264 of this code
Note: This right to self organization is protected by law and should not be abridged or curtailed. The code says
that an act tending to weaken or defeat this right is unlawful and is considered as an “Unfair Labor Practice”
and shall be dealt with by law.
UNION MEMBERSHIP AND FORMATION OF UNION: WHO ARE QUALIFIED AND DISQUALIFIED
THOSE QUALIFIED: (DO 40-03; 40-A-03; 40-B-03)
Article 243. Coverage and employees’ right to self-organization. All persons employed in commercial, industrial and
agricultural enterprises and in religious, charitable, medical, or educational institutions, whether operating for profit or not,
shall have the right to self-organization and to form, join, or assist labor organizations of their own choosing for purposes of
collective bargaining. Ambulant, intermittent and itinerant workers, self-employed people, rural workers and those without
any definite employers may form labor organizations for their mutual aid and protection. (As amended by Batas Pambansa
Bilang 70, May 1, 1980)
Article 244. Right of employees in the public service. Employees of government corporations established under the
Corporation Code shall have the right to organize and to bargain collectively with their respective employers. All other
employees in the civil service shall have the right to form associations for purposes not contrary to law. (As amended by
Executive Order No. 111, December 24, 1986)
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Rule II, Section 2 of DO 40-03 as amended. Who may join labor unions and workers associations. - All persons employed in
commercial, industrial and agricultural enterprises, including employees of government owned or controlled
corporations without original charters established under the Corporation Code, as well as employees of religious,
charitable, medical or educational institutions whether operating for profit or not, shall have the right to self-
organization and to form, join or assist labor unions for purposes of collective bargaining provided, however, that
supervisory employees shall not be eligible for membership in a labor union of the rank-and-file employees but may form,
join or assist separate labor unions of their own. Managerial employees shall not be eligible to form, join or assist any labor
unions for purposes of collective bargaining.
Alien employees with valid working permits issued by the Department may exercise the right to self-organization and join
or assist labor unions for purposes of collective bargaining if they are nationals of a country which grants the same or
similar rights to Filipino workers, as certified by the Department of Foreign Affairs, or which has ratified either ILO
Convention No. 87 and ILO Convention No. 98.
For purposes of this section, any employee, whether employed for a definite period or not, shall beginning on the first day of
his/her service, be eligible for membership in any labor organization.
All other workers, including ambulant, intermittent and other workers, the self-employed, rural workers and those
without any definite employers may form labor organizations for their mutual aid and protection and other legitimate
purposes except collective bargaining.”(DO 40-c-05)
SUMMARY OF THOSE QUALIFIED:

1. All persons employed in commercial, industrial and agricultural enterprises including:
a. Commercial establishments – those engaged in sale of goods or services. Ex. Shoemart

b. Industrial establishments – those engaged in the manufacture and processing of goods from raw materials. Ex.
Philip Morris
c. Agricultural establishments – engaged in the growing or planting of crops. Ex. Dole Phil., farmers
2. Employees of government owned or controlled corporations without original charters established under the
Corporation Code.
 Article 244, LC
 if employed in a government corporation established under the Corporation Code: they have the right to self
organization and collective bargaining
 with original charter: city of cebu- not covered
 without original charter: example
3. Employees of religious, charitable medical or education institutions operating for profit or not.
Religious, Charitable, Medical, and Educational Institutions – if Iglesia Ni Kristo hires workers, such workers can form a
labor organization. In these types of establishments EEs or workers can exercise the right to self organization regardless
of whether the establishment operates for profit or not.
4. Alien employees with valid working permits issued by the Department if they are nationals of a country which grants
the same or similar rights to Filipino workers as certified by the Department of Foreign Affairs. (Reciprocity rule)
Alien employees (Article 269) – absolutely prohibited from FORMING labor organizations but they can JOIN or ASSIST
provided they have valid permits and the country where they are nationals grant the same rights to Filipinos.
General rule: Alien EEs are strictly prohibited from engaging directly or indirectly in all forms of trade union activities
Exceptions: Under the Labor Code: (1) if they are working in the country (2) with valid working permits issued by the DOLE;
(3) aliens are nationals of a country which grants the same or similar rights to Filipino workers (reciprocity rule); (4) Under
the IRR: that the country to which the alien is a national has participated in the ratification of ILO convention #87 and 98 as
certified by the DFA (these conventions pertain to the right to collectively bargain)
5. All other workers including ambulant, intermittent and other workers, the self-employed people, rural workers and
those without any definite employers may form labor organizations for their mutual aid and protection and other
legitimate purposes except collective bargaining.
Note: Everybody can exercise their right to association whether in the public or private sector.
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6. Security Guards
Under RA 6715, they may now freely join a labor organization of the rank-and –file or that of the supervisory union
depending on their rank in recognition of their constitutional right to self organization
7. Workers in export processing zones
SUMMARY OF THOSE DISQUALIFIED:
1. EMPLOYEES OF GOVERNMENT CORPORATIONS ESTABLISHED THROUGH SPECIAL CHARTERS
 If the corporation was created by original charter or under the civil service law: they have the right to form an
organization for mutual aid and protection but they cannot engage in collective bargaining.
 The law which spells out and governs the right to associate for government EEs is EO 180 which provides the
coverage and scope of self organization of government EEs.
 The right of Government to deal and negotiate with their respective employers is NOT quite as extensive as that
of private employees. Excluded from negotiation by government employees are the “terms and conditions of
employment that are fixed by law”
 NOT negotiable are- matters that require appropriation of funds (e.g. increase in salary emoluments and other
allowances, car plan, special hospitalization, increase in retirement benefits) and those that involve the exercise
of management prerogatives (e.g. appointment, promotion, assignment, penalties as a result of disciplinary
action)
 NEGOTIABLE- matters such as schedule of vacation and other leaves, work assignment of pregnant women;
recreational, social, athletic activities and facilities
 The right to self organization pertain to all EEs of all branches, subdivision, instrumentalities, and agencies of the
government, including GOCCs with original charters.
 Members of the AFP, firemen, police officers, policemen, and jail guards are excluded from EO 180 or NOT
allowed to unionize for reasons of public security and safety.
 The exception in EO 180 is constitutional because there is substantial distinction. The protection of the state is
more superior to contractual rights. It is an exercise of police power
2. MANAGERIAL EMPLOYEES
Article 245. Ineligibility of managerial employees to join any labor organization; right of supervisory
employees. Managerial employees are not eligible to join, assist or form any labor organization. Supervisory
employees shall not be eligible for membership in a labor organization of the rank-and-file employees but
may join, assist or form separate labor organizations of their own. (As amended by Section 18, Republic Act
No. 6715, March 21, 1989)
ART. 245-A. Effect of Inclusion as Members of Employees Outside the Bargaining Unit. - The inclusion as
union members of employees outside the bargaining unit shall not be a ground for the cancellation of the
registration of the union. Said employees are automatically deemed removed from the list of membership of
said union."
The rationale for this inhibition has been stated to be because if these managerial employees will belong to or be
affiliated with a Union, the latter might not be assured of their loyalty to the union in view of evident Conflict in
interest. The Union can also be company-dominated with the presence of managerial employees in union
membership. (United Pepsi-Cola Supervisory Union vs. Laguesma)
Categories of Employees: (1) Managerial; (2) Supervisory; (3) Rank-and-file
“Managerial employee" is one who is vested with the powers or prerogatives to lay down and execute management
policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees. (Art. 212)
 Managerial employees are absolutely prohibited (absolute disqualification) to form, join and assist labor union
because there will be conflict of interest. Their loyalty should be with the owners. They represent the
management and therefore they cannot bargain with themselves. They can, however, form organizations for
mutual aid and protection.
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 In order to determine if you are a managerial employee it is NOT based on the title rather it is dependent on your
powers and duties (ex. Power to hire, fire, suspend, discipline EEs)
 The three (3) types of managerial employees are as follows:
a. Top management; - responsible for the overall management of the organization; establishes operating
policies
b. Middle management; - direct the activities of other managers and sometimes also those of operating
employees
c. First-line management. – direct operating employees only, they do not supervise other managers
(See United Pepsi0Cola Supervisors Union vs. Laguesma, 288 SCRA 15 and Paper Industries Corp. of the
Philippines vs. Laguesma, G. R. No. 101738, April 12, 2000)
“Supervisory employees” are those who, in the interest of the employer, effectively recommend such managerial
actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of
independent judgment (Art. 212)
 As a general rule, only top and middle managers are not allowed to join any labor organization. First-line
managers (or supervisory employees) are allowed to join a supervisory union but not the union of rank-and-file
employees or vice-versa. In fact, the law does not allow mixed membership of both supervisory and rank-and-file
employees in one union.
 The principal distinction between managerial employees and supervisory employees is: the former have the
power to decide and do managerial acts; while the latter have the power only to recommend managerial acts
such as laying down policy, hiring or dismissal of employees and the like.
 Manager makes policy decisions or people decisions or both; supervisor recommends those decisions
 Power of supervisor: the recommendation is:
a. Discretionary or judgmental (not clerical)

b. Independent
c. Effective (given weight in making the management decision)
The “separation of unions” doctrine simply means that the affiliation of both the rank-and-file union and supervisory
union in the same company with one and the same federation is not allowed if the rank-and-file employees are under
the direct supervision of the supervisors composing the supervisory union. If not, said affiliation with one and the
same federation is allowed.
Rationale of segregation of rank-and-file and supervisors is founded on fairness to the employer and the employees. It
will be detrimental to the employer if the supervisors and the rank-and-file as members of only one union could take a
common stand against the employer
Supervisory employees are relatively prohibited (relative disqualification) since they cannot associate with the rank
and file but they can form their own union because of conflict of interest.
Areas where conflict of interest may arise:
a. Area of discipline- there will be no one to discipline the rank and file employees (Atty Marquez: if barkada
na sila, sino pa ang mag didiscipline?)
b. Area of collective bargaining- their loyalty will be divided. They can serve as spies for or against the ERs.
“Rank and file employees” - neither managerial nor supervisory in nature (IRR)
DOCTRINE OF NECESSARY IMPLICATION
3. CONFIDENTIAL EMPLOYEES (BASIS: DOCTRINE OF NECESSARY IMPLICATION)
 Reason for disqualification: Conflict of Interest
They are those who by reason of their positions or nature of work are required to assist or act in a fiduciary manner to
managerial employees and hence are likewise privy to sensitive and highly confidential records. (Metro Lab Industries
vs. Confessor et al)
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They assist and act in a confidential capacity to or have access to confidential matters or persons who exercise
managerial functions in the field of labor relations. As such the rationale behind the ineligibility of managerial
employees to form, assist or join a labor union equally applies to them (Philips Industrial Development vs. NLRC.)
 Confidential employee may be a supervisory or even a rank-and-file employee
 Confidential employees are excluded from the bargaining unit and closed-shop clause
 Access to information which is regarded by the employer to be confidential from the business standpoint, such as
financial information or technical trade secrets will NOT render an employee a confidential employee
“Doctrine of Necessary Implication” - what is implied in a statute is as much a part thereof as that which is expressed.
 If you are a supervisor and at the same time you hold a confidential position, you are NOT qualified to form, join,
or assist a union.
 If you are a rank and file EE but you hold a confidential position, you are NOT qualified to form, join or assist a
union based on the doctrine of necessary implication.
CASE: SMC Supervisors and Exempt Union vs. Hon. Laguesma

Under the “confidential employee rule”, confidential employees are not allowed to join any union (as they are
treated like managers) when they:
Assist or act in a confidential capacity, to persons who formulate, determine, and effectuate management policies
specifically in the field of labor relations. Otherwise, if these two conditions do not concur, they can join a union.
Simply put, if the confidential information to which an employee has access has nothing to do with labor relations,
such employee cannot be considered a confidential employee under this rule.
4. MEMBERS (CO-OWNERS OF A COOPERATIVE)
An owner cannot bargain with himself or his co-owners (San Jose Electric Service Corporation Inc. vs. Ministry of
Labor)
 Members of cooperatives – they CANNOT form, join, or assist a labor organization except for mutual aid and
protection.
 Article 243 uses the word “employed” when referring to those who can form, join, or assist labor organizations.
Members of a cooperative are not employed by the cooperative rather they are owners and thus it would be
absurd for an owner to bargain with itself.
 Cooperatives with employees who are NOT members or co-owners are entitled to exercise the rights of all
workers to organization, collective bargaining negotiations
5. MEMBERS OF INTERNATIONAL ORGANIZATIONS

By the Doctrine of Incorporation, they are immune from suit and cannot be subject to local jurisdiction. (International
Catholic Migration Commission vs. Calleja; Kapisanan ng mga Manggagawa at TAC sa IRRIOLALIA vs. Secretary of Labor
and Employment)
 E.g. International Rice Research Institute (IRRI)
 International organization is set up by agreement between 2 or more states
REGISTRATION OF UNION; JURISDICTION AND PROCEDURE, JURIDICAL PERSONALITY

Terminologies:
1. Labor Organization –refers to any labor organization in the private sector whether registered or not.
 A Labor organization is any union or association of employees which exists in whole or in part for the purpose of
collective bargaining, mutual aid, interest, cooperation, or other lawful purposes (IRR)
 Union and labor organization can be used interchangeably
 It is considered "legitimate" if duly registered with DOLE.
 A labor organization is NOT always a union, it may be an association of employees
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2. Legitimate Labor Organization – refers to any labor organization in the private sector registered or reported with the
department of Labor and Employment and includes any branch or local thereof (Art. 212)
3. Workers' association- refers to an association of workers organized for the mutual aid and protection of its members
or for any legitimate purpose other than collective bargaining. (IRR)
Registration with DOLE makes it legitimate.
4. Legitimate workers’ association- refers to an association of workers organized for mutual aid and protection of its
members or of any legitimate purpose other than collective bargaining registered with the Department in accordance
with Rule III, Section 2-C and 2-D of these rules (IRR)
 Distinction between a labor organization and a workers’ association

A labor organization is established principally for collective bargaining purposes; while a workers' association is
organized for the mutual aid and protection of its members but not for collective bargaining purposes. However,
as regards to the composition, they are the same. They only differ on the purpose and power.
 The establishment of workers’ association is NOT found under the LC but it is found in DO 40-03.
 The rules contain registration of worker’s association
 The purposes of a labor organization

a. Collective bargaining; and
b. Dealing with employers regarding the terms and conditions of the employment relationship.
 To bargain collectively is a right that may be acquired by a labor organization after registering itself with the
DOLE and being recognized by DOLE as the exclusive bargaining representative of the employees
 Dealing with the employer is a generic description of interaction between employer and employees concerning
grievances, wages, work hours even if NOT registered with the DOLE
5. Bargaining unit - is the group or cluster of jobs or positions that supports the labor organization which is applying for
registration, within the employer’s establishment.
Refers to a group of employees sharing mutual interest within a given employer unit, comprises 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. (IRR)
Determination of bargaining unit:

a. Communality / Mutuality of interest (e.g. teachers share same interest with fellow teachers, but you cannot
mix up with the non academic personnel)
b. will of the employees- Globe doctrine
c. prior/ previous history
6. Union – refers to any labor organization in the private sector for collective bargaining and for other legitimate
purpose. (IRR)
7. National Union or Federation – refers to a group of legitimate labor unions in private establishment organized for
collective bargaining or for dealing with employers concerning terms and conditions of employment for their member
unions or for participating in the formulation of social and employment policies, standards and programs, registered
with the Bureau in accordance with Rule Section 2-B of these Rules (IRR)
It is composed of at least 10 legitimate labor organizations whether independent labor unions or chartered locals each
of which must be duly certified or recognized bargaining agent in the establishment where it seeks to operate.
Note:Before RA 6715, there was this one company-one union policy. After the effectivity of the Herrera Veloso
Doctrine on March 21 1989, it was abandoned with the 3-tiered classification of employees. There may be two or
more certified bargaining agents serving different interests.
8. Affiliate- refers to:
an independent union affiliated with a federation, national union; or

a chartered local which was subsequently granted independent registration but did not disaffiliate from its federation.
It is important to gain or increase the bargaining power vis-à-vis the employer.
9. Chartered Local – refers to a labor organization in the private sector operating at the enterprise level that acquired
legal personality through the issuance of a charter certificate by a duly registered federation or national union. (IRR)
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10. Independent Union- refers to a labor organization operating at the enterprise level that acquired legal personality
through independent registration under Art. 234 of the Labor Code and Rule III, Section 2-A of these Rules (IRR)
11. Registration -refers to the process of determining whether the application for registration of a union or worker’s
association and collective bargaining agreement complies with the documentary requirements for registration
prescribed in rules III,IV and XVII of these rules. (IRR)
It is necessary to qualify as legitimate labor organization that can avail of the benefits provided by law.
HOW TO FORM A LABOR UNION:

1. Form or organize an Independent Union.
2. Local Chapter thru the process of chartering (directly created thru the process of chartering)
The proof of affiliation depends on the nature of the affiliation. Thus, if:
1. Chartered local. - Charter certificate issued by the federation or national union.
2. Independently-registered union. - contract of affiliation between federation and the union.
 A labor union which affiliates with a federation or national union becomes subject to the rules and regulations of the
latter. The federation is the principal and the local union, the agent.
 An independently-registered union does not lose its independent legal personality when it affiliates with a federation
or national union. Appending the name of the federation to the local union's name does not mean that the federation
absorbed the latter.
 In Filipino Pipe and Foundry Corporation vs. NLRC, (G. R. No. 115180, November 16, 1999), it was held that it is the
local union and not the federation which is liable to pay damages in case of illegal strike.
Formation of Union and Registration
1.) Recruitment
For purposes of registration, at least 20% of the employees in the bargaining unit
Qualification of a member- he must be an employee of the same bargaining unit.
Article 277 (c) Any employee, whether employed for a definite period or not, shall, beginning on his first day of service,
be considered as an employee for purposes of membership in any labor union.
2.) Drafting of the Constitution and by-laws.
The former refers to the general principles and the latter to the detailed matters as duties and responsibilities.
3.) Ratification – majority vote is required.
4.) Registration
ART. 234. Requirements of Registration. - A federation, national union or industry or trade union center or an
independent union shall acquire legal personality and shall be entitled to the rights and privileges granted by law to
legitimate labor organizations upon issuance of the certificate of registration based on the following requirements:
(a) Fifty pesos (P50.00) registration fee;- fee is minimal to encourage employees to form and organize a labor
union (promote unionism)
(b) The names of its officers, their addresses, the principal address of the labor organization, the minutes of the
organizational meetings and the list of the workers who participated in such meetings;
(c) In case the applicant is an independent union, the names of all its members comprising at least twenty percent
(20%) of all the employees in the bargaining unit where it seeks to operate;(unique to independent union only)
(d) If the applicant union has been in existence for one or more years, copies of its annual financial reports; and-
because money has not yet been received yet or nothing may have been spent
(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 who participated in it."
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Constitution- general principles
By laws- duties and responsibilities of the officers, members
Majority of the members of the union required to adopt or ratify the constitution or by laws
Purpose of registration: to acquire legal personality and shall be entitled to the rights and privileges granted by law to
legitimate labor organizations (representational and bargaining rights) upon issuance of the certificate of registration
 The BLR issues the certificate of registration.
 Upon issuance of certificate of registration the union acquires legal personality
 In Tagaytay Highlands International Golf Club, Inc. vs. Tagaytay Highlands Employees Union-PGTWO (G. R. No.
142000, January 22, 2003), the Supreme Court ruled that the effect of issuance of certificate of registration to a
union is that it becomes legitimate and its legal personality can only be attacked through a petition for
cancellation of registration and not thru intervention in a certification election petition.
 Constitutional rights or provisions are not sources of positive enforceable rights. They are only bases for
legislation.
 A labor organization exists out of necessity. There won’t be a labor union if the workers do not feel the necessity
to organize themselves.
Two-Fold Procedure in Creating a Chapter or Local
1. affiliation of independent union(which has a legal personality separate and distinct from the national federation)
with national union or federation
2. direct creation of local or chapter through process of chartering
- local or chapter will NOT exist without the issuance of charter certificate by the national union or federation
- it contemplates of an unregistered labor organization
“ART. 234-A. Chartering and Creation of a Local Chapter. – A duly registered federation or national union may directly
create a local chapter by issuing a charter certificate indicating the establishment of the local chapter. The chapter shall
acquire legal personality only for purposes of filing a petition for certification election from the date it was issued a
charter certificate.
The chapter shall be entitled to all other rights and privileges of a legitimate labor organization only upon the
submission of the following documents in addition to its charter certificate:
(a) The names of the chapter’s officers, their addresses, and the principal office of the chapter; and
(b) The chapter’s constitution and by-laws: Provided, That where the chapter’s constitution and by-laws are the
same as that of the federation or the national union, this fact shall be indicated accordingly.
The additional supporting requirements shall be certified under oath by the secretary or treasurer of the chapter and
attested by its president.”
 Once it has been issued a charter certificate, it has a legal personality for purposes of petition of certification
election but you cannot exercise all the rights in full of a LLO
 One must be certified as exclusive bargaining agent to exercise collective bargaining
 The primary document is the charter certificate issued by the federation or the national union
 The federation or national union (refer to definition of NU) issues the charter certificate
 It is the federation of NU which creates a local chapter
 The charter certificate is issued to the Local Chapter
 Once issued, it acquires legal personality but limited to filing for certification election.
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 In order for a local chapter to fully acquire the rights of a Legitimate Labor Organization the chartered local must
submit additional requirements certified under oath by the secretary or treasurer of the chapter and attested by
its president The additional documents are: (Article 234-A)
a. The names of the chapter’s officers, their addresses, and the principal office of the chapter, and
b. The chapter’s constitution and by-laws: Provided, that where the chapter’s constitution and by-laws
are the same as that of the federation or the NU, this fact shall be indicated accordingly.
 Registration does not curtail the right of the workers to self-organization because registration is not required by
the constitution. The failure to register does not make the labor organization illegal. They are still free to
associate between and among themselves but they are not given the rights and privileges of a LLO. (page 186)
 Registration is required to afford protection to unsuspecting workers who may be lured by unscrupulous or fly-
by-night unions whose only interest is to control the funds or to use the organization for an illegitimate purpose.
Such requirement is a valid exercise of the police power because the activities in which labor organizations,
associations and unions affect public interest which should be protected
 The requirements for the creation of a local or chapter less onerous or less stringent in order to encourage
organizations to affiliate themselves with national federations in order for them to increase their bargaining
power.
 The creation of a local does not need subscription by a minimum number of members. The 20% initial
membership is required to register an independent union but NOT a local
 The federation to which you are affiliating must be duly registered. If you are created as a local or chapter you
acquire your legal personality by being created as one. It is the federation that gives you legal personality. There
is no more need for the local to submit the documents in Article 234 because such documents have already been
submitted by the national union or federation.
 In both cases, if you comply with the requirements as an independent union and if you are given a charter
certificate as a local or chapter then you acquire legal personality. You cannot exercise collective bargaining if
you have not been recognized as the exclusive bargaining agent.
Art. 237. Additional requirements for federations or national unions. Subject to Article 238, if the applicant for
registration is a federation or a national union, it shall, in addition to the requirements of the preceding Articles, submit the
following:
Proof of the affiliation of at least ten (10) locals or chapters, each of which must be a duly recognized collective
bargaining agent in the establishment or industry in which it operates, supporting the registration of such
applicant federation or national union; and
The names and addresses of the companies where the locals or chapters operate and the list of all the members
in each company involved.
A.)Accompanying Documents
Independent Labor Union Affiliation Chartering
1.) The name of the applicant labor The report of affiliation of A duly registered federation or national
union, its principal address, the name of independently registered labor unions union may directly create a local chapter
its officers and their respective with a federation or national union shall by issuing a charter certificate indicating
addresses, approximate number of be accompanied by: the establishment of the local chapter.
employees in the bargaining unit where
it seeks to operate, with a statement 1.) Resolution of the labor union’s board ( therefore no need to submit
that it is not reported as charted local of of directors approving the affiliation. accompanying documents however the
any federation or national union. chapter’s rights is only limited to
2.) Minutes of the general membership certification election )
2.) The minutes of the organizational meeting approving the affiliation.
meetings and the list of employees who 3.) The total number of members
participated in said meetings. comprising the labor union and the To be entitled to all other
names of the members who approved rights of a legitimate labor organization,
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3.) The name of all its members the affiliation. the chapter shall submit the following
comprising at least 20% of the documents in addition to its charter
employees in the bargaining unit. 4.) The certificate of affiliation issued by certificate:
the federation in favor of the
4.) The annual financial reports if the independently registered labor union.
applicant has been in existence for one
or more years, unless it has not 5.) Written notice to the employer (a) The names of the chapter’s officers,
collected any amount from its members, concerned if the affiliating union is the their addresses, and the principal office
in which case a statement to this effect incumbent bargaining agent. of the chapter; and
shall be included in the application.
5.) The applicant’s constitution and by (b) The chapter’s constitution and by-
laws, minutes of its adoption or laws: Provided, That where the
ratification, and the list of the members chapter’s constitution and by-laws are
who participated in it. The list of the the same as that of the federation or the
ratifying members shall be dispensed national union, this fact shall be
with where the constitution and by laws indicated accordingly.
was ratified or adopted during the
organizational meeting. In such case the
factual circumstances of the ratification
shall be recorded in the minutes of the The additional supporting
organizational meeting. requirements shall be certified under
oath by the secretary or treasurer of the
chapter and attested by its president.”
- Less stringent bec. You derive

your legal personality from the
national union or federation
who already submitted those
requirements
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Also there are attestation requirements needed (Certification under oath by the Secretary or Treasurer as the case may be and attested
by the President) – it is also needed in case of change of name, merger, consolidation and affiliation.
Payment of registration fees.
JURISDICTION AND PROCEDURE

B. Jurisdiction for application of registration of an independent union:
 BLR (Bureau of Labor Relations) has jurisdiction
 Applications for registration of independent labor unions, chartered locals and workers’ associations shall be filed with and
acted upon by the Regional Office where the applicant principally operates
 Applications for registration of federations, national unions or workers’ association operating in more than one region shall be
filed with the Bureau of Labor Relations or the Regional Offices but shall be processed and acted upon by the Bureau which has
national jurisdiction
 BLR has jurisdiction. But the venue for the filing of the application is different. It depends on who is filing:
- If independent union or local chapter/chartered local and workers association, you file at the Regional Office (labor
relations division)
- If national union or federation – BLR
1.) Regional Office- For the registration of:
 *independent labor unions

 *Chartered locals (as amended by RA 9481) the law says that A duly registered federation or national union may directly
create a local chapter by issuing a charter certificate indicating the establishment of the local chapter.
 *Worker’s association
2.) Bureau of Labor Relations (Manila) –for the registration of:
 Federations
 *National Unions
Art. 235. Action on application. The Bureau shall act on all applications for registration within thirty (30) days from filing.
All requisite documents and papers shall be certified under oath by the secretary or the treasurer of the organization, as the case may
be, and attested to by its president.
“Section 4. Action on the application/notice. – The Regional Office of the Bureau, as the case may be, shall act on all applications for
registration or notice of change of name, affiliation, merger and consolidation within one (1) day from receipt hereof, either by: (a)
approving the application and issuing the certificate of registration/acknowledging the notice/report; or (b) denying the
application/notice for failure of the applicant to comply with the requirements for registration/notice (As amended by Department
Order No. 40-D-05, Series of 2005)
C. When Registered
The labor union or worker’s association shall be deemed registered and vested with legal personality on the date of issuance of its
certificate of registration or certificate of creation of chartered local. (Sec 8 DO 40-33) See RA 9481 because chapter acquires personality
upon issuance by federation of charter certificate to the chapter.
- Recognition by BLR not a ministerial duty. The BLR will determine the veracity of the documents submitted. Determine if there is
falsification or serious irregularities on the face of the application or the supporting documents.
D. Assailment of Registration
Such legal personality may be questioned only through an independent petition for cancellation of union registration (no collateral attack)
E. Denial of Application
It shall be in writing stating in clear terms the reasons thereof.

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“Section 5. Denial of Application/Return of Notice. –
Where the documents supporting the application for registration/notice of change of name, affiliation, merger and consolidation are
incomplete or do not contain the required certification and attestation, the Regional Office or the Bureau shall, within one (1) day
from receipt of the application/notice, notify the applicant/labor organization concerned in writing of the necessary requirements
and to complete the same within thirty (30) days from receipt of notice. Where the applicant/labor organization concerned fails to
complete the requirements within the time prescribed, the application for registration shall be denied, or the notice of change of
name, affiliation, merger and consolidation returned, without prejudice to filing a new application or notice.
F. Appeal From The Denial
Art. 236. Denial of registration; appeal. The decision of the Labor Relations Division in the regional office denying registration may
be appealed by the applicant union to the Bureau within ten (10) days from receipt of notice thereof.
Section 6. form of denial of application/return of notice; appeal- The notice of the Regional Office of the Bureau denying the
application for registration/ returning the notice of change of name, affiliation, merger or consolidation shall be in writing stating in
clear terms the reasons for the denial or return. The denial may be appealed to the Bureau if denial is made by the Regional Office or
to the Secretary if denial is made by the Bureau, within 10 days from receipt of such notice, on the ground of grave abuse of
discretion or violation of these Rules
Section 7. Procedure on Appeal- The memorandum of appeal shall be filed with the Regional Office or the Bureau that issued the
denial/ return of notice. The memorandum of appeal together with the complete records of the application for registration/ notice of
change of name, affiliation, merger or consolidation, shall be transmitted by the Regional Office to the Bureau or by the Bureau to
the Office of the Secretary, within 24 hours from receipt of the memorandum of appeal.
The Bureau or the Office of the Secretary shall decide the appeal within 20 days from receipt of the records of the case.
Form of denial:
 In writing stating in clear terms the reasons for the denial
Appeal To whom:
 If denial is made by the regional office – appeal to the Bureau
 If denial is made by the Bureau – appeal to the Secretary of Labor
Mode of appeal:
 Memorandum of appeal filed with the Bureau or Regional office that issued the denial
Prescriptive Period
 within 10 days from receipt of such notice of denial
Grounds to appeal:
 grave abuse of discretion
 violation of the rules
Period to decide
 -within 20 days from receipt of the records of the case.
G. Court of Appeal Thru Rule 65; Then SC Rule 45
From the SOLE it becomes final and executory.
There is no appeal to the CA. Rather, you file a special civil action (Rule 65) to CA for grave abuse of discretion, violation of rules or
irregularity, and then from CA to SC under Rule 45
University of San Carlos – School of Law and Governance | Based on the Outline of JMM Page 22
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RIGHTS OF LEGITIMATE LABOR ORGANIZATION

Article 242. Rights of legitimate labor organizations. A legitimate labor organization shall have the right:
To act as the representative of its members for the purpose of collective bargaining;
To be certified as the exclusive representative of all the employees in an appropriate bargaining unit for purposes of collective bargaining;
To be furnished by the employer, upon written request, with its annual audited financial statements, including the balance sheet and the
profit and loss statement, within thirty (30) calendar days from the date of receipt of the request, after the union has been duly recognized
by the employer or certified as the sole and exclusive bargaining representative of the employees in the bargaining unit, or within sixty
(60) calendar days before the expiration of the existing collective bargaining agreement, or during the collective bargaining negotiation;
To own property, real or personal, for the use and benefit of the labor organization and its members;
To sue and be sued in its registered name; and
To undertake all other activities designed to benefit the organization and its members, including cooperative, housing, welfare and other
projects not contrary to law.
Notwithstanding any provision of a general or special law to the contrary, the income and the properties of legitimate labor organizations,
including grants, endowments, gifts, donations and contributions they may receive from fraternal and similar organizations, local or
foreign, which are actually, directly and exclusively used for their lawful purposes, shall be free from taxes, duties and other assessments.
The exemptions provided herein may be withdrawn only by a special law expressly repealing this provision. (As amended by Section 17,
Republic Act No. 6715, March 21, 1989)
Article 277. Miscellaneous provisions.
All unions are authorized to collect reasonable membership fees, union dues, assessments and fines and other contributions for labor
education and research, mutual death and hospitalization benefits, welfare fund, strike fund and credit and cooperative undertakings. (As
amended by Section 33, Republic Act No. 6715, March 21, 1989)
xxx
SUMMARY OF THE RIGHTS OF LEGITIMATE LABOR ORGANIZATION: (P-R-I-C-E)
1. RIGHT OF REPRESENTATION
(a) To act as the representative of its members for the purpose of collective bargaining- acts as representative of union and
non union members
 Who is the representative? The Legitimate Labor Organization
(b) To be certified as the exclusive representative of all the employees in an appropriate bargaining unit for purposes of
collective bargaining
Methods:
1. certification election
2. voluntary recognition – employer voluntarily recognize the LLO; requires majority of employees in the bargaining unit;
there must be a joint agreement of union and employer
Note: Direct Certification is no longer allowed as the will of the majority is frustrated. Not anymore recognized
2. RIGHT TO INFORMATION
(c) To be furnished by the employer, upon written request, with its annual audited financial statements, including the balance
sheet and the profit and loss statement, within thirty (30) calendar days from the date of receipt of the request, after the
union has been duly recognized by the employer or certified as the sole and exclusive bargaining representative of the
employees in the bargaining unit, or within sixty (60) calendar days before the expiration of the existing collective bargaining
agreement, or during the collective bargaining negotiation;
3. RIGHT PERTAINING TO A JURIDICAL PERSON/PROPERTY RIGHTS
(d) To own property, real or personal, for the use and benefit of the labor organization and its members
(e) To sue and be sued in its registered name; and
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(f) To undertake all other activities designed to benefit the organization and its members, including cooperative, housing,
welfare and other projects not contrary to law.
4. EXEMPTION FROM TAXES
Income and properties received including donations that are actually, directly and exclusively used for their lawful purposes shall be
free from taxes, duties and other assessments. (May be withdrawn by state)
5. RIGHT TO COLLECT UNION DUES, ETC.
ART. 277. Miscellaneous provisions. - (a) All unions are authorized to collect reasonable membership fees, union dues,
assessments and fines and other contributions for labor education and research, mutual death and hospitalization benefits, welfare
fund, strike fund and credit and cooperative undertakings.
RIGHTS AND DUTIES OF UNION MEMBERS & NON-UNION MEMBERS (ART. 241) AND QUALIFICATIONS
TAKE NOTE:
Minimum qualification of a member: one must be an employee
Security guard who is an employee of an agency CANNOT be a member of the union of rank and file employees
Employees of another company CANNOT be a member of the union of rank and file employees of one company
Article 241. Rights and conditions of membership in a labor organization. The following are the rights and conditions of membership in a
labor organization:
No arbitrary or excessive initiation fees shall be required of the members of a legitimate labor organization nor shall arbitrary, excessive or
oppressive fine and forfeiture be imposed;
The members shall be entitled to full and detailed reports from their officers and representatives of all financial transactions as provided
for in the constitution and by-laws of the organization;
The members shall directly elect their officers, including those of the national union or federation, to which they or their union is affiliated,
by secret ballot at intervals of five (5) years. No qualification requirements for candidacy to any position shall be imposed other than
membership in good standing in subject labor organization. The secretary or any other responsible union officer shall furnish the Secretary
of Labor and Employment with a list of the newly-elected officers, together with the appointive officers or agents who are entrusted with
the handling of funds, within thirty (30) calendar days after the election of officers or from the occurrence of any change in the list of
officers of the labor organization; (As amended by Section 16, Republic Act No. 6715, March 21, 1989)
The members shall determine by secret ballot, after due deliberation, any question of major policy affecting the entire membership of the
organization, unless the nature of the organization or force majeure renders such secret ballot impractical, in which case, the board of
directors of the organization may make the decision in behalf of the general membership;
No labor organization shall knowingly admit as members or continue in membership any individual who belongs to a subversive
organization or who is engaged directly or indirectly in any subversive activity;
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;
No officer, agent or member of a labor organization shall collect any fees, dues, or other contributions in its behalf or make any
disbursement of its money or funds unless he is duly authorized pursuant to its constitution and by-laws;
Every payment of fees, dues or other contributions by a member shall be evidenced by a receipt signed by the officer or agent making the
collection and entered into the record of the organization to be kept and maintained for the purpose;
The funds of the organization shall not be applied for any purpose or object other than those expressly provided by its constitution and by-
laws or those expressly authorized by written resolution adopted by the majority of the members at a general meeting duly called for the
purpose;
Every income or revenue of the organization shall be evidenced by a record showing its source, and every expenditure of its funds shall be
evidenced by a receipt from the person to whom the payment is made, which shall state the date, place and purpose of such payment.
Such record or receipt shall form part of the financial records of the organization.
Any action involving the funds of the organization shall prescribe after three (3) years from the date of submission of the annual financial
report to the Department of Labor and Employment or from the date the same should have been submitted as required by law, whichever
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comes earlier: Provided, That this provision shall apply only to a legitimate labor organization which has submitted the financial report
requirements under this Code: Provided, further, that failure of any labor organization to comply with the periodic financial reports
required by law and such rules and regulations promulgated thereunder six (6) months after the effectivity of this Act shall automatically
result in the cancellation of union registration of such labor organization; (???)As amended by Section 16, Republic Act No. 6715, March
21, 1989)
The officers of any labor organization shall not be paid any compensation other than the salaries and expenses due to their positions as
specifically provided for in its constitution and by-laws, or in a written resolution duly authorized by a majority of all the members at a
general membership meeting duly called for the purpose. The minutes of the meeting and the list of participants and ballots cast shall be
subject to inspection by the Secretary of Labor or his duly authorized representatives. Any irregularities in the approval of the resolutions
shall be a ground for impeachment or expulsion from the organization;
The treasurer of any labor organization and every officer thereof who is responsible for the account of such organization or for the
collection, management, disbursement, custody or control of the funds, moneys and other properties of the organization, shall render to
the organization and to its members a true and correct account of all moneys received and paid by him since he assumed office or since
the last day on which he rendered such account, and of all bonds, securities and other properties of the organization entrusted to his
custody or under his control. The rendering of such account shall be made:
At least once a year within thirty (30) days after the close of its fiscal year;
At such other times as may be required by a resolution of the majority of the members of the organization; and
Upon vacating his office.
The account shall be duly audited and verified by affidavit and a copy thereof shall be furnished the Secretary of Labor.
The books of accounts and other records of the financial activities of any labor organization shall be open to inspection by any officer or
member thereof during office hours;
No special assessment or other extraordinary fees may be levied upon the members of a labor organization unless authorized by a written
resolution of a majority of all the members in a general membership meeting duly called for the purpose. The secretary of the organization
shall record the minutes of the meeting including the list of all members present, the votes cast, the purpose of the special assessment or
fees and the recipient of such assessment or fees. The record shall be attested to by the president.
Other than for mandatory activities under the Code, no special assessments, attorney’s fees, negotiation fees or any other extraordinary
fees may be checked off from any amount due to an employee without an individual written authorization duly signed by the employee.
The authorization should specifically state the amount, purpose and beneficiary of the deduction; and
It shall be the duty of any labor organization and its officers to inform its members on the provisions of its constitution and by-laws,
collective bargaining agreement, the prevailing labor relations system and all their rights and obligations under existing labor laws.
For this purpose, registered labor organizations may assess reasonable dues to finance labor relations seminars and other labor education
activities.
Any violation of the above rights and conditions of membership shall be a ground for cancellation of union registration or expulsion of
officers from office, whichever is appropriate. At least thirty percent (30%) of the members of a union or any member or members
specially concerned may report such violation to the Bureau. The Bureau shall have the power to hear and decide any reported violation to
mete the appropriate penalty.
Criminal and civil liabilities arising from violations of above rights and conditions of membership shall continue to be under the jurisdiction
of ordinary courts.
RIGHTS: DIP MONEY- CURSE
1.) Political rights- right to vote and be voted for, subject to lawful provisions on qualification and disqualification
The members shall directly elect their officers, including those of the national union or federation, to which they or their union
is affiliated, by secret ballot at intervals of five (5) years.
Qualification of candidates:
1. membership in good standing in the union
2. qualifications may be added as long as NOT arbitrary and unreasonable
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Disqualification:
1.) 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.
2.) Must be an employee.
No labor organization shall knowingly admit as members or continue in membership any individual who belongs to a subversive
organization or who is engaged directly or indirectly in any subversive activity (not only for candidacy but also membership)
3.) Note: Additional requirements may be made as long as it is reasonable and does not undermine the right to self organization
 Term of office is 5 years.
 Inclusion or membership in a union depends on the union’s constitution and by laws without prejudice to Art. 277(c)
 Eligibility of voters
Only members of the union can take part in the election of union officers
A member in good standing is any person who has fulfilled the requirements for membership in the union and who has neither
voluntarily withdrawn from membership nor been expelled or suspended from membership after appropriate proceedings
consistent with the lawful provisions of the union’s constitution and bylaws; must not be a delinquent member (non payment of
union dues or violation of constitution and bylaws)
It may defer eligibility to vote by requiring a reasonable period of prior membership
A union may NOT create special classes of nonvoting members
Labor organization may condition the exercise of the right to vote on the payment of dues; this rule is subject to two
qualifications:
a. any rule denying dues-delinquent members the right to vote must be applied uniformly
b. members must be afforded a reasonable opportunity to pay dues
2.) Right to information
It shall be the duty of any labor organization and its officers to inform its members on the provisions of its constitution and by-
laws, collective bargaining agreement, the prevailing labor relations system and all their rights and obligations under existing
labor laws.
3.) Deliberative and decision-making right
The members shall determine by secret ballot, after due deliberation, any question of major policy affecting the entire
membership of the organization, unless the nature of the organization or force majeure renders such secret ballot impractical,
in which case, the board of directors of the organization may make the decision in behalf of the general membership;
4.) Rights over money matters
A.) Right against excessive fees
No arbitrary or excessive initiation fees shall be required of the members of a legitimate labor organization nor shall arbitrary,
excessive or oppressive fine and forfeiture be imposed;
B.) Right against unauthorized collection or disbursements
No officer, agent or member of a labor organization shall collect any fees, dues, or other contributions in its behalf or make any
disbursement of its money or funds unless he is duly authorized pursuant to its constitution and by-laws
The funds of the organization shall not be applied for any purpose or object other than those expressly provided by its
constitution and by-laws or those expressly authorized by written resolution adopted by the majority of the members at a
general meeting duly called for the purpose
C.) Right to require adequate records of income and expenses and right to access financial records
The members shall be entitled to full and detailed reports from their officers and representatives of all financial transactions as
provided for in the constitution and by-laws of the organization.
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Every payment of fees, dues or other contributions by a member shall be evidenced by a receipt signed by the officer or agent
making the collection and entered into the record of the organization to be kept and maintained for the purpose.
Every income or revenue of the organization shall be evidenced by a record showing its source, and every expenditure of its
funds shall be evidenced by a receipt from the person to whom the payment is made, which shall state the date, place and
purpose of such payment. Such record or receipt shall form part of the financial records of the organization.
The books of accounts and other records of the financial activities of any labor organization shall be open to inspection by any
officer or member thereof during office hours;
D.) Right to vote on officer’s compensation
The officers of any labor organization shall not be paid any compensation other than the salaries and expenses due to their
positions as specifically provided for in its constitution and by-laws, or in a written resolution duly authorized by a
majority of all the members at a general membership meeting duly called for the purpose.
E.) Right to vote on proposed special assessments or the member’s written authorization
No special assessment or other extraordinary fees may be levied upon the members of a labor organization unless authorized by
a written resolution of a majority of all the members in a general membership meeting duly called for the purpose.
Other than for mandatory activities under the Code, no special assessments, attorney’s fees, negotiation fees or any other
extraordinary fees may be checked off from any amount due to an employee without an individual written authorization duly
signed by the employee. The authorization should specifically state the amount, purpose and beneficiary of the deduction
DUTIES
1.Payment of union dues (applies both to union and non union members)
Art 248(e) Employees of an appropriate bargaining unit who are not members of the recognized collective bargaining agent may be
assessed a reasonable fee equivalent to the dues and other fees paid by members of the recognized collective bargaining agent, if
such non-union members accept the benefits under the collective bargaining agreement.
Union dues – reasonable amount collected by the union among its members ; regular mandatory contribution to union funds
Rule of thumb: must NOT be arbitrary, excessive, and unreasonable
Special assessment- not the same as union dues;
Requirement for special assessment:
1. must be authorized by a written resolution of majority of all members
2. state the purpose for the special assessment
Fines and Forfeitures – disciplinary measures imposed by the union to erring members (delinquent members)
Members of a legitimate labor organization has the duty to contribute funds but subject to the caveat of excessive fees, fines or
forfeitures.
Manner of Collection
1.) Personal
2.) Check-off
ELECTION OF UNION OFFICERS AND QUALIFICATIONS

ART. 241
(c) The members shall directly elect their officers, including those of the national union or federation, to which they or their union is
affiliated, by secret ballot at intervals of five (5) years. No qualification requirements for candidacy to any position shall be imposed other
than membership in good standing in subject labor organization. The secretary or any other responsible union officer shall furnish the
Secretary of Labor and Employment with a list of the newly-elected officers, together with the appointive officers or agents who are
entrusted with the handling of funds, within thirty (30) calendar days after the election of officers or from the occurrence of any change in
the list of officers of the labor organization;
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(See rule XII DO 40-33)
A.) If there is an agreement among the members or any provision in the Constitution and by-laws providing for the procedures in the
election of union officers – the agreement or the constitution or the by-laws shall be followed.
B.) If there is none- The following guidelines shall be followed:
I.) WHERE THERE IS NO DISPUTE OVER CONDUCT OF II.)WHERE THERE IS DISPUTE OVER CONDUCT OF ELECTION
ELECTION OF OFFICERS OF OFFICERS
1.) Constitution of a Committee on Election 1.) Filing of Petition
Who shall constitute? President of the Labor organization. A.) Where to file:
When shall the constitution be made? Within 60 days before Regional Office: independent labor union or chartered local
the expiration of the terms of the incumbent officers.
Composition: at least 3 members who are not running for any Bureau or Regional Office - federations, national or industry
position. If there are identifiable parties within the unions and trade union centers
organization, each shall have equal representation.
-But shall be heard and resolved by the Bureau.
2.) Election or designation of chairman of the Committee
B.) Grounds:
The members shall elect their chairman among themselves
and in case of disagreement; the president shall designate the a.) Expiration of officer’s term and their neglect or failure to
chairman. call an election of new officers.
Powers and duties of the committee b.) The labor organization’s constitution and by laws do not
provide for the manner by which said election be conducted
- set the date, time and venue of the election and the intervention of the Department is necessary.
- prescribe the rules on the qualification and eligibility of C.) Manner

candidates and voters
- Filing of petition for the conduct of election by at least 30%
- prepare and post the voter’s list and the list of qualified of the members of the labor organization
candidates
NB!! Same rule applies where there is nullification of
- accredit the authorized representatives of the contending election of officers, impeachment, expulsion, etc...
parties
D.) Formal requirements of the complaint or petition.
-supervise the actual conduct of election and canvass the
votes to ensure the sanctity of the ballot. In writing, verified under oath containing the following:
-keep minutes of the proceedings a.) name, address and other personal circumstances of the
complainants or petitioner
- be the final arbiter of all election protests
b.) name, address and other personal circumstances of the
-proclaim winners respondents or the persons charged.
-prescribe such other rules as may facilitate the orderly c.) nature of the complaint or petition.
conduct of election.
d.) facts and circumstances surrounding the complaint or
3.) Raffle of an election officer (Committee on elections) petition.
4.) Pre-election Conference e.) causes of action or specific violations committed
- Issuance by the election officer of notice of pre election f.) a statement that the administrative remedies provided
conference upon the contending candidates which shall be for in the constitution and by laws have been exhausted or
scheduled within 10 days from receipt of assignment. such remedies are not readily available to the complainants or
petitioners through no fault of his own or compliance with
-the pre-election conference shall set the mechanics for the such administrative remedies does not apply to complainants
election and shall determine: or petitioners.
a.) date, time and place of the election, which shall not be g.)Reliefs prayed for
later than 45 days from the date of the first pre-election
conference and shall be on a regular working day and within h.) certificate of non-forum shopping and
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the employer’s premises unless circumstances otherwise i) Other relevant matters

require.
2.) Raffle of case – for determining the Med-Arbiter or
b.) list of eligible and challenged voters Hearing Officer who shall be assigned to the case in case it is
filed with the regional office.
c.) number and location of the polling places or booths and
the number of ballots to be prepared with appropriate 3.)Notice of Preliminary Conference
translations if necessary.
The Med-Arbiter or Hearing officer shall prepare notice of
d.) name of watchers or representatives and their alternates preliminary conference. It shall be scheduled within 10 days
for each of the parties during election from receipt of the complaint or petition.
e.) mechanics and guidelines The Med Arbiter or Hearing Officer shall cause the service of
summons to the respondents named directing him to answer
Failure of the party to appear in the pre-election conference before the preliminary conference and to appear on the
despite notice shall be considered as waiver of the right to be preliminary conference.
heard. However not to subsequent notices.
4.)Conduct of Preliminary Conference
There shall be minutes of pre election conference
acknowledged by the parties by their signatures. Exertion of effort by the Med- arbiter or Hearing officer for
amicable settlement.
(NB!! Since the Committee on Elections is vested with the
powers, the election officer is under their supervision and If there is amicable settlement- decision based on
control.) compromise shall be issued by the MA or HO.
5.) Qualifications of voters If none- The MA or HO shall proceed with stipulation of

facts, limitation of issues, clarificatory questioning and
All employees who are members of the said legitimate labor submission of laws and jurisprudence to support each claim.
organization shall be eligible to vote.
5.) Hearing
An employee dismissed from work but has contested the
legality of the dismissal in appropriate forum at the time of 6.)Affirmation of testimonial Evidence
the issuance of the order for the conduct of election of
officers shall be a qualified voter unless there is a dismissal by Any affidavit submitted by a party to prove his claim or
final judgment at the time of the conduct of the election. defenses shall be affirmed by his presentation before the
Med-Arbiter or Hearing officer otherwise such evidence is
All contested voters are allowed to vote in case of inadmissible unless the party against whom such affidavit is
disagreement over the voter’s list but their votes shall be used admits the allegation.
segregated. (NB!! The committee on election may provide for
additional qualifications) 7.)Filing of Pleadings and Position Papers
6.) Posting of Notices Within 25 day period prescribed for the hearing. If the case
is already submitted for decision, no other pleading is allowed
The election officer shall cause the posting of notice of
election at least 10 days before the actual date in 2 8.)Hearing
conspicuous in the company premises. 9.) Decision
7.) Secrecy and sanctity of the ballot The Bureau, Med-Arbiter or Regional Director as the case
The Election Officer together with the authorized shall have 20 days to decide complaint or petition. The
representatives of the contending candidates and the decision shall state facts, findings conclusion and relief
employers shall before the start of the actual voting, inspect granted.
the polling place, the ballot boxes and the polling booths. To 10.)Appeal
ensure secrecy of the ballot.
appeal to the Bureau- decision of Med-Arbiter and Regional
8.) Preparation of ballot Director within 10 Days from receipt thereof.
The election officer shall prepare the ballots in English, Appeal to the SOLE– decision of the Bureau director
Filipino or the local dialect corresponding to the number of
voters and a reasonable number of extra ballots. -It shall be verified under oath and consists of memorandum
on appeal stating grounds relied upon with supporting
9.)Voting arguments and evidence.
10.) Challenging of votes -No appeal- decision becomes final after 10 days from receipt
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Any authorized representative of the candidates may by the parties of the decision.
challenge a vote before deposited in the ballot box on the
following grounds: -only 1 Motion for reconsideration is allowed
(a) No employer-employee relationship exists between the

voter and the company. If the decision calls for election of candidates then follow the
(b) That the voter is not a member of the appropriate Constitution and by-laws if there is a procedure for election of
bargaining unit. officers stated therein. If there is no such procedure, then
follow the omnibus rules. (see other side of the table)
11.) Procedure in the Challenge of Votes
If a vote is properly challenged, the election officer shall

place the ballot in an envelope sealed in the presence of the
voter, contending candidates and employer. The election
officer shall note all the challenges in the minutes of the
election. If the number of segregated voters will materially
affect the results of the election, the envelopes shall be
opened and question of eligibility shall be passed upon.
12.) On the spot questions
The election officer shall rule on any question relating to and

raised during the conduct of election. (Example appreciation
of ballots) but not if the ground is absence an employer-
employee relationship or if voter is not a member of an
appropriate bargaining unit.
NB!! The Committee on Election is the final Arbiter
13.) Protest; when perfected
Any party in interest may file a protest based on the conduct

or mechanics of the election. It shall be recorded in the
minutes of the election proceedings otherwise it is waived.
It shall be formalized with the Committee on Election within

5 days after the close of the election proceedings.
If not recorded or formalized, it shall be deemed dropped.
Why with the committee and not the Med Arbiter as provided
in the rules? Because The Committee on Election are the ones
vested with the power to proclaim the winners (implied
powers). The Med-Arbiters power to proclaim pertains to the
conduct of certification elections
14.) Canvassing of Votes
Votes shall be counted and tabulated by the election officer

in the presence of the representatives of the contending
unions. The Election officer shall give each representative a
copy of the minutes of election proceedings and the results of
the election. The ballots and the tally sheet shall be sealed in
an envelope signed by the Election officer and the
representatives of contending union and transmitted to the
Committee on Elections together with the minutes and results
of the election within 24 hours from completion of canvass.
15.) Conduct of Election and Canvass of Votes
The election precincts shall open and close on the date and
time agreed upon during the pre-election conference. The
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opening and canvass shall proceed after the precincts have

closed.
16.) Failure of Election
Where the number of votes cast shall be in the election is

less than the majority of the number of eligible voters and
there are no material challenged votes, the election officer
shall declare failure of election. NB!! The Committee on
Election is the final Arbiter
17.) Effect of Failure of Election
A failure of election shall not bar the filing of a motion for

the immediate holding of another election within 6 months
from declaration of failure of election.
18.)Action on the Motion
Within 24 hrs from receipt of the motion, the Election

Officer shall immediately schedule the conduct of another
election within 15 days from receipt of the motion and cause
the posting of the notice of election at least 10 days prior to
the scheduled date in 2 conspicuous places in the
establishment. The same guidelines and list of voters shall be
used in the election.
(NB!! subject to the conformity of the Committee on Election)
19.) Proclamation and Certification of the result of the

Election
Who shall proclaim? Committee on Elections
The Election officer shall transmit the results to them.
CHECK- OFF PROVISION (ART. 113(B))

Art. 113 (b) Wage deduction
(b) 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 worker concerned; and
 A method agreed between the management and the representative union of deducting from an employee’s pay at prescribed
period, the amounts due the union for fees, fines or assessment.
 The amount and collection of union dues are questions that affect the entire membership, hence they have to be approved by
the members themselves
 Dues- payments to meet the union’s general and current obligations; payment must be regular, periodic, and uniform
 Assessment- payments used for a special purpose, especially if required for a limited time
 Special assessment, attorney’s fees, negotiation fees may be checked off form any amount due an employee with an individual
written authorization duly signed by the employee
Rule XXV Section 4. Check off from non members – Pursuant to Article 248 (e) of the Code, the employer shall check off from non-union
members within a collective bargaining unit the same reasonable fee equivalent to the dues and other fees normally paid by union
members without the need for individual check off authorizations
 Agency fee- union dues which a non union member pays to the union because he benefits from the CBA negotiated by the
union; the union served as the employee’s agent
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 Jurisdiction over check off disputes: Regional director of DOLE
DISAFFILIATION: MEMBERS & UNION

AFFILIATION
 An affiliate is:
a. an independently registered union that enters into an agreement of affiliation with a federation or a national union
b. a chartered local which applies for and is granted an independent registration but does NOT disaffiliate from its mother
federation or national union
 Reasons to affiliate- to increase bargaining power like more resources (financial, bargaining skill)
a. to secure support or assistance during the formative stage of unionization
b. to utilize expertise in preparing and pursuing bargaining proposals
c. to marshal mind and manpower in the course of group action
An independent union who wants to affiliate with a federation or national union submits the issue to its members. When majority of
them vote affirmatively, a resolution or request to affiliate is presented to the chosen federation or national union.
If the federation or national union accepts the affiliation it offers a contract of affiliation. The relationship between the “mother” and”
daughter” union is therefore contractual, binding both sides. The mother assists in bargaining with the employer or manning the picket
line. The daughter in turn remits parts of the union dues usually fifty percent.
Relationship between a local or chapter and the labor federation or national union is generally understood to be that of agency,
where the local is the principal and the federation is the agent
Affiliation by a duly registered union with a national union or federation does not cause the local union to lose its legal
personality.
DISAFFILIATION
The affiliate may disaffiliate but must observe the terms of the contract. It is not prohibited but can be restricted by the contract of
affiliation. (Eg.. The number of votes needed to authorize disaffiliation to the time disaffiliation may be done)
In disaffiliating, the local union was merely exercising its primary right to self organization for the effective enhancement and protection
of common interest. In the absence of enforceable provisions in the federation’s constitution preventing disaffiliation of a local union, a
local may sever its relationship with its parents.
The right of the affiliate to disaffiliate may be exercised only when circumstances so warrant. Generally, a labor union may disaffiliate from
the mother union to form a local or independent union only during the 60-day freedom period immediately preceding the expiration of
the CBA. It must be effected by the majority of the members of the bargaining unit.
When a union which is not independently registered disaffiliates from the federation, it is not granted the rights and privileges to a
legitimate labor organization.
When a local union disaffiliates from a national union or federation, the latter ceases to be entitled to check-off dues.
 The right to disaffiliate by the local union from its mother union or federation, is a constitutionally-guaranteed right which may
be invoked by the former at any time. It is not an act of disloyalty on the part of the local union nor is it a violation of the “union
security clause” in the CBA.
 In the absence of specific provisions in the federation’s constitution prohibiting disaffiliation or the declaration of autonomy of
a local union, a local may dissociate with its parent union. Thus, in one case, it was held that there can be no disloyalty to speak
of since there is no provision in the federation’s constitution which specifically prohibits disaffiliation or declaration of
autonomy.
 The local union, by disaffiliating from the old federation to join a new federation, is merely exercising its primary right to labor
organization for the effective enhancement and protection of common interests. Absent any enforceable provisions in the
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federation’s constitution expressly forbidding disaffiliation of a local union, a local union may sever its relationship with its
parent union.
 Once the fact of disaffiliation has been manifested beyond doubt, a certification election is the most expeditious way of
determining which labor organization is to be treated as the exclusive bargaining agent.
 Disaffiliation should always carry the will of the majority. It cannot be effected by a mere minority group of union members.
(Villar vs. Inciong, 121 SCRA 444).
 The obligation to check-off federation dues is terminated with the valid disaffiliation of the local union from the federation with
which it was previously affiliated.
 To disaffiliate is a right, but to observe the terms of affiliation is an obligation.
 It was held in Philippine Skylanders, Inc. vs. NLRC, (G. R. No. 127374, January 31, 2002), that the right of a local union to
disaffiliate from its mother federation is not a novel thesis unillumined by case law. In the landmark case of Liberty Cotton Mills
Workers Union Vs. Liberty Cotton Mills, Inc. [No. L-33987, September 4, 1975, 66 SCRA 512], the Supreme Court upheld the
right of local unions to separate from their mother federation on the ground that as separate and voluntary associations, local
unions do not owe their creation and existence to the national federation to which they are affiliated but, instead, to the will of
their members. The sole essence of affiliation is to increase, by collective action, the common bargaining power of local unions
for the effective enhancement and protection of their interests. Admittedly, there are times when without succour and support
local unions may find it hard, unaided by other support groups, to secure justice for themselves.
 Yet the local unions remain the basic units of association, free to serve their own interests subject to the restraints imposed by
the constitution and by-laws of the national federation, and free also to renounce the affiliation upon the terms laid down in
the agreement which brought such affi1iation into existence. Such dictum has been punctiliously followed since then.
 Upon an application of the afore-cited principle to the issue at hand, the impropriety of the questioned Decisions becomes
clearly apparent. There is nothing shown in the records nor is it claimed by AFLU that the local union was expressly forbidden to
disaffiliate from the federation nor were there any conditions imposed for a valid breakaway. As such, the pendency of an
election protest involving both the mother federation and the local union did not constitute a bar to a valid disaffiliation.
Neither was it disputed by PAFLU that 111 signatories out of the 120 members of the local union, or an equivalent of 92.5% of
the total union membership supported the claim of disaffiliation and had in fact disauthorized PAFLU from instituting any
complaint in their behalf. Surely, this is not a case where one (1) or two (2) members of the local union decided to disaffiliate
from the mother federation, but it is a case where almost all loca1 union members decided to disaffiliate.
 It was entirely reasonable then for PSI to enter into a collective bargaining agreement with PSEA-NCW. As PSEA had validly
severed itself from PAFLU, there would be no restrictions which could validly hinder it from subsequently affiliating with NCW
and entering into a collective bargaining agreement in behalf of its members.
Disaffiliation of independently-registered union and chartered local, distinguished.
The disaffiliation of an independently-registered union does not affect its legitimate status as a labor organization. However, the same
thing may not be said of a union which is not independently-registered (chartered local).
Once a chartered local disaffiliates from the federation, it ceases to be entitled to the rights and privileges granted to a legitimate labor
organization. It cannot file a petition for certification election. (Villar vs. Inciong, 121 SCRA 444, April 20, 1983).
 The CBA continues to bind the members of the new or disaffiliated and independent union up to the CBA’s expiration date
INTRA- UNION & INTER-UNION DISPUTES: JURISDICTION OF BLR (ART. 226); OTHER MATTERS
Article 226. Bureau of Labor Relations. The Bureau of Labor Relations and the Labor Relations Divisions in the regional offices of the
Department 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 problems arising from or affecting labor-management relations in
all workplaces, whether agricultural or non-agricultural, except those arising from the implementation or interpretation of collective
bargaining agreements which shall be the subject of grievance procedure and/or voluntary arbitration.
The Bureau shall have fifteen (15) working days to act on labor cases before it, subject to extension by agreement of the parties. (As
amended by Section 14, Republic Act No. 6715, March 21, 1989
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Intra-Union Dispute – refers to any conflict between and among union members, including grievances arising from any violation of the
rights and conditions of membership, violation of agreement over any provision of the union’s constitution and by-laws, or disputes
arising from chartering or affiliation of union.
Inter-Union Dispute – refers to any conflict between and among legitimate labor unions involving representation question for purposes of
collective bargaining or to any other conflict or dispute between legitimate labor unions.
RULE XI
INTER/INTRA-UNION DISPUTES AND OTHER RELATED
LABOR RELATIONS DISPUTES
Section 1. Coverage. - Inter/intra-union disputes shall include:
a. conduct, or nullification of election of union and workers' association;
b. audit/accounts examination of union or workers' association funds;
c. deregistration of collective bargaining agreements;
d. validity/invalidity of union affiliation or disaffiliation;
e. validity/invalidity of acceptance/non-acceptance for union membership;
f. validity/invalidity of voluntary recognition;
g. opposition to application for union and CBA registration;
h. violations of or disagreements over any provision constitution by-laws of a union or workers' association ;
i. disagreements over chartering or registration of labor organizations or the registration of collective bargaining agreements;
j. violations of the rights and conditions of union or workers' association membership;
k. violations of the rights of legitimate labor organizations, except interpretation of collective bargaining agreements;
l. validity/invalidity of impeachment/expulsion/suspension or any disciplinary action meted against any officer and member
including those arising fron non-compliance with the reportorial requirements under Rule V;
m. such other disputes or conflicts involving the rights to self-organization, union membership and collective bargaining -
1. between and among legitimate labor organizations; and
2. between and among members of a union or workers' association.
Section 2. Coverage. - Other related labor relations disputes, not otherwise covered by Article 217 of the Labor Code, shall include:
a. any conflict between:
1. a labor union and the employer; or
2. a labor union and a group that is not a labor organization; or
3. a labor union and an individual who is not a member of such union;
b. cancellation of registration of unions and workers associations filed by individual/s other than its members or group that is not a
labor organization; and
c. a petition for interpleader involving labor relations.
What are the cases of inter/Intra- union dispute?
1.) Cancellation of registration of labor organization filed by its members or by another labor organization;
2.) Conduct of election of union and worker’s association officers/ nullification of election of union and worker’s association;
3.) Audit/ accounts examination of union or worker’s association funds;
4.) Deregistration of Collective bargaining agreements;
5.) Validity/ invalidity of union affiliation or disaffiliation;
6.) Validity/ invalidity of acceptance/ non-acceptance for union membership;
7.) Validity/ invalidity of impeachment/ expulsion of union and worker’s association officers and members;
8.) Validity/ invalidity of voluntary recognition;
9.) Opposition to application for union and CBA registration;
10.) Violations of or agreements over any provision in a union or worker’s association constitution and by-laws;
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11.) Disagreements over chartering or registration of labor organizations and CBA’s
12.) Violations of the rights and conditions of workers’ association membership;
13.) Violations of the rights of legitimate labor organizations except interpretation of CBA;
14.) Such other disputes or conflicts involving the rights to self-organization, union membership and collective bargaining:
1. between and among legitimate labor organization
2. between and among members of a union or worker’s association.
Other related labor relations disputes shall include any conflict between labor union and the employer or any individual, entity or group
that is not a labor organization or worker’s association. This includes:
1. cancellation of registration of unions and worker’s association; and
2. petition for interpleader.
Related labor relations dispute- It shall be filed with the BLR but where there is a grievance procedure in the CBA, involving its
implementation or interpretation, the voluntary arbitrator is the one authorized. It includes cancellation of registration of a LLO.
The Med-Arbiter refers to the officer of the DOLE Regional office or the Bureau of Labor relations officer authorized to hear and decide
representation cases, inter/intra-union disputes and other related labor disputes except cancellation of registration dues.
If the issue involves conflict between the labor union and the employer, or any individual, entity or group that is not a labor organization
of workers, the BLR is bereft of any authority to hear the same.
PROCEDURE: same as that of cancellation of union registration
Effects of filing/pendency of inter/intra-union and other labor related relations disputes
The rights, relationship and obligations of the parties litigants against each other and other parties-in-interest prior to the
institution of the petition shall continue to remain during the pendency of the petition and until the date of the finality of the decision
rendered therein. Thereafter, the rights, relationships and obligations of the parties litigants against each other and other parties-in-
interest shall be governed by the decisions so ordered.
The filing or pendency of any inter/intra-union dispute and other related labor relations dispute is not a prejudicial question to
any petition for certification election and shall not be a ground for the dismissal of a petition for certification election or suspension of
proceedings for certification election.
CANCELLATION OF UNION REGISTRATION; GROUNDS; JURISDICTION & PROCEDURE
"ART. 238. Cancellation of Registration. - The certificate of registration of any legitimate labor organization, whether national or local,
may be cancelled by the Bureau, after due hearing, only on the grounds specified in Article 239 hereof."
RULE XIV
CANCELLATION OF REGISTRATION OF LABOR ORGANIZATIONS
“Section 1. Cancellation of Registration; Where to file. - Subject to the requirements of notice and due process, the registration of any
legitimate independent labor union, chartered local/chapter and workers' association may be cancelled by the Regional Director upon the
filing of a petition for cancellation of union registration, or application by the organization itself for voluntary dissolution.
The petition for cancellation or application for voluntary dissolution shall be filed in the regional office which issued its certificate of
registration or creation.
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In the case of federations, national or industry unions and trade union centers, the Bureau Director may cancel the registration upon the
filing of petition for cancellation or application for voluntary dissolution in the Bureau of Labor Relations”
A.)Where to file?
Regional Director- for cancellation of
1.) Independent labor union
2.) Chartered local
3.) Worker’s association
Bureau Director- for cancellation of
1.) Federations
2.) National or industry unions
3.) Trade union centers
B.) Who can file the petition?
1.) Members of the labor organization concerned –for actions involving violation of article 241
2.) Any party in interest- all other grounds
"ART. 239. Grounds for Cancellation of Union Registration. - The following may constitute grounds for cancellation of union
registration:
(a) Misrepresentation, false statement or fraud in connection with the adoption or ratification of the constitution and by-laws or
amendments thereto, the minutes of ratification, and the list of members who took part in the ratification;
(b) Misrepresentation, false statements or fraud in connection with the election of officers, minutes of the election of officers,
and the list of voters;
(c) Voluntary dissolution by the members."
Discussion:
 Constitution- general principles and philosophy of the labor organization
 By-laws- regulations, ordinances, rules or laws adopted by an association for its internal governance, including rules for routine
matters such as calling meetings and the like
 The by-laws can put conditions for membership, the name of officers, the powers of the union with regards the members, etc.
 What are examples of Union’s powers? Collection of union dues, collection for fines and forfeitures
 The LC does not specifically provide for the contents of the constitution and by-laws.
(b) Misrepresentation, false statements or fraud in connection with the election of officers, minutes of the election of officers, and the
list of voters;
 The officers should be chosen by the members because they are to act in the interest of the members.
 Term of office of officers: 5 years
 Minimum condition for membership: YOU MUST BE AN EMPLOYEE in the establishment
 Minimum conditions to be an officer:
a. must be a member in good standing (not delinquent)
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b. not a member of a subversive organization (however, there is no longer any law which declared an organization
subversive)
c. not convicted of a crime involving moral turpitude
(c) Voluntary dissolution by the members."
- How done? Article 239-A.
(a) 2/3 votes of the general membership
(b) in a meeting duly called for the purpose to dissolve the organization,
(c) an application to cancel registration is submitted by the board of the organization attested to by the president thereof.
(D) filed in the regional office which issued certificate of registration
ART. 239-A. Voluntary Cancellation of Registration. - The registration of a legitimate labor organization may be cancelled by the
organization itself. Provided, That at least two-thirds of its general membership votes, in a meeting duly called for that purpose to dissolve
the organization: Provided, further, That an application to cancel registration is thereafter submitted by the board of the organization,
attested to by the president thereof."
 Generally, it is registration which confers legal personality to a labor organization. In the case of local or charter it is the
issuance of the Charter Certificate.
 The number of grounds for cancellation was lessened in order to promote the creation of unions and to lessen the
opportunities of some parties to dissolve the union. Also it abides with ILO 97 (freedom of organization and the right to
organize)
OLD GROUNDS UNDER (DO 40-33)
*(b) Failure to submit the documents mentioned in the preceding paragraph within 30 days from adoption or ratification of the
constitution and by-laws or amendments thereto.
(c) Misrepresentation, false statements or fraud in connection with the election of officers, minutes of the election of officers,
and the list of voters;
*(d) Failure to submit these documents together with the list of newly elected or appointed officers and their postal address
within 30 days from election.
(e) Voluntary dissolution by the members ( new under RA 9481)
*(f) Failure to submit the annual report to the Bureau within 30 days after the close of every fiscal year and misrepresentation,
false entries or fraud in the preparation of financial report.
(g) Acting as labor contractor or engaging in the “cabo” system or otherwise engaging in any activity prohibited by law.
(h) Entering into CBA which provides for terms and conditions of employment below the minimum standards established by law
(i) Commission of any acts enumerated under Article 241 based on this ground may be granted unless supported by at least 30%
of all members of the respondent labor organization;
(j) Asking for or accepting attorney’s fees or negotiation fees from the employer;
(k) Other than for mandatory activities under the labor code checking off special assessments or any other fees without duly
signed individual written authorizations of the members;
*(l) Failure to submit list of individual members to the bureau once a year or whenever required by the Bureau
(m) Failure to comply with the requirement of registration prescribed under the rules.
In addition, a federation or national union or worker’s association may revoke the charter on the ground of:
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1.) Disloyalty
2.) Other such ground as may be specified in the constitution and by-laws of the federation, national union or worker’s
association.
Note: Pars b, d f and l or those with asterisks are no longer grounds for cancellation of registration but are grounds to expel, suspend or
fine erring officers or members.
Art. 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.
 “Cancellation Proceedings” refer to the legal process leading to the revocation of the legitimate status of a union or workers’
association. (Section 1 [g], Rule I, Book V, Rules to Implement the Labor Code, as amended by Department Order No. 40-03,
Series of 2003, [Feb. 17, 2003]).
 Subject to the requirements of notice and due process, the registration of any legitimate independent labor union, chartered
local and workers' association may be cancelled by the Regional Director, or in the case of federations, national or industry
unions and trade union centers, by the Bureau Director, upon the filing of an independent complaint or petition for
cancellation. (Section 1, Rule XIV, Book V, Ibid.).
 The cancellation of a certificate of registration is the equivalent of snuffing out the life of a labor organization. For without such
registration, it loses - as a rule - its rights under the Labor Code. The union is indisputably entitled to be heard before a
judgment could be rendered cancelling its certificate of registration. In David vs. Aguilizan, [94 SCRA 707, 713-714 (December
14, 1979)], it was held that a decision rendered without any hearing is null and void. (Alliance of Democratic Free Labor
Organization [ADFLO] vs. Laguesma, G. R. No. 108625, March 11, 1996).
 The filing or initiation of a cancellation proceeding against a labor organization does not have the effect of depriving it of the
rights accorded to a legitimate labor organization. For as long as there is no final order of cancellation, the labor organization
whose registration is sought to be cancelled shall continue to enjoy said rights. The pendency alone of cancellation proceedings
does not affect the right of a labor organization to sue. (Itogon-Suyoc Mines vs. Sangilo-Itogon Workers Union, 24 SCRA 873).
 Such pendency cannot also bar the conduct of a certification election. (Samahan ng Manggagawa sa Pacific Plastic vs.
Laguesma, G. R. No. 111245, Jan. 31, 199).
 In case cancellation of a union registration is made during the pendency of a case, the labor organization whose registration is
cancelled may still continue to be a party to the case without necessity for substitution. Whatever decision, however, may be
rendered therein shall only be binding on those members of the union who have not signified their desire to withdraw from the
case before its trial and decision on the merits. (Itogon-Suyoc Mines, Inc. vs. Sangilo-Itogon Workers Union, 24 SCRA 873).
 The non-renewal of registration or permit does not result in the dismissal of a case pending with the Department of Labor and
Employment. The reason is that, at the time of the filing of the case, it has juridical personality and the respondent court had
validly acquired jurisdiction over the case. (Philippine Land-Air-Sea Labor Union [PLASLU], Inc. vs. CIR, 93 Phil. 47).
ART. 242-A. Reportorial Requirements. - The following are documents required to be submitted to the Bureau by the legitimate labor
organization concerned:
(a) Its constitution and by-laws, or amendments thereto, the minutes of ratification, and the list of members who took part in the
ratification of the constitution and by-laws within thirty (30) days from adoption or ratification of the constitution and by-laws or
amendments thereto;
(b) Its list of officers, minutes of the election of officers, and list of voters within thirty (30) days from election;
(c) Its annual financial report within thirty (30) days after the close of every fiscal year; and
(d) Its list of members at least once a year or whenever required by the Bureau.
Failure to comply with the above requirements shall not be a ground for cancellation of union registration but shall subject the erring
officers or members to suspension, expulsion from membership, or any appropriate penalty."
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ART. 245-A. Effect of Inclusion as Members of Employees outside the Bargaining Unit. - The inclusion as union members of employees
outside the bargaining unit shall not be a ground for the cancellation of the registration of the union. Said employees are automatically
deemed removed from the list of membership of said union.”
RULE XIV
CANCELLATION OF REGISTRATION OF LABOR ORGANIZATIONS
“Section 6. Prohibited grounds for cancellation of registration – the inclusion as union members of employees who are outside the
bargaining unit shall not be a ground to cancel the union registration. The ineligible employees are automatically deemed removed
from the list of membership of the union.
The affiliation of the rank-and-file and supervisory unions operating within the same establishment to the same federation or
national union shall not be a ground to cancel the registration of either union.”
PROCEDURE
Note: Cancellation of registration is considered an inter or intra-union dispute
1. Complaint or petition filed before the Bureau or Regional office. Sec4 rule xi; rule xiv d.o 2008
How? File:
a. a petition for cancellation of union registration
b. an application by the organization itself for voluntary dissolution
2. Formal requirements of the complaint or petition.
In writing, verified under oath containing the following:
a. name, address and other personal circumstances of the complainants or petitioner;
b. name, address and other personal circumstances of the respondents or the persons charged;
c. nature of the complaint or petition;
d. facts and circumstances surrounding the complaint or petition;
e. causes of action or specific violations committed;
f. a statement that the administrative remedies provided for in the constitution and by laws have been exhausted or such
remedies are not readily available to the complainants or petitioners through no fault of his own or compliance with such
administrative remedies does not apply to complainants or petitioners;
g. Reliefs prayed for;
h. certificate of non-forum shopping; and
i. other relevant matters.
3. Raffle of case – for determining the Med-Arbiter or Hearing Officer who shall be assigned to the case in case it is filed with the
regional office.
4. Notice of Preliminary Conference
The Med-Arbiter or Hearing officer shall prepare notice of preliminary conference. It shall be scheduled within 10 days from receipt
of the complaint or petition.
The Med Arbiter or Hearing Officer shall cause the service of summons to the respondents named directing him to answer before the
preliminary conference and to appear on the preliminary conference.
5. Conduct of Preliminary Conference
Exertion of effort by the Med-Arbiter or Hearing officer for amicable settlement.
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If there is amicable settlement- decision based on compromise shall be issued by the Med- arbiter or Hearing officer.
If none- The Med-Arbiter or Hearing officer shall proceed with stipulation of facts, limitation of issues, clarificatory questioning and
submission of laws and jurisprudence to support each claim.
6. Hearing
7. Affirmation of testimonial Evidence
Any affidavit submitted by a party to prove his claim or defenses shall be affirmed by his presentation before the Med-Arbiter or
Hearing officer otherwise such evidence is inadmissible unless the party against whom such affidavit is used admits the allegation.
8. Filing of Pleadings and Position Papers
Within 25 day period prescribed before the hearing. If the case is already submitted for decision, no other pleading is allowed
9. Hearing
10. Decision
The Bureau, Med-Arbiter or Regional Director as the case shall have 20 days to decide complaint or petition. The decision shall state
facts, findings conclusion and relief granted.
11. Appeal
Appeal to the Bureau- decision of Med-Arbiter and Regional Director within 10 Days from receipt thereof.
Appeal to the SOLE– decision of the Bureau director
It shall be verified under oath and consists of memorandum on appeal stating grounds relied upon with supporting arguments and
evidence.
 No appeal- decision becomes final after 10 days from receipt by the parties.
 only 1 Motion for reconsideration is allowed from decision of Bureau or SOLE in its appellate jurisdiction.
EFFECT OF CANCELLATION
"ART. 238-A. Effect of a Petition for Cancellation of Registration. - A petition for cancellation of union registration shall not suspend
the proceedings for certification election nor shall it prevent the filing of a petition for certification election.
In case of cancellation, nothing herein shall restrict the right of the union to seek just and equitable remedies in the appropriate
courts."
 it shall operate to divest the local/chapter of their status as legitimate labor organization
 it shall divest the local chapter of its legal personality
INQUIRY INTO UNION’S FINANCIAL ACTIVITIES: VISITORIAL POWER (ART. 274)

Article 274. Visitorial power. The Secretary of Labor and Employment or his duly authorized representative is hereby empowered to
inquire into the financial activities of legitimate labor organizations upon the filing of a complaint under oath and duly supported by the
written consent of at least twenty percent (20%) of the total membership of the labor organization concerned and to examine their books
of accounts and other records to determine compliance or non-compliance with the law and to prosecute any violations of the law and the
union constitution and by-laws: Provided, That such inquiry or examination shall not be conducted during the sixty (60)-day freedom
period nor within the thirty (30) days immediately preceding the date of election of union officials. (As amended by Section 31, Republic
Act No. 6715, March 21, 1989)
Who: The Secretary of Labor and Employment or his duly authorized representative is hereby empowered to inquire into the financial
activities of legitimate labor organization and to examine their book of accounts and other records.
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Requisite: Upon the filing of a complaint under oath and duly supported by the written consent of at least 20% of the total membership
of the labor organization concerned.
Purpose:
1. To determine compliance or non compliance with the law and
2. to prosecute any violations of the laws and of the union’s constitution and by-laws.
Limitations: Inquiry or examination shall not be conducted during the 60- day freedom period nor within 30 days immediately preceding
the date of election of union officials.
 They need to submit financial reports for the protection of both the State and the members. In order to determine if the funds have
been properly used according to their purpose and to monitor where the sources are coming from.
 According to Art. 274 of LC, the Sec. of Labor and Employment has jurisdiction over checking the financial records.
 The power can be delegated by the SOLE to the BLR. The law says “the SOLE or his duly authorized representative...”
 If the officer of the union responsible for the reportorial requirements is not able to comply, it is NOT a ground for cancellation of
the union. The 3 grounds are exclusive.
 The consequence of failure to comply according to Article 242-A last paragraph is that the erring officer may be subject to
suspension, expulsion from membership and any other appropriate penalties.
 If there is a mixture of rank-and-file and supervisory employees in the LO Article 245-A provides that it is not a ground for
cancellation. Those employees outside the bargaining unit are automatically deemed removed from the list of members of the
union.
OTHER POWER OF SECRETARY OF LABOR (ART. 273)
Article 273. Study of labor-management relations. The Secretary of Labor shall have the power and it shall be his duty to inquire into:
the existing relations between employers and employees in the Philippines;
the growth of associations of employees and the effect of such associations upon employer-employee relations;
the extent and results of the methods of collective bargaining in the determination of terms and conditions of employment;
the methods which have been tried by employers and associations of employees for maintaining mutually satisfactory relations;
desirable industrial practices which have been developed through collective bargaining and other voluntary arrangements;
the possible ways of increasing the usefulness and efficiency of collective bargaining for settling differences;
the possibilities for the adoption of practical and effective methods of labor-management cooperation;
any other aspects of employer-employee relations concerning the promotion of harmony and understanding between the parties; and
the relevance of labor laws and labor relations to national development.
The Secretary of Labor shall also inquire into the causes of industrial unrest and take all the necessary steps within his power as may be
prescribed by law to alleviate the same, and shall from time to time recommend the enactment of such remedial legislation as in his
judgment may be desirable for the maintenance and promotion of industrial peace.
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OTHER SPECIAL LAWS:

RA 7916, CHAP. 4 (SPECIAL ECONOMIC ZONE ACT OF 1995)
CHAPTER IV
Industrial Harmony in the Ecozones
SECTION 37.Labor and Management Relations. — Except as otherwise provided in this Act, labor and management relations in the
ECOZONE shall be governed by the existing Labor Code of the Philippines. Employees and personnel in the ECOZONE enterprises shall
receive salaries and benefits and shall enjoy working conditions not less than those provided under the Philippine Labor Code and other
relevant laws, issuances, rules and regulations of the Philippine government and the Department of Labor and Employment.
SECTION 38.Promotion of Industrial Peace. — In the pursuit of industrial harmony in the ECOZONE, a tripartite body composed of one
(1) representative each from the Department of Labor and Employment, labor sector and business and industry sectors shall be created
in order to formulate a mechanism under a social pact for the enhancement and preservation of industrial peace in the ECOZONE within
thirty (30) days after the effectivity of this Act.
SECTION 39.Master Employment Contracts. — The PEZA, in coordination with the Department of Labor and Employment, shall prescribe
a master employment contract for all ECOZONE enterprise staff members and workers, the terms of which provide salaries and benefits
not less than those provided under this Act, the Philippine Labor Code, as amended, and other relevant issuances of the national
government.
SECTION 40.Percentage of Foreign Nationals. — Employment of foreign nationals hired by ECOZONE enterprises in a supervisory,
technical or advisory capacity shall not exceed five percent (5%) of its workforce without the express authorization of the Secretary of
Labor and Employment.
SECTION 41.Migrant Worker. — The PEZA, in coordination with the Department of Labor and Employment, shall promulgate appropriate
measures and programs leading to the expansion of the services of the ECOZONE to help the local governments of nearby areas meet the
needs of the migrant workers.
SECTION 42.Incentive Scheme. — An additional deduction equivalent to one-half (1/2) of the value of training expenses incurred in
developing skilled or unskilled labor or for managerial or other management development programs incurred by enterprises in the
ECOZONE can be deducted from the national government’s share of three percent (3%) as provided in Section 24.
The PEZA, the Department of Labor and Employment, and the Department of Finance shall jointly make a review of the incentive scheme
provided in this section every two (2) years or when circumstances so warrant.
PART I, RULE II, SEC 2

SECTION 2. Protection of Labor - Consistent with Section 2 of the Act, all workers within the ECOZONES shall be assured of their basic
rights under the Constitution, including the right to security of tenure and humane conditions of work and right to self-organization.
PART IX, RULE XXIII, SEC. 1-7
PART IX - INDUSTRIAL HARMONY IN THE ECOZONES

Rule XXIII - Labor and Management Relations
SECTION 1. Objective and Policy - The PEZA adopts a policy of industrial peace and productivity within the ECOZONE thru cooperation
between labor and management to eliminate unnecessary conflicts and providing for effective mechanisms in the early settlement of
disputes.
SECTION 2. Labor Code - The Labor Code of the Philippines shall govern the relationship between labor and management of the
ECOZONE registered enterprises. Salaries and benefits and working conditions for personnel employees shall not be diminished beyond
those prescribed in the Labor Code and relevant laws, issuances and other pertinent rules and regulations of the government.
SECTION 3. Labor Center - Consistent with the one stop shop center, a Labor Center shall be established within the ECOZONE. Under the
supervision of the ECOZONE Administrator, the Center shall be handled by the ECOZONE's Human Resources Unit in coordination with a
Tripartite Oversight Committee composed of a representative from the Department of Labor and Employment, a representative from the
labor sector and one from the management sector. It shall serve as a window for all labor related activities and shall offer services for the
following:
a. MANPOWER POOL - The Labor Center shall maintain a bulletin for job opportunities and an index of job applicants. A manpower bank
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consisting of an index of available work force within the vicinity and neighboring areas of the ECOZONE shall be continually updated and
maintained.
b. TRAINING - In coordination with the Technical Education and Skills Development Authority (TESDA) created under R.A. 7796, the PEZA
shall provide facilities that will assist workers to learn skills, to retrain and enhance acquired skills as the case may be and to provide
training modules and materials and other technical assistance and facilitation services. PEZA may likewise solicit coordination with other
government agencies or non-government organization for training purposes.
SECTION 4. Priority in Hiring - On a best effort basis and in consultation with the local government units, ECOZONE enterprise shall give
priority in hiring workers from the immediate community to prevent and to mitigate the migration of workers to other areas.
SECTION 5. Migrant Workers - The PEZA, in coordination with the local government unit and other appropriate government and non-
government organizations, shall implement an integrated program to address the housing, health and social needs of migrant workers.
SECTION 6. Tripartite Body - A tripartite body shall be created to formulate a mechanism under a social pact for the enhancement and
preservation of industrial peace in the ECOZONE. The body shall be composed of one (1) representative each from the Department of
Labor and Employment, labor and business sectors with the PEZA acting as the Secretariat. The policies and declarations to be formulated
by the body shall be embodied in a formal document and disseminated to all parties concerned. It shall then act as a, guide in all actions
to be taken by the PEZA as well as the ECOZONE Advisory Council in the maintenance and promotion of sound labor-management
relations within the ECOZONE.
SECTION 7. Master Employment Contract - The PEZA in coordination with DOLE shall prescribe a master employment contract for every
ECOZONE enterprise staff members and workers. The master contract shall indicate the terms and conditions of employment which shall
include the following:
1. Salaries and wages according to trades or industry sectors, consistent within the ECOZONE and not less than the minimum wage
prescribed in the region;
2. Summary of benefits given by the enterprise;
3. Terms and employment whether probationary learner or apprentice, permanent, contractual or any other special arrangements;
4. Working hours or periods; and
5. Highlights of pertinent working conditions under the Labor Code of the Philippines.
Labor and management are, however, not precluded from entering into a Collective Bargaining Agreement which best reflects their
mutual covenants in accordance with the provisions of the Labor Code of the Philippines and other laws and issuances.
ATTY. MARQUEZ’ DISCUSSION
What is unionism in your own idea? (asking only student’s opinion)
It is an organized attempt by workers to improve their status by united action.
Is it a policy of the state to promote unionism?
Yes, under the Consti ART 3 sec8 and LC ART 8 sec3.
Why do workers need protection?
They need to be protected because ER and EE do not stand in equal footing.
Can an individual worker protect his rights? Under existing laws workers have the right to security of tenure. Can’t the worker protect
himself? Why do they need to be in a UNION? What is there that the state has to promote it?
More benefits are obtained in the union because you are given the opportunity to bargain for benefits and privileges. There is a stronger
voice to air out your concerns and make ER aware of the lacking benefits, and unsatisfactory terms and conditions of work. Individual
bargaining is NOT as effective as Collective bargaining.
Are you telling me that a collective action is more effective than an individual action? Yes
In what sense?
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When they voice out a concern it is not just a concern of one but the concern of most of the workers if not all
What is the common concern/grievance/complaint/issue that an individual worker undergoes in a collective action?
It could be Wages, hours of work, retirement, etc.
The policy of the state to promote unionism is just a principle of law, i want to know the rights of workers guaranteed by the
constitution that ensures that this policy to be enforced into reality ok? can you tell us?
Under ART 13 sec 3
What does it have to do with unionism? can you not attain policy of unionism without the right to self-organization?
In order for the workers to be unionized, it must have the right to self-organization, without the latter right, you cannot form a union.
What is meant by the right to self organization?
It is the right to form a labor union, where you can act collectively and produce better results than individual bargaining.
The right to self organization is part and parcel of the right of freedom of association, do we have such provision in the consti which
promotes right to association?
Yes under Art3 bill of rights sec 8
Section 8. The right of the people, including those employed in the public and private sectors, to form unions, associations, or societies
for purposes not contrary to law shall not be abridged.
Now it has been said that there are 2 concepts of right to association what are they? Explain each.
1. LIBERTY/freedom- act as he / she pleases according to his will without being prevented by law
2. Power to join or not to join- refers to the right of the person to choose to join or not to join an association, not to be compelled by
anybody to join an association that is his power
What is the so called negative freedom of association?
The right not to join an organization.
Once you decide to join, can you choose which organization to join? YES
Once you decide to join, can you decide to quit? YES
Now that we know this basic principles on freedom of association which includes the right to self-organization, right to join or not to
join an organization, a right to form a labor union, is there any other right guaranteed by the constitution that promotes unionism
aside from the right to self-organization?
YES, the right to collective bargaining and negotiation
JMM: Unionism is an exercise in futility, unless you are given the right to collective bargaining and negotiation, after all, unionism involves
the collective action by the workers in improving terms and conditions of employment.
What is the 3rd right guaranteed by the constitution in order to make the right to self-organization, right to collective bargaining and
negotiation effective?
Right to engage in peaceful picketing/strike in order for the workers to address their grievances, the workers cannot compel the ER to
agree on what they want.
JMM: The right of self-organization is the right to form a union, join a union, or assist in the formation of a labor union. You can attain
st
unionism when you have this right. That is the 1 step in achieving this policy of the state. The constitution in order to put flesh and blood
on this policy, it has guaranteed this right to self-organization. This guarantee puts the EE on the same level as the ER. Collective
bargaining is more effective than individual bargaining. This right is part and parcel of the right to association..
Read what is meant by a Labor Organization. (IRR)
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Is there a definition of what is Labor Union or a Union in the IRR? Yes.
Based on the definitions, which is broader the Labor Org. or the Labor Union? Labor Org.
JMM: Union is limited to the exercise of the right to collective bargaining. It exists for same purpose. Collective bargaining provides better
protection for the workers.
Is the right of self-organization recognized by the Labor Code? Yes.
Are there any other sources that recognize the right of self-organization aside from the Consti or the LC?
Yes. International Conventions.
JMM: These rights are not absolute as they are subject to limitations. Not all employees are allowed to exercise these rights.
Under the LC, what are the 3 tiered classification of employees for purposes of labor relations?
1. Managerial
2. Supervisory
3. Rank and File
Who are managerial employees? Are they allowed to exercise the right to self-organization?
They are the employees vested with the power or prerogative to lay down and execute management policies, to hire, to transfer, to
suspend, to lay-off, to recall, to discharge, or to discipline other employees. Managerial employees cannot exercise the right to self-
organization.
Why are managerial EEs not allowed to join, form, or assist a Labor UNION?
These EEs are representatives of the ER. The purpose of the union, i.e. collective bargaining and improvement of the terms and
conditions of employment, thus, it would be absurd to let them join because it would like be bargaining with yourself, furthermore, there
is an actual conflict of interest.
Who are Supervisory employees? Are they allowed to exercise the right of self-organization?
They are those who in the interest of the ER technically recommends managerial actions in the exercise of such authority. They are
allowed to exercise the right.
What is the limitation to their exercise of the right?
Art. 245. They are prohibited from membership in the collective bargaining unit of the rank and file.
Why are they prohibited?
There is an actual or potential conflict of interest that will arise in the areas of: 1.) discipline and 2.) collective bargaining
In the area of collective bargaining, why is there a conflict of interest?
There is a conflict because these EEs act in the interest of the ER. In collective bargaining, you try to negotiate with the ER for better
terms and conditions of employment and if we were to allow these EEs membership they could, in either case, serve the interest of the
their co-members or serve the interest of the ER which is prejudicial to the co-members or ER, as the case may be. In other words, their
loyalty is divided to the prejudice of both parties (rank and file union and ER).
Can the managerial and the supervisory EEs join together and form their own union?
No, because the managerial EEs are absolutely disqualified.
Who are the rank and file employees?
Those who are neither managerial nor supervisory EEs
How soon can they be eligible to be a member of a union?
IRR.On the first day of his/her service.
How soon are they(those qualified to self-organization) eligible to be member of a labor union?
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Rule II, sec 2 of DO 40-03
For purposes of this Section, any employee, whether employed for a definite period or not, shall beginning on the first day of his/her
service, be eligible for membership of any labor organization (don’t say at the time he/she is employed)
If hired as regular employee, are you eligible on the first day of service? Yes
Probationary employee? Yes
Casual employee? Yes
JMM: The law does not make any distinction on the status of the employee. The law encourages unionism
rd
What is the 3 classification of employees not found in LC but deemed excluded from bargaining unit?
Confidential employees – they are ineligible of the right to form a union
By what authority are they disqualified?
“Doctrine of Necessary implication”. Spectra notes
What is the reason for disqualification?
Because of position or nature of work that may result to conflict of interest.
If you are a telecom operator, are you a confidential employee?
No. for purposes of labor law, the confidentiality refers to management, policies on specific labor relations. Overhearing people talking is
not the confidentiality that is referred to by the law
How about messenger?
No. the law is specific on the policies pertaining to labor relations.
JMM: whether or not you are a confidential employee depends on your duties and responsibilities, not on your title or position.
What establishment may these qualified employee exercise theie right self organization?
Commercial
industrial
agricultural
religious
charitable
education institution..etc.(spectra notes)
JMM: Even establishment is not established for profit?
Yes sir. As long as you employ these workers. For their mutual aid and protection.
When is establishment considered commercial?
Those that are selling goods and services. (Prepare for example e.gdept store, massage parlor)
When is establishment considered industrial?
Those engaged in the manufacture and processing of goods from raw materials.
Example?
Student: Cigarette manufacturer ( Marlboro black + clorets) 
JMM: do you smoke? YOU SHOULD!!! :D
How about agricultural?
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Engaged in the growing or planting of crops.
JMM: Take a look at article 97of LC. There’s the definition of “agriculture”
"Agriculture" includes farming in all its branches and, among other things, includes cultivation and tillage of soil, dairying, the production,
cultivation, growing and harvesting of any agricultural and horticultural commodities, the raising of livestock or poultry, and any practices
performed by a farmer on a farm as an incident to or in conjunction with such farming operations, but does not include the manufacturing
or processing of sugar, coconuts, abaca, tobacco, pineapples or other farm products.
So those people working in a farm involving those activities have the right to self-organization, unless expressly disqualified by law.
If you go to a farm and the EEs are doing those activities then they are considered as agricultural establishments therefore you have to
allow them to exercise the right to self-organization
Next is religious organization, of course it involves secular activities. We don’t need to define that.
Give an example of religious organization. Even if they are not for profit, if they have employees, not disqualified by law, they have the
right to self-organization.
What is the religious organization running USC? SVD
Sacred heart school? Jesuit
JMM: Jesuit organization they are included in the right to self organization
Next is medical institutions.
Example, hospital, clinics
Employees working there have the right to self-organization,
Educational institutions
EEs here as long as they are not disqualified by law have the right to self-organization.
JMM: Again, when you speak of self-organization, it means they have the right to form a union, to join a union, and the right to assist in
the formation of the labor union. That is right to self-organization, that is part of the right to association.
So these are the establishments. They are not exclusive, if there are establishments similar to that, then they are also be covered within
the scope of the law.
What is purpose of the right to self-organization. According to SC it has dual purpose. What are these?
1. Purpose of collective bargaining (in this case you will form a labor union)
2. Purpose of mutual aid and protection, (in this case you will form a labor organization or association)
JMM: Pag union, collective bargaining yan all the time.Pag labor organization, may or may not. Pag association, may or may not. It is still
part of organization.
What do you mean by labor organization?
As defined in the implementing rules of DO 40-03 as amended
Labor organization – refers to any union or association of ees in private sector which is exist in whole or in part for purpose of CBA,
mutual aid, protection,.. or for other lawful purpose
Can you organize workers into association for purpose of supporting a candidate for an elective position? For partylist for example?
Yes they may. They can support each other.
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JMM: Di ba, andaming party list of the workers. The workers themselves can form an association for purpose of getting an elective
position. So SC two-fold purpose lang pero if you look at it multipurpose na siya. Ang broad ng purpose.
Now I know that I am a qualified employee to be a member of a labor union. May I know if there are prescribed requirements for me
to initiate a labor union in an establishment?
You just have to be an employee of the establishment qualified by law.
How will you know you are an employee?
Apply the four-fold test
Yes. Regardless of your status whether casual, regular, that’s what the law says.
Now I since I am the one who will initiate, I also want to be an officer of the labor union. I want to know if the law has a qualification
before one can be an officer of the labor union?
Do you need to serve for a month or two? Do you need to be handsome? Pretty? Do you need to have no criminal records? Merun
bang qualification or disqualification? Ganun ba yun? I think that is another basic question
What is constitution and by-laws and what are the differences of the two?
Constitution constitute the general principles of the organization while the by-laws defines the detailed matters of the duties and
responsibilities of membership of that labor union
Can the union prescribe for qualifications for membership aside from being an EE?
Yes, as long as they are not unreasonable and not arbitrary and not contrary.
Ikaw nag organize niyan eh, (so like ayaw pagbuot sa akung qualifications, pagbuhat ug imo. Wala man naku girestrict imung right kay
pwede man ka makajoin or make another union)
For purposes of LC, minimum qualification to form a union is that you are an employee for officers of union? I leave that to you.
What are the kinds of unions?
One of common way in forming a labor union is creating an independent unon, workers may organize themselves by forming an
independent union. That is one way of forming a union. What do you mean by independent union?
Definition of terms under Dept order 40
In forming and organizing independent union, is there a qualification or requirements to register that independent union?
JMM: Class, in an establishment with 100 rank and file employees, workers may organize themselves into a labor union and that is what
we call a rank and file union. Now, they may organize and register themselves as an independent union. Now, we want to know what are
the requirements in registering a labor union. Of course, organizing is getting members.
But before we go to the requirements, what agency has the power to register independent union?
-Bureau of Labor Relations
So, what are the requirements to register? [art. 234]
1. Payment of P50.00 registration fee
2. Submit the names of the officers, address, principal address of the labor organization, minutes of the organization meeting, list of
workers who participated in the organizational meetings *That’s why we have to know the qualifications and disqualifications of an
officer, because we need to have officers in order that we can submit their names] [you need to register in order to have a personality
separate and distinct from the members]
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3. In case of independent union, names of employees comprising of at least 20% of the members of the bargaining unit
-the 80% may not be a member of that union, so it is possible that majority of the workers are not member of that union. Anyway, it is
possible for an establishment to have more than one legitimate labor organization. And this LLO competes to be certified as the exclusive
bargaining unit because the law provides there can only be one EBU in the establishment.
Bargaining unit-is a group of employees sharing mutual interest within a given employer unit, comprises 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 (IRR)
[There is such a thing as a rank and file bargaining unit, a supervisory bargaining unit but no managerial bargaining unit nor a confidential
bargaining unit]
-An alien can come to the Philippines and work as long as he secures an alien employment permit. He can join and assist a labor union but
they CANNOT FORM, provided they have a valid permit and they are nationals of a country that grants the same right to Filipinos. There
must be proof in the form of certification from DFA that the country to where the alien belongs has participated in the ratification of ILO
convention No. 87 or 98
4. If applicant union has been in existence for one or more years, copies of its annual reports
5. Four copies of the constitution and by-laws of the application....
nd
Qualifications of a candidate [this is in relation to the 2 qualification in registration]
1. Member of Good standing – is any person who has fulfilled the requirements for membership in the union and who has neither
voluntarily withdrawn from membership nor been expelled or suspended from membership after appropriate proceedings consistent
with the lawful provisions of the union’s constitution and bylaws; must not be a delinquent member (non payment of union dues or
violation of its constitution or bylaws)
2. Qualifications may be added so long as it not arbitrary
Disqualification
1. Convicted of a crime involving moral turpitude- because the position in a labor organization is an office of trust, there has to be
accountability specially with respect to the union dues (e.g. estafa)
Why is there a need to register?
- You can organize without registering it but you just register it in order to become a legitimate labor organization so that it can exercise
the rights of an LLO and acquire legal personality
Legitimate Labor Organization- refers to any labor organization in the private sector registered or reported with the Department of Labor
and Employment and includes any branch or local thereof (Art. 212)
-You cannot exercise the right to collective bargaining and negotiation without registration
JMM: Forming and organizing a labor union. We can do that by forming and organizing an independent union or forming and organizing a
local or chapter. Let’s start with forming and organizing an independent union.
What is the definition of an independent union?
It is a labor organization operating at the enterprise level that acquired legal personality through independent registration under Article
234 of the Labor Code
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Requirements to register an 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;
2. The minutes of the organizational meeting(s) and the list of employees who participated in the said meeting(s);
3. The name of all its members comprising at least 20% of the employees in the bargaining unit;
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;
5. 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).
That requirement of at least 20% does that tell us that it is possible that in a private enterprise involving the rank and file bargaining
unit, there could be 2 or more legitimate labor unions existing? Yes.
The other 80% could form their own union if they wished to, however, they are not mandated to form another union because they have
the freedom to join or not to join a union.
If there are 2 or more unions, which one has the power to negotiate a CBA with the employer?
Depends on who is voluntarily recognized or who is elected in a certification election as the exclusive bargaining agent
How is the constitution and by-laws defined?
Constitution - provides for the general principles of the organization; where as
By-laws - defines the detailed matters of the duties and responsibilities of membership in that labor union
Why only the members of the union shall ratify or adopt the constitution or by-laws?
Because these are intended to govern the relationship between the organization and its members
What is the prescribed number of votes to adopt or ratify the constitution or the by-laws?
Majority vote of the members of the union.
Is there a registration fee?
Yes, fifty pesos. The registration is only a minimal amount in order to promote unionism.
What is the purpose of registration?
So that the union may exercise the rights of a legitimate labor organization and to acquire legal personality.
Does the requirement of registration unduly curtail the constitutional rights of the worker’s to form and organize a labor union?
No, it does not because registration is intended to protect the workers from fly-by-night labor organizations who just establish unions for
the sake of exacting money from the workers in the form of contributions. Registration is an exercise of the police power of the state to
monitor the activities of labor organizations and ensure that the workers are amply protected.
Requirements for the creation of a chartered local:
Chartering and Creation of a Local Chapter. - A duly registered federation or national union may directly create a local chapter by issuing
a charter certificate indicating the establishment of the local chapter. The chapter shall acquire legal personality only for purposes of
filing a petition for certification election from the date it was issued a charter certificate.
The chapter shall be entitled to all other rights and privileges of a legitimate labor organization only upon the submission of the following
documents in addition to its charter certificate:
1. The names of the chapter’s officers, their addresses, and the principal office of the chapter; and
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2. The chapter’s constitution and by-laws: Provided, That where the chapter’s constitution and by-laws are the same as that of the
federation or the national union, this fact shall be indicated accordingly.
The additional supporting requirements shall be certified under oath by the secretary or treasurer of the chapter and attested by its
president.
(this is only based on RA 9481)
Requirements for creation of a federations and national unions:
1. A statement indicating the name of the applicant labor union, its principal address, the name of its officers and their respective
addresses;
2. The minutes of the organizational meeting(s) and the list of employees who participated in the said meeting(s);
3. 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;
4. 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);
5. 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
6. The name and addresses of the companies where the affiliates operate and the list of all the members in each company
involved.
Labor organizations operating within an identified industry may also apply for registration as a federation or national union within the
specified industry by submitting to the Bureau the same set of documents.
Are federations and national union the same as an independent union? Are they both legitimate labor organizations? No.
Yes, provided that they are registered.
JMM: The federation national union undergoes the same rigid process of registration similar to an independent union.
How to create a local chapter?
Read article 234-A
There is a short list of requirements to create a local chapter? Why is that?
Because the local chapter derives its legal personality from the federation or national union which already undergo a rigid process.
Does the law encourage the creation of local/chapter to the process of chartering? Yes
Why?
The law makes it easier to make local/chapter to the process of chartering in order to encourage organizations to affiliate themselves
with national federations in order for them to increase their bargaining power.
Is federation the same as trade union center? No
What is a trade union center?
It is a larger organization. It can consist federations and national unions.
Can a trade union center register as a legitimate labor organization? Yes
Can a trade union center by itself create a local or chapter to the process of chartering?
No. it is not enumerated in the law. The law only provides federation or national union.
In a federation or national union creating a local or chapter, when does this local or chapter acquire legal personality?
Upon issuance of the charter certificate
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For what purpose?
For purposes of filing a petition for certification election only.
When does the chapter entitled to all the rights of a legitimate labor organization?
Only upon submission of the ff. documents:
a.) the names of the chapter’s officers, their addresses, and the principal office of the chapter; and
b.) the chapter’s constitution and by-laws: Provided that where the chapter’s constitution and by-laws are the same as the federation or
the national union, this fact shall be indicated accordingly.
Does a legitimate labor organization have the right to file petition for certification election?
Yes. But in order to exercise such right there must be ….
When does an independent union acquire legal personality to file petition certification election?
When they are issued certificate of registration. (different from local or chapter which is upon issuance of charter certificate)
Which one is a long process, certification election or voluntary recognition?
Certification election
JMM: there’s no voluntary recognition in the LC but it is found in the IRR
What are the requirements for voluntary recognition?
Sec 2 Book V rule VII (Please read to answer the succeeding questions)
(In letter a.) Joint statement of whom? By the employer and labor organization
(In letter c) Are u telling us that in voluntary recognition the support is not only the members of union but all employees? Yes
(in letter d) Can there be voluntary recognition if there are 2 or more legitimate labor union? No
Is certification election defined in IRR? Yes
Certification election – refers to the process determining through secret ballot the sole and exclusive representative of the employees in
a bargaining unit for purposes of collective bargaining/negotiation ordered by DOLE….(IRR)
What is definition of bargaining unit?
Bargaining unit – refers to group of employees sharing mutual interest w/in an given employer unit, comprises 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 (IRR)
JMM: USC’s academic personnel share the same interest and also the non-academic personnel and they can form a separate bargaining
unit.
Is a certification election a litigation? No.
So what is it?
Process of electing who shall be exclusive bargaining agent of the establishment?
Does it entail an adversarial proceeding?
No. SC said it is mere investigation of a non-adversarial fact finding character to ascertain the desire of employees on the matter of
representation.
JMM: Take note however that any decision rendered in a certification election especially on the coverage of employees in the bargaining
unit is an exercise of quasi-judicial power and constitute res judicata ( gi.balik2 ni niya. Lalabas sa MCQ)
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TOPIC 13: RIGHTS OF LEGITIMATE LABOR ORGANIZATION

RIGHTS IN GENERAL (ART. 242, AS AMENDED)
RIGHTS IN GENERAL:
1) Autonomy and governance of its affairs, particularly:
a) to draw up their constitution;
b) freely elect their representatives;
c) to organize their activities and formulate programs;
d) dissolve or suspend the organization;
2) Right to its funds or property;
3) Right to protection from unfair labor practices.
UNDER THE LABOR CODE:

Article 242. Rights of legitimate labor organizations. A legitimate labor organization shall have the right:
(a) To act as the representative of its members for the purpose of collective bargaining;
(b) To be certified as the exclusive representative of all the employees in an appropriate collective bargaining unit for purposes of
collective bargaining;
(c) To be furnished by the employer, upon written request, with his annual audited financial statements, including the balance sheet
and the profit and loss statement, within thirty (30) calendar days from the date of receipt of the request, after the union has been
duly recognized by the employer or certified as the sole and exclusive bargaining representative of the employees in the bargaining
unit, or within sixty (60) calendar days before the expiration of the existing collective bargaining agreement, or during the collective
bargaining negotiation.
(d) To own property, real or personal, for the use and benefit of the labor organization 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 and its members, including cooperative, housing welfare and
other projects not contrary to law.
Notwithstanding any provision of a general or special law to the contrary, the income, and the properties of legitimate labor
organizations, including grants, endowments, gifts, donations and contributions they may receive from fraternal and similar
organizations, local or foreign, which are actually, directly and exclusively used for their lawful purposes, shall be free from taxes, duties,
and other assessments. The exemptions provided herein may be withdrawn only by a special law expressly repealing this provision. (As
amended by RA 6715)
 This presupposes that the labor organization has been duly registered.
 To act as representative of its members for the purpose of collective bargaining
- The legal relation that is established is that of principal-agent. Principal: Members, Agent: the organization.
- Chartered Local: Principal, Federation: Agent
- Bargaining Unit- may be comprised of members or non-members of the union
- For the purposes of the CBA, the CBA must redound not only for the benefit of members of the union but also for the
whole bargaining unit.
 To be certified as the exclusive representative of all the employees in an appropriate bargaining unit for purposes of collective
bargaining
- The organization must either be recognized or certified as the exclusive bargaining agent
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EXCLUSIVE BARGAINING AGENT

EXCLUSIVE BARGAINING REPRESENTATIVE
- refers to a legitimate labor union duly recognized or certified as the sole and exclusive bargaining representative or agent of all the
employees in a bargaining unit.
PURPOSE OF AN EXCLUSIVE BARGAINING AGENT
Under Art 242 of the Labor Code:
(a) To act as the representative of its members for the purpose of collective bargaining;
CERTIFICATION PROCESS: CERTIFICATION ELECTION AND VOLUNTARY RECOGNITION

Article 256. Representation issue in organized establishments. In organized establishments, when a verified petition questioning the
majority status of the incumbent bargaining agent is filed before the Department of Labor and Employment within the sixty-day period
before the expiration of the collective bargaining agreement, the Med-Arbiter shall automatically order an election by secret ballot when
the verified petition is supported by the written consent of at least twenty-five percent (25%) of all the employees in the bargaining unit to
ascertain the will of the employees in the appropriate bargaining unit. To have a valid election, at least a majority of all eligible voters in
the unit must have cast their votes. The labor union receiving the majority of the valid votes cast shall be certified as the exclusive
bargaining agent of all the workers in the unit. When an election which provides for three or more choices results in no choice receiving a
majority of the valid votes cast, a run-off election shall be conducted between the labor unions receiving the two highest number of votes:
Provided, that the total number of votes for all contending unions is at least fifty percent (50%) of the number of votes cast.
At the expiration of the freedom period, the employer shall continue to recognize the majority status of the incumbent bargaining agent
where no petition for certification election is filed. (As amended by Section 23, Republic Act No. 6715, March 21, 1989)
Article 257. Petitions in unorganized establishments. In any establishment where there is no certified bargaining agent, a certification
election shall automatically be conducted by the Med-Arbiter upon the filing of a petition by a legitimate labor organization. (As amended
by Section 24, Republic Act No. 6715, March 21, 1989)
Article 258. When an employer may file petition. When requested to bargain collectively, an employer may petition the Bureau for an
election. If there is no existing certified collective bargaining agreement in the unit, the Bureau shall, after hearing, order a certification
election.
All certification cases shall be decided within twenty (20) working days.
The Bureau shall conduct a certification election within twenty (20) days in accordance with the rules and regulations prescribed by the
Secretary of Labor.
RULES IN THE CONDUCT OF CERTIFICATION ELECTION (UNDER DO 40-03)
RULE IX
CONDUCT OF CERTIFICATION ELECTION
Section 1. Raffle of the case. - Within twenty-four (24) hours from receipt of the notice of entry of final judgment granting the conduct of
a certification election, the Regional Director shall cause the raffle of the case to an Election Officer who shall have control of the pre-
election conference and election proceedings.
Section 2. Pre-election conference. - Within twenty-four (24) hours from receipt of the assignment for the conduct of a certification
election, the Election Officer shall cause the issuance of notice of pre-election conference upon the contending unions and the employer,
which shall be scheduled within ten (10) days from receipt of the assignment. The employer shall be required to submit the certified list of
employees in the bargaining unit, or where necessary, the payrolls covering the numbers of the bargaining unit at the time of the filing of
the petition. (as amended by DO. 40-F-03)
Section 3. Waiver of right to be heard. - Failure of any party to appear during the pre-election conference despite notice shall be
considered as a waiver of its right to be present and to question or object to any of the agreements reached in said pre-election
conference. However, this shall deprive the non-appearing party the right to be furnished notices of and to attend subsequent pre-
election conferences. (as amended by DO. 40-F-03)
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Section 4. Minutes of pre-election conference. - The Election Officer shall keep the minutes of matters raised and agreed upon during
the pre-election conference. The parties shall acknowledge the completeness and correctness of the entries in the minutes by affixing
their signatures thereon. Where any of the parties refuse to sign the minutes, the Election Officer shall note such fact in the minutes,
including the reason for refusal to sign the same. In all cases, the parties shall be furnished a copy of the minutes.
The pre-election conference shall be completed within thirty (30) days from the date of the first hearing.
Section 5. Qualification of voters; inclusion-exclusion. - All employees who are members of the appropriate bargaining unit sought to be
represented by the petitioner at the time of the issuance of the order granting the conduct of a certification election shall be eligible to
vote. An employee who has been dismissed from work but has contested the legality of the dismissal in a forum of appropriate
jurisdiction at the time of the issuance of the order for the conduct of a certification election shall be considered a qualified voter, unless
his/her dismissal was declared valid in a final judgment at the time of the conduct of the certification election. In case of disagreement
over the voters' list or over the eligibility of voters, all contested voters shall be allowed to vote. But their votes shall be segregated and
sealed in individual envelopes in accordance with Sections 10 and 11 of this Rule.
Section 6. Posting of Notices. - The Election Officer shall cause the posting of notice of election at least ten (10) days before the actual
date of the election in two (2) most conspicuous places in the company premises. The notice shall contain:
(a) the date and time of the election;
(b) names of all contending unions;
(c) the description of the bargaining unit and the list of eligible and challenged voters.
The posting of the notice of election, the information required to be included therein and the duration of posting cannot be waived by
the contending unions or the employer.
Section 7. Secrecy and sanctity of the ballot. - To ensure secrecy of the ballot, the Election Officer, together with the authorized
representatives of the contending unions and the employer, shall before the start of the actual voting, inspect the polling place, the ballot
boxes and the polling booths.
Section 8. Preparation of ballots. - The Election Officer shall prepare the ballots in English and Filipino or the local dialect. The number of
ballots should correspond to the number of voters in the bargaining unit plus a reasonable number of extra ballots for contingencies. All
ballots shall be signed at the back by the Election Officer and an authorized representative of each of the contending unions. A party who
refuses or fails to sign the ballots waives his right to do so and the Election Officer shall enter the fact of such refusal and the reason
therefor in the records of the case. (as amended by DO. 40-F-03)
Section 9. Marking of votes. - The voter must put a cross ( x ) or check ( ü) mark in the square opposite the name of the union of his
choice or "No Union" if he/she does not want to be represented by any union. If a ballot is torn, defaced or left unfilled in such a manner
as to create doubt or confusion or to identify the voter, it shall be considered spoiled. If the voter inadvertently spoils a ballot, he/she
shall return it to the Election Officer who shall destroy it and give him/her another ballot.
Section 10. Procedure in the challenge of votes. – The ballot of the voter who has been properly challenged during the pre-election
conferences, shall place the ballot in an envelope which shall be sealed by the Election Officer in the presence of the voter and the
representatives of the contending unions. The Election Officer shall indicate on the envelope the voter's name, the union or employer
challenging the voter, and the ground for the challenge. The sealed envelope shall then be signed by the Election Officer and the
representatives of the contending unions. The Election Officer shall note all challenges in the minutes of the election and shall be
responsible for consolidating all envelopes containing the challenged votes. The envelopes shall be opened and the question of eligibility
shall be passed upon by the mediator-arbiter only if the number of segregated voters will materially alter the results of the election.
Section 11. On-the-spot questions. - The Election Officer shall rule on any question relating to and raised during the conduct of the
election. In no case, however, shall the election officer rule on any of the grounds for challenge specified in the immediately preceding
section.
Section 12 Protest; when perfected. - Any party-in-interest may file a protest based on the conduct or mechanics of the election. Such
protests shall be recorded in the minutes of the election proceedings. Protests not so raised are deemed waived. The protesting party
must formalize its protest with the Med-Arbiter, with specific grounds, arguments and evidence, within five (5) days after the close of the
election proceedings. If not recorded in the minutes and formalized within the prescribed period, the protest shall be deemed dropped.
Section 13. Canvassing of votes. - The votes shall be counted and tabulated by the Election Officer in the presence of the representatives
of the contending unions. Upon completion of the canvass, the Election Officer shall give each representative a copy of the minutes of
the election proceedings and results of the election. The ballots and the tally sheets shall be sealed in an envelope and signed by the
Election Officer and the representatives of the contending unions and transmitted to the Med-Arbiter, together with the minutes and
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results of the election, within twenty-four (24) hours from the completion of the canvass. Where the election is conducted in more than
one region, consolidation of results shall be made within fifteen (15) days from the conduct thereof.
Section 14. Conduct of election and canvass of votes. - The election precincts shall open and close on the date and time agreed upon
during the pre-election conference. The opening and canvass of votes shall proceed immediately after the precincts have closed. Failure
of the representative/s of the contending unions to appear during the election proceedings and canvass of votes shall be considered a
waiver of the right to be present and to question the conduct thereof.
Section 15. Certification of Collective Bargaining Agent. - The union which obtained a majority of the valid votes cast shall be certified as
the sole and exclusive bargaining agent of all the employees in the appropriate bargaining unit within five (5) days from the day of the
election, provided no protest is recorded in the minutes of the election.
Section 16. Failure of election. - Where the number of votes cast in a certification or consent election is less than the majority of the
number of eligible voters and there are no material challenged votes, the Election Officer shall declare a failure of election in the minutes
of the election proceedings.
Section 17. Effect of failure of election. - A failure of election shall not bar the filing of a motion for the immediate holding of another
certification or consent election within six (6) months from date of declaration of failure of election.
Section 18. Action on the motion. - Within twenty-four (24) hours from receipt of the motion, the Election Officer shall immediately
schedule the conduct of another certification or consent election within fifteen (15) days from receipt of the motion and cause the
posting of the notice of certification election at least ten (10) days prior to the scheduled date of election in two (2) most conspicuous
places in the establishment. The same guidelines and list of voters shall be used in the election.
Section 19. Proclamation and certification of the result of the election. - Within twenty-four (24) hours from final canvass of votes, there
being a valid election, the Election Officer shall transmit the records of the case to the Med-Arbiter who shall, within the same period
from receipt of the minutes and results of election, issue an order proclaiming the results of the election and certifying the union which
obtained a majority of the valid votes cast as the sole and exclusive bargaining agent in the subject bargaining unit, under any of the
following conditions:
(a) no protest was filed or, even if one was filed, the same was not perfected within the five-day period for perfection of the protest;
(b) no challenge or eligibility issue was raised or, even if one was raised, the resolution of the same will not materially change the results
of the elections. The winning union shall have the rights, privileges and obligations of a duly certified collective bargaining agent from the
time the certification is issued. Where majority of the valid votes cast results in "No Union" obtaining the majority, the Med-Arbiter shall
declare such fact in the order.
VOLUNTARY RECOGNITION
VOLUNTARY RECOGNITION – refers to the process by which a legitimate labor union is recognized by the employer as the exclusive
bargaining representative or agent in a bargaining unit.
BOOK V, RULE VII

VOLUNTARY RECOGNITION
SECTION 1. When and Where to File . — In unorganized establishments with only one legitimate labor organization, the employer
may voluntarily recognize the representation status of such a union. Within thirty (30) days from such recognition, the employer and
union shall submit a notice of voluntary recognition with the Regional Office which issued the recognized labor union's certificate of
registration or certificate of creation of a chartered local.
Section 2. Requirements for voluntary recognition. – the notice of voluntary recognition shall be accompanied by the original and
two (2) duplicate copies of the following documents:
a. A joint statement under oath of voluntary recognition attesting to the fact of voluntary recognition;
b. Certificate of posting of the joint statement of voluntary recognition for (15) consecutive days in at least (2) conspicuous places in
the establishment or bargaining unit where the union seeks to operate;
c. The approximate number of employees in the bargaining unit, accompanied by the names of those who support the voluntary
recognition comprising at least a majority of the members of the bargaining unit; and
d. A statement that the labor union is the only legitimate labor organization within the bargaining unit.
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All accompanying documents of the notice for voluntary recognition shall be certified under oath by the employer representative and
president of the recognized labor unions
IRR, Book V, Rule VII, Sec 2 - joint statement of voluntary recognition between the ER and the LLO accompanied by at least majority of
the members in the bargaining unit.
Requirements: (in an unorganized establishment)
1. A joint statement under oath of voluntary recognition attesting to the fact of voluntary recognition;
2. Certificate of posting of the joint statement of voluntary recognition for (15) consecutive days in at least (2) conspicuous
places in the establishment or bargaining unit where the union seeks to operate;
3. The approximate number of employees in the bargaining unit, accompanied by the names of those who support the
voluntary recognition comprising at least a majority of the members of the bargaining unit; and
4. A statement that the labor union is the only legitimate labor organization within the bargaining unit.
Note: Certified under oath by the employer representative and president of the recognized labor union.
 The requirements for voluntary recognition are more stringent. It is as if you underwent certification election process but even
worse because certification election, you only need majority of the valid votes cast. However, in voluntary recognition you need
the majority of the members of the bargaining unit.
Date of Effectivity – time of recording of voluntary recognition.
Effects of Registration –
1. Enjoyment of the rights, privileges and obligations of an existing bargaining agent of all the employees in the bargaining unit.
2. Bar the filing of a petition for a certification election by any labor organization for a period of (1) year from the date of entry of
voluntary recognition.
Note: Direct Certification is no longer allowed as the will of the majority is frustrated.
CERTIFICATION ELECTION
CERTIFICATION ELECTION – refers to the process of determining through secret ballot the sole and exclusive representative of the
employees in a bargaining unit for purposes of collective bargaining/negotiation ordered by DOLE.
- One must distinguish between unorganized and organized establishment
 The certification election is NOT adversarial. It is merely a fact-finding investigation and non-adversarial proceeding to ascertain
the desire of the employees on matters of their representation.
 There can be many legitimate labor organizations in an establishment or bargaining unit.
PETITION Unorganized Establishment- with no certified Organized Establishment- with certified or recognizing
bargaining agent or certified bargaining bargaining agent or an existing certified bargaining agreement
agreement
Who may 1) Any legitimate labor organization 1) Any legitimate labor organization (chartered local; national
file union or federation provided it has issued the charter
2) When requested to bargain collectively, an certificate)
employer
2)When requested to bargain collectively, an employer
Where to Regional Office of BLR which issued the Regional Office of BLR which issued the petitioning union’s
file petitioning union’s certificate of certificate of registration/certificate of creation of chartered
registration/certificate of creation of chartered local.
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local.
When to file Anytime During the freedom period- 60 days prior to expiration of life
of CBA
Note:Where there is no certified bargaining
agent, it shall be automatically conducted upon 1) When a fact of voluntary recognition has been entered or
the filing of a petition by a legitimate labor a valid certification, consent or run-off election has been
organization. conducted within the bargaining unit within (1) year prior
to the filing of the petition for certification election;
Note: Where an appeal has been filed from the order of the
Med-Arbiter certifying the results of the election, the running of
the 1-year period shall be suspended until the decision on the
appeal has become final and executory.
2) When the duly certified union has commenced and

sustained negotiations in good faith with the employer in
accordance with Article 250 of the LC within the 1-year
period referred in the immediately preceding paragraph;
3) When a bargaining deadlock to which an incumbent or

certified bargaining agent is a party, had been submitted
to conciliation or arbitration or had become the subject of
a valid notice of strike or lockout;
4) When the CBA between the ER and a duly recognized or

certified bargaining agent has been registered in
accordance with Article 231 of the LC. Where such CBA is
registered, the petition may be filed only within (60) days
prior to its expiry.
Hearing Med-Arbiter Med-Arbiter

Officer
Forms and Section 4, Rule VIII, is hereby amended to read Section 4, Rule VIII, is hereby amended to read as:
Contents of as: SECTION 4. Form and Contents of Petition. — The petition shall
Petition SECTION 4. Form and Contents of Petition. — be in writing, verified under oath by the president of
The petition shall be in writing, verified under petitioning labor organization. Where a federation or national
oath by the president of petitioning labor union FILES A PETITION IN BEHALF OF ITS LOCAL OR AFFILIATE,
organization. Where a federation or national THE PETITION shall BE verified under oath by the president or
union FILES A PETITION IN BEHALF OF ITS LOCAL duly authorized representative OF THE FEDERATION OR
OR AFFILIATE, THE PETITION shall BE verified NATIONAL UNION. IN CASE THE EMPLOYER FILES THE
under oath by the president or duly authorized PETITION, THE OWNER, PRESIDENT OR ANY CORPORATE
representative OF THE FEDERATION OR OFFICER, WHO IS AUTHORIZED BY THE BOARD OF DIRECTORS,
NATIONAL UNION. IN CASE THE EMPLOYER SHALL VERIFY THE PETITION. The petition shall contain the
FILES THE PETITION, THE OWNER, PRESIDENT following:
OR ANY CORPORATE OFFICER, WHO IS
AUTHORIZED BY THE BOARD OF DIRECTORS, 1) The name of petitioner, its address, and affiliation if
SHALL VERIFY THE PETITION. The petition shall appropriate, the date and number of its certificate of
contain the following: registration. If the petition is filed by a federation or
national union, the national president or his/her duly
1) The name of petitioner, its address, and authorized representative shall CERTIFY UNDER OATH AS
affiliation if appropriate, the date and TO the existence of its local/chapter in the establishment
number of its certificate of registration. If and ATTACHING THERETO THE CHARTER CERTIFICATE OR A
the petition is filed by a federation or CERTIFIED TRUE COPY THEREOF. If the petition is filed by a
national union, the national president or local/chapter IT SHALL ATTACH;
his/her duly authorized representative shall
CERTIFY UNDER OATH AS TO the existence 2) The name, address, and nature of employer’s business;
of its local/chapter in the establishment 3) The description of the bargaining unit;
and ATTACHING THERETO THE CHARTER
CERTIFICATE OR A CERTIFIED TRUE COPY 4) The approximate number of employees in the bargaining
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THEREOF. If the petition is filed by a unit;

local/chapter IT SHALL ATTACH;
5) The names and addresses of other legitimate labor unions
2) The name, address, and nature of in the bargaining unit;
employer’s business;
6) A statement indicating any of the following:
3) The description of the bargaining unit;
a. that the bargaining unit is unorganized or that
4) The approximate number of employees in there is no registered collective bargaining
the bargaining unit; agreement covering the employees in the
bargaining unit;
5) The names and addresses of other
legitimate labor unions in the bargaining b. if there exists a duly registered collective bargaining
unit; agreement, that the petition is filed within the 60-
day freedom period of such agreement; or
6) A statement indicating any of the following:
c. if another union had been previously recognized
a. that the bargaining unit is voluntarily or certified in a valid certification,
unorganized or that there is no consent or run-off election, that the petition is filed
registered collective bargaining outside the 1-year period from entry of voluntary
agreement covering the employees recognition or conduct of certification or run-off
in the bargaining unit; election and no appeal pending thereon.
b. if there exists a duly registered 7) The signature of at least (25%) of all employees in the
collective bargaining agreement, appropriate bargaining unit;
that the petition is filed within the
60-day freedom period of such 8) Other relevant facts.
agreement; or
c. if another union had been

previously recognized voluntarily or
certified in a valid certification,
consent or run-off election, that the
petition is filed outside the 1-year
period from entry of voluntary
recognition or conduct of
certification or run-off election and
no appeal pending thereon.
7) Other relevant facts.
N.B. Petition must me verified under oath by the

president of the petitioning labor organization
or its duly authorized representative.
Procedure 1) Raffle of the case to determine the Med- 1) Raffle of the case to determine the Med-Arbiter to be
Arbiter to be assigned to the case; assigned to the case;
2) Within (3) days from receipt of petition, the 2) Within (3) days from receipt of petition, the Med-Arbiter
Med-Arbiter shall cause the service of shall cause the service of notice of preliminary conference
notice of preliminary conference upon the upon the employer and incumbent bargaining agent which
employer and incumbent bargaining agent shall be within (10) days from receipt of the petition;
which shall be within (10) days from receipt
of the petition; Note: A copy of the notice of preliminary conference and
petition for certification election shall be posted in at least (2)
Note: A copy of the notice of preliminary conspicuous places in the establishment.
conference and petition for certification election
shall be posted in at least (2) conspicuous places 3) Motion for intervention by any legitimate labor union
in the establishment. other than the incumbent bargaining agent shall be filed
during the freedom period of the CBA to Med-Arbiter.
3) Motion for intervention by any legitimate
labor union other than the incumbent
bargaining agent shall be filed at any time
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prior to the decision of the Med-Arbiter.
Preliminary Determination of: Determination of:

Conference
and Hearing 1) The bargaining unit to be represented;- 1) The bargaining unit to be represented;
scope that the bargaining unit which to
represent 2) Contending labor unions;
2) Contending labor unions; 3)possibility of consent election
3) Such other matters as may be relevant for 3) Existence of any of the bars to certification election;
the final disposition of the case. 4) Such other matters as may be relevant for the final
disposition of the case.
Hearings Not exceed (15) days from the date of the Not exceed (15) days from the date of the scheduled
scheduled preliminary conference. Extensions preliminary conference. Extensions of time shall not be
of time shall not be entertained. entertained.
Note: Failure to appear shall be deemed a Note: Failure to appear shall be deemed a waiver of its right to
waiver of its right to be heard. be heard.
Order/Decis Within (10) days from the date of the last Within (10) days from the date of the last hearing.
ion hearing.
Note: No order or decision shall be issued during the freedom
period.
Contents of 1) The name of the employer or 1) The name of the employer or establishment;
Order establishment;
Granting the 2) The description of the bargaining unit;
Petition 2) The description of the bargaining unit;
3) A statement that none of the grounds for 3) A statement that none of the grounds for dismissal exists;
dismissal exists;
4) the names of THE contending labor unions which shall
4) The names of the contending labor unions; appear IN THE FOLLOWING ORDER: THE petitioner unions
5) A directive upon the ER and the in the order OF THE DATE OF FILING OF THEIR RESPECTIVE
contending union(s) to submit within (10) PETITIONS; THE forced intervenor; and "no union";
days from receipt of order, the certified list
of employees in the bargaining unit, or 5) TO AFFORD AN INDIVIDUAL EMPLOYEE-VOTER AN
where necessary, the payrolls covering the INFORMED CHOICE WHERE A LOCAL/CHAPTER IS ONE OF
members of the bargaining unit for the last THE CONTENDING UNIONS, A DIRECTIVE TO AN
(3) months prior to the issuance of the
UNREGISTERED LOCAL/CHAPTER OR A
order.
FEDERATION/NATIONAL UNION REPRESENTING AN
UNREGISTERED LOCAL/CHAPTER TO PERSONALLY SUBMIT
TO THE ELECTION OFFICER ITS CERTIFICATE OF CREATION
AT LEAST FIVE WORKING DAYS BEFORE THE ACTUAL
CONDUCT OF THE CERTIFICATION ELECTION. NON-
SUBMISSION OF THIS REQUIREMENT AS CERTIFIED BY THE
ELECTION OFFICER SHALL DISQUALIFY THE
LOCAL/CHAPTER FROM PARTICIPATING IN THE
CERTIFICATION ELECTION; AND
6) A directive upon the ER and the contending union(s) to

submit within (10) days from receipt of order, the
certified list of employees in the bargaining unit, or where
necessary, the payrolls covering the members of the
bargaining unit for the last (3) months prior to the
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issuance of the order.
Grounds for 1) The petitioner is not listed in the 1) The petitioner is not listed in the Department’s registry
Denial of Department’s registry of legitimate labor of legitimate labor unions;
Petition unions;
2) The petitioner’s legal personality has been revoked or
2) The petitioner’s legal personality has been cancelled with finality in accordance with Rule XIV of the
revoked or cancelled with finality in Rules;
accordance with Rule XIV of the Rules.
Note: If petition for cancellation is still pending, the petition
for certification election cannot be denied or suspended on
such ground. Until such time that the registration has been
cancelled, the labor union enjoys legal personality.
3)failure of a local chapter or national union/ federation to

submit a duly issued charter certificate upon filing of the
petition for certification election
4) The petition was filed before or after the freedom period

of a duly registered CBA; provided that the sixty-day
period based on the original CBA shall not be affected by
any amendment, extension or renewal of the CBA-
CONTRACT BAR RULE.
Note: The CBA has to be registered in accordance with Art.231

of the LC.
5) Filing of petition within (1) year from the date of

recording of the voluntary recognition, or within the
same period from a valid certification, consent or run-off
election where no appeal on the results of the
certification, consent, or run-off election is pending –
CERTIFICATION YEAR RULE.
- once an LLO is certified it is its duty to bargain collectively if

we are to allow a petition within one year it will disrupt
the bargaining union in performing its duty
5) Where a duly certified union has commenced and

sustained negotiations with the ER in accordance with
Art.250 of the LC within the 1-year period referred to in
the preceding paragraph ( NEGOTIATION BAR RULE) or
there exists a bargaining deadlock which had been
submitted to conciliation or arbitration or had become
the subject of a valid notice of strike or lockout to which
an incumbent or certified bargaining agent is a party
(BARGAINING DEADLOCK RULE);
- certification of election will just aggravate the situation; it is

NOT conducive to industrial stability ; if petition is filed
AFTER the bargaining deadlock
6) Failure to submit the (25%) support requirement for the

filing of the petition for certification election.
- there is already an incumbent bargaining union who is

supported by the majority of the employees in the
bargaining unit
7)non appearance of the petitioner for 2 consecutive

scheduled conferences before the mediator-arbiter
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despite due notice; and
8)absence of employer- employee relationship between all

the members of the petitioning union and the
establishment where the proposed bargaining unit is
sought to be represented
CONDUCT Unorganized Organization Organized Organization

OF
ELECTION
Hearing Election Officer Election Officer

Officer
Procedure 1) Within 24 hours from receipt of the notice 1) Within 24 hours from receipt of the notice of entry of final
of entry of final judgment, the case shall judgment, the case shall be raffled to an Election Officer
be raffled to an Election Officer who shall who shall have control of the pre-election conference and
have control of the pre-election election proceedings.
conference and election proceedings.
3) Within 24 hours from receipt of the assignment, the
2) Within 24 hours from receipt of the Election Officer shall cause the issuance of notice of pre-
assignment, the Election Officer shall cause election conference upon the contending unions and the
the issuance of notice of pre-election employer, which shall be scheduled within 10 calendar
conference upon the contending unions days from receipt of assignment. The employer shall be
and the employer, which shall be required to submit the certified list of employees in the
scheduled within 10 days from receipt of bargaining unit or where necessary, the payrolls covering
assignment. the members of the bargaining unit at the time of the
filing of the petition
Pre-election Set Mechanics and Determination of: Set Mechanics and Determination of:
Conference
1) Date, time and place of the election, which 1) Date, time and place of the election, which shall not be
shall not be later than 45 days from the later than 45 days from the date of first pre-election
date of first pre-election conference, and conference, and shall be on a regular working day and
shall be on a regular working day and within the employer's premises, unless circumstances
within the employer's premises, unless require otherwise;
circumstances require otherwise;
1) List of eligible and challenged voters; (inclusion/ exclusion
2) List of eligible and challenged voters; proceedings)
3) Number and location of polling places or 2) Number and location of polling places or booths and the
booths and the number of ballots to be number of ballots to be prepared with appropriate
prepared with appropriate translations, if translations, if necessary;
necessary;
3) Name of watchers or representatives and their
4) Name of watchers or representatives and alternatives for each of the parties during the election;
their alternatives for each of the parties
during the election; 4) Mechanics and guidelines of election.
5) Mechanics and guidelines of election. Note: Failure to appear shall be considered as a waiver of its
right to be present and to question or object to any of the
Note: Failure to appear shall be considered as a agreements. However, it shall not be deprived of the right to be
waiver to be present and to question or object to furnished notices of subsequent pre-election conferences and to
any of the agreements. However, it shall not be attend the same.
deprived of the right to be furnished notices of
subsequent pre-election conferences and to Note: The role of the ER is a mere bystander while the
attend the same. representative of the DOLE is a mere observer in Certification
Election. They are not parties. Only the employees are parties
Note: The role of the ER is a mere bystander themselves.
while the representative of the DOLE is a mere
observer in Certification Election. They are not
parties. Only the employees are parties
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themselves.
Failure of It shall not bar the filing of a motion for the It shall not bar the filing of a motion for the immediate holding
Election immediate holding of another certification or of another certification or consent election within (6) months
consent election within (6) months from date of from date of declaration of failure of election.
declaration of failure of election.
Failure of election- - it is where the number of

votes cast in a certification or consent election is
less than the majority of the number of eligible
voters and there are no material challenged
votes.
Proclamatio The Med-Arbiter from receipt of the minutes and The Med-Arbiter from receipt of the minutes and results of
n and results of election, shall issue an order election, shall issue an order proclaiming the results of the
Certification proclaiming the results of the elections and elections and certifying the union which obtained a majority of
of Result certifying the union which obtained a majority of the valid votes cast as the sole and exclusive bargaining unit
the valid votes cast as the sole and exclusive under any of the following conditions:
bargaining unit under any of the following
conditions: 3) No protest was filed or even if one was filed, same was
not perfected within the 5-day period for perfection of
1) No protest was filed or even if one was the protest;
filed, same was not perfected within the 5-
day period for perfection of the protest; 4) No challenge or eligibility issue was raised or, even if one
was raised, the resolution of the same will not materially
2) No challenge or eligibility issue was raised change the results of the election.
or, even if one was raised, the resolution of
the same will not materially change the Note: Where majority of the valid votes cast results in “No
results of the election. Union” obtaining the majority, the Med-Arbiter shall declare
such fact in the order.
Note: Where majority of the valid votes cast
results in “No Union” obtaining the majority,
the Med-Arbiter shall declare such fact in the
order.
Appeal or Any party to an election may appeal the results of Any party to an election may appeal the results of the election as
Remedies the election as determined by the Med-Arbiter determined by the Med-Arbiter directly to the SOLE on the
directly to the SOLE on the ground that the rules ground that the rules and regulations or parts thereof for the
and regulations or parts thereof for the conduct conduct of certification election have been violated.
of certification election have been violated.
WHO MAY FILE FOR CERTIFICATION ELECTION

(Sec 1, Rule VII of DO 40-F-03)
RULE VIII
Certification Election
SECTION 1. Who may File. — Any legitimate labor organization, INCLUDING A NATIONAL UNION OR FEDERATION THAT HAS ISSUED A
CHARTER CERTIFICATE TO ITS LOCAL/CHAPTER OR THE LOCAL/CHAPTER ITSELF, may file a petition for certification election.
A NATIONAL UNION OR FEDERATION FILING A PETITION IN BEHALF OF ITS LOCAL/CHAPTER SHALL NOT BE REQUIRED TO DISCLOSE THE
NAMES OF THE LOCAL/CHAPTER'S OFFICERS AND MEMBERS, BUT SHALL ATTACH TO THE PETITION THE CHARTER CERTIFICATE IT
ISSUED TO ITS LOCAL/CHAPTER.
When requested to bargain collectively IN A BARGAINING UNIT WHERE NO REGISTERED COLLECTIVE BARGAINING AGREEMENT EXISTS,
an employer may file a petition for certification election with the Regional Office.
IN ALL CASES, WHETHER THE PETITION FOR CERTIFICATION ELECTION IS FILED BY AN EMPLOYER OR A LEGITIMATE LABOR
ORGANIZATION, THE EMPLOYER SHALL NOT BE CONSIDERED A PARTY THERETO WITH A CONCOMITANT RIGHT TO OPPOSE A PETITION
FOR CERTIFICATION ELECTION. THE EMPLOYER'S PARTICIPATION IN SUCH PROCEEDINGS SHALL BE LIMITED TO: (1) BEING NOTIFIED OR
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INFORMED OF PETITIONS OF SUCH NATURE; AND (2) SUBMITTING THE LIST OF EMPLOYEES DURING THE PRE-ELECTION CONFERENCE
SHOULD THE MED-ARBITER ACT FAVORABLY ON THE PETITION.
ANY EMPLOYEE HAS THE RIGHT TO INTERVENE FOR THE PROTECTION OF HIS INDIVIDUAL RIGHT.
Summary on who may file:
a. Any Legitimate Labor Organization
b. The employer when requested to bargain collectively by any LLO
c. A national union or federation, who has ISSUED a charter certificate, in behalf of its local/chapter
- NU or F are not required to disclose the names of its officers and members of the local/chapter
 It is NOT required for a national union to disclose the local/chapter’s officers and members (Sec 1, Rule VIII of DO-40-F-03)
 In the chartering or creation of a local/chapter under Article 234-A, the names of its members are NOT included. So as to
encourage affiliation to national unions or federations.
Venue over petition for Certification Election
- Regional Office which issued the petitioning union’s certificate of registration/ certificate of creation of chartered local
Jurisdiction
- Med-Arbiter of DOLE/BLR
- Med-Arbiter refers to an officer authorized to hear representation cases, inter/intra union disputes and other related disputes
except cancellation of registration.
Federation -> charter certificate to local -> chartered local acquires legal personality for the purpose of certification election -> federation
reports to the BLR
Contents of a petition for certification election (Book V, Rule VIII Section 4)
a. Name of petitioner, address and affiliation...
b. Name and address of employer
c. Description of bargaining unit (BU)
- Whether it is rank-and-file or supervisory
- Time barred earners have different interests with field workers. There are some differences thus it is better if they are in
different BUs. But it is also possible to have them in the same BU.
d. Approximate number of employees in the BU
- To have an idea on the number of voters in the bargaining unit
e. Names and addresses of other legitimate labor unions in the BU
f. Statement indicating any of the following:
1) That the BU is unorganized or that there is no registered CBA...
-to determine the conduct of certification election. To know who may or when to file petition for certification election
2) If there exists a duly registered CBA, that the petition is filed within the 60-day freedom period of such agreement
3) If another union has been previously recognized voluntarily or certified in a valid certification, consent or run-off election, that the
petition is filed outside the 1-year period from entry of voluntary recognition or conduct of certification or run-off election and no
appeal is pending thereon.
o 1-year rule- within 1 year from the date you have been certified as a bargaining union you cannot be disturbed by filing another
petition for certification election.
o Contract bar rule
g. For organized, signature of at least 25% of all employees in the bargaining unit
h. Other relevant facts
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Contents will tell you that it is not easy to file for certification election.
Purpose of Certification Election
- to ascertain the will of the employees for collective bargaining
When may the petition be filed
- Any time.
Role of the ER in the CE
- Employer is a mere bystander. Article 258-A
- The ER may participate ONLY in the following instances:
a. The right to be furnished a copy of the petition
b. Providing the list of employees in the unit for pre-election
- Not the same with Innocent bystander which refers to picketing
Role of the DOLE
- Also a mere bystander. It merely facilitates the conduct of the election.
PROCEDURE
1. The petition for certification election will be raffled by the Regional Director to the Med-Arbiter.
2. The Med-Arbiter will serve a copy of the petition to the employer.
3. A notice of the petition together with the notice of preliminary conference will be posted in at least 2 conspicuous places in the
establishment.
- Without the posting, the election becomes irregular.
- Conspicuous means noticeable and visible. You post it in a place where a lot of people can easily see it.
- The purpose of the posting is in order to apprise the EEs in the establishment particularly the bargaining unit sought to be
represented by the union that there is this union who wants to represent them for the purpose of collective bargaining.
- A notice of preliminary conference is a notice which is sent 3 days from receipt of petition will be given to the ER and to
the petitioner
- The preliminary conference is to be conducted within 10 days from the receipt of the Med Arbiter of the petition
- There are 2 conferences:
a. Preliminary conference – this is called by the Med-Arbiter. The petitioning union and its representatives are
expected to be present. The ER may also be present since a copy of the petition has been served but his presence is
not mandatory (mere bystander).
- In the preliminary conference you determine the following:
a. The bargaining unit to be represented
b. Contending labor unions
c. Such other matters as may be relevant for the final disposition of the case
b. Pre-election conference
4. During the preliminary conference, the Med-Arbiter will determine whether the petition complied with the rules, both in form and
substance.
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- Since it is an unorganized establishment, it is likely that there is no certified bargaining union so there is no impediment to
the holding of the election.
5. After the preliminary conference, Med-arbiter will decide whether to grant or deny the petition.
- The Med-Arbiter will check whether any of the grounds to deny is present. If none of the grounds to deny exist the petition
will has to be granted as a matter of right.
- Grounds for denial of petition IN GENERAL: (Book V, Rule VIII, Sec. 14)
a. The petitioner is not listed in the Department’s registry of legitimate labor unions or that its legal personality has
been revoked or cancelled with finality.
o For UNORGANIZED establishments the only ground for denial in the enumeration is letter (a). Another ground is
if the petitioning union fails to appear in at least 2 conferences.
o Ex: the petition was filed by a federation or national union but there is no proof that it was issued a charter
certificate creating a chartered local or chapter.
b. The petition was filed before or after the freedom period of a duly-registered collective bargaining agreement.
c. The petition was filed within 1 year from entry of voluntary recognition or a valid certification, consent or run-off
election is pending.
d. A duly certified union has commenced and sustained negotiations with the employer in accordance with Article 250
of the LC within the 1-year period referred to above, or there exists a bargaining dreadlock, which had been
submitted to conciliation or arbitration or had become the subject of a valid notice of strike or lockout to which an
incumbent or certified bargaining agent is party.
e. In case of an organized establishment, failure to submit the 25% support requirement of the petition for certification
election.
6. The Med-Arbiter will issue an order of election either granting or denying the petition for the conduct of a certification election.
- The law is silent whether there can be an appeal from the order granting the certification election but the rules do not
allow an appeal because there is no as yet a certified bargaining union and the policy of the State is to promote unionism
so just proceed with the conduct of an election.
- In an order denying the petition for certification election, the petitioning union, whose petition was denied, may appeal
the order denying the petition to the SOLE within 10 calendar days from the receipt of the order of the denial.
Unorganized:
Granting certification- unappelable
Denial- appealable
Organized:
Granting- appealable
Denial- appealable
- The appeal shall be verified under oath and shall consist of a memorandum of appeal, specifically stating the grounds
relied upon by the appellant with the supporting arguments and evidence. The memorandum of appeal shall be filed in the
Regional Office where the petition originated.
- The SOLE has 15 days from receipt of the entire records of the petition within which to decide the appeal. The filing of the
memorandum of appeal from the order or decision of the Med- Arbiter stays the holding of any certification election.
- The decision of the SOLE shall be final and executory after 10 days from receipt thereof by the parties. NO Motion for
reconsideration of the decision shall be entertained. The remedy from the decision of the SOLE is a petition for certiorari
to the CA, not an appeal. From the CA to the SC under Rule 45.
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- The order granting the petition shall include a directive upon the union and the ER to submit within 10 days from receipt of
order, with the Med-Arbiter, a certified list of EEs in the bargaining unit for the last 3 months prior to the issuance of the
order,
- What is the purpose of the certified list of EEs? To determine who will be allowed to participate in the election. Obviously,
you do not include in the list the managerial employees because they are not allowed to be part of the rank-and-file
employees.
- In practice, the ER usually delays the submission of the list of EEs so that is the reason why the rules also require the union
to submit its own list. In one case, the ER refused to submit a list, what a union did was to get a list from the SSS.
7. After issuing the order, the Med-Arbiter will transmit the records back to the RD and the RD will raffle the case to a so-called
Election Officer.
- The Election Officer is different from the Med-Arbiter. The Med-Arbiter is usually a lawyer while the Election Officer need
not be a one.
8. Election officer will issue a notice of pre-election conference, a copy of which will be served to the petitioning union for the conduct
of the pre-election conference.
- Election Officer presides over the pre-election conference.
9. During the pre-election conference there is an inclusion-exclusion proceeding where it is determined who among those in the list
will be included to participate in the election and who will be excluded.
- Ex. If managerial: excluded. If supervisor: excluded from union of rank-and-files. If there are members of the bargaining
unit not included in the list then they should be included.
- Those excluded may automatically be considered challenged voters whose names will be segregated from the list of
qualified voters.
- In the pre-election conference, the election officer will also check when the certification may be scheduled, the date, place
and time of the conduct of the certification election, the number of polling precinct, in the polling precinct, the number of
polling booths and the designation of the ballot box. In other words, the mechanics in the conduct of election will be
defined during the pre-election conference.
- The Election Officer does NOT have the power to rule on objections on the eligibility of some voters (whether an EE is
qualified to vote) It is the Med-Arbiter who has the power to decide ultimately on who is qualified and who is disqualified
from voting. The objections will just be received by the Election Officer and it will form part of the records for the Med-
Arbiter to decide on the issue.
10. After everything has been set, the Election Officer will issue and require the posting of the notice of the conduct of the election.
- Such notice will be posted for 10 days in at least 2 conspicuous places in the establishment.
- The purpose of this is for the EEs to be informed that an election will be conducted.
- If an EE sees in the list of qualified and challenged voters that he has been unfairly excluded, he has the right to bring the
issue to the attention of the election officer who can make the necessary corrections. This is because every individual EE
has the right to protect his right to self-organization.
- Do not get the intervention of the management because they are supposed to keep their hands off in the conduct of
election.
11. On the date of the election, there will be an inspection of the polling place to be done in the presence of the DOLE representative
and in the presence of the ER’s representative..
- The ballots are usually authenticated by the DOLE representative to prevent tampering of ballots or substitution.
12. Once the inspection is done, at the time provided in the notice, the voters will now be allowed to cast their votes.
- Atty. Marquez: In my experience, since the union is the organizer, they usually encourage their employees to vote early.
- If you want to challenge a vote, you have to make the necessary objections before a voter will drop her vote not after.
Because if it is after, it will be mixed with the other ballots so you will not know which ballot belongs to that voter. That
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vote will have to be segregated by the election officer in a separate envelope and he has to indicate there the reason for
the challenge of the vote.
- Grounds to challenge a voter:
1. that there is no employer- employee relationship between the voter and the company
2. that the voter is not a member of the appropriated bargaining unit which petitioner seeks to represent
13. Once everybody has cast their vote or the time has ended, there will be canvassing of the votes.
- Example: USC Union and then the other choice is NO UNION. The EEs are allowed to choose. You simply write there a
check or a cross mark. You do not need to sign or put your face there. So there is such thing as a spoiled ballot.
- What is the Double Majority Rule? This means that to have a valid election, majority of the eligible voters must cast their
vote. So if there are 100 eligible voters, then at least 50+1 must cast their vote to have a valid election. For the union that
is trying to represent the employees, to be certified as the exclusive bargaining agent (to win the election), the law says
that it must obtain the majority of the valid votes cast.
- In determining on whether or not there is a valid election, you will include even spoiled ballots. However, in determining
whether the union will be certified as the exclusive bargaining agent, you have to exclude the spoiled ballots because
these are not valid votes cast.
- WARNING: You have to watch out for the figures particularly on this topic (for a valid election, for the union to be the
exclusive bargaining agent)
- Where the number of votes cast in a certification or consent election is less than the majority of the number of eligible
voters and there are no material challenged votes, the Election Officer shall declare a failure of election in the minutes of
the election proceedings
- A failure of election shall not bar the filing of a motion for the immediate holding of another certification or consent
election within 6 months from date of declaration of failure of election
14. If there is a protest, it must be recorded in the minutes of the election.
- If you notice an irregularity in the conduct of the certification election or there is a violation of DO 40-03 as amended, you
have to inform the election officer that you are registering your protest.
- Ex. There was no posting of notice of election or an abrupt stoppage of the casting of votes like instead of 8-12, they cut it
off until 10 therefore unduly depriving the other voters to cast their vote so that is an irregularity in the conduct of the
election which will be the subject of the protest.
- You have to perfect your protest within 5 days from the date of the election by way of a written protest, otherwise you
are deemed to have waived your protest.
- What is the purpose of a protest?
o If there is a protest and the result of the protest will materially affect the result of the election, the election
officer will not announce the winner. He will endorse the case to the Med-Arbiter for the Med-Arbiter to rule on
the protest instead of proclaiming the winner.
o If there is no protest, the election officer will now announce the winner in the certification election. And he will
endorse that to the Med-Arbiter for the issuance of an order officially proclaiming the winner.
15. Results of the Election
- Do not confuse with Order of Election.
- The Results of the Election as determined by the Med-Arbiter may be appealed to the SOLE. (Art. 259, LC)
- Even if you appeal to the SOLE and the SOLE affirms the decision of the Med-Arbiter, in the absence of a restraining order,
then the parties are now allowed to negotiate the collective bargaining agreement.
Once you have been certified, the next step is to exercise the right to negotiate a CBA. Under the law, only a certified bargaining union is
allowed to exercise the right to collectively bargain. If you have not been certified it means that you did not win the elections and that
you do not have the confidence of the majority of the workers, thus you cannot exercise the right to collective bargaining.
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The procedure in an ORGANIZED ESTABLISHMENT is more or less the same. The only difference is the ground for denial of the petition
because there are more grounds to deny compared to the unorganized establishment.
CONSENT ELECTION – refers to the process of determining through secret ballot the sole and exclusive representative of the employees in
an appropriate bargaining unit for purposes of collective bargaining or negotiation voluntarily agreed upon by the parties, with or without
the intervention of the DOLE.
1) In case the contending unions agree to a consent election, the Med-Arbiter shall not issue a formal order calling for
the conduct of certification election, but shall enter the fact of the agreement in the minutes of the hearing of the
preliminary conference signed by the parties and attested by the Med-Arbiter.
2) It shall constitute a bar to the holding of a certification election for (1) year from the holding of such consent election.
RUN-OFF ELECTION – refers to an election between the labor unions receiving the (2) highest number of votes in a certification or consent
election with (3) or more choices, where such certified or consent election results in none of the (3) or more choices receiving the
majority of the valid votes cast; provided that the total number of votes for all contending unions is at least (50%) of the number of votes
cast.
Note: “NO UNION” shall not be a choice in the run-off election.
PRINCIPLE OF PRECLUSION OR COLLATERAL ATTACK
Under the doctrine of conclusiveness of judgment, which is also known as "preclusion of issues" or "collateral estoppel,"
issues actually and directly resolved in a former suit cannot again be raised in any future case between the same parties
involving a different cause of action.||| (Tan v. Court of Appeals, G.R. No. 142401, August 20, 2001)
INCLUSION-EXCLUSION PROCEEDINGS
SECTION 5. Qualification of Voters ; Inclusion-Exclusion . — All employees who are members of the appropriate bargaining unit sought to
be represented by the petitioner at the time of the issuance of the order granting the conduct of a certification election shall be eligible to
vote. An employee who has been dismissed from work but has contested the legality of the dismissal in a forum of appropriate jurisdiction
at the time of the issuance of the order for the conduct of a certification election shall be considered a qualified voter, unless his/her
dismissal was declared valid in a final judgment at the time of the conduct of the certification election.
In case of disagreement over the voters' list or over the eligibility of voters, all contested voters shall be allowed to vote. But their votes
shall be segregated and sealed in individual envelopes in accordance with Sections 10 and 11 of this Rule.
CONTRACT BAR RULE

The Contract Bar Rule is a rule that a valid and existing collective bargaining agreement is a bar to a petition for certification
election. Hence an employer may successfully oppose a petition for certification election if it violates this Rule.
EXCEPTIONS TO THE CONTRACT BAR RULE
However, there are a number of exceptions to this Rule, namely:
(a) if the petition is made within 60 days before the expiration of the CBA, known as the "freedom period" (b) if the CBA is
defective or inadequate in substance, as whei it does not fulfill the legal requirements of providing for a grievance
machinery or voluntary arbitration; and (c) if it has not fulfilled the formal requirements for registration with the Bureau or
the Regional Office of the DOLE, which requirements are held to be mandatory (Asso. Trade Union vs. Trajano, 162 SCRA
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318) in any of these exceptional cases, the Contract Bar Rule will not apply and the employer would have no ground to
contest the certification election.
OTHER RULES BARRING CERTIFICATION ELECTIONS. The Contract Bar Rule is not the only instance where petitions for
certification election may be barred. There are other applicable rules whereby such petitions will not be entertained. To
summarize, no certification election may be held in the following cases:
(a) During the existence of a collective bargaining agreement, except within the freedom period (the Contract Bar Rule); (b)
Within one year from the date of issuance of a final certification result (Bk. V, Sec. 3, OR); and (c) Where a bargaining
deadlock to "which an incumbent or certified bargaining agent is a party has been submitted to conciliation or arbitration,
or has become the subject of a valid notice of strike or lockout (Id.). This is known as the Deadlock Bar Rule. Its principal
purpose is to ensure stability in the relationship of workers and management. (NACUSIP vs. ajano, 208 SCRA 18)
Basic to the contract bar rule is the proposition that the delay of the right to select representatives can be justified only
where stability is deemed paramount. Excepted from the contract bar rule are certain types of contracts which do not
foster industrial stability, such as contracts where the identity of the representative is in doubt. Any stability derived from
such contracts must be subordinated to the employees' freedom of choice because it does not establish the type of
industrial peace contemplated by law.||| (Firestone Tire & Rubber Employees Union v. Estrella, G.R. Nos. L-45513-14,
January 06, 1978)
The contract bar rule does not call for application where the renewed collective bargaining agreement was negotiated and
concluded prematurely, i.e., without waiting for the statutory period of sixty days prior to its termination and the petition
for certification election was filed within the period allowed by law, i.e., fifteen days before the contract would have
expired||| (General Textiles Allied Workers Ass'n v. Director of Bureau of Labor Relations, G.R. No. L-45719, July 31, 1978)
DEADLOCK BAR RULE
The Deadlock Bar Rule simply provides that a petition for certification election can only be entertained if there is no
pending bargaining deadlock submitted to conciliation or arbitration or had become the subject of a valid notice of strike or
lockout. The principal purpose is to ensure stability in the relationship of the workers and the management.||| (National
Congress of Unions in the Sugar Industry of the Phil. v. Trajano, G.R. No. 67485, April 10, 1992)
CERTIFICATION YEAR RULE
Section 3, Rule V of Department Order No. 9, or commonly known as the 'Certification-Year Rule', which means that no
certification election should be entertained within one (1) year from the time the Election Officer issued the Certification
Order.||| (DHL-URFA-FFW v. Buklod ng Manggagawa ng DHL Phil. Corp., G.R. No. 152094, July 22, 2004)
VALID ELECTION AND DOUBLE MAJORITY RULE
It is well-settled that under the so-called "double majority rule", for there to be a valid certification election, majority of
the bargaining unit must have voted AND the winning union must have garnered majority of the valid votes cast.|||
(NUWHRAIN-Manila Pavilion Hotel Chapter v. Secretary of Labor and Employment, G.R. No. 181531, July 31, 2009)
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FAILURE OF ELECTION
RULE IX (Conduct of Certification Election)

SECTION 17. Failure of Election . — Where the number of votes cast in a certification or consent election is less than the
majority of the number of eligible voters and there are no material challenged votes, the Election Officer shall declare a
failure of election in the minutes of the election proceedings.
SECTION 18. Effect of Failure of Election . — A failure of election shall not bar the filing of a motion for the immediate
holding of another certification or consent election within six (6) months from date of declaration of failure of election.
Private respondent also alleged that the certification election was marred by massive fraud and irregularities and that out
of 1,692 eligible voters, 913, representing 54% of the rank-and-file workers of private respondent, were not able to vote,
resulting in a failure of election. (NATIONAL FEDERATION OF LABOR (NFL), Petitioner, vs. THE SECRETARY OF LABOR OF THE
REPUBLIC OF THE PHILIPPINES AND HIJO PLANTATION INC. (HPI), Respondents.)
RUN-OFF ELECTIONS
RULE X
RUN-OFF ELECTIONS
SECTION 1. When Proper. — When an election which provides for three (3) or more choices results in none of the
contending unions receiving a majority of the valid votes cast, and there are no objections or challenges which if
sustained can materially alter the results, the Election Officer shall motu propio conduct a run-off election within ten
(10) days from the close of the election proceedings between the labor unions receiving the two highest number of
votes; provided, that the total number of votes for all contending unions is at least fifty (50%) percent of the number of
votes cast. SEIDAC
"No Union" shall not be a choice in the run-off election.
Notice of run-off elections shall be posted by the Election Officer at least five (5) days before the actual date of run-off
election.
SECTION 2. Qualification of Voters . — The same voters' list used in the certification election shall be used in the run-off
election. The ballots in the runoff election shall provide as choices the unions receiving the highest and second highest
number of the votes cast. The labor union receiving the greater number of valid votes cast shall be certified as the
winner, subject to Section 20, Rule IX.
A run-off election refers to an election between the labor unions receiving the two (2) highest number of votes in a
certification or consent election with three (3) or more choices, where such a certified or consent election results in none of
the three (3) or more choices receiving the majority of the valid votes cast; provided that the total number of votes for all
contending unions is at least fifty percent (50%) of the number of votes cast.||| (NUWHRAIN-Manila Pavilion Hotel Chapter
v. Secretary of Labor and Employment, G.R. No. 181531, July 31, 2009)
PRINCIPLE OF FAIR REPRESENTATION
An employers' organization must not act in a manner that is arbitrary, discriminatory or in bad faith in representing any of
the employers in the group appropriate for collective bargaining.
SCOPE: BARGAINING UNIT

BARGAINING UNIT – refers to a group of employees sharing mutual interests within a given employer unit, comprised of all or less than all
of the entire body of employees in the employer unit or any specific occupational or geographical grouping within such employer unit.
(DO 40-03)
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JURISDICTIONAL PRECONDITIONS TO COLLECTIVE BARGAINING

1.) Possession of the status of majority representation of the employee’s representative;
2.) Proof of majority representation;
3.) A demand to bargain.
What is the right to collective bargaining?
- The right to of the EEs through the certified bargaining agent to negotiate with the ER in order to reach agreements regarding
the terms and conditions of employment.
Can this right be exercised by any labor organization even if it has not been certified as the exclusive bargaining agent?
- No
DUTY TO BARGAIN WITH OR WITHOUT A CBA

Article 252. Meaning of duty to bargain collectively. The duty to bargain collectively means the performance of a mutual
obligation to meet and convene promptly and expeditiously in good faith for the purpose of negotiating an agreement with respect
to wages, hours of work and all other terms and conditions of employment including proposals for adjusting any grievances or
questions arising under such agreement and executing a contract incorporating such agreements if requested by either party but
such duty does not compel any party to agree to a proposal or to make any concession.
It is the mutual obligation of the employer and the employee’s majority union to meet and convene for the purpose of:
1) negotiating an agreement on the subjects of:
a. wages;
b. hours of work; and
c. all other terms and conditions of employment including proposals for adjusting grievances or questions arising under such
agreement; and
2) executing a contract incorporating such agreement if requested by either party.
Kind of Compliance:
(1) prompt;
(2) expeditious; and
(3) in good faith.
Limitations of the duty are that it does not compel any party:
(1) to agree to a proposal; or
(2) to make a concession.
WITHOUT COLLECTIVE BARGAINING AGREEMENT; Art.251 LC
Article 251. Duty to bargain collectively in the absence of collective bargaining agreements. In the absence of an agreement or
other voluntary arrangement providing for a more expeditious manner of collective bargaining, it shall be the duty of employer and
the representatives of the employees to bargain collectively in accordance with the provisions of this Code.
WITH COLLECTIVE BARGAINING AGREEMENT; Art.253 LC
Article 253. Duty to bargain collectively when there exists a collective bargaining agreement. When there is a collective bargaining
agreement, the duty to bargain collectively shall also mean that neither party shall terminate nor modify such agreement during its
lifetime. However, either party can serve a written notice to terminate or modify the agreement at least sixty (60) days prior to its
expiration date. It shall be the duty of both parties to keep the status quo and to continue in full force and effect the terms and
conditions of the existing agreement during the 60-day period and/or until a new agreement is reached by the parties.
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The duty to bargain means all of the above and, additionally:
3) not to terminate or modify the CBA during its lifetime.
- But (60) days before the CBA expires, either party may notify the other, in writing that it desires to terminate or modify the negotiable
provisions of the agreement. During the 60-day period and until a new agreement is reached, the CBA remains in full force and effect and
the parties are duty
In what instance may the CBA be modified?
- Within the freedom period (60 days before the CBA expires)
Is that (the right to modify the CBA) part of the right to collective bargaining?
- Yes
- Collective Bargaining Agreement – refers to the contract between a legitimate labor union and the employer concerning wages,
hours of work, and all other terms and conditions of employment in a bargaining unit (IRR)
How is this started?
- Notify and submit the proposed CBA - Union must send to the ER that they wish to have a CBA
- ER must take into account the proposals of the union, may submit counter proposals within 10 days
- Parties will sit down and negotiate a CBA
Article 250. Procedure in collective bargaining. The following procedures shall be observed in collective bargaining:
When a party desires to negotiate an agreement, it shall serve a written notice upon the other party with a statement of its proposals. The
other party shall make a reply thereto not later than ten (10) calendar days from receipt of such notice;
Should differences arise on the basis of such notice and reply, either party may request for a conference which shall begin not later than
ten (10) calendar days from the date of request.
If the dispute is not settled, the Board shall intervene upon request of either or both parties or at its own initiative and immediately call
the parties to conciliation meetings. The Board shall have the power to issue subpoenas requiring the attendance of the parties to such
meetings. It shall be the duty of the parties to participate fully and promptly in the conciliation meetings the Board may call;
During the conciliation proceedings in the Board, the parties are prohibited from doing any act which may disrupt or impede the early
settlement of the disputes; and
The Board shall exert all efforts to settle disputes amicably and encourage the parties to submit their case to a voluntary arbitrator. (As
amended by Section 20, Republic Act No. 6715, March 21, 1989)
What are the two types of provisions usually included in the CBA?
- Political and non-political provisions OR
- Economic and non-economic provisions which refers to political provisions
FOUR (4) FORMS OF VIOLATION OF DUTY TO BARGAIN

Amounts to ULP; is committed in the following forms:
1. failure or refusal to meet and convene;
2. evading the purposes of bargaining;
3. not observing good faith in bargaining; and/or
4. grossly violating the economic provisions of the CBA.
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RIGHT TO COLLECTIVE BARGAINING

SINGLE ENTERPRISE BARGAINING/DECENTRALIZED BARGAINING
WHEN AVAILABLE:
Section 3. When single enterprise bargaining available. - Any voluntarily recognized or certified labor union may demand
negotiations with its employer for terms and conditions of work covering employees in the bargaining unit concerned.
Section 4. Procedure in single enterprise bargaining - A recognized or certified labor union that desires to negotiate with its
employer shall submit such intention in writing to the employer, together with its proposals for collective bargaining.
The recognized or certified labor union and its employer may adopt such procedures and processes they may deem appropriate
and necessary for the early termination of their negotiations. They shall name their respective representatives to the
negotiation, schedule the number and frequency of meetings, and agree on wages, benefits and other terms and conditions of
work for all employees covered in the bargaining unit.
PROCEDURE:
- a recognized or certified labor union that desires to negotiate with its employer shall submit such intention in writing to the
employer, together with its proposals for collective bargaining;
- the recognized or certified labor union and its employer may adopt such procedures and processes they deem appropriate and
necessary for the early termination of their negotiations;
- they shall:
1) name their respective representatives;
2) schedule the number and frequency of meetings;
3) agree on wages, benefits and other terms and conditions of work for all employees covered in the bargaining unit.
MULTI-EMPLOYER BARGAINING/INDUSTRY-WIDE BARGAINING
SECTION 5. When Multi-Employer Bargaining Available . — A legitimate labor union(s) and employers may agree in writing to come
together for the purpose of collective bargaining, provided:
(a) only legitimate labor unions who are incumbent exclusive bargaining agents may participate and negotiate in multiemployer
bargaining;
(b) only employers with counterpart legitimate labor unions who are incumbent bargaining agents may participate and
negotiate in multi-employer bargaining; and SEID
(c) only those legitimate labor unions who pertain to employer units who consent to multi-employer bargaining may participate
in multi-employer bargaining.
SECTION 6. Procedure in Multi-Employer Bargaining. — Multi-employer bargaining may be initiated by the labor unions or by the
employers.
(a) Legitimate labor unions who desire to negotiate with their employers collectively shall execute a written agreement among
themselves, which shall contain the following:
1) the names of the labor unions who desire to avail of multiemployer bargaining;
2) each labor union in the employer unit;
3) the fact that each of the labor unions are the incumbent exclusive bargaining agents for their respective employer units;
4) the duration of the collective bargaining agreements, if any, entered into by each labor union with their respective
employers. Legitimate labor unions who are members of the same registered federation, national, or industry union are
exempt from execution of this written agreement.
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(b) The legitimate labor unions who desire to bargain with multiemployers shall send a written notice to this effect to each
employer concerned. The written agreement stated in the preceding paragraph, or the certificates of registration of the
federation, national, or industry union, shall accompany said notice.
Employers who agree to group themselves or use their existing associations to engage in multi-employer bargaining shall send a
written notice to each of their counterpart legitimate labor unions indicating their desire to engage in multi-employer
bargaining. Said notice shall indicate the following:
1) the names of the employers who desire to avail of multiemployer bargaining;
2) their corresponding legitimate labor organizations;
3) the fact that each corresponding legitimate union is any incumbent exclusive bargaining agent;
4) the duration of the current collective bargaining agreement, if any, entered into by each employer with the counterpart
legitimate labor union.
WHEN AVAILABLE:
- when a legitimate labor union(s) and employers may agree in writing to come together for the purpose of collective
bargaining, provided:
1) only legitimate labor unions who are incumbent exclusive bargaining agents may participate and negotiate in multi-
employer bargaining;
2) only employers with counterpart legitimate labor unions who are incumbent bargaining agents may participate and
negotiate in multi-employer bargaining; and
3) only those legitimate labor unions who pertain to employer units who consent to multi-employer bargaining may
participate in multi-employer bargaining.
PROCEDURE:
(1) Legitimate labor unions who desire to negotiate with their employers collectively shall execute a written agreement among
themselves, which shall contain the following:
a. the names of the labor unions who desire to avail of multi-employer bargaining;
b. each labor union in the employer unit;
c. the fact that each of the labor unions are the incumbent exclusive bargaining agent of their respective employer units;
d. the duration of the collective bargaining agreements, if any, entered into by each labor union with their respective
employers.
Note: Legitimate labor unions who are members of the same registered federation, national, or industry union are exempt from
execution of this written agreement.
(2) The legitimate labor unions who desire to bargain with multi-employers shall send a written notice to this effect to each
employer concerned. The written agreement stated in the preceding paragraph, or the certificates of registration of the
federation, national, or industry union, shall accompany said notice.
Employers who agree to group themselves or use their existing associations to engage in multi-employer bargaining shall send a
written notice to each of their counterpart legitimate labor unions indicating their desire to engage in multi-employer
bargaining and shall indicate the following:
a. the names of the employers who desire to avail of multi-employer bargaining;
b. their corresponding legitimate labor organizations;
c. the fact that each corresponding legitimate union is any incumbent exclusive bargaining agent;
d. the duration of the current CBA, if any, entered into by each employer with the counterpart legitimate labor union.
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(3) Each employer or concerned labor union shall express its willingness or refusal to participate in multi-employer bargaining in
writing, addressed to its corresponding exclusive bargaining agent or employer.
Note: Negotiations may commence only with regard to respective employers and labor unions who consent to participate in
multi-employer bargaining.
(4) During the course of the negotiations, consenting employers and the corresponding legitimate labor unions shall discuss and
agree on the following:
a. the manner by which negotiations shall proceed;
b. the scope and coverage of the negotiations and the agreement; and
c. where appropriate, the effect of the negotiations on current agreements or conditions of employment among the
parties
WHEN TO BARGAIN
- if the jurisdictional preconditions are present, the collective bargaining should begin within the (12) months following the
determination and certification of the employees’ exclusive bargaining representative (CERTIFICATION YEAR).
CONTENTS OF CBA
The subjects of provisions commonly found in collective bargaining agreements are:
1. Enumeration or reservation of management rights

2. Union recognition and security
3. Wage and fringe benefits and their administration
4. Physical working conditions
5. Selected personnel management and plant operation practices
6. Grievance and arbitration
7. Duration of contract
8. Programs to promote drug-free workplace (required under RA 9165)
GRIEVANCE MACHINERY –
Article 260. Grievance machinery and voluntary arbitration. The parties to a Collective Bargaining Agreement shall include therein
provisions that will ensure the mutual observance of its terms and conditions. They shall establish a machinery for the adjustment
and resolution of grievances arising from the interpretation or implementation of their Collective Bargaining Agreement and those
arising from the interpretation or enforcement of company personnel policies.
All grievances submitted to the grievance machinery which are not settled within seven (7) calendar days from the date of its
submission shall automatically be referred to voluntary arbitration prescribed in the Collective Bargaining Agreement.
For this purpose, parties to a Collective Bargaining Agreement shall name and designate in advance a Voluntary Arbitrator or panel
of Voluntary Arbitrators, or include in the agreement a procedure for the selection of such Voluntary Arbitrator or panel of Voluntary
Arbitrators, preferably from the listing of qualified Voluntary Arbitrators duly accredited by the Board. In case the parties fail to select
a Voluntary Arbitrator or panel of Voluntary Arbitrators, the Board shall designate the Voluntary Arbitrator or panel of Voluntary
Arbitrators, as may be necessary, pursuant to the selection procedure agreed upon in the Collective Bargaining Agreement, which
shall act with the same force and effect as if the Arbitrator or panel of Arbitrators has been selected by the parties as described
above.

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h a n g e Vi h a n g e Vi

Societas Spectra Legis

REGISTRATION OF UNION; JURISDICTION AND PROCEDURE, JURIDICAL PERSONALITY ...............................................................................................15

TOPIC 13: RIGHTS OF LEGITIMATE LABOR ORGANIZATION ................................................................................................ 53

CERTIFICATION YEAR RULE ...........................................................................................................................................................................................70

EFFECT OF ASSUMPTION ..............................................................................................................................................................................................96

TOPIC 15: UNFAIR LABOR PRACTICE .................................................................................................................................. 141

TOPIC 12: RIGHT TO SELF-ORGANIZATION

3. peaceful concerted activities (provision on strikes or lockouts Art. 263)

All three constitutional rights promote unionism

SCOPE AND NATURE OF EMPLOYEE’S RIGHTS

Both private and public EEs have a right to association.

TWO CONCEPTS OF RIGHT TO ASSOCIATION

 he may act as he or she pleases in the absence of legal restraint

Freedom of association- the right to join an organization

UNION SECURITY CLAUSE OR CLOSED SHOP AGREEMENT

Article 248 (e)

Exceptions to the exception:

3. When it is expressly excluded in the CBA

PURPOSE OF EXERCISE OF RIGHT: TWO FOLD PURPOSE/S

REPUBLIC ACT NO. 9481

NON-ABRIDGEMENT OF RIGHT TO SELF-ORGANIZATION

THOSE QUALIFIED: (DO 40-03; 40-A-03; 40-B-03)

SUMMARY OF THOSE QUALIFIED:

a. Commercial establishments – those engaged in sale of goods or services. Ex. Shoemart

 with original charter: city of cebu- not covered

 without original charter: example

SUMMARY OF THOSE DISQUALIFIED:

1. EMPLOYEES OF GOVERNMENT CORPORATIONS ESTABLISHED THROUGH SPECIAL CHARTERS

 The three (3) types of managerial employees are as follows:

 Power of supervisor: the recommendation is:

a. Discretionary or judgmental (not clerical)

DOCTRINE OF NECESSARY IMPLICATION

3. CONFIDENTIAL EMPLOYEES (BASIS: DOCTRINE OF NECESSARY IMPLICATION)

 Reason for disqualification: Conflict of Interest

CASE: SMC Supervisors and Exempt Union vs. Hon. Laguesma

4. MEMBERS (CO-OWNERS OF A COOPERATIVE)

5. MEMBERS OF INTERNATIONAL ORGANIZATIONS

REGISTRATION OF UNION; JURISDICTION AND PROCEDURE, JURIDICAL PERSONALITY

 Union and labor organization can be used interchangeably

 It is considered "legitimate" if duly registered with DOLE.

 A labor organization is NOT always a union, it may be an association of employees

Registration with DOLE makes it legitimate.

 Distinction between a labor organization and a workers’ association

 The purposes of a labor organization

Determination of bargaining unit:

8. Affiliate- refers to:

an independent union affiliated with a federation, national union; or

HOW TO FORM A LABOR UNION:

1. Chartered local. - Charter certificate issued by the federation or national union.

2. Independently-registered union. - contract of affiliation between federation and the union.

Formation of Union and Registration

Qualification of a member- he must be an employee of the same bargaining unit.

2.) Drafting of the Constitution and by-laws.

3.) Ratification – majority vote is required.

Constitution- general principles

By laws- duties and responsibilities of the officers, members

 The BLR issues the certificate of registration.

 Upon issuance of certificate of registration the union acquires legal personality

Two-Fold Procedure in Creating a Chapter or Local

2. direct creation of local or chapter through process of chartering

- it contemplates of an unregistered labor organization

 One must be certified as exclusive bargaining agent to exercise collective bargaining