Labor Organization and Legitimate Labor Organization

Labor Organization and Legitimate Labor Organization 1. Art. 212 : “Labor Organization” – Any union for association of EE’s which exists for the purpose of collective bargaining or of dealing with E’s concerning terms and conditions of employment. “Legitimate Labor Organization” – Any labor organization duly registered with the DOLE that includes any branch or local. 2.A local chapter becomes a legitimate labor organization only upon submission of: A.Charter certificate within 30 days from its issuance by the laborfederation or national union. B.Constitution and by-laws, statement on set of officers, and books of accounts which are certified under oath by secretary or treasurer, and attended to by its president.(Phoenix Iron vs. Secretary of Labor and Employment) Labor Dispute 1.Art. 212 : Any controversy or matter concerning terms and conditions of employment or the association or representation of persons innegotiating, fixing, maintaining, changing or arranging terms andconditions of employment, regardless of whether the disputants standin the proximate relation of ER and EE. 2. What is the test to determine whether a labor controversy comes within the definition of labor dispute? It depends on whether it involves or concerns terms, conditions of employment or representation.(Azucena) 1.3Labor Relations Policy 1.What is the policy of the state with respect to the trade unionism, collective bargaining and labor relations? It is the policy of the State to : A.Promote and emphasize the primacy of free Collective bargaining and negotiations, including voluntary arbitration,mediation and conciliation, as modes of settling labor andindustrial disputes. B.Promote free trade unionism as an instrument for theenhancement of democracy and the promotion of social justiceand development. C.Promote the Enlightenment of workers concerning their rights and obligations as union members and as EE’s. D.To provide an adequate administrative Machinery for the expeditious settlement of labor or industrial peace. E.To ensure a stable but dynamic and just Industrial peace. F.To ensure the participation of Workers in Decision and policymaking processes affecting their rights, duties and welfare. G.To encourage free trade Unionism and free collective bargaining. (Art. 263) Collective bargaining – Negotiations towards a collective agreement designed to stabilize the relation between labor and management and to create a climate of sound and stable industrial peace.(Kiok Loy vs. NLRC) The Secretary of Labor shall have the power and duty to inquire into aspects of ER-EE relations concerning the promotion of harmony and understanding between the parties. (Art. 273) A line must be drawn between policies which are purely businessoriented and those which affect the rights of EE’s. Workers and ER’s shall, as far as practicable, be represented in decision and policy-making bodies of the government. The Secretary of Labor and Employment or his duly authorized representatives may calla tripartite conference of representatives of government, workers and EE’s for the consideration and adoption of voluntary codes of principles designed to promote industrial peace or to align labor movement relations with established priorities in economic and socialdevelopment. (Art. 275) (ME vs. CUPID) Section 2. Right to Self-Organization 2.1 Constitutional Basis of Right 1.Art. III, Sec. 8, Const. : The right of the people, including those employed in the public or private sectors, to form unions, associations, or societies for purposes not contrary to law shall not be abridged. 2.Art. XIII, Sec. 3, Const. : The State shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations,and peaceful concerted activities including the right to strike inaccordance with law. 2.2 Coverage I. Art. 243 : Coverage and EE’s right to self-organization – 1.All persons employed in commercial, industrial and agriculturalenterprises and in religious, charitable, medical, or educationalinstitutions --- whether operating for profit or not, shall have the rightto self-organization and to form, join or assist labor organizations oftheir own choosing for purposes of collective bargaining.

2. Ambulant, intermittent and itinerant workers, self-employed people,rural workers and those without definite ER’s may form labororganizations for their mutual aid and protection. II. Art. 244 : Rights of EE’s in the public service– 1. EE’s of government corporations established under the CorporationCode shall have the right to organize and bargain collectively with theirrespective ER’s. 2.All other EE’s in the civil service shall have the right to form associations for the purposes not contrary to law. III. Art. 245 : 1.Managerial EE’s are not eligible to join, assist, or form any labor organization. 2.Supervisory EE’s shall not be eligible for membership in a labor organization of the rank-and-file EE’s but may join, assist or form separate labor organizations of their own. 2.3 Extent and Scope of Right I. Art. 246 : Non-abridgement of right to self-organization – It shall be unlawful for any person to : 1. Restrain 2. Coerce 3.Discriminate against or 4.Unduly interfere with EE’s and the workers in their exercise of the right to self-organization II. The right to self-organization includes the right not to form or join a union (Reyes vs. Trejano) However, by virtue of the operation or enforcement of a closed shop clause in a CBA, an ER may be compelled on pain of dismissal, to become a member of a labor union.(Alcantar a) III. May an ER impose as condition for employment that the applicant shall not join a labor organization or shall withdraw from the one he belongs to? No. Such a condition partakes of the nature of a “yellow dog contract” andconstitutes an unfair labor practice. It is interference with the individual’sright to self-organization.(Alcantar a) 2.4 Workers with Right to Self-Organization for Purposes of Collective Bargaining All EE’s 1.Art. 243 : All persons employed in commercial, industrial and agricultural enterprises and in religious, charitable, medical, oreducational institutions whether operating for profit or not, shall havethe right to self-organization and to form, join or assist labororganizations of their own choosing for purposes of collective bargaining. 2.The Macho hair Saloon refused to bargain with the union of thebarbershop composed of 8 barbers on the ground that the shop was aservice establishment and the number of the barbers was less than 10.Is the contention tenable? No. The law does not fix the minimum number of EE’s for the exercise ofthe right to self-organization and the right extends to all types ofestablishments.(Alcantar a) 3.The faculty members of a non-profit school converted their club into a labor union. Is this allowed? Yes. Even EE’s in non-profit or religious organizations are entitled to exercise this right.(Alcantar a) A. RELIGION The right of the members of the Iglesia ni Kristo sect not to join a labor unionfor being contrary to their religious beliefs does not bar the members of thatsect from forming their own union.(Kapatiran vs. Calleja) Government Corporation EE’s Art. 244 : Rights of EE’s in the public service– EE’s of government corporations under the Corporation Code shall have the right to organize and bargain collectively with their respective ER’s. Supervisors 1. Art. 245 : Supervisory EE’s shall not be eligible for membership in a labor organization of the rank-and-file EE’s but may join, assist or form separatel abor organizations of their own. [“Supervisory EE’s] – Those, who, in the interest of the ER, effectively recommend such managerial actions if in the exercise of such authority is not merely routinary or clerical in nature but requires the use of independentjudgment. (Art. 212) The criterion which determines whether a particular EEis within the definition of a statute is the character of the work performedrather than the title or nomenclature of position held. (NSRC vs. NLRC) 3. If the recommendation of the teacher area supervisor is subject toevaluation, review and final approval of the principal, is the teacher asupervisory EE?

No. This is merely ineffective or clerical recommendation.(Laguna Colleges vs. CIR) 4.Supervisors were given the job of “either to assist the foreman if theeffective dispatch of manpower and equipment” or “execute andcoordinate work plans emanating from his supervisors.” Are these“supervisors” supervisory personnel? No. They only execute approved and established policies leaving little or no discretion at all whether to implement the said policies or not.(Souther n Philippines Federation vs. Calleja) A. RIGHT TO ORGANIZE and LIMITATION 1.A supervisory union cannot represent the professional/technical and confidential EE’s whose positions are more of the rank and file thansupervisory. The professional/technical EE’s may join the existing rankand file union, or form a union separate and distinct from the existingunion organized by the rank and file EE’s. The intent of the law is toavoid a situation where supervisors would merge with the rank and file,or where the supervisor’s labor organization would representconflicting interests. (Philippine Phosphate vs. Torres) 2.The union of supervisory personnel affiliated with a national federation.The local union of rank and file was also affiliated with the said nationalfederation. Is this allowed? No. A local supervisors’ union should not be allowed to affiliate with anational federation of union of rank and file EE’s. Supervisors should begiven an occasion to bargain together with the rank and file against theinterests of the ER regarding terms and conditions of employment.(Atlas Litographic vs. Laguesma) Aliens Art. 269 : Aliens working in the country with valid permits issued by the DOLE, may exercise the right of self-organization and join or assist labor organizations of their own choosing for purposes of collective bargaining,provided, that said aliens are nationals of a country which grants the sameor similar rights to Filipino workers. Security Guards Security guards may join rank and file or supervisors union depending on their rank. (MERALCO vs. Secretary of Labor and Employment) 2.5 Workers with no Right of Self-organization Managerial and Confidential EE’s 1.Art. 245 : Managerial EE’s are not eligible to join, assist, or from anylabor organization. [“Managerial EE’s” – Those whose primary duty consists of themanagement of the establishment of which they are employed or of adepartment or subdivision thereof, and to other officers and members of the managerial staff. (Art. 82)] 2.The nature of the job determines whether the EE’s fall under the definition of “managerial”. A managerial EE is one “who is vestedwith powers of prerogatives to lay down and execute management policies and/or hire, transfer, suspend, lay-off, recall discharge, assignor discipline EE’s or to effectively recommend such managerial actions. (SPFL vs. Calleja) The rationale for this is that the union is not assured the loyalty of managerial EE’s in view of evident conflict of interests orthat the union can become company-dominated with the presence ofmanagerial EE’s in the membership. (Golden Farms vs. Calleja) 3.Confidential EE’s are also prohibited from forming unions.(Pier8 Arrastre vs. Confesor) Having access to confidential information, they may become a source of undue advantage. They may act as spies of eitherparty to a CBA. These include accounting personnel, radio and telephone operators and confidential secretaries. (Golden Farms vs. Calleja) 4.The major patron’s duties include taking complete charge and command of the ship and performing the responsibilities of the ship captain; the minor patron also commands the vessel, plying the limits of island waterway, ports and estuaries. Are they eligible to join or form a union? No. The exercise of discretion and judgment in directing a ship’s course is managerial in nature. (Association of Marine Officers vs. Laguesma) Worker/Member of Cooperative The right to forming or joining a labor organization for purposes of collective bargaining is not available to an EE of a cooperative who at the same time is a member and co-owner thereof. It is the fact of ownership of the cooperative and not the involvement in the management thereof, which disqualifies a member from joining any labor organization within the cooperative with respect however, to

EE’s who are neither members or co-owners, they are entitled to the rights of self-organization for purposes ofcollective bargaining(Benguet Electric vs. Ferrer-Calleja). However, amember/owner has the right to withdraw as owner of the cooperative forpurposes of joining the union(Central Negros Electric vs. Of DOLE). Non-EE’s Art. 243 : Ambulant, intermittent and itinerant workers, selfemployed people, rural workers and those without definite ER’s may form labororganizations for their mutual aid and protection. However, they are notentitled to the constitutional right to join or form a labor organization forpurposes of collective bargaining. (Singer vs. Drilon) 2.6 Part Protected It is well-settled doctrine that the benefits of a CBA extend to the laborer’sand EE’s in the collective bargaining unit, including those who do not belongto the chosen bargaining labor organization.(MWU vs. Aboitiz) 2.7 Sanctions for Violation of Right 1.Art. 248 : It shall be unlawful for an ER to interfere with, restrain or coerce EE’s in the exercise of their right to self-organization. 2.Art. 249 : It shall be unfair labor practice for a labor organization, its officers, agents and representatives to restrain or coerce EE’s in the exercise of their rights to self-organization. 3.Art. 288:Penalty – Fine of not less than P1,000.00 nor more than P10,000.00 Imprisonment of not less than 3 months nor more than 3 years, or Both , at the discretion of the court. In addition to such penalty, any alien found guilty shall be summarily deported upon completion of service. Any provision of the law to the contrary notwithstanding any criminaloffense punished under this Code shall be under the concurrent jurisdictionof the Municipal or City Courts and the RTC. 4.Art. 289 : If the offense is committed by a corporation, trust, firm, partnership, association or any other entity, the penalty shall beimposed upon the guilty officer or officers of such corporation, trust,firm, partnership, association or entity. Section 3. Labor Organization 3.1 Policy Sec. 211 : It is a policy of the State to : 1.Promote free trade unionism as an instrument for the enhancement of democracy and the promotion of social justice and development. 2.Foster the free and voluntary organization of a strong and united labor movement. 3.2 Labor Organization - Unions A. LABOR ORGANIZATION Art. 212 : Any union or association of EE’s which exist for the purpose of collective bargaining or of dealing with ER’s concerning terms and conditions of employment. B. LOCAL UNION Sec. 1, Rule I, Book V, IRR’s : Any labor organization operating at the enterprise level. C. NATIONAL UNION FEDERATION Sec. 1, Rule I, IRR’s : Any labor organization with at least 10 locals or chapters each of which must be duly recognized bargaining agent. D. LEGITIMATE LABOR ORGANIZATION Art. 212 : Any labor organization duly registered with the DOLE, and includes any branch or local thereof. D.1 Dole Registration Basis A labor organization acquires legitimacy only upon registration with theDOLE.(Progressive Development vs. Secretary of Labor and Employment) A SECregistration cannot suffice. (Cebu Seamen’s Association vs. Ferrer-Calleja) E. COMPANY UNION Art. 212 : Any labor organization whose information, function or administration has been assisted by any act defined as ULP by this Code. 3.3 Union Rationale When is a labor organization wholesome? A labor organization is wholesome if it serves its legitimate purpose of promoting the interests oflabor without unnecessary labor disputes. That is why it is given personalityand recognition in concluding CBA’s. but if it is made use as a subterfuge, oras a means to subvert valid commitments, it defeats its own purpose, for ittends to undermine the harmonious relations between management andlabor. (United Seamen’s Union vs. Davao Shipowners Association) 3.4 Labor Union and Government Regulation Union Registration and Procedure Requirements

What are the requirements for registration of a labor organization? Art. 234: Any applicant labor organization shall acquire legal personality and shall be entitled to rights and privileges of legitimate labor organizations upon8 issuance of a certificate of registration upon submission of the following requirements: A. Registration Fee B. Names of its officers, addresses, principal address of the organization, minutes of meetings and list of workers who participated in meetings. C. Names of all its members comprising at least 20% of all its EE”s in the bargaining unit. D. Copies of annual financial reports if union has been in existence for more than 1 year. E. Copies of constitution and by-laws. Sec. 3, Rule II, Book V, IRR’s : Sworn statement by applicant union that there is no certified bargaining agent in bargaining unit concerned. Whenthere is an existing CBA duly submitted to the DOLE, a sworn statement thatthe application for registration was filed during the last 60 days of the agreement. The application and all accompanying documents shall be verified under oath by the secretary or the treasurer as the case may be, and attested to by the president. (Id.) II. What are the additional requirements for federations or national unions? A. Proof of affiliation of at least 10 local chapters. Each of which must be a duly recognized collective bargaining agent in the establishment or industry in which it operates. B. Names and addresses of the companies where the locals or the chapters operate and list of all the members in each company involved. III. What is the period for action on application? 30 days from filing (Art. 235) A. REQUIREMENT AND RATIONALE Registration is a condition sine qua non for the acquisition of legal personality by a labor organization.(Protection Technology vs. Secretary of Labor and Employment) However, it is not a limitation on the right of assembly or association which may be exercised with or without said registration.(PAFLU vs. Sec. of Labor) The statutory and regulatory provisions of defining the requirements of legitimate labor organizations are an exercise of the overriding police power of the State designed for the protection of workers against potential abuses by unions that recruit them.(Protection Technology vs. Sec. of Labor) or fly-by-night unions whose sole purpose is to control union for dubious ends. (Phoenix Iron vs. Sec. of Labor and Employment) Action or Denial of Application, and Remedy 1.Sec. 6, Rule II, Book V, IRR’s : Any applicant union may appeal to the Bureau the denial of registration by the Regional Office, or to the secretary if the denial is by the Bureau, within 10 calendar days from receipt of such decision on grounds of : A.grave abuse of discretion ; and B.gross incompetence The appeal shall be filed in the Regional Office/Bureau which shall cause the transmittal of records to the Bureau/Secretary within 5 calendar days from receipt of the appeal. The Bureau/Secretary shall decide the appeal within 20 calendar days from receipt of the records of the case. 2. Can the Regional Office/Bureau exercise discretion in the registration of the applicant union? No. As long as the applicant union complies with all the legal requirements for registration, it becomes the Office’s/Bureau’s ministerial duty to do register the union. (Vassar vs. Estrella) Effects on Freedom of Association While disaffiliation from a labor union is not open to legal objection, since it is implicit in the freedom of association ordained in the Constitution, a closed shop agreement is a valid form of union security and is not a restriction of the right of freedom of association guaranteed by the Constitution. Rights of Legitimate Labor Organization [REFOSAF] I. What are the rights of legitimate labor organization? A. Act as Representative of its members in collective bargaining B. To be certified as the Exclusive representative of all the EE’s in an appropriate collective bargaining unit for purposes of collective bargaining. C. To be furnished by the ER, upon written request, with its annual audited financial statements, including the balance sheet and the

profit and loss statement, within 30 calendar days from the date of receipt of request After the union has been duly recognized by the ER or certified as the sole and exclusive bargaining representative of the EE’s in the bargaining unit, or Within 60 calendar days before the expiration of the existing CBA, or During the collective bargaining negotiation. D. To own property for the use and benefits of the labor organization and its members. E. To sue and be sued in its registered name. F. To undertake all other Activities designed to benefit the organization and its members. G. Its income and properties which are directly and exclusively used for theirlawful purposes, shall be free from taxes, duties and other assessments. Theexemptions provided herein may be withdrawn only be a special lawexpressly repealing this provision. (REFOSAF) II. Can the union effect a compromise of the money claims of workers? Money claims due to laborers cannot be the object of settlement orcompromise effected by a union or counsel without the specific individualconsent of each laborer concerned.(Kaisahan ng mga Manggagawa sa La Campana vs. Sarmiento) III. May a union waive a right of union members to reinstatement provided for in an NLRC decision? No, the waiver of reinstatement, must be regarded as a personal right which must be exercised personally by workers themselves.(Jag vs. NLRC) A. EFFECT OF NON-REGISTRATION Union, must comply with all the requirements of registration as a legitimatelabor organization.(Protection Technology vs. Sec. of Labor & Employment). However,if the union has filed application for registration and has submitted all thelegal requirements, the fact that it does not yet have the certificate ofregistration will not annul the designation of the labor union as solebargaining agent by the virtue of a certification election since the defect isnot fatal. (UE Automotive EE’s vs. Noriel) Cancellation of the Union Certificate Registration I. What are the grounds for its cancellation of union registration by the Bureau? 1.Misrepresentation, false statement or fraud by the union with respect to the required documents submitted to the Bureau. 2.Failure to submit the documents within 30 days from adoption or ratification of the constitution and by-laws or amendments thereto. 3.Misrepresentation, false statements or fraud in connection with the election of officers, minutes of the elections and list of voters of failureto submit these documents within 30 days from election [or from theoccurrence of any change in the list of officers of the labor organization (Art. 241)]. 4.Failure to submit annual financial report within 30 days after closing offiscal year and misrepresentation of fraud in the preparation of thefinancial report. 5.Acting as labor contractor of “cabo” system. 6.Entering into CBA’s which provide terms and conditions of employment below minimum standards. 7.Asking for or accepting attorney’s fees or negotiation fees from ER’s. 8.Other than for mandatory activities under this Code, Checking ofspecial assessment or other fees without duly signed individual writtenauthorization of members. 9.Failure to submit list of individual members once a year or when required(MACED MALL) II. If a union declares an illegal strike, is this a good ground for cancellation of union registration? No. While Art .239 provides the phrase “acting as a labor contractor… orotherwise engaging in any activity prohibited by law,” this phrase refers toan activity partaking the nature of a labor contractor. Thus, an illegal strike isnot one of the grounds for cancellation of registration.(Itogon-Sayoc vs Sangilo- Itogin Worker’s Union) 3.5 International Activities of Union Prohibition and Regulation I. What activities by aliens are prohibited? All aliens, whether natural or juridical are strictly prohibited from engaging directly or indirectly in all forms of trade, union activitieswithout prejudice to normal contacts between Philippine labor unions and recognized international labor centers. The prohibition does not apply to the formation of labor organizations by aliens working in the country with valid working permits. (Art. 269)

“Trade Union Activities” – shall mean : 1.organization formation and administration of labor organizations; 2.negotiation and administration of CBA’s; 3.all forms of concerted union action; 4.organizing, managing or assisting union action; 5.any form of participation or involvement in representation proceedings, representation elections, union elections; and 6.other analogous activities. (Art. 270)] II. What activities by aliens are regulated? No foreign individual, organization or entity may give any form of assistance, in cash or in kind directly or indirectly, to any labororganization, group of workers or any auxiliary thereof, such ascooperatives, credit unions and institutions engaged in research,education or communication, in relation to trade union activities,without prior permission by the Sec. of Labor This prohibition also applies to foreign donations or other forms of assistance, in cash or in kind, given directly or indirectly to any ER orER’s organization to support any activity or activities affecting trade unions. III. The strike declared by Union M has reached its 60th day. Taking pity on the hungry and sick strikers, B and G, French missionaries, distributed food and drinks to the strikers. Has any one committed any illegal act? Yes. B and G, distributing food and drinks to the strikers violated theprohibition against aliens from engaging directly or indirectly in all forms oftrade union activities. The term “trade union activities” includes all forms ofconcerted union actions and analogous activities.(Alcantar a) 3.6 Union-Member Relations Nature of Relationship The union may be considered but the agent of its members for the purpose of securing for them fair and just wages and good working conditions and is subject to the obligation of giving the members as its principals all information relevant to union and labor matters entrusted to it. (Heirs of Cruz vs. CIR) Rights of Union Members Summarize the basic rights of union members : 1.Political right – Member’s right to vote and be voted for, subject to lawful provisions on qualifications and disqualifications. 2.Deliberative and decision-making right – Member’s right to participate in deliberations on major policy questions and decide them by secret ballot. 3.Right over money matter – Member’s right against excessive fees, right against unauthorized collection of contributions or unauthorizeddisbursements; the right to require adequate records of income andexpenses and the right of access to financial records; the right to voteon proposed special assessments and be deducted a specialassessment only with the member’s written authorization. 4.Right to information – Member’s right to be informed about the organization’s constitution and by-laws and the CBA and about labor laws. Issues A. ADMISION AND DISCIPLINE OF MEMBERS 1.Art. 249 : A labor organization shall have the right to prescribe its own rules and with respect to the acquisition or retention of membership. 2.Art. 277 : Any EE, whether employed for a definite period or not, shall, beginning on his 1st day of service, be considered an EE for purposes of membership in any labor union. A. 1. Admission 1.Labor unions are not entitled to arbitrarily exclude qualified applicants for membership, and a closed-up provision would not justify the ER indischarging, or a union in insisting upon the discharge of it, an EEwhom the union refuses to admit to membership, without anyreasonable ground therefor. Thus, while generally the State may notcompel the union to admit the individual as a member, this scenario isnot an exception to that general rule. (Salunga vs. CIR) 2. The union’s constitution and by-laws provides that no individual whopreviously belonged to another union may be admitted as memberthereof. Is this provision valid? No. While a union is in general free to select its own members, it cannotimpose arbitrary and discriminatory conditions for admission tomembership. It is very clear that the provision discriminates against anindividual for having exercised his right to selforganization.(Alcantar a) 3.The union constitution and by-laws provides that only EE’s with 2 yearsservice in the company are eligible for membership therein. Is theprovision valid?

No. The provision is an unreasonable restriction on the workers’ exerciseof his right to self-organization. It would have those who have less than 2years of service without representation in bargaining with the ER. (Alcantara) A. 2 Due Process Rules 1.An officer or a member of a labor union is entitled to due process before he can be expelled. The member of the labor union may beexpelled only for a valid cause and by following the procedure outlinedin the constitution and by-laws of the union.(Kapisanan ng mga Mangagawa vs. Bugay) 2. The union constitution and by-laws provides that a member may beexpelled from the union upon a vote of 2/3 of all the members. Is the rule valid? No. The expulsion of a union member cannot be made to depend uponthe whims and caprices of cp-members. It must be founded on some justand serious grounds.(Alcantar a) 3. 5 regular EE’s were dismissed allegedly pursuant to a union securityclause. They had previously been expelled from the union forattempting to oust the union leadership, but they were not given anopportunity to explain their side. The company also did not conduct aninvestigation into the matter. Is the dismissal of the EE’s lawful? No. The union should have given them an opportunity to explain their sidebefore expelling them. And the company should have complied withprocedural due process before dismissing them. (Ferrer vs. NLRC).