LABOR RELATIONS MIDTERM REVIEWER

I.

DECLARATION OF POLICY AND DEFINITIONS ( ARTICLES 211 to 212)

8. Truly democratic method of regulating relations between employer and employee.

Labor standards vis a vis Labor relations  Labor standards refers to minimum terms and conditions of employment to which employees are legally entitled and with which employers must comply while Labor relations refers to interactions between employer and employee or their representatives and the mechanisms by which labor standards are negotiated, adjusted and enforced.  Distinction is purely academic. e.g negotiating a contract and filing a complaint is a labor relations matter but their subject oftentimes is labor standards.

Note: Statutory rights may be taken away by Congress so long as it does not run counter with the Constitution.

Constitutional Provisions on Labor  State shall afford full protection to labor.  To form unions, associations, or societies for purposes not contrary to law shall not be abridged.  Preferential use of voluntary modes in settling disputes to foster industrial peace.  participate in policy and decision-making processes affecting their rights and benefits as may be provided by law Declaration of Policy (STATUTORY Labor Code, as amended) 1. Primacy of free collective bargaining 2. Promote free trade unionism 3. Strong and united union movement 4. Enlightenment on workers to their rights and obligations as union members 5. Expeditious settlements of labor and industrial disputes 6. Ensure industrial peace 7. Participation of workers in decision making processes affecting their rights and duties.

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Labor legislation is based on police power and aims social justice; Employee and employer relationship The usual test used to determine the is the four-fold test: 1. Selection and engagement of the employee. 2. Payment of wages and salaries. 3. Power of dismissal. 4. Power to control the employee with respect to the means and methods by which the work is to be accomplished. This is known as the right-of-control test. IMPORTANCE  No employer-employee relationship: A defense in labor cases  It confers jurisdiction: Labor Arbiter’s jurisdiction; except a case of CF Sharf where LA still has jurisdiction.  Organizing union Orozco v. CA Orozco was engaged as columnist of “Feminist Reflections” which appeared in the Lifestyle Section. Orozco worked by submitting weekly columns with a per article wage of (P250.00- 300.00) In June 1991, Magsanoc as editor-in-chief of PDI discussed how to improve the Lifestyle section and decided to drop Orozco’s column. Orozco filed the case against private respondents before the NLRC. The PDI raised as primary defense the claim that Orozco was not an employee

of the newspaper. Labor Arbiter Amansec ruled that Orozco had been illegally dismissed. Held: Two-tiered test. The economic reality test ( benchmark in analyzing whether employment relation exists between the parties is the economic dependence of the worker on his employer. ) is not meant to replace the right of control test. Rather, these two test are often use in conjunction with each other to determine the existence of employment relation between the parties. This is known as the twotiered test. This two-tiered test involves the following tests: The putative employer’s power to control the employee with respect to the means and methods by which the work is to be accomplished; and underlying economic realities of the activity or relationship. Orozco admitted that she has various works in woman organizations and submitting articles to other publications. She is not PDI’s employee but an independent contractor. Note: Two tiered test now becoming a part of the Philippine jurisdiction. Employer is any person acting in the interest of an employer, directly or indirectly. This term shall not include employees of labor organizations unless acting as an employer. Employee is any person in the employ of an employer. This term shall not be limited to particular employees of a particular employer. It shall include individual whose work has ceased in connection of labor dispute (MUST QUESTION HIS DISMISSAL) or unfair labor practice if he has not obtained substantially regular employment. Managerial employee is one who is vested with powers and prerogatives to lay down and execute management policies.

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Labor dispute includes controversy concerning terms and conditions of employment or representations of persons negotiating the terms and conditions whether disputants do not stand in the proximate relation of employer and employee (e.g employer v. employer or employee v. employee). III. BUREAU OF LABOR RELATIONS ( ARTICLE 226 - 233) Jurisdictions of Bureau of Labor Relations 1. All inter union conflicts (conlicts among and between legitimate unions)  Who will bargain, union registration. 2. All intra union conflicts (conflict between among union members; organizational dispute)  Includes removal of erring union officers. BLR has no authority to order referendum to decide suspension or expulsion of union officers, it is cognizable under NLRC.  Especially certification election whithin 5 years prohibition.  A legitimate labor organization or members specially concerned may file a petition involving the dispute or a party in interest or 30% if it involves entire organization. ALL unions are labor organization but NOT ALL labor organizations are union.  Labor organizations are associations of employees which exist in whole or in part for the purpose of collective bargaining or dealing with employers with respect to terms and conditions of employment.

LO vis a vis UNION  Union exists for the purpose of collective bargaining (failure to comply gives rise to the right to srtike) while LO is a generic term where the purpose is dealing with employers with respect to terms and conditions of employment for mutual benefit and protection.  Both has to comply with legal requirements. Legitimate Labor Organization  Registered in DOLE (even not to SEC)  Registration offers rights accorded by Labor Code like CBA. Compromise agreement is a contract whereby the parties by making reciprocal concessions avoid litigation or put an end to one already commenced. Formal Requirements Writing and signed in the presence of the Regional Director or his duly authorized representative. Special Power of Attorney required before an agent can enter into a compromise. a) Involving labor standards- writing; signed in the presence of Regional director; approved by the complainants. b) By union officers- authorized by union members. c) By a lawyer- effected through special power of attorney. Valid Compromise Rule Only element necessary is the reality of the claim and bonafide compromise.  Quitclaims as a rule are commonly frowned upon as contrary to public policy the reason for which is because the employer and the employee do not stand on the same footing since this is usually in the form of contract of adhesion, not of choice.

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Labor et. Al., vs, NLRCRuling: Compromise agreement would be valid only if the same was voluntarily entered and represents a reasonable settlement of claims. (IMPORTANT) In this case, the amount received by the petitioners was reasonably lower than they were legally entitled. Furthermore, compromise settlements with the petitioners were not executed with the assistance of the BLR or regional Office of the DOLE pursuant to Art. 227. Mere filing in the regional office of the DOLE cannot be considered as the requisite assistance. Magbanua vs. Uy ( STANDING RULING) Facts: NLRC rendered a decision but before writ of execution could be issued, parties entered into a compromise agreement because the award had been complied with to the satisfaction of the complainant. Despite that employees still file for writ of execution which employers naturally opposed. Ruling: a compromise agreement covering a case pending appeal or with final judgment is valid except for vices of consent or forgery. In the present case Petitioner did not challenge the factual findings but based their argument on the sole fact that agreement is executed despite final judgment. Contract bar rule: Bureau is not allowed to hold an election contesting the majority status of incumbent union. The election is legally allowed during freedom period of the last 60 days of the fifth year of the CBA.  Also neither party may terminate nor modify the agreement unless there is a prior notice 60 days prior to expiration date.  Exceptions; CBA inadequate, incomplete or unregistered.

IV. LABOR ORGANIZATION (ARTICLES 234-242A) Requirements for registration FEDEARATION OR NATIONAL UNION  Labor organization with atleast ten chapters or affiliates each of which shall be a duly certified or duly recognized collective bargaining agent. 1. Names and address of labor union and its officers. 2. Minutes of organizational meeting and who participated. 3. Annual financial report it it existed for more than 1 year unless It has not collected any amount. 4. Unions’ constitution, by laws its adoption and ratification. 5. Resolution of affiliation of atleast ten LLOS 6. Names and addresses of affiliates. INDEPENDENT LABOR UNION  Independent if created by independent registration. 1. ( 1 2 3 4 above) 2. Names of members atleast 20% of its employees bargaining unit. CHARTER LOCAL  Union created through chartering. 1. Charter certificate issued by federation or national union. 2. Names and addresses of local chapters officers. 3. Constitution and by laws. NOTE: ALL THE ABOVEMENTIONED REQUIREMENTS SHALL BE certified under oath by secretary or treasurer AND attested by the president.

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WHERE TO FILE? FEDEARATION OR NATIONAL UNION  Bureau of Labor Relation or Regional Office, but the former shall process. INDEPENDENT LABOR UNION or CHARTER LOCAL  Regional office where the applicant operates. ACTION ON THE APPLICATION Approving by issuing a certificate of registration Denying by sending notice to comply with the requirements. APPEAL Bureau >> Secretary of Labor>> CA Regional office>> Bureau>> Secreatary of Labor >>CA JURIDICAL PERSONALITY  Important in filing a Certification Election ( Which union will represent?). Independent Union Issuance of certificate by DOLE Charter local Issuance of charter certificate by federation or national union but right is limited to filing for Certification Election and not Rights under Art. 242. Additional requirements to afford the 242 rights for CL. 1. Charter certificate by F/NU 2. Local chapters officials 3. Consti and by laws (if the same with F/NU just statement of that fact).

Q: A local, with a charter certificate of its mother union only, disaffiliated from the latter. Effect? Divested with legal personality.

GROUNDS FOR CANCELLATION OF UNION REGISTRATION (limited to 3)

Affiliate

1. Misrepresentation, false statement or fraud in constitution and by laws. 2. Misrepresentation, false statement or fraud in election of union officers. 3. Voluntary cancellation.  REQUISITES a. 241 (d), through secret ballot. b. Meeting for that purpose. c. 2/3 votes of entire the membership. d. Passed by union board and attested by the president. Where to file? BLR for F/NU (appeal to DOLE secretary then CA) and Regional Office of Labor Relations Division (appeal to BLR then CA)for ILU nad CL. Who can file? Any member or party in interest.



Independently registered union that enters into an agreement of affiliation with a federation or national union.  Chatered local which applies for and granted independent registration but does not disaffiliate from it mother union. (mere local chapter cannot affiliate, it must be duly certified.) How to affiliate? Majority of all its members through secret ballot. When? Freedom period, representation aspect. When does a labor organization becomes an LLO? First distinction must be made whether the LO is an independent labor union or federation or national union or a charter local. Issuance of certification by DOLE in case of the 1st and 2nd and issuance of charter certificate in case of the 3rd.

RIGHTS AND CONDITIONS OF UNION MEMBERSHIP  Union security clause or closed shop agreement which is always present in all CBA’s provides that when members resigned from union they are automatically resigned from the job, IOW members are union bound. Question, when the affiliate disaffiliated, can the mother union invoke the clause? No, because they are not the real party and they will violate the right to association.  When an independent union affiliate with Federation or national union, the former is still the principal party when it comes to CBA, affiliation is limited only to the conduct. The 242 rights

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Political Deliberative and decision making  What if CBA provides for another duration of its lifetime? LC (5 years) prevails, autonomy of contracts, not contrary to law Over money Information Election of union officers

LABOR RELATIONS MIDTERM REVIEWER SHORTY



Qualification to be elected? Member of good standing.  DQ? Moral turpitude( regardless of the time of the commission)and membership in subversive organization (regardless of the repeal on law, implied repeal not favored).  Proxy vote not allowed because law provides for direct voting. UST case  Fear on fraudulent election under incumbent union officers supervision could not justify the method they want to impose. Action against union officer  No past malfeasance or misfeasance Expulsion of a member: Ferrer v. NLRC  Due process as outlined in the consti and by laws must be observed; Expulsion of union member may be initiated by even 1 member. Check offs and assesments: Palacol A check off is a method of deducting from an employee’s pay at prescribed period, amounts due to union.  dues can be checked off provided it comply with the same requirements below. 3 REQUISITES FOR A VALID CHECK OFF 1. Written authorization by general membership in a meeting for that purpose. 2. Secretary’s record of the minutes of the meeting. 3. Individual written authorization.  Mandatory activities like grievance machineries and voluntary arbitration (judicial process of settling disputes) are valid check offs even without no. 3.

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Rights of a legitimate labor organization 1. To act as a representative on collective bargaining. 2. To be certified as exclusive representative in an appropriate bargaining unit. 3. To be furnished with financial statements  After the union is certified by DOLE as sole CB agent or after the recognition of the employer within thelast 60 days of the life of the CBA or during CBA negotiation. 4. To own a property. 5. Sued and be sued. 6. Undertake activities for the benefit of the organization not contrary to law. V. RIGHT TO SELF ORGANIZATION GR: All workers have the right to self-organization ( except for the right of collective bargaining which is limited) EXCEPTIONS: a. COOPERATIVES –they cannot bargain among themselves. Exception to the exception: San Jose Electric Cooperative case: employees who are not members-consumers may form, join or assist labor organizations for purposes of collective bargaining notwithstanding the fact that employees of SAJELCO who are not members-consumers were employed ONLY because they are members of the immediate family of members-consumers. b. INTERNATIONAL ORGANIZATION- because of immunity from suit. ICMC VS CALLEJA: because it is clearly necessitated by their international character and respective purposes which is

to avoid the danger of partiality and interference by the host country in their internal workings. Kapisanan ng Manggagawa sa OLALIA at TAC vs. Secretary of Labor: ICMC and IRRI have been granted diplomatic immunity against all law suits. The allegation that the right to self-organization is abridged by the immunity granted to the said international organizations is untenable. For, ICMC employees are not without recourse whenever there are disputes to be settled. Section 31 of the Convention on the Privileges and Immunities of the Specialized Agencies of the United Nations 17 provides that "each specialized agency shall make provision for appropriate modes of settlement. c. RELIGIOUS OBJECTORS Victoriano v. Elizalde: The right to religion prevails over contractual or legal rights. As such, an Iglesia ni Cristo member may refuse to join a labor union and despite the fact that there is a close agreement in the factory he was employed, his employment could not be validly terminated for his nonmembership in the majority therein. Kapatiran sa Meat and Canning Division: Religious objectors can form a Labor organization among themselves. RIGHT TO SELF ORGANIZATION IN PUBLIC SERVICE  They cannot bargain their benefits because it is provided for by the law. INELIGIBILITY OF MANEGERIAL EMPLOYEES TO JOIN UNIONS  Their freedom of organization has not been totally abrogated because they can still form unions among themselves so long as it is not a labor organization. Evil sought to be avoided is when managerial employees joined unions, it will be company dominated.

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SUPERVISORY EMPLOYEES MAY FORM UNION  Can form union but cannot join rank and file.

Managerial employee is the one vested with power or prerogative to lay down and execute management policies. United Pepsi Cola v. Laguesma: Commission intended the absolute right to organize of government workers, supervisory employees, and security guards to be constitutionally guaranteed. By implication, no similar absolute constitutional right to organize for labor purposes should be deemed to have been granted to top-level and middle managers. Supervisory employee is the one who, in the interest of the employer effectively recommends managerial actions. TEST OF SUPERVISORY EMPLOYEES: a. Whether a person possesses authority to act in the interest of the employer. b. Whether it is not merely routinary or clerical in nature but requires the use of independent judgment. JURISPRUDENTIAL HISTORY OF SUPERVISORS’ RIGHT TO ORGANIZE FOR UNION a. Under Industrial peace Act  Supervisors can unionize separately from rank and file. b. Under the labor code before the amendment of RA 6715  Supervisors as included in the term managerial employees have no right to unionize. c. Right of supervisory employees to organize under Industrial peace Act is once more recognized.

Confidential employees are those who by reason of their position or nature of work have confidential labor relations matters. METROLAB INDUSTRIES: Confidential employees are not members of rank and file bargaining unit. San Miguel Corp. v. Laguesma: To avoid potential conflict of interest, confidential employees are prohibited to form unions. But the confidentiality of their positions should relate to labor relations matters.

The concept of management prerogative  Not all management decision requires the participation of employees like when it is purely business matters. However, if the action of the management affects the rights, benefits and welfare of the employees, the latter has the right to participate. Parties to CBA a. Employer b. Employee>>union>> Certified collective bargaining agent

May security guards organized? Meralco v. Sec. of Labor: Yes, they may now freely join a labor organization of the rank and file or that of the supervisory union, depending on their rank.

How to determine certified collective bargaining agent in a collective bargaining unit? 1) Voluntary recognition 2) Certification election 3) Consent election

Non abridgment of Right to Self Organization  Right to form labor organization is twin to right to engage in peaceful concerted activities.  For the purpose of CBA or mutual aid and protection. VI. COLLECTIVE BARGAINING (ARTICLES 250-259) Right to participate in policy and decision making processes is not just a statutory right but a reiteration of Constitutional mandate found in Article 13 Section 3. e.g. In diversion of company, does the employees has the right to participate? No, if it is purely business matters. PAL v. NLRC: Code of discipline issuance was done in good faith and no ULP is committed but it shall be distributed to employees, those who violate it should be absolved and union must be consulted regarding its implementation.

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Definition of Collective bargaining unit: group of job holders represented by certified collective bargaining agent when it bargains with the employer. Appropriateness of CBU is discretionary to BLR  Best test: Serve the best interest of employees. Factors to consider a. Community of interest b. Globe doctrine or will of the employees c. Single or employer unit is preferred  Pagkakaisa ng mga manggagagawa sa triumph: ends of unioninsm is better served when all rank and file employees with substantially the same interest forms a single d. Exception to one unit policy.  Exception is the case of Barbizon: one company-one union policy must yield to right of then employees to selforganization which the constitution guarantees.

Distinction between CBU or Collective bargaining unit and UNION WHO WILL BE< a. Voting in certification election? CBU b. Represent bargaining with the employer? UNION c. Covered by CBA? d. Voting for CBA ratification? CBU e. Voters in strike voting? UNION THE THREE MODES BARGAINING AGENT

OF

DETERMINING

COLLECTIVE

1. Voluntary recognition Requisites: a. Unorganized establishment b. Only one legitimate labor organization c. Existing proof of majority Distinction between organized and unorganized depends upon existence of collective bargaining agent. Q: What if there is a Collective bargaining agreement but without CB agent because of interim period during which election is pending, ORGANIZED OR UNORGANIZED? A: UNORGANIZED. What makes an establishment organized is the existence of CB agent and not CB agreement. Q: Union A with 150 members, and Union B with 20 members. Union A only asked for recognition and was granted, is that valid? A: There must only be one union as per the requisites. The 12 month bar rule: No Certification election after one year of entry voluntary recognition (with appropriate documents in BLR), valid certification, consent and run off election.

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2. Certification Election Who may file? Organized or unorganized< a. Registered union b. Employer Only when ask because of being just a bystander. Rights of employer: 1. Receive notifications 2. Submit list. c. Legitimate labor organization, local d. Federation in behalf of local When will PCE be filed in organized establishment? Freedom period. ( with 25% of CBU granting) In unorganized? Anytime since there is no Collective bargaing agent. 2 PERIODS IN CBA a. Economic aspect- 3 years b. Representation aspect- last 60 days of the 5th year. APPEAL on GRANTING of CE Organized- appealable. Unorganized- final and executor. APPEAL on DENIAL of CE Organized and Unorganized- both appealable. 8 grounds on denial of PCE 1) Non appearance  Of the petitioner.  Q: An unopposed petition was certified by MedArb, is it valid?

 A: No. Direct certification is not allowed, Certification election must be had.  Q: When can be filed after denial? A: Within 6 months if it is based on failure of election and anytime when it is based on non-appearance. 2) Unregistered union  Whether federation or charter local, they must be with juridical personality. E.g. charter local must be chartered certificate of its own. 3) No charter  Petition for cancellation of registration is not a prejudicial question with respect to petition for certification election.  Validity of Collective bargaining agreement depends upon WHEN it has been entered into as to whether it has been entered during the time where the union still has juridical personality or has been cancelled. 4) Absence of employment relationship  When determine by MedArb, is NOT res judicata to Labor Arbiter.  NONE in Independent contractor but present in LOC.  Employer may raise this ground. 5) 12 month bar rule  THE FOUR INSTANCES:No Certification election after one year of entry voluntary recognition (with appropriate documents in BLR), valid certification, consent and run off election. 6) Negotiation or deadlock

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 To ensure stability, they must settled their own deadlock first. 7) Existing CBA  Within the last 60 dats of the 5th year of the life of the CBA. 8) Lack of support  PCE must be supported by 25 % of the CBU in an organized establishment. PERTINENT CASES ON PCE Capitol Medical Center Alliance Deadlock presupposes an equal opposing forces and despite noble intentions, cannot conclude agreement between the parties. PERMEX No union choice won and by virtue of the 12 month bar rule, it shall be respected. Kampil-Katipunan For a bargaining deadlock to be a bar to PCE, it shall be submitted before and not after the filing of the pertition. National Congress of Unions in the Sugar Despite the lapse of the formal effectivity of the CBA the law still recognizes the same continuing in full force and in effect until a new one is executed. Contract bar rule still applies. ALU Contract bar rule does not apply when there is no proof tending to show that CBA has been posted in at least two conspicuous places. To be a bar to PCE, it must comply with substantial terms and conditions of employment.

La Suerte On the ground of lack of support, the withdrawal of sizeable members on petition must be determined whether is it done before or after the filing of petition. If before, it is presumed to be voluntary while involuntary in made after the filing perhaps pressured by the employer hence not necessarily affects the petition. RUN-OFF ELECTION, elements 1. Valid election  Majority of votes obtained. 2. With atleast two union candidates 3. Not one union obtained majority of the valid votes. 4. Total number of votes for all unions is atleast 50% of the votes casts. 5. No election protest. *sure in midterms e.g. 200 members, 200 votes casts, Union A obtained 50 votes and Union B with 20. No union, 120, can there be a run off? NO. e.g. 200 members, 200 votes casts, Union A obtained 50 votes and Union B with 51. No union, 99, can there be a run off? YES.

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