Labor Relations - Hanniyah

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LabRel Lectures: Transcribed by: Hanniyah Sevilla

LABREL 06.27.07

If it should happen that Congress abrogates or repeals the entire book 5 of the Labor Code, and that should be challenged by the LabMovement in the SC as being unconstitutional, what will be the competing rights?

SC has to balance the plenary powers of the legislature, on the other hand there is a right to self organization which is in the ConstitutiAnd you say that the repeal of the law is unconstitutional because the right to self organization is in the Constitution.

As students of the law, it is not only important to know which right to exert, but what countervailing right will be asserted over and athat right.

It is my submission that just because the right to self organization is in the constitution, does not make it a constitutional right in the slevel as the bill of rights. In other words, when that happens, what is bound to be more superior is the plenary rights of the Congress. Tremedy will not be judicial, but political.

If that is the case, then the right to self organization isnot covered by Section 8, Article 3 of the Consti : "The right of the peoplincluding those employed in the public and private sectors, to form unions, associations, or societies for purposes not contrary to law snot be abridged."

Because the right to self organization as expressed in Article 243 [of the Labor Code] is the right to form, join or assist in la

organizations. "Union" therefore as used in Sec. 8, Art. III is generic in nature. Just because you are employed and form an organizatyou can call it a union.

But when you form aLABOR UNION, it is not the composition that makes it a labor union, it is the purpose. For the purpose of obtainbetter terms and conditions of work. In other words, it must end up as one of its primary aims, to arrive at a collective bargainagreement, that determines basically what are the terms and conditions.

Who are the actors in the right to self organization: the personalities who assert the right, and the personalities over whom you assert right.

Under Art. 212, you have definitions. There is a definition of an ER: "any person acting in the interest of an employer, directly or indirectly. The term shall not include any labor organization or any of its officers or agents except when acting as employer. "

You take a look at the Implementing Rules-R1, Sec. 1: An employer refers to any person or entity who employs the services of others, one for whomemployees work and who pays their wages or salaries. An employer includes any person directly or indirectly acting in the interest of an employer. It shall also refer to the enterprise where a labor organization operates or seeks to operate .

Note: The first sentence and the third sentence are embellishment of DOLE. That has questionable validity, but as we know ImplemenRules are presumed regular until they are overturned. But as you see that it is a lose definition.

What is important to remember in the case of an ER is that an ER can be a natural person or a juridical person . We know in ouPersons and Family Relations that in order to be a natural person all we have to be is to be born. If you are an artificial/juridical personbecome a person by virtue of a general enabling law., i.e. the Corporation Code. You comply with the requirements and register withSEC and then you become a juridical person. Another way is you register with the Cooperatives Dev't Authority, then you becomcooperative. You have rights and obligations separate and distinct from the rights and obligations of the constituent members.

So too with a labor organization, the EEs bond together and write their articles and by laws and register with DOLE and become a juriperson.

Why am I emphasizing this? So that you will know that whenever there is an artificial person is involved, there is always a natural perscannot act by itself, that is why as a consequence, there is a managerial employee.

A managerial ee under Art. 212(m) isone 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 .

Whenever you have an ER who is a juridical person, there MUST BE a managerial ee because an artificial person cannot act by itselfa person by a fiction of law. What is a person?To be a person is to be a subject of rights and obligations.. only a person is subject

of rights and obligations . Your personhood does not disappear by the loss of reason, because here you are talking about capacity to acTenderness of age only limits your capacity to act, but you do not cease to be a person.

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What is the difference between a managerial ee in Art. 83 and a managerial ee in Art. 212(m)? The defn in Labstan is much mbroader, because there are two kinds of managerial ee: MANAGERIAL EE PROPERY, who is one who lays down policies, one supervises, one who has the effective power to recommend; and also SECONDARY MANAGERIAL EE, who are members omanagerial staff.

Under LABREL, the defn is narrower.. lay down and execute management policies and/or to hire, transfer, suspend, lay-off, redischarge, assign or discipline employees. Gone is the function of effective recommending. That function now falls under SUPERVISEE, which is separate and distinct from Managerial EE.

Before, in Labor Standards, supervisory ee is included as a managerial ee. That is why supervisory ee under Labstan is not entitledovertime, but can they join a labor organization? Yes, they can because Art. 212(m) says:Supervisory employees are those who, in theinterest 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.

So they can form unions. There is a distinction.. i hope you stick to that distinction. Do not be fooled by the discussion of Justice Menin United Pepsi Cola. If you have read the case, J. Mendoza discusses 3 kinds of managerial ees. What is he doing?! There are no 3 kinof managerial ees in the LC. No commentator need quote that because it is irrelevant.

What makes you a managerial ee is not the title, but your actual functions. Do you lay down policies, lay down policies, fire, hire, pro

demote? If you have that power, no matter what your title is, then you are a managerial employee.

That is precisely the issue brought up inNATU Republic Planters Bank Supervisors Chapter vs. Sec.(239 SCRA 54 . So they filed certificatio of election among the supervisors of the bank. And the supervisors union claimed that the managers of the bank mustallowed to join unions, because even if their titles are managers, assistant branch managers, they are not managers. They do not lay dowpolicies, they wait for policies from the main office. They do not have the power to hire, fire, demote, promote.. So what are thAccording to the LC, they are supervisory ees.

Ruling of the SC: They are not managers, however, they are confidential ees. And confidential ees are situated in the same level managerial ees. Therefore, they cannot join any union.

This is where the SC creates a new category of ees for purposes of LABREL, because confidential ee you cannot find it in LC, you only find it in jurisprudence. And this is where the SC laid down the doctrine of necessary implication. Even though the law doeinclude these people from the prohibition, because they are in the same situation, necessarily therefore, the prohibition is carried on to effect. That is logically included in the law is necessarily included in the prohibition of the law.

[Note: In the case of Ligez, the SC made a categorical exception in this doctrine of necessary implication.]

So, if you are a confidential ee, you hold data and knowledge peculiar to the advantage of the ER. And you can use it to the advantagethe Union. The power to destroy that which you are working to protect. If you are management, you are supposed to act for the er becathe er cannot act on itself. If you are member of the union, you have the power to act against the principal whom you are supposedprotect. You cannot hop with the rabbits and bark with the dogs. Management is expected to act in favor of the principal, and at expense of the union, if you are allowed to join. You cannot serve two masters at the same time. There is a conflict of interest, that is wyou are not allowed to join a union.

Is it in Art. 212? It is not found in the LC. And yet the SC says, by necessary implication, confidential ees are prohibited from joining u

NATU VS. SEC

FX: On 17 March 1989, NATU filed a petition for certification election to determine the exclusive bargainingrepresentative of respondent Bank's employees occupying supervisory positions. On 24 April 1989, the Bank moved todismiss the petition on the ground that the supposed supervisory employees were actually managerial and/orconfidential employees thus ineligible to join, assist or form a union, and that the petition lacked the 20% signatoryrequirement under the Labor Code.

NATU submits that an analysis of the decision of public respondent readily yields certain flaws that result in erroneousconclusions. Firstly, a branch does not enjoy relative autonomy precisely because it is treated as one unit with thehead office and has to comply with uniform policies and guidelines set by the bank itself. Neither is there evidenceshowing that subject employees are vested with powers or prerogatives to hire, transfer, suspend, lay off, recall,discharge, assign or discipline employees.

Issue: whether the Department Managers, Assistant Managers, Branch Managers/OICs, Cashiers and Controllers ofrespondent Bank are managerial and/or confidential employees hence ineligible to join or assist the union of petitioner

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sense that the supervisory employee, in the interest of the employer, effectively recommends such managerial actions,if the exercise of such managerial authority is not routinary in nature but requires the use of independent judgment.

Branch Managers, Cashiers and Controllers of respondent Bank are not managerial employees but supervisoryemployees. The finding of public respondent that bank policies are laid down and/or executed through the collectiveaction of these employees is simply erroneous. His discussion on the division of their duties and responsibilities doesnot logically lead to the conclusion that they are managerial employees, as the term is defined in Art. 212, par. (m).

Among the general duties and responsibilities of a Branch Manager is "[t]o discharge his duties and authority with ahigh sense of responsibility and integrity and shall at all times be guided by prudence like a good father of the family,and sound judgment in accordance with and within the limitations of the policy/policies promulgated by the Board ofDirectors and implemented by the Management until suspended, superseded, revoked or modified. Similarly, the jobsummary of a Controller states: "Supervises the Accounting Unit of the branch; sees to the compliance by the Branch with established procedures, policies, rules and regulations of the Bank and external supervising authorities; sees tothe strict implementation of control procedures .The job description of a Cashier does not mention any authority on hispart to lay down policies, either.

On the basis of the foregoing evidence, it is clear that subject employees do not participate in policy-making but aregiven approved and established policies to execute and standard practices to observe, leaving little or no discretion atall whether to implement said policies or not. It is the nature of the employee's functions, and not the nomenclature or

title given to his job, which determines whether he has rank-and-file, supervisory or managerial status.

As regards the other claim of respondent Bank that Branch Managers/OICs, Cashiers and Controllers are confidentialemployees, having control, custody and/or access to confidential matters, e.g., the branch's cash position, statementsof financial condition, vault combination, cash codes for telegraphic transfers, demand drafts and other negotiableinstruments, 23 pursuant to Sec. 1166.4 of the Central Bank Manual regarding joint custody this claim is not evendisputed by petitioner. A confidential employee is one entrusted with confidence on delicate matters, or with thecustody, handling, or care and protection of the employer's property.While Art. 245 of the Labor Code singles outmanagerial employees as ineligible to join, assist or form any labor organization, under the doctrine ofnecessary implication, confidential employees are similarly disqualified. This doctrine states that what isimplied in a statute is as much a part thereof as that which is expressed.

In applying the doctrine of necessary implication, we took into consideration the rationale behind the disqualification ofmanagerial employees expressed in Bulletin Publishing Corporation v. Sanchez, 28 thus: ". . . if these managerialemployees would belong to or be affiliated with a Union, the latter might not be assured of their loyalty to the Union inview of evident conflict of interests. The Union can also become company-dominated with the presence of managerialemployees in Union membership." Stated differently, in the collective bargaining process, managerial employees aresupposed to be on the side of the employer, to act as its representatives, and to see to it that its interests are wellprotected. The employer is not assured of such protection if these employees themselves are union members.Collective bargaining in such a situation can become one-sided. It is the same reason that impelled this Court toconsider the position of confidential employees as included in the disqualification found in Art. 245 as if thedisqualification of confidential employees were written in the provision. If confidential employees could unionize inorder to bargain for advantages for themselves, then they could be governed by their own motives rather than theinterest of the employers. Moreover, unionization of confidential employees for the purpose of collective bargaining would mean the extension of the law to persons or individuals who are supposed to act "in the interest of" theemployers. It is not farfetched that in the course of collective bargaining, they might jeopardize that interest which theyare duty-bound to protect.

In fine, only the Branch Managers/OICs, Cashiers and Controllers of respondent Bank, being confidential employees,are disqualified from joining or assisting petitioner Union, or joining, assisting or forming any other labor organization.But this ruling should be understood to apply only to the present case based on the evidence of the parties, as well asto those similarly situated. It should not be understood in any way to apply to banks in general.

When do you become a confidential ee? Is any confidential information sufficient to make you one? UIC-- Part of the faculty, (with fstatus) formed a union. The administration opposed the inclusion of student councilors because they possessed confidential informatiThey might reveal confidential information. The union said what confidential info? Confidential info of students -- 3rd parties. Itconfidential info about management.

So what kind of confidential information must it be? It must be in

SUGBUANON RURAL BANK VS. LAGUESMA324 SCRA 425 (2000)

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Petitioner vehemently argues that the functions and responsibilities of the employees involved constitute the "very coreof the bank's business, lending of money to clients and borrowers, evaluating their capacity to pay, approving the loanand its amount, scheduling the terms of repayment, and endorsing delinquent accounts to counsel for collection citingTabacalera Insurance Co vs. NLRC.

In Tabacalera, we sustained the classification of a credit and collection supervisor by management as amanagerial/supervisory personnel. But in that case, the credit and collection supervisor "had the power to recommendthe hiring and appointment of his subordinates, as well as the power to recommend any promotion and/or increase." Inthe present case, however, petitioner failed to show that the employees in question were vested with similar powers. Atbest they only had recommendatory powers subject to evaluation, review, and final decision by the bank'smanagement. The job description forms submitted by petitioner clearly show that the union members in question maynot transfer, suspend, lay-off, recall, discharge, assign, or discipline employees. Moreover, the forms also do not showthat the Cashiers, Accountants, and Acting Chiefs of the loans Department formulate and execute managementpolicies which are normally expected of management officers.

Now may the said bank personnel be deemed confidential employees? Confidential employees are those who (1)assist or act in a confidential capacity, in regard (2) to persons who formulate, determine, and effectuate managementpolicies [specifically in the field of labor relations. The two criteria are cumulative, and both must be met if an employeeis to be considered a confidential employee-that is, the confidential relationship must exist between the employee and

his superior officer; and that officer must handle the prescribed responsibilities relating to labor relations.

The doctrine of necessary implication extends the prohibition of managerial ees to join union to include confidentialees, It must be stressed, however, that when the employee does not have access to confidential labor relationsinformation, there is no legal prohibition against confidential employees from forming, assisting, or joining a union.

Petitioner's explanation, however, does not state who among the employees has access to information specificallyrelating to its labor relations policies. Even Cashier Patricia Maluya, who serves as the secretary of the bank's Board ofDirectors may not be so classified. True, the board of directors is responsible for corporate policies, the exercise ofcorporate powers, and the general management of the business and affairs of the corporation. As secretary of thebank's governing body, Patricia Maluya serves the bank's management, but could not be deemed to have access toconfidential information specifically relating to SRBI's labor relations policies, absent a clear showing on this matter.Thus, while petitioner's explanation confirms the regular duties of the concerned employees, it shows nothing aboutany duties specifically connected to labor relations.

There is this case of De la Salle vs. Lacuesma (254 SCRA 141, 1998 ) - Medical College of DLSU, rank and file union and they havsupervisors union. Now, both are separate union in accordance with law. Now, these chapters affiliate with one federation. (A federatioa national union with different unions at the work place level). Is that allowed? A chapter of the rank and file and a chapter osupervisory union belong to one labor federation.

Isn't that an indirect violation of Art. 245 of the LC?

SC says that Art. 245 must be interpreted strictly against the curtailing of the right against self organization. Exceptions to the right oorganization is not looked upon with favor by the court, because the court is pro-freedom. Therefore, any provision of law which cuthat right is interpreted strictly.

Having said that, the SC stated that rank and file ee labor organizations and supervisor ee unions MAY affiliate with one and the safederation if and when the requirements are met:

1) the supervisors do not directly supervise the rank and file ee -- here, the rank and file were non teaching staff, the supervisors wteaching staffs. so they do not supervise the rank and file.

2) the federation does not play an active role in the collective bargaining negotiation. In other words, each of these labor organizationthe different work places handle their own CBA; they do not request help from the federation to handle their negotiation. In that instatheir affiliation with the federation is merely organizational; supporting not directly in the mechanics of the exercise of the rights.

How about minors? In your labstan, what is the youngest age you can be employed? 15 diba, provided that it is not a hazardous woplace. A hazardous workplace involves underground minings, involving chemicals, etc. You can be employed if you are less than 15 iare under the direct supervision of your parents and granted a work permit by the DOLE, and your education is guaranteed unhampe

and you are not made to pose as models in advertisements involving tabacco, alcohol and violence.

Lab Rel 06.28.07

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"Trade union activities" shall mean:(1) organization, formation and administration of labor organization;

(2) negotiation and administration of collective bargaining agreements;

(3) all forms of concerted union action;

(4) organizing, managing, or assisting union conventions, meetings, rallies, referenda, teach-ins,seminars, conferences and institutes;

(5) any form of participation or involvement in representation proceedings, representation elections,consent elections, union elections; and

(6) other activities or actions analogous to the foregoing.(b) This prohibition shall equally apply to foreign donations, grants or other forms of assistance, in cashor in kind, given directly or indirectly to any employer or employers organization to support any activityor activities affecting trade unions.

(c) The Secretary of Labor shall promulgate rules and regulations to regulate and control the giving and

receiving of such donations, grants, or other forms of assistance, including the mandatory reporting ofthe amounts of the donations or grants, the specific recipients thereof, the projects or activitiesproposed to be supported, and their duration.

ART. 269. Prohibition against aliens; exceptions . - All aliens, natural or juridical, as well as foreignorganizations are strictly prohibited from engaging directly or indirectly in all forms of trade unionactivities without prejudice to normal contacts between Philippine labor unions and recognizedinternational labor centers: Provided, however, That aliens working in the country with valid permitsissued by the Department of Labor and Employment, may exercise the right to self-organization and joinor assist labor organizations of their own choosing for purposes of collective bargaining: Provided,further, That said aliens are nationals of a country which grants the same or similar rights to Filipino workers.

So Article 269 is the exception to the prohibition against aliens engaging in any trade union activity. There is this reciprocity rule.

How about minors? Are they allowed? Yes, under Article 3 of the Child and Youth Welfare Act.

If there is no Child and Youth Welfare Act, are minors still allowed to form unions? Does the LC put a limit or age requirement to thof self organization? The right to self organization is found in Article 243.

"ART. 243. Coverage and employees right to self-organization . - All personsemployed 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 anditinerant workers, self-employed people, rural workers and those without any definite employers may form labororganizations for their mutual aid and protection."

Is there an age requirement there? No. Even without Article 3 of the Child and Youth Welfare Code, minors employed can exercise tright to self organization.

How about domestics?But if you form an association for mutual aid and protection which is in the 2nd sentence of Article 243, that self organization. If you take a look at Article 212 (g) there you have the definition of a labor organization - "any union or association of employees which exists in whole or in part for the purpose of collective bargaining or of dealing with employers concerningterms and conditions of employment. "

A labor organization is defined by its purpose, not by its membership. And its purpose must be for collective bargaining. The right oorganization is peculiarly for the right of collective bargaining. This is precisely the first sentence of Article 243.

How about the second sentence which you say is exercisable by domestics? Are they allowed to collectively bargain.. those ambulintermittent and itinerant workers, self-employed people, rural workers and those without any definite employers? There is no right to

organization.. their organization is for mutual aid and protection.

Give an example of mutual aid and protection: a health fund - you contribute for a health fund, like mortuary account.

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Art. 141 : "Domestic or household service" shall mean service in the employers home which is usually necessary or desirable for the maintenance and enjoyment thereof and includes ministering to the personal comfort and convenience of the members of the employers household, including services of family drivers.

A household is not enumerated in the first sentence of Article 143. That is why you cannot exercise Article 129 with respect to visipowers of the DOLE with respect to housemaids because a home is not classified as a work place. So that is the reason why domestiare not allowed to exercise the right to self organization.

Besides, it would be absurd. They picket your house, yet under the LC, you are mandated to give them food and shelter. So pag gabi,sila sa inyo to eat and sleep and then picket again in the morning. That is the reason behind the reason.

I hope by now you are able to distinguish. If its a legal question, you cite the law. But if you are asked WHY IS THIS THE LAW, thedo not cite the law. There are a few questions asked like that in the Bar.

If you are a single employee in the workplace, can you form a union? First, the LC does not put a numerical minimum for the formatiolabor. You can search high and low, there is no minimum number required. And [second] you have this in Article 243 "ALL personsemployed x x x", it does not say "except if you are a lone employee."

Note: There are two ways of forming a union:

1) By organizing yourself, drawing up by laws, articles and file them with DOLE.2) There is the system of affiliation. There is already an existing union, a federation. Then you affiliate yourself with that federationagree among yourselves that you affiliate with the federation. That is how a single employee exercises his right to self organization. federation will now represent her/him with the er.

Numbers neither inhibit nor promote the right to self organization. It is neutral. You can exercise this right whether you are one orthousand.

Actors in the public sector.. Take a look at Executive Order 180. EO 180 has the force of law, it is not just an executive order becaus was promulgated when Corazono Aquino had legislative powers.

There are different classifications of EEs here:

HIGH LEVEL EES -

MEMBERS OF AFP INCLUDING POLICEMEN, FIREMEN, JAIL GUARDS

RANK AND FILE EE

THE first two cannot form unions. Only the rank and file can form anemployees organization,not a labor organization.

Section 2: All government employees can form, join or assist employees' organizations of their ownchoosing for the furtherance and protection of their interests. They can also form, in conjunction withappropriate government authorities, labor-management committees, works councils and other forms of workers' participation schemes to achieve the same objectives.

An employees association is not the same as a labor union. That is why precisely there is a separate law. They are not included in

ART. 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 associationsfor purposes not contrary to law.

Who are these government corporations? Those without original charters. Then all other ees in the civil service shall form associationpurposes not contrary to law. What are those purposes not contrary to law? EO 180 Sec. 2 says "x x x for the furtherance and protectiotheir interests"

How about collective bargaining, is that in accordance with law? No, because renumeration in public service is not determined by conIt is determined by law. You cannot change it by agreement.

So when the constitution says in Art. 3, Sec. 8, unions there therefore is a generic term. It involves unions for the purpose of collecbargaining and also those organizations not for collective bargaining but for furtherance of interest or for mutual aid and protection.

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associationQUALIFIED PROHIBITION CANNOT JOIN UNION OFRANK AND FILE

SUPERVISORY EE ABSOLUTE PROHIBITION(reason: some commentatorssay that they bear arms, theymight attack the governmentthey are trying to defend.Accdg. to Fr. Gus RA 6715introduced the amendmentthat security guards can formunions, hence, negating theabove reason.The reason clearly is thatthese organizations cannotstand any otherorganization/association. Ifyou are a soldier, your loyaltyis to your platoon. There canbe no other organization that will mediate their loyalty.

MEMBERS OF AFP, PNFIREMEN, JAILGUARDS

So when can you exercise your right to self organization? Can probationary workers, when their engagement is still conditioned umeeting the standards of their er, which have been made known to them at the inception of their relation, can they exercise their righself organization?

ARTICLE 277(C) statesAny 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.

Later on we will find out that this provision is not exact. You go to the Supreme Court because you have the right, there is no union orank and file, there is only union of the supervisory ee, makapapugos ba ka? 277 c says that I can be a member of the union from the fday of work! Dili na tama. IF the union is within your bargaining unit, then you can, but if it is not, then you cannot.

Note: That the classification of employees is always with respect to a certain legal principle, i.e. hours of work, tenure. The problem isare given a classification but you are asked something else. For example, casual, probationary, etc, that is classification according

tenure. But you are asked right of self organization. So that is red herring. So know the basis of the classification.

LABREL O7.04.07

We have seen the various actors in the right to S.O. both in the public and private sectors. We have seen the amendment of RA 671 which granted, by implication, the right to s.o. of the otherwise excluded security guards. RA 6715 likewise created a new category ofthe supervisors, taking it out of managerial ees, which before were not allowed specifically to join union.

In the MERALCO vs. SEC case, the security guards, if you were in a supervisory position, you join the union for the supervisors. If yrank and file, you join the union of the rank and file. But you can now exercise the right to s.o.

For most set ups, the security guards cannot join the unions that are found in the clien that they are serving. This is to safeguard the heaand safety of the personnel and faculty of [their] clients. It means that if they are supplied by an agency, they do not have er-relationships with clients, so therefore they cannot join the union of their clients.

However, if their agency, who is considered legally their er, if it has a union, that is the union that they can join. So it is not a violatitheir right if they cannot join the union of the rank and file of their clients because there must be an existence of an er-ee relationsbefore you can join a [labor] union.

The only union you can join even if there is no er-ee relationship is a worker's union. That is the second sentence of Art. 243 -- "ambulitinerants, x x x for mutual aid and protection".

Lets take a look at the labor organization. Take note that most of labor commentators do not emphasize this point: THAT LABORGANIZATIONS (LO) EXERCISE THE RIGHT TO SELF ORGANIZATION IN A SECONDARY SENSE.

The law grants to the indiv. worker the right to exercise s.o. Right to s.o. is the aggrupation of workers join together for the purpoobtaining better terms and conditions of work thru collective bargaining.

We are looking at a LO whose purpose is collective bargaining, not just mutual aid and protection. Chief Justice Fernando says that theis the haven of refuge of the ordinary, lowly worker. It becomes a seed of the right to self organization.

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It is therefore important that we take a look at this landmark case ofSALUNGA vs. CIR(September 27, 1967) In this case, the SC laidown the rules when the right to s.o. of the union comes in conflict with the right of s.o. of the workers.

Just briefly: Mr. Salunga used to be a member of a local union of San Miguel Corporation (SMB). At first he was just an ordinary membut through time, he became very critical of the acts of the officers. He kept on criticizing. So the officers challenged him to resign if hreally dissatisfied. So he resigned, he wrote a letter to the union officers. Shortly after he resigned, the mgr. of SMB called him inforhim of the Union Security clause, and as a condition for continued employment, you have to be a member of the union. If you ceasebecome a member of the union, the union can ask the er to sever your employment.

So he wrote a second letter. The second letter was taking back his letter of resignation. The next step that the union took was to go to mdemanding that Salunga be terminated. Mgt. says I have no choice, Mr. Salunga, you have to be terminated. Salunga filed an illedismissal complaint. He impleaded SMB and the Union.

The ruling of the SC: The union, like any other organization, should be free from any interference from the outside, either from er ogov't, as to its internal policies of membership. Policy of a free labor movement enunciated in the LC dictates that the gov't shouldinterfere in the union membership. That is found inArt. 211(B).So these are all policy determinations which dictate that the Gov't shouhave a hands-off policy with respect to unions. So that is the preliminary pronouncement of SC.

BUT when the union enters into a CBA with management, and that CBA contains a union security clause that requires continmembership in the union as a continued employment [and] if that [condition] is not fulfilled, then the union has power to co

management to terminate the ee, then, according to the SC, the union loses part of its freedom to exercise the right to s.o.

The moment that happens, membership in the union becomes replete with public policy. The court can now look at how the union accor rejects those who apply as members. Why? Because they have power now to grant work or not. Their power has now overached iyour livelihood.

Now, third pronouncement of the SC. If that is the case that it is now a matter of public policy, the union cannot just reject umembership unless it is based on SUBSTANTIAL AND VERY SERIOUS grounds. Then the SC discussed the facts: When Salungahis [1st] letter [of resignation], it was well within the union's prerogative to accept it if it so desires. When Salunga withdrew his leresignation, that was now an application to become a member again of the Union. In that application, the union was not really as freereject, except upon serious and substantial reasons/grounds.

The criticizing of the union is not a serious and substantial ground. Therefore, the union cannot reject Salunga's application.

Order: Salunga is reinstated and it is the Union who must pay the full backwages of petitioner.

SALUNGA VS. CIR

Facts : On Oct. 1959, the Union entered into a CBA with SMB which included a union security clause. The CBAprovided as a condition of employment, membership with the Union.

Salunga had been an employee of San Miguel since 1948. He was a member of the Union NBAILP-PAFLU since1953. However, due to some dissatisfaction petitioner had with the union officers, he tendered his resignation from theunion on 1961. The union, upon acceptance of the petitioner's resignation, forwarded the same to SMB and made arequest for immediate implementation of the CBA agreement in Sec. 3.

The Company having informed him that his aforementioned resignation would result in the termination of hisemployment, in view of said section, petitioner wrote to the Union, on August 31, 1961, a letter withdrawing or revokinghis resignation and advising the Union to continue deducting his monthly union dues. He, moreover, furnished a copyof this communication to the Company. The latter, in, turn, notified the Union of the receipt of said copy and that "inview thereof, we shall not take any action on this case and shall consider Mr. Francisco Salunga still a member of yourunion and continue deducting his union due." On September 8, 1961, the Union told the Company that petitioner'smembership could not be reinstated and insisted on his separation from the service. Consequently, the Companydismissed petitioner, forcing the latter to file an illegal dismissal case against the former.

Held: Although, generally, a state may not compel ordinary voluntary associations to admit thereto any givenindividual, because membership therein may be accorded or withheld as a matter of privilege, the rule is qualified inrespect of labor unions holding a monopoly in the supply of labor, either in a given locality, or as regards a particularemployer with which it has a closed-shop agreement.

The reason is that the closed shop and the union shop cause the admission requirements of trade unions to becomeaffected with the public interest. Likewise, a closed shop, a union shop, or maintenance of membership clauses causethe administration of discipline by unions to be affected with the public interest.

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which he forthwith withdrew or revoked. Surely, he may, at least, invoke the rights of those who seek admission for thefirst time, and can not arbitrarily be denied readmission.

This is a very interesting case because many commentators never bother with the fact that the union has the right to self organization. Ymust not forget that it is not just a natural person who has freedom of association. An organization has freedom to associate because italso a person.

I am a student, I have a right to enroll! But you forget that the school, being a person, also has the right to choose. Consequently, student is allowed to enroll for a semester, he must be given a reasonable chance to complete his degree, unless a supervening causeintervenes, i.e. academic deficiency. But technically speaking, the school has the right whom to teach, who to teach, what to teach. Thathe freedom of the school raised to the level of academic freedom.

So make sure that you basically recognize this right [of unions], because once there is conflict between the right of s.o. of the memband the right of s.o. of the union, it is almost always, it is the individual who is given priority by the courts, esp. by the SC. Why? Bethe labor organization exists for the individual, the protection is ultimately for the individual.

case: VICTORIANO VS. ELIZALDE WORKERS ASSOCIATION (Chief Justice Fernando)

Normally, the bar question would say "Against what forces is the individual worker supposed to be protected?"

There are at least three forces against which the individual worker must be protected from:

1) He should be protected against CAPITAL, against his EMPLOYER. Because an er, left to himself without proper control, can exploordinary worker.

2) He must be protected from GOVERNMENT, because gov't is powerful. And sometimes if it is not checked, it will tend to impose upon the lowly worker.

3) He must be pretected from his UNION, because as time goes, it [union] assumes its own interest. And that interest might be in con with the ordinary, lowly interest of a single, solitary employee.

This was the most unkindest cut of all;For when the noble Caesar saw him stab,Ingratitude, more strong than traitors' arms,Quite vanquish'd him: then burst his mighty heart; - Shakespeare

Article 234 is the process that is described in the red letter of the law for the registration of a labor organization. Take note that in tprocess, there must be an organizational meeting that includes all the members of the union, and they must agree to the formation and thmust be documented.

ART. 234. Requirements of registration. - Any applicant labor organization, association or group ofunions or workers shall acquire legal personality and shall be entitled to the rights and privilegesgranted by law to legitimate labor organizations upon issuance of the certificate of registration based onthe following requirements.

(a) Fifty pesos (P50.00) registration fee;

(b) The names of its officers, their addresses, the principal address of the labor organization, theminutes of the organizational meetings and the list of the workers who participated in such meetings ;

(c) The names of all its members comprising at least twenty percent (20%) of all the employees in thebargaining unit where it seeks to operate; (As amended by Executive Order No. 111, December 24, 1986).

(d) If the applicant union has been in existence for one or more years, copies of its annual financialreports; and

(e) Four (4) copies of the constitution and by-laws of the applicant union, minutes of its adoption orratification, and the list of the members who participated in it.

Now, let us go to the Implementing Rules (IRR). There is another way of forming a union, and that is by affiliation.

Take a look at Rule III, Sec. 6. The rules that were formerly in place before this newDept. Order 40-03 1 had a special rule in registerinan affiliation of a chartered local. Now it is just found together with rule III.

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a) resolution of the labor unions board of directors approving the affiliationb) minutes of the general membership meeting approving the affiliation;c) the total number of members comprising the labor union and the names of members who approved the

affiliation;d) the certificate of affiliation issued by the federation in favor of the independently registered labor union;

ande) written notice to the employer concerned if the affiliating union is the incumbent bargaining agent.f)

Whose general membership is this? The federation or the local? It is the local.

What is a local? The opposite of that is not foreign (herher). The opposite of than is federation.

The local is labor organization on the workplace level (CF:Rule 1, Sec. 1(i)) So, independent union and a chartered local.

Now, if you are a union at the workplace level and you have an independent registration by virtue of Art. 234, can you still affiliate wfederation? A federation is an aggrupation of different unions on the workplace level, tenor of which must at least be the exclubargaining agent of that particular er.

The answer is yes, you can still affiliate with the federation. In which case, actually, you have potentially two personalities: You haveown independent registration and you have your registration of the federation.

If you are expelled from the federation, you are still a union/labor organization organized under the LC. But if you are not an independregistered union, if you are dismissed, or severed or resigned from the federation, you must immediately affiliate with another federaotherwise you do not have personality.

Now, we go back to Justice Fernando. He says that the local that affiliated with the federation is the principal and the federation isagent. The employees that are members of the union are the true principals, the union is their agent. But the local, with respect to federation, is the principal, and the federation is the agent.

That is why even if the by-laws and the constitution of the federation prohibit dissafiliation except towards the end of the CBA, the locstill disaffiliate, because the contract of principal and agent may be severed anytime, even if there is consideration. Agency canterminated anytime. This is because this [contract] is based on confidence.

To show you that the organization, like the affiliated local, there is this particular provision inRule 4, Book 5, Sec. 8 --Effect of Registration whether it be independent registration under Art. 234 or registration by affiliation.

"Sec. 8: The labor union or worker's association shall be deemed registered andvested with legal personality from the time of the date of the issuance of a certificate of registration or certificate of affiliation x x x

Such legal personality may be questioned only through an independent petitition for x x x and not by way of collateral attack x x x " So, personality of a labor organization cannot be attacked collaterally. When a union petitions for election to be chosen by the workerimpleads the ER. The ER answers, there should be no election because there is no union, it has no personality.

So for the purpose of adjudication of rendering a union a non person, there must be a principal main action, you cannot attaccollaterally.

July 5, 2007

Let us go to the definition of labor organization. Let us take the red letter of the law. Art. 212 (g) that is the primary definition of a unicollective bargaining. That is only present in the private sector.

Art. 212 (g) "Labor organization " means any union or association of employees which exists in whole orin part for the purpose of collective bargaining or of dealing with employers concerning terms andconditions of employment.

Now, the next level to labor organization is legitimate labor organization. That is letter h.

(h) "Legitimate labor organization " means any labor organization duly registered with the Department ofLabor and Employment, and includes any branch or local thereof.

Here you have 3 categories: A legitimate labor organization, and then a branch or local. Those are the terminologies of the red lettelaw. Let me point out letter j.

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First, you have labor organization: what is determinative of labor organization? Not membership but purpose. The purpose must inc(though not exclusively) in part or in whole, to bargain with the er for better terms and employment of work, etc.

The next category is a legitimate labor organization. You register? WE saw that in Art. 234 -- independent registration or by chaffiliation. The federation issues you a charter certificate, you have organizational meetings, draw constitution and by laws and toge with these three you submit to the DOLE then you are now included in the roster of locals. you are now one of the locals, becalegitimate labor organization includes any branch or local thereof.

Let us go to the IRR.

Rule 1, Sec. 1: Affiliate: Refers to an independent union affiliated with a federation/national union, or achartered local which are subsequently granted independent registration, but did not disaffiliate from itsfederation x x x x

So if you are an affiliate, it means that you are a local, but not just a local, you are have an independent registration under 234. After are a legitimate labor organization, you affiliated yourself with a federation. So you haveDUAL LEGAL PERSONALITY.You have thepersonality of your own and you have the personality of the federation.

Now, let us go to Sec. 1(i)-Chartered Local: Refers to a labor organization in a private sector operationg at the enterprise level that acquired legal personality through the issuance of a charter certificate by a duly

rgistered federation or national union, and reported to the Regional Office x x x

So when you talk about a chartered local as opposed to the affiliate, the chartered local does not have an independent registration. It ilegitimate labor organization because it is part of a federation, and the federation is a legitimate labor organization.

One of the additional requirements for the registration of a federation over and above what 234 requires, is found in Art 237.

ART. 237. Additional requirements for federations or national unions . - Subject to Article 238, if theapplicant for registration is a federation or a national union, it shall, in addition to the requirements of thepreceding Articles, submit the following:

(a) Proof of the affiliation of at least ten (10) locals or chapters , each of which must be a duly recognizedcollective bargaining agent in the establishment or industry in which it operates, supporting the

registration of such applicant federation or national union; and(b) The names and addresses of the companies where the locals or chapters operate and the list of allthe members in each company involved.

Take a look at the terminologies because there are additional terminologies here. We have the local, that is in contrast with Art. 212(h).there are at least additional terminologies, it says "Proof of the affiliation of at least 10locals or chapters ", so a local may be called chapter, a branch as in Art. 212 or it may be called affiliate under Sec. 1(a) of the Rules, except that we know that an affiliate has dpersonality; a chartered local has only one personality. And a branch we still don't know.

And then it says that "each of which must be a duly recognizedcollective bargaining agent in the establishment or industry in whichoperates". Notice that the terminologies here, which is the red letter of the law, is not the same as that being used in 212(j) because thterminology in letter (j) is bargaining representative.

So Labor Organization --> Legitimate Labor Organization --> Bargaining Representative (which is broader), the other terminoloCollective Bargaining Agent.

In terms of perfection of status, for purposes of collective bargaining, this is the sequence. You begin with this (labor organization), purpose is collective bargaining. You register with the DOLE, you undergo election, then now you have the fullness of the status of a lorganization.

Then you have local, branch, chapter, affiliate.Local could be affiliate, it could be chapter. But you know that the affiliate has an independent registration, then it affiliates itself.

Then you have a federation or a national union.Why is it important? A federation can have various locals or chapters from different industries. What's an example? NFL (Nat'l Federof Labor), SPFL (Southern Phil. Federation of Labor). You can have a chapter from Pfizer, which is pharmaceutical. You can hav

chapter from Davao Union Cement, which is manufacturing or from SM, which is retail.

But if you are a national union, the example is PLDT Union. In PLDT union, the workplace is scattered all over the Philippines. You

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policies in labor. What are those 3 sectors? From the employees (unions), from the employer and then from government. So they mtogether.

That is how the tripartite wage and productivity board is composed of. For purposes of determination of minimum wage, these three mand distill the particular policies with respect to wages. They do not assist them to collective bargaining, but their membersall participate icollective bargaining situations because they are aggrupations of workers that are organized.

Aside from this, how about KMU -- Kilusang Mayo Uno? Is that a labor center? KMU is not a registered labor center because it claimsmulti-sectoral. It has students, it has urban poor, federations, etc. (History about KMU and Teamsters)

It is important that you know these terminologies. You go through the landscape of unions, because the generic term is unions. And uncould either be for CBA, or non-CBA.

If it is for CBA, then it is covered principally by Book V. Other than Book V, you are just talking about activities more akin in the exethe right of association. But here (in Book V), this is protected already. Why? Because you can demand your ER sit with you and agreterms and conditions, you draw up a contract. If the ER does not sit down with you, then the ER may be held to account for exercisULP (unfair labor practice).

Now, where can you find that under the law that you can compel somebody to sit down with you and sign an agreement? That is onlBook V, only in ER-EE relationship that is organized. Why is that? Because the law itself makes that saw, because labor is a protec

sector of our society. That is the only case that you can do that.

To make that possible, there have been several decisions of the SC with respect to the nature of the representation that the l.o. exerciseover its members. You have taken up Civ Pro and you know certain types of cases that are filed either in your own name or in the namothers.

When it comes to money claims, you have learned in LABSTAN, arises out of a er-ee where the er underpays or fails to pay wages aother benefits. The cause of action belongs to the individual ee. If there is a union, it is the union who files the money claim. Now, doeunion have to list down all its members that it represents? The SC said there is no need. The union can file a complaint, and later on ifmoney claim is awarded, then all the members who fit into the complaint and are similarly situated become the beneficiaries of the awa

Now, supposed after the filing of the money claims complaint, the union loses its registration or its registration is cancelled. Is there nesubstitute party? The SC said, NO. That is different from Civ pro. [In Civ Pro] if the party representing you loses his personality-- kinminor ka, imong amahan ang imong representative party. He files a case in your behalf and then he commits a crime which carries cinterdiction, then in that case, you have to substitute him. But here, the SC says, there is no need for substitution even if the registratiothe union is cancelled. The case can go on, and all those union members who fit in the cause of action or similarly situated, they will bbeneficiaries of the award of the labor tribunal.

Let me remind you that under the rules now, in a money complaint, the personality of a labor union cannot be questioned. Why? Becathe personality of the union is not open to collateral attack. There must be a separate and distinct action for carrying out the cancellatiothe union's registration.

Now, suppose there is a ruling at the 1st instance of the Bureau of Labor Relations that the labor union's registration is cancelled. And still subject to appeal. That is not enough to curtail the union. The union is still functioning because the decision is not final and execuOnly when the decision is final and executory is the union deemed to have lost its personality, but then the case continues with the unmembers taking up the actions for the union.

Question: Does the union have authority to compromise the money claim of its members? If it has the authority to bring an action to cthe underpayment and wage differentials of members, does it have authority to compromise the same?

Answer: The union does not have authority to compromise them. It must be each member who must compromise his/her own moclaim.

Question: Suppose the union, in a general membership meeting of all the members of the union, they vote by more than 2/3 majority they will compromise their money claims, does that bind everyone?

Answer: That is the case of ABS-CBN Union vs. ABS-CBN . There the SC says there must be individual written authorization. So tho who refused to give the individual written authorization are not covered because money claims are personal to them, and it is only t who can surrender the same.

LAB REL 07.06.07

CASES ON A UNION WHEN IT BECOMES A LOCAL OR A CHAPTER OF A FEDERATION (see Annex Cases)

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3. The contractual relation between local and federation from the CBA point of view is that of principal and agent. A local is the prinand the federation is the agent. And therefore, the real party in the CBA is the local, not the federation.PICEWO VS. PICC 112 SCRA 4(1982) reiterated in TROPICAL HUT VS. TROPICAL HUT 181 SCRA 173 (1990)

4. Contrary to the constitution and by laws of the federation (which allows disaffiliation only within the 60 day freedom period), thmay disaffiliate from the federation at anytime, provided that such act is approved by the great majority of all the eE's in the bargainingASSOCIATED WORKERS VS NLRC (188 SCRA 123 1998)

5. As a corollary to number 4, once there is a disaffiliation, the obligation to remit union dues for the federation -- to check off dues ffederation-- ends, even if the contract still continues.VOLKSCHELL VS. BLR 137 SCRA 42 (1989)

6. The local union, not the federation, is liable for damages arising from an illegal strike voted for by the local, even if it was the feder who filed the notice of strike. The real party in interest is the local, so it is the local who is liable for damages arising from an illegal even if federation filed the notice of strike.

Before we go to Art. 241, we must first be familiar with that bureau in the labor dept. that has jurisdiction over labor unions -- theBUREAUOF LABOR RELATIONS (blr)

Under Article 212 (b) Bureau means the Bureau of Labor Relations and/or the Labor Relations Divisions in the regional officies establunder PD 1 of DOLE.

Let me tell you that in the DOLE there are several bureaus ha. There is Buruea of Labor Studies. But whenever a Bureau is being referto in book 5, that is the BLR, not the Bureau of Labor Studies.

The BLR is found in Art. 226. The BLR has its principal office in Manila, but then it has several personnel that are attached to the RegOffices of DOLE. Because for every region there is a regional office of the DOLE, and it has labor relations officers assigned therein.

Under 212 (A) when it says Commission it means National Labor Relations Commission. Are there other commissions in the DOLE?the National Productivity and Wages Commission. But that is not what is referred to, but the National Labor Relations Commission.

So, take a look at Art. 226. Bureau of Labor Relations . - The Bureau of Labor Relations and the Labor Relations Divisions in the regiooffices of the Department of Labor, shall haveoriginal and exclusive authority to act, at their own initiative or upon request of eitherboth parties, on all inter-union and intra-union conflicts , and all disputes, grievances or problems arising from or affecting labomanagement relations in all workplaces, whether agricultural or non-agricultural, except those arising from the implementatiointerpretation 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.

*interunion - conflicts between unionsintraunion- conflicts within the unions, either officers vs. officers, members vs. members or members vs. officers.

Now, again, take a look atArt. 231.One of the functions of the BLR is to maintain a registry of unions and a registry of CBAs.

ART. 231. Registry of unions and file of collective bargaining agreements. - The Bureau shall keep aregistry of legitimate labor organizations. The Bureau shall also maintain a file of all collectivebargaining agreements and other related agreements and records of settlement of labor disputes and copies of orders and decisions of voluntary arbitrators. The file shall be open and accessible tointerested parties under conditions prescribed by the Secretary of Labor and Employment, provided thatno specific information submitted in confidence shall be disclosed unless authorized by the Secretary,or when it is at issue in any judicial litigation, or when public interest or national security so requires.

Within thirty (30) days from the execution of a Collective Bargaining Agreement, the parties shall submitcopies of the same directly to the Bureau or the Regional Offices of the Department of Labor andEmployment for registration, accompanied with verified proofs of its posting in two conspicuous placesin the place of work and ratification by the majority of all the workers in the bargaining unit. The Bureauor Regional Offices shall act upon the application for registration of such Collective BargainingAgreement within five (5) calendar days from receipt thereof. The Regional Offices shall furnish theBureau with a copy of the Collective Bargaining Agreement within five (5) days from its submission.

The Bureau or Regional Office shall assess the employer for every Collective Bargaining Agreement a registration fee of not less than one thousand pesos (P1,000.00) or in any other amount as may be

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They might have decisions also. Remember Art. 129 of your labor standards? The Regional Director has jurisdiction over money claimlong as there is no prayer for reinstatement, and the individual aggregate monetary claim does not exceed P5,000.00.

So the regional director also makes awards in cases of inspection of workplaces, and there is a deficiency of wages, the regional direccan act on the basis of the recommendation.

These are the types of decisions which the bureau shall maintain a file of. That is where the file is kept-- with the BLR.

Who is their front line officer? The MED-ARBITER. In contrast with the LABOR ARBITER. The frontline officer of the NLRC is thethat of the Bureau is the MA.

Let us go to Art. 241. There is an enumeration all the way up to letter P.

ART. 241. Rights and conditions of membership in a labor organization. The following are the rights andconditions of membership in a labor organization:

(a) 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;

So this is protection to the ordinary member of the union against his own union who might extract excessive or arbitrary fees

Now, what is an arbitrary, excessive inititation fee? Aron ka makasulod sa union, chargean ka ug initiation fee. Suppose a uncharges an initiation fee of P10,000.00 is that excessive? It depends, if it is ALPAC -- Airline Pilots Association of the Philippines, thofficer and captain -- that's only 10% of the basic salary. But if you require P100 initiation fee for the stevedores of SASA, taas na na!is almost a day's pay, and they cannot afford to miss a day's pay.

(b) The members shall be entitled to full and detailed reports from their officers and representatives of allfinancial transactions as provided for in the constitution and by-laws of the organization

So this is the right to a full and detailed financial reports. That is the second rule, and the 2nd rule already has something to do with mo

(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 insubject labor organization. The secretary or any other responsible union officer shall furnish theSecretary of Labor and Employment with a list of the newly-elected officers, together with the appointiveofficers or agents who are entrusted with the handling of funds, within thirty (30) calendar days after theelection of officers or from the occurrence of any change in the list of officers of the labor organization ;

This is the right to directly elect their officers. Now the terms of the officers cannot be longer than 5 years. Why is is 5 years? To coin with the term of the CBA. Now, what is the system under than this, because this mandates: "directly elect the officers by secret ballot".

Is there another way? By representation -- in other words, the federation will just call a convention in manila and then the diffedelegates from the local and move up to Manila and they will elect the officers. Here, the mandate of the law -- because letter C wintroduced by Republic Act No. 6715, this was an amendment, this was a change in the original rights and conditions of membersh what is the whole point of this change?

The whole point of this change is supposedly to end dynasties. Why? There are dynasties of the labor movement. Like Associated LaUnions, founded in the 1950s. The Industrial Peace Act was enacted in 1953, the precouser of book 5 of the LC. It was superseded by LC in 1974. That is also the year that ALU was founded, and the first president of ALU was Demokrito Mendoza. Upto now, he is stPresident of ALU. Is that not dynasty?

And yet, the some people say that if you implement letter C, that members shall directly elect, if you are a big federation all overPhilippines, the only candidate that will win is someone who has the money to travel around so that he will be known by the grassromembers. And who has the money to travel around? The candidate of the employer, not the candidate of the members.

Dynasty, accdg. to the labor leaders in response to this amendment, is inevitable. Because a union must be constructed and configurlike an army. Only one knows the plan, otherwise, if you broadcast this --ani ha, inganing petsa ta magstrike, ayaw pagsaba -- so dapat lang ang nakabalo sa plano. And when he gives that command, it has the stature that everybody follows. Because during the crisituation of a union, that is what is needed.

Accdg. to them, this amendment introduced by RA 6715, tends to weaken the union. If you ask Mendoza, they will say that this is inteto weaken. But if you ask Mr. Veloso which authored the amendment, he will say that this amendment is to give power to the members

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majeure renders such secret ballot impractical, in which case, the board of directors of the organizationmay make the decision in behalf of the general membership ;

So all must participate in deciding by secret ballot major policy affecting the entire membership. Example, the amount of union dues,much union dues to collect? One day salary? One half day's salary?

Now, the union leaders do not want that to be the subject of voting by everybody and what do they do? They put it in their articleincorporation. They will say that "the union dues that will be checked off from every member of this federation shall not exceed 1 1/2 of the gross pay of the member"

So as your salary increases, it also increases. And it is also proportionate, the bigger your salary, the bigger your union dues.

Now, if it is in the constitution and by laws, do you still vote for it? No more because that is the terms and conditions of your agreemYou are supposed to have read that. If you don't agree, then you don't join, but if you do join, you are presumed to have agreed to thcondition.

(e) 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 subversiveactivity;

THIS HAS BEEN ABROGATED. THIS IS NO LONGER IN FORCE.

(f) No person who has been convicted of a crime involving moral turpitude shall be eligible for electionas a union officer or for appointment to any position in the union ;

Take a look at that because that immediately raises the stature of the union officers higher than even the President of the Republic. TPresident has minimal qualifications -- able to read and write.

(g) No officer, agent or member of a labor organization shall collect any fees, dues, or othercontributions in its behalf or make any disbursement of its money or funds unless he is duly authorizedpursuant to its constitution and by-laws;

Why is this here? This rule is here because during the organizational phase of a union, there are still no officers, there is still no treasusecretary. It is the organizers who start to collect money to fund the union's activities. After their organization, there is already an elecof officers, these organizers get used to collecting, sige lang gihapons suroy ug pangolekta. Ikaw, maulaw sad ka dili muhatag, pero wna na silay katungod kay naa naman officers gi-elect.

(h) Every payment of fees, dues or other contributions by a member shall be evidenced by a receiptsigned by the officer or agent making the collection and entered into the record of the organization to bekept and maintained for the purpose;

Simple man kaayo ni, klaro man ni. Any respectable organization will have to follow this as this is part of accounting, and yet this hasput here because the lower you are as an organization, the more at home you are of informal ways.

Labor Relations 7-11-07

Article 241: the Rights and Conditions of Membership in a Labor Organization. You have to be familiar with this article is the souintra-union disputes. When the union member complains against the union he must be able to cite clear his rights. If it is not a violatithe constitution and by-laws of the union you must somehow read it with Article 241 to make it an intra-union controversy. OtherwisMed Arbiter will refer you to mediation & conciliation.

Article 241(g) no officer, agent or member of a labor organization shall collect any fees, dues, or other contributions in its behalf or make any disbursements of its money or funds unless he is duly authorized pursuant to its constitution and by-laws.

How can the constitution and by-laws authorize? It can directly authorize by giving the particular expense. For instance, it can mancertain times or instances of labor seminar so that is an expense that is already mandated by the constitution and by-laws. You do ndebate on that.

The Board of Directors of the union can also pass a budget for a particular expenditure. They do so because they are authorized by constitution & by-laws. That is why all of the expenses can somehow be directly or indirectly paid to the constitution & by-laws.

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So if you do not make a receipt and you receive payment that is a violation. This is because it is now a right of a member to be givereceipt for any contribution that he makes by way of fees or dues to the union. So he can sue the officer charged with collecting if he dnot issue a receipt.

Article 241(i) The fund of the organization shall not be applied for any purpose or object other thanthose expressly provided by its constitution and by-laws or those expressly authorized by writtenresolution adopted by the majority of the members at a general meeting duly called for the purpose.

Extraordinary expenditures must be approved by the members at a general meeting duly called for the purpose. Is it the absolute majoof the membership or is it just a quorum majority? It is just a quorum majority. If there are 200 members then the general assemmeeting to be valid must have 100 plus one. The majority of that is enough to pass the expenditure because it says majority of members in a meeting it does not say majority ofall the members. Majority is 50% of the whole plus one.

Article 241(j) Every income or revenue of the organization shall be evidenced by a record showing itssource, and every expenditure of its funds shall be evidenced by a receipt from the person to whom 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. (Amended by Sec. 16, RA 6715)

Any action involving the funds of the organization shall prescribe after three years from the date of

submission of the annual financial report to the Department of Labor and Employment or from the datethe same should have been submitted as required by law, whichever 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 the failure of any labor organization to comply withthe periodic financial reports required by law and such rules and regulations promulgated thereunder 6months after the effectivity of this Act shall automatically result in the cancellation of union registrationof such labor organization.

The failure to file financial reports has been upheld in the case ofPAFLU vs. Secretary , famous landmark case of Chief Justice RobertConcepcion. In this case, he distinguished between freedom of association and __. Because the union PAFLU claimed that by cancelregistration the Department of Labor was violating the members constitutional right to association. Roberto Concepcion in his clealucid language distinguished it. A totally and distinct personality that is to be registered is not a precondition for the exercise of freedassociation. Your separate and legal personality as a union is cancelled if you failed to report. That is not necessary for the exerc

freedom of association. Because freedom of association is essentially association.

The Martial Law was proclaimed, General Order No. 1, to be effective the gathering of three or more people. If you gather three or myou could be arrested and detained without the need of any warrant. Why? Because it is very easy to say let us meet together and toppthe government because it is an unauthorized government. Martial rule is already in excess of constitution. So immediately Madeclared I dont care what the Sandiganbayan has done which is one of the smelliest courts that has made an appearance. The essencof freedom of association is solicitation. Remember it is not the gathering physically.Kay kung tinuod pa na kanang tanan nagasakay og jeep diba more than three man pandakpon mo kay naa mo dira nagkatigom mo.The juxtaposing of people is not freedom of associatioThe essence of association is solicitation. That is why even in the internet, even if you are miles apart you can associate. And any counthat wants to control the internet is actually violating your freedom of association. China is the number one violator of freedoassociation. The big internet websites like yahoo, google, and different Chinese websites are forced to give to the government. They hprimary codes. The Chinese government hires people to keep track. If you are a man and you associated with more than one woman ycould have been arrested in Martial Law. You cannot gather three or more. That is General Order No. 1. General Order No. 2 is ch

points. That is why kanang mga check pointnga good evening sir, G.O. 2 ni sir those are part of G.O. 2. All those soldiers are educateand trained. Who issued the GO? The Commander in Chief. It is a military operation. It does not require a warrant.

If the union registration is cancelled for failure to comply with the periodic financial report that is not a violation of the freedassociation.

Prescriptive period is supposed to be 3 years from the date of submission of report or from the date of actual submission, whichevecomes earlier.

Every expenditure from the funds shall be credited by a receipt from the person to whom payment is made which shall state the date, pland purpose of the same. What if you make a payment but there is no receipt or traditionally there is no receipt? For example,musakay kaog jeep alangan mag-issue pa nag receipt nimo. Sulayi pangayo og receipt diba sagpaon ka sa driver.The same with taxi. You cannot gea receipt from taxi. For instance, you are assigned to do a certain duty and you go to the Department of Labortapos mugasto ka unsaon

man na nimo? You produce your own receipt. Example taxi from Sasa to Regional Office. You must have evidence of the expenditur

Article 241(k) The officers of any labor organization shall not be paid any compensation other than the

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The general rule is that the officers of the union are not paid. That is what Article 241(k) says. The exception is if the constitution andlaws so provide or by the general membership by absolute majority vote then they shall so be paid. That is the rule.

You know the process. Sinugdanan sa meeting naay quorum present tanan. Sunod mag-debate mo. Unya nay tao nag tindog who is soabnoxious and the Chair grants him the floor. Kanang mga tao nagduka na na, kaihion na na sila, manghawa na. Pero nagpirma na sila oattendance kay ipangpasapasa na. Sunod kung gamay nalang nahibilin ingnon nimo nga mao ning pabor nako so magsugod na ta. Skatong nagattendance mao natong nagpirma. But actually it is not absolute majority. Thats an old trick perfected by the Communist.Maonang ang number one position na ilang pangitaon jud dili man Chairman o dili man Presidente. Ang ilang pangitaon kay SecreGeneral. Secretary lang man kaha na siya unsa mang kahadlokan nato sa iya? Mao nay nagkupkop sa records.He legalizes everything.

Assignment: research on the historical event of haymarket square. That is an important historical event for labor relations. When doccur? What country did it occur in? What are the consequences of its occurrence? What is the perspective now at history looking bac what happened in haymarket square? You cannot finish labor relations without knowing what happened in haymarket square.

Not paid compensation. And then the qualified formal requirement of the meeting that authorized payment of compensation & salarunion officers if the same were not provided by the constitution and by-laws but by the general assembly in a meeting duly called fopurpose.

Article 241(l) - 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 itsmembers 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 propertiesof the organization entrusted to his custody or under his control. The rendering of such account shallbemade:

1. At least once a year within thirty (30) days after the close of its fiscal year;2. At such other times as may be required by a resolution of the majority of the members of the organization; and 3. 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.

In case in the bar examination they ask you how many times is the treasurer of the union obliged or mandated to make a financaccount? That is Article 241(l).

These are the three instances:

1. At least one a year within 30 days after the close of the fiscal year. That is very easy to remember. Because as you very well know tis also the time within which the union must file a financial report to the Department of Labor at the end of the fiscal year. Have you up tax? Fiscal year is very crucial to taxation because that is the basis for the accounting period. The fiscal year has a difference as tocalendar year. But it may not begin and end with the calendar year. But it is related, that is, 365 days. That is the fiscal year, that is accounting period - the period within which you account for the financial story of a place. Now, 30 days from the close of the fiscal yeatreasurer of the union must make an account. So that is one instance.

2. At such other times as may be required by a resolution of the majority of the members of the organization. Is this absolute majority?it is just a quorum majority. So there is a very small quantum of votes needed to command the treasurer to make the report.

3. Upon vacating his office. The account shall be duly audited and verified by affidavits and a copy thereof should be furnished toSecretary of Labor. Why is this necessary? To put a closure to his accountability, and so that the incoming treasurer will not be penaliby the indiscretions of the predecessor, or so that the incoming treasurer will not be able to steal money and so is that predecessor, eith way so there must be closure. That is why he is commanded upon vacating the office to produce a financial report.

So that is the description of his duty. The treasurer of any organization and any officer thereof will be responsible for the account of sorganization for the collection, management, disbursement, custody or control of funds, money and other properties shall render toorganization and its members a true and correct account of all money received by him since he assumed office or since the last day which he rendered such account and/or bonds, securities and other properties of the corporation in his custody or under his control.

What is the fiscal year of the Ateneo? Is it the calendar year? No, it is not the calendar year. It is the academic year. It always begins Ju1 and it ends May 31. Most business establishments follow the calendar year. They begin January 1 and they end December 31.

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So did you read up on the Hay Market Massacre?

Where did that happen? In Chicago in 1886, at the heart of the Industrial Revolution.

How many people died there? Hundreds? Not hundreds.. 8.

That is the originin of Kilusang Mayo Uno because it happened on May 1. That is the beginning of the international labor movement ocommunist. That is why it is glorified because accdg. to the thinking of the Communist, it was the beginning of the end of the capilabor. With that came the Communist Manifesto: "workers of the world unite, you have nothing to lose but your chains." But it is because 100 years from then, who lost? It is still the capitalist who is around.

The Communist Int'l Labor Movement is gone. That is why they no longer want to put KMU.

We went through the prerogatives of labor union members under Art. 241. And we are down to this rule of requiring the treasurer olabor organization to make his reports under these three instances -- mandatory. And you have the right of inspection under letter M wmay be exercised by any officer or member thereof during office hours.

(m) The books of accounts and other records of the financial activities of any labor organization shall beopen to inspection by any officer or member thereof during office hours;

Now, you may look at the books. I believe the stockholders rights apply to this section. You cannot demand a copy, but you can copyyour own expense. And the union has the right to determine the time when they (books) are open for inspection, because if this right just be exercised at will, then the officers will have nothing to do but just opening the books. So it can be ordered in such a fashion thaimplementing law may provide.

Now, remember the rule of secret ballot voting in order to decide an issue affecting all the members. That is letter (D). Remember when you read letter (N). This is a specific rule with regard to special assessment. It says:

(n) No special assessment or other extraordinary fees may be levied upon the members of a labororganization unless authorized by a written resolution of a majority of all the members in a generalmembership meeting duly called for the purpose. The secretary of the organization shall record theminutes of the meeting including the list of all members present, the votes cast, the purpose of thespecial assessment or fees and the recipient of such assessment or fees. The record shall be attested to

by the president.So there is a need for voting and absolute majority. So there are even formal requirements when it comes to special assessme

in addition to the secret ballot voting required by letter (d). Then it says:

(o) Other than for mandatory activities under the Code, no special assessments, attorneys fees,negotiation fees or any other extraordinary fees may be checked off from any amount due to anemployee without an individual written authorization duly signed by the employee. The authorizationshould specifically state the amount, purpose and beneficiary of the deduction;

So when it is a special assessment or when it is atty's fees or negotiatition fees, or extraordinary fees, then aside from the secballot (in letter D), and the formal requirements (in letter N -- the secretary has to write down all thos who participated in the meetingthe attestation of the president, etc), additional requirement of INDIVIDUAL WRITTEN AUTHORIZATION DULY SIGNEDEMPLOYEE.

Now what happens if all vote and write the written authority and there is only one who does not want? Then he cannot be covered by special assessment ; he cannot be checked off by the employer. Check off means it will be deducted from the source by the employekuhaon na ba. Di na sya kakita ana, diretso na na sa union.

Now, that is why you have to read the ABS CBN case. That is the landmark case for special assessment. You will see those who did ngive their written authorization will not be covered by the special assessment.

So Korina Sanchez, Jay Sonza, Mel Tiangco filed a case that they should not be covered, and the Union could not prove that it wamandatory activity -- because it says "OTHER THAN for MANDATORY ACTIVITY". If it were a mandatory activity, you can cspecial assessment, this is the exception to the exception. But here, this was not a mandatory activity because it was attorney's fees fthe attorney who helped them negotiate their CBA.

What are these mandatory activities for which you can collect for special assessment without necessarily going through the formalitiindividual written authorization in letter O and N. That is answered in letter P:

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Any violation of the above rights and conditions of membership shall be a ground for cancellation ofunion registration or expulsion of officers from office, whichever is appropriate.

Normally it is the officers who are being penalized, because

Labor Relations - Hanniyah

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