UNIVERSITY OF SAN CARLOSSCHOOL OF LAWCEBU CITY

THE LABOR CODEWith Comments and CasesVolume II-ALABOR RELATIONS

Relevant Points Compiled-EH 302-SY 2014-2015

1) Ang 181-195Title IV Labor OrganizationChapter I: Registration and CancellationArt. 239-243Workers right to self-organization is guaranteed under Article XIII of the 1987 Constitution. The right includes the right to form, join or assist labor organization.See IRR for definitions of Labor Organization(LO), Legitimate Labor Organizations (LLO), Union, Exclusive Bargaining Representative (ERB), Workers Association and Legitimate Workers Association.Not every union is legitimate; only those properly registered are considered as LLO. Non-registration does not mean it is illegitimate, it simply is unregistered and has no legal personality. It exists legally but does not possess the rights of an LLO inter alia, it cannot petition for Certification Election, Request preventive mediation, or hold a legal strike.Not every LLO is the EBR. An EBR has to be an LLO, but not every LLO is an EBR. To be an ERB, union has to be duly registered and has to successfully go through the process of recognition or election.2 Broad Purposes of Labor OrganizationsAn LO is not always a union; it may be an association of employees. The LOs purpose is not only nor necessarily for collective bargaining but also dealing with employees concerning terms and conditions of employment. Both these purposes are concerned with terms and conditions. They are different since the former is a right acquired by an LLO while the latter is a generic description of interaction between employer and employees that may be exercised even if the employees group is not registered with DOLE.In the US, the NLRB has ruled that dealing with is a pattern or practice in which a group of employees, make proposals to management, and management responds to those proposals by acceptance or rejection by word or deed. An in-house committee, employees benefits and policy review committees, safety committee and brainstorming groups have been held to be dealing with.Along this line, the Labor-Management Council (LMC) carries the character of n LO. Since they are labor organization, they are covered by Articles 256-258 but cannot collectively bargain nor stage a strike.Labor-Management Cooperation Programs as well as Labor-Management Committees, Workers Associations are like LMC which are labor organizations but not unions.Classifications of LOAt the national level, they may be classified:1. National Union/Federation See IRR for definition Ex. Federation of Free Workers (FFW)1. Industry Union not defined in IRR. Azucena means any group of LLO operating within an identified industry, organized for collective bargaining or dealing with employers concerning terms and conditions of employment within an industry or for participating in the formulation of social and employment policies, standards and programs in such industry, duly registered with the Department.1. Trade Union Center group of national union/federation organized for the mutual aid and protection of its member, for assisting them in collective bargaining, or for participating in the formulation of social and employment policies, standards and programs.1. Alliance aggregation of unions existing in one line of industry or in a conglomerate, a group of franchisees, a geographical are or an industrial center. Unions or federations may form an alliance to help one another for a particular purpose. Each member union retain its own organization, structure and independence. An alliance cannot represent its member unions in CBA negotiations.1. Company-union LO which, in whole or in part, is employer-controlled or employer-dominated. It is prohibited by the Labor Code (art. 258d). Not to be confused with an inside union, which is a union comprised exclusively of employees of a given employer/s but is free from employer-influence and thus is a bona fide labor union.At the enterprise level1. Independent created by independent registration. See IRR for definition. Its legal personality is not derived from a federation. It may affiliate with a federation, then, it may also be called an affiliate.1. Chapter/Local/Chartered Local created by chartering. See IRR as amended by DO 40-B-03 (Fozs book is not updated) for definition Chartered Local, to wit: " refers to a labor organization in the private sector operating at the enterprise level that acquired legal personality through registration with the Regional Office in accordance with Rule III, Section 2-E of these Rules.Its legal personality is derived from a federation but it may subsequently register itself independently.The creation of enterprise-level unions was brought about by RA9481 also known as An Act Strengthening the Workers Constitutional Right to Self-Orgnaization which lapsed into law on May 25, 2007. Some of the changes brought about by the law are:1. No required number 20 percent requirement applies only to independent registration and not to chartering.1. Tentative Legal Personality Once issued a charter, Chartered Local has personality to file a petition for certification election (CE). All other rights of the chartered local are acquired by submitting the necessary documents:1. charter certificate1. names and addresses of officers and members of union (certified under oath by Secretary or Treasurer and attested by the president)1. constitution and by-laws(CBL) of the union which can be the same as that of the federation(certified under oath by Secretary or Treasurer and attested by the president)1. Specific Ground for Cancellation of Union Registration1. Petition for CE is not prevented by a petition to cancel union registration1. The Grounds for Cancellation of Union Registration4. Any falsehood about the CBL4. Any falsehood about the election of officers4. Voluntary Dissolution1. Cancellation by 2/3 vote of the membership to dissolve their organization requires subsequent submission by the board of the organization, attested by the president, of an application to cancel.1. Reportorial Requirements:6. Adoption or amendments to CBL6. Election of officers, with list of voters to be submitted in 30 days6. Annual financial reports within 30 days from close of fiscal year6. Annual list of membersNote: Non-submission of any above is no longer a ground to cancel registration but erring officer may be punished even by expulsion.1. Affiliation with Same Federation Supervisors union and rank and file union may affiliate with same federation. It abandons prohibition previously laid down by Supreme Court (SC).1. Commingling commingling of supervisors and rank and file in one union is not a ground to cancel registration. Excludible member is automatically deemed removed.1. Non-disclosure of identity If petition for CE in an organized enterprise is filed by the federation in behalf of chapter, the federation cannot be required to identify the chapters officers or members.1. Non-disclosure even in unionized company letter j. above applies even in an enterprise without yet a union as bargaining agent.1. Employer, a bystander employer has no right to oppose a petition for CE. Participation is limited to being informed and to be required to submit a list of employees if CE will be held.RegistrationNot every union is legitimate; only those properly registered are considered as LLO. Non-registration does not mean it is illegitimate, it simply is unregistered and has no legal personality. It exists legally but does not possess the rights of an LLO inter alia, it cannot petition for Certification Election, Request preventive mediation, or hold a legal strike.In PAFLU vs Secretary of Labor, the legality of the requirement to register labor unions was upheld. The Supreme Court said the registration required is not a limitation to the right of assembly or association. It is merely a sine qua non condition for the acquisition of legal personality and the possession of the rights and privileges granted by law to LLOs. Such requirement is a valid exercise of police power, because the activities LOs are engaged in affect public interest which should be protected.Applications for registrations shall be filed with:1. For independent labor unions, chartered locals and workers association Regional Office where applicant principally resides1. For federations, national unions or workers association operating in more than one region Bureau or the Regional Offices, but processed and acted upon by the BureauNote: LOs may be organized under the Corporation Code as a non-stock corporation but such incorporation does not grant it the rights and privileges of an LLO, although it acquires legal personality before regular courts of justice.Requirements for Registration: 1. Federation/ National Union -- (See IRR Book V Rule III Sec. 2 B)1. Independent Labor Union -- (See IRR Book V Rule III Sec. 2 A)1. Workers Association -- (See IRR Book V Rule III Sec. 2 C)1. Chartered Local (See IRR Book V Rule III Sec. 2 E as amended by D.O. 40-B-03, Fozs book is not updated) The chartered local must not only be reported but must be registered, thus necessitating the correction from the original Sec. 2-E. Sec. 2-E as amended reads:A duly registered federation or national union may directly create a chartered local by submitting to the Regional Offices two copies of the following:3. A charter certificate issued by the federation/national union indicating the creation or establishment of the local/chapter3. The names of the local/chapters officers, their addresses and the principal office of the local chapter; and3. The local/chapters constitution and by-laws, provided that where the local/chapters constitution and by-laws is the same as that of the federation or national union, this fact shall be indicated accordingly.All the foregoing supporting requirements shall be certified under oath by the Secretary or the Treasurer of the local/chapter and attested by its President.Although the law fixes no time for the submission of the required documents for a chartered local, the IRR requires the documents to be submitted within 30 days from receipt of notice from the Regional Office. Is the rule valid? Yes, the Supreme Court has upheld the validity of such in a similar challenge to D.O. 40-03. It said Our courts do not formulate public policy, which is the province of the legislative and executive department. It is not for us to question the change in policy, it being a well-established principle beyond question that is it not within the province of the courts to pass judgments upon the policy of legislative or executive action.Trade Union Centers cannot create a local chapter as decided by the Supreme Court.When does a Chapter Become an LLO? Not from the date of filing of the complete documents but from the date of its issuance of its certificate of registration or certificate of creation of chartered local. Is the registration of a chartered local a ministerial function? No, with the shift from the date of submission to the date of issuance of certificate of registration.(Personal Note: For the 2 questions above the ruling in SAN MIGUEL CORP., VS. MANDAUE PACKING PRODUCTS, G.R. NO. 152356, AUGUST 16, 2005, the first case assigned to us cannot be used as a basis because the in that case, the petition for CE was filed in 1998 when D.O. no. 9 was still in effect rather than D.O. no. 40, which only took effect in February 2003. Thats why there may be a difference in the answers of Azucena from the ruling of the case)

2) Atienza 196-2115.4h Requirements Relaxed

The creation of a local does not need subscription by a minimum number of members. The 20 percent initial membership mentioned in article 239(c) is required to register an independent union but not a local. This makes it easier to create a chapter than an independent union, thus expediting the growth of federations or national unions.

The current Implementing Rules (D.O. No. 40, issued in 2003( does not revive the books-of-account requirement in registration.

5.4i Withdrawal by Members

IF withdrawal is done before the application for registration is filed, the withdrawal is presumed voluntary and it may prejudice the registrability of the applicant union. On the other hand, if the withdrawal is done after the application is filed, the withdrawal is considered involuntary and does not affect the registration application.

5.5 Union's Legitimacy not Subject to Collateral Attack

After stating that the union acquires legal personality on the date its registration certificate is issued, Sec. 8, Rule IV of D.O. 40-03 further states: Such legal personality may be questioned only through an independent petition for cancellation of union registration in accordance with Rule XIV of these Rules, and not by way of collateral attack in [the] petition for certification election proceedings under Rule VIII.

6. COLLECTIVE BARGAINING UNIT (CBU)

Bargaining Unit refers to a group of employees sharing mutual interests withing a given employer unit, compromised of all or less than all of the entire body of employees the employer unit or any specific occupational or geographical grouping withing such employer unit.

It may be all supervisors or all the rank-and-file in the company, but the law does not allow supervisors and rank-and-file to belong to the same bargaining unit. Or the unit may be an identifiable smaller group of supervisors or smaller group of rank-and-file workers.

Can there be several bargaining units of supervisors or of rank-and-file in just one company? Yes, because of several reasons. But the DOLE policy favors the creation of only one CBU in one company, i.e., only one for rank-and-file and another one for the supervisors.

One bargaining unit may be as numerous as thousands of employees or less than a hundred. The law fixes no minimum or maximum number. Whatever the number, twenty percent thereof should be members of the independent union applying for registration.

The representative union, once determined, will represent even the members of other unions as long as they are part of the CBU.

7. CONSTITUTION, BY-LAWS, AND REGULATIONS

Another registration requirement is the submission of the constitution and by-laws (CBL) of the applicant union.

Like other voluntary associations, labor unions have the right to adopt constitutions, rules, and by-laws within the scope of the lawful purposes of the union and bind their members thereby, provided they are reasonable, uniform, and not discriminatory, and provided they are contrary to public policy or the law of the land.

The articles of agreement of a labor union, whether called a constitution, charter, by laws, or any other name, constitutes a contract between the members which the courts will enforce, if not immoral or contrary to public policy or the law of the land.

A union's constitution and by laws govern the relationship between and among its members. As in the interpretation of contracts, if the terms are clear and leave no doubt as to the intention of the parties, the literal meaning of the stipulation shall control.

A union member who is entitled to a benefit under the union by-laws has the right to file a complaint against the union itself to claim such benefit.

7.1 Limitation to By-laws

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

Under article 234(e) it is implied that the members are the ones to adopt or ratify the union's constitution and by-laws. It being the governing law of the union, the CBL should be democratically ratified.

7.2 Amendments

In the absence of other requirements, and subject to vested rights, union constitution may be made, changed, unmade, or suspended by a majority vote of the members or its constituent body.

Under Article 241(d), major policy questions are to be deliberated upon and decided by secret ballot by the members.

8. PROVISIONS COMMON TO THE REGISTRATION OF LABOR ORGANIZATIONS AND WORKERS' ASSOCIATION

8.1 Attestation, Fee, Copies of Documents

The application for registration of labor unions and workers' associations, notice for change of name, merger, consolidation and affiliation including all the accompanying documents, shall be certified under oath by its Secretary or Treasurer, as the case may be, and attested to by its President.

A labor union and workers' association shall be issued a certificate of registration upon payment of the prescribed registration fee.

One (1) original copy and two (2) duplicate copies of all documents accompanying the application or notice shall be submitted to the Regional Office or the Bureau.

8.2 Action on the Application/Notices

The Regional Office or the Bureau, as the case may be, shall act on all applications for registration or notice of change of name, affiliation, merger and consolidation within ten (10) days from receipt either by: (a) approving the application and issuing the certificate of registration/acknowledging the notice/report; or (b) denying the application/notice for failure of the applicant to comply with the requirements for registration/notice.

8.3 Denial of Application/Return of Notice

Where the documents supporting the application for registration/notice of change of name, affiliation, merger and consolidation are incomplete or do not contain the required certification and attestation, the Regional Office or the Bureau shall, within five (5) days from receipt of the application/notice, notify the applicant/labor organization concerned in writing of the necessary requirements and complete the same within thirty (30) days from receipt of notice. Where the applicant/labor organization concerned fails to complete the requirements within the time prescribed, the application for registration shall be denied, or the notice of change of name, affiliation, merger and consolidation returned, without prejudice to filing a new application or notice.

8.4 Appeal

The denial by the regional office may be appealed to the Bureau and then to the Court of Appeals. The appeal should be filed within ten (10) days from receipt of such notice, on the ground of grave abuse of discretion or violation of these Rules.

The memorandum of appeal shall be filed with the Regional Office or the Bureau that issued the denial/return of notice. The memorandum of appeal together with the complete records of the application for registration/notice of change of name, affiliation, merger or consolidation, shall be transmitted by the Regional Office to the Bureau or by the Bureau to the Office of the Secretary, within twenty-four (24) hours from receipt of the memorandum of appeal.

The Bureau or the Office of the Secretary shall decide the appeal within twenty (20) days from receipt of the records of the case.

(sidebar pg 201) Some Reasons for Joining a Union

1. Need to improve conditions2. Discontent with wages3. Inadequate benefits4. No feeling of justice5. Insecurity6. Poor supervision7. Lack of communication

9. AFFILIATION

An affiliate is an independently registered union that enters into an agreement affiliation with a federation or a national union. It also refers to a chartered local which applies for and is granted an independent registration but does not disaffiliate from its mother federation or national union.

The mother union shares in union dues collection as it extends its helping hand, while the daughter draws support and guidance from the mother's wealth of experience or legal advice.

According to Article 243, a federation or national union, to be registerable or to remain registered, should have as affiliates no less than ten locals or chapters, each of which is a duly recognized bargaining agent in the establishment where it operates.

9.1 Principal-Agent Relationship

The relationship between a local or chapter and the labor federation or national union is generally understood to be that of agency, where the local is the principal and the federation the agent.

Affiliation by a duly registered local union with a national union or federation does not make the local union lose its legal personality. Despite affiliation, the local union remains the basic unit free to serve the common interest of all its members.

9.2 Report of Affiliation; Requirements

An independently registered labor union affiliating with a federation or national union is required to report such affiliation. The report shall be filed with the Regional Office that issued its certificate of registration.

The report of affiliation of independently registered labor unions with a federation or national union shall be accompanied by the following documents:

(a) resolution of the labor union's board of directors approving the affiliation;

(b) 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; and

(e) written notice to the employer concerned if the affiliating union is the incumbent bargaining agent.

10. DISAFFILIATION

It has been repeatedly held that a local union, being a separate and voluntary association, is free to serve the interest of all its members including the freedom to disaffiliate when circumstances warrant. This right is consistent with the constitutional guarantee of freedom of association.

Admittedly, there are times when without succor and support local unions may find it hard, unaided by other support groups, to secure justice for themselves. Yet the local unions remain the basic units of association, free to serve their own interests subject to the restraints imposed by the constitution and by-laws of the national federation, and free also to renounce the affiliation upon the terms laid down in the agreement which brought such affiliation into existence. In other words, to disaffiliate is a right, but to observe the terms of affiliation is an obligation.

Neither is disaffiliation from the federation, alleged as an act of disloyalty, a sufficient ground for dismissal from employment. A local union which has affiliated itself with a federation is free to sever such affiliation or declare its autonomy from the federation to which it belongs when the circumstances so warrant, in accordance with the constitutional guarantee of freedom of association.

Disaffiliation of employees from their mother union and their formation into a new union do not terminate their status as employees of the corporation as the employees and members of the local union did not form a new union but merely exercised their right to register their local union.

However, the disaffiliating must itself be a registered union. If unregistered, it is not a legitimate labor organization. For this reason, it has no legal personality and does not possess the rights granted under Article 250.

Case (pg 205): Liberty Cotton Mills Worker's Union vs Liberty Cotton Mills, Inc., G.R. No. L-33987, September 4, 1975.

[super short version, personal notes: Local union represented by a national federation was recognized as sole bargaining agent. 32 out of 36 members of local union disaffiliated from the mother federation. Mother federation, because of union security clause recommended that the employer terminate employees. Court held that local union is principal and national federation is agent and since the majority wanted to disaffiliate, dismissal was unjustified.]

Case (pg 205-206): Tropical Hut Employees Union-CGW, et al. vs Tropical Hut Food Market, Inc., et al., G.R. Nos. L-43495-99, January 20, 1990.

[super short version, personal notes: Local union left old federation and joined a new one. In the absence of enforceable provisions in the federation's constitution preventing disaffiliation of a local union, a local may sever its relationship with its parent. Also, mother federation wasn't registered with the Department of Labor and therefore didn't have legal personality to enforce its constitution (ooops) and the ground was on a technicality in their constitution which cannot rise above the fundamental right to self organization]

10.1 When to Disaffiliate

Generally, a labor union may disaffiliate from the mother union to form a local or independent union only during the 60-day freedom period immediately preceding the expiration of the CBA.

But even before the onset of the freedom period (and despite the closed shop provision in the CBA between the mother union and management) disaffiliation may still be carried out, but such disaffiliation must be effected by a majority of the members in the bargaining unit.

This ruling, this writer believes, is true only if the contract of affiliation does not specify the period. If it does, the stipulation must be observed.

10.2 Disaffiliation must be by Majority Decision

An individual member or any number of members may disaffiliate from the union during the freedom period. But disaffiliating the union itself from its mother union must be supported by the majority of the members. If done by a minority, even during the freedom period, the act may constitute disloyalty. The minority members breaking away at the wrong time may be expelled from the union and, because of union security clause, may be removed from their employment.

Case (pg 207) Villar, et al. vs Inciong, etc., G.R. Nos. L-50283-84, April 20, 1983.

[super short version, personal notes: petitioners were the minority that wanted to disaffiliate from the mother federation and filed a petition for certification election during freedom period. Court said that it would have been ok if they disaffiliated themselves but their actions indicated that they were disaffiliating the local union from the mother federation without the concurrence of the majority. Mother union recommended that employers terminate employment of Villar, et al.]

10.3 Disaffiliation: Effect on Union Dues

The obligation of an employee to pay union dues is co-terminus with his affiliation or membership. The employees' check-off authorization, even if declared irrevocable, is good only as long as they remain members of the union concerned.

A contract between an employer and the parent organization as bargaining agent for the employees is terminated by the disaffiliation of the local of which the employees are members.

A local union which has validly withdrawn from its affiliation with the parent association and which continues to represent the employees of an employer is entitled to check-off dues under a CBA.

10.4 Disaffiliation: Effect on Existing CBA; the Substitutionary Doctrine

The substitutionary doctrine provides that the employees cannot revoke the validly executed collective bargaining contract with their employer by the simple expedient of changing their bargaining agent.

10.5 Employer Not a Party

The issue of affiliation or disaffiliation is an intra-union dispute that must de resolved in an action at the instance of the federation or the union or a rival labor organization, not the employer.

10.6 Affiliation/Disaffiliation: A Summary

A local union may affiliate or disaffiliate from a federation. But affiliation and disaffiliation entail rights and obligations. Internally, between the union and its members affiliation/disaffiliation is a major issue that can only be decided by a majority of the members through a secret balloting in a formal meeting duly called for the purpose. Externally, between the chapter and the federation, affiliation/disaffiliation is a contractual relation. Assuming that the elements of a valid contract exist, the contractual rights and obligations must be complied with. The affiliation contract cannot absolutely prohibit disaffiliation but may impose limitations or restrictions. It may specify the number or proportion of votes needed, or the appropriate period to disaffiliate. By affiliating or disaffiliating, the local union ford not dissolve itself nor does it lose its standing as the principal; the federation is the agent. But the local union, even a local chapter, must be a legitimate labor organization.

11. REVOCATION OF CHARTER

A federation, national union or workers association may revoke the charter issued to a local/chapter or branch by serving on the latter a verified notice of revocation, copy furnished the Bureau, on the ground of disloyalty or such other grounds as may be specified in the constitution and by-laws of the federation, national union or workers association. The revocation shall divest the local/chapter of its legal personality upon receipt of the notice by the Bureau, unless in the meantime the local/chapter has acquired independent registration in accordance with these Rules.

11.1 Effect of Cancellation of Registration of Federation or National Union on Locals/Chapters

The cancellation of registration of a federation or national union shall operate to divest its locals/chapters of their status as legitimate labor organizations, unless the locals/chapters are covered by a duly registered collective bargaining agreement. In the latter case, the locals/chapters shall be allowed to register as independent unions, failing which they shall lose their legitimate status upon the expiration of the collective bargaining agreement.

12 MERGER OR CONSOLIDATION

Merger of labor organizations is the process where a labor organization absorbs another, resulting in the cessation of the absorbed labor organization's existence and the continued existence of the absorbing labor organization. Another name for merger is absorption.

Consolidation of unions refers to the creation or formation of a new union arising from the unification of two or more unions. Another name for consolidation is amalgamation.

Why do unions merge? First, a small union may merge with a larger union in order to gain access to greater resources and expertise. Second, unions that have traditionally competed with each other for members may merge in order to eliminate inter-organizational conflicts; resources that have been used to compete with a rival union could be used for more constructive purposes once the rivals have merged. Third, unions whose members' skills have been outmoded by technological and economic changes may merge with a stronger union in order to maintain job security and institutional survival.

3) Barte 212-22612.1 Notice of Merger/ Consolidation of Labor Organization; Where to file Independent Labor Unions, Chartered Locals and workers Association It shall be filed with and recorded by the Regional Office that issued the certificate of registration/ certificate of creation of chartered local of either the merging or consolidation labor organization Federations or National Unions It shall be filed with and recorded by the Bureau12.2 Requirements of Notice of Merger/Consolidation1. The minutes of merger/ consolidation convention or general membership meetings of all merging/ consolidating labor organizations, with the list of their respective members who approved the same1. The amended constitution and by-laws and minutes of its ratification, unless ratification transpired in the merger/ consolidation convention, which fact shall be indicated accordingly.13. CHANGE OF NAMEThe notice of change of name of a registered labor organization shall be filed with the Bureau of the Regional Office where the concerned labor organizations certificate of registration or certificate of creation of chartered local was issued.Accompanied by the proof of approval or ratification of change of name and the amended constitution and by-laws13.1 Effect: It shall not affect its legal personality. All the rights and obligations of a labor organization under its old name shall continue to be exercised by the labor organization under its new name.ART 244 CANCELLATION OF REGISTRATIONART. 245 EFFECT OF PETITION FOR CANCELLATION OF REGISTRATIONART. 246 GROUNDS FOR CANCELLATION OF UNION REGISTRATIONART. 247 VOLUNTARY CANCELLATION OF REGISTRATION 1. CANCELLATION OF REGISTRATION; GROUNDS While registration is the act that converts a labor organization to a legitimate labor organization, cancellation is the governments act that divest the organization of that status. It thereby reverts to its character prior to registration Although it does not cease to exist or become an unlawful organization, its juridical personality as well as its statutory rights and privileges is suspended. It loses entitlement to the rights enumerated in Art 242 It cannot demand recognition by or bargaining with the employer, cannot file a petition for certification election and cannot strike. Through RA. No. 9481, the ten grounds mentioned in the unamended Article 239 have been reduced to three.1. Two pertain to misrepresentation about the union constitution or by-laws or about election of officers1. The third mode is by the desire of the union members themselvesRequisites1. The members desire to dissolve or cancel the registration of their union should have been voted upon through secret balloting [ Art 241(d)]1. The balloting should take place in a meeting duly called for the purpose of deciding whether or not to dissolve the union1. The vote to dissolve should represent two-thirds affirmative vote of the general membership. Not just of the quorum 1. The members resolution should be followed by an application for cancellation passed and submitted by the union governing board, which application may be attested to by the president1.1 Invalid grounds Illegal strike is not reason to cancel a unions registration Non-renewal of registration/permit will not cause dismissal of the case filed by the union, provided that when it filed the petition, it had the juridical personality and the court acquired jurisdiction over the caseThe case could continue without need of substitution of parties, but the decision to be rendered would bind only those union members who had not withdrawn from the case before its trial and decision on the merits1.2 Deleted Grounds Cabo Refers to a person or group of persons or to a labor group, which, in the guise of a labor organization, supplies workers to an employer, with or without any monetary or other consideration whether in a capacity of an agent of the employer or as an ostensible independent contractor. Sweetheart Contract A CBA which provides for terms and conditions of employment below minimum standards established by law Asking for or accepting attorneys fees or negotiation fees from the employer Still exists because the Labor Code itself in Art 249 prohibits it as a ULP act R.A No. 9481 has spared Art 249 30% of the members supports the petition [Art 241] Failure to submit annual documentary reports [Art 242-A]1.3 Administrative Cancellation; the reportorial requirementsEvery legitimate labor union and workers association has the duty to submit to the Regional Office or the Bureau, 2 copies of each of the following documents:1. Any amendment to its constitution and by-laws and the minutes of adoption or ratification of such amendments, within 30 days from its adoption or ratification1. Annual financial reports within 30 days after the close of each fiscal year or calendar year1. Updated list of newly elected officers, together with the appointive officers or agents who are entrusted with the handling of funds, within 30 days after each regular or special election of officers of from the occurrence of any change in the officers or agents of the labor organization or workers association1. Updated list of individual members of chartered locals , independent unions and workers associations within 30 days after the close of each fiscal year1. Updated list of its chartered locals and affiliates or member organization, collective bargaining agreements executed and their effectivity period, in the case of federations or national unions, within 30 days after the close of each fiscal year, as well as the updated list of their authorized representatives, agents, or signatories in different regions of the country.The fiscal year of a labor organization shall coincide with the calendar year, unless a differs period is prescribed in the constitution and by-lawsFailure of the labor organization to submit the reports mentioned above for 5 consecutive years authorizes the Bureau to institute cancellation proceeding upon its own initiative or upon complaints by any party in interest1. FILES PETITION FOR CANCELLATION Any party in interest may commence a petition for cancellation of a unions registrationJurisprudenceProgressive Development Corporation vs Secretary of Labor Where the employer sought and won the cancellation of the unions registration on the ground that it failed to submit the required documents, such as books of accounts and the union by-laws, when it applied for registrationToyota Motor Philippine Corp. vs. Toyota Corp. Philippine Labor UnionWhere the employer questioned the inclusion of some supervisors in the rank and file union. The petition filed by the employer led to the divestment of legal personality of the union because its mixed membership makes it not a labor organization at all.The petition to cancel shall be under oath and shall state clearly and concisely the facts and grounds relied upon, accompanied by proof of service to the respondent. But such petition should be a separate action; it cannot be entertained in the petition for certification election filed by the union1. WHERE TO FILE PETITIONSubject to the requirement of Notice and Due Process, the registration of any legitimate independent labor union, chartered local and workers association may be cancelled by the regional director, or in the case of federation, national or industry union and trades and trade union centers, by the Bureau Director, upon the filing of an independent complaint or petition for cancellation.Cancellation orders issued by the Regional Director are appealable to the BLR. The latters decision id final and executory, hence not appealable to the DOLE secretary but it may be elevated tot eh Court of Appeals by certiorari. BLR decisions on cancellation cases that originated at the BLR itself may be appealed to the Secretary by certiorari to the CA.1. PROCEDUREThe rules of procedure in cancellation case are those applicable to inter/intra union disputes in general under ART 226

ART 248 EQUITY OF THE INCUMBENT

Chapter IIRIGHTS AND CONDITIONS OF MEMBERSHIPART 249 RIGHTS AND CONDITIONS OF MEMBERSHIP IN A LABOR ORGANIZATION1. DEMOCRATIZATION OF UNION Unionization transforms the weakness of the individual into the strength But, as unionisms aim is to install industrial democracy, the union themselves must be democratic. To democratize the union, it requires the union members to elect their officers every 5 years through secret balloting. Election of officers is the heart of union democracy. Further stressing union democracy explicitly grants policy-approving power of the members. They determine any question of major policy through deliberations and secret balloting The union are the keepers and dispensers of official authority in the union. The governing power is the members, not the officers.

1. NATURE OF RELATIONSHIP BETWEEN UNION AND ITS MEMBERSThe union has been evolved as an organization of collective strength for the protection of labor against the unjust exaction of capital, but equally important is the requirement of fair dealing between the union and its members, which is fiduciary in nature, and arises out of two factors: One is the degree of dependence of the individual employee on the union organization The comprehensive power vested in the union with respect to individualThe union may be considered but the agent of its members for the purpose of securing for them fair and just wages and good working conditions. As an agent, the union is subject to the obligation of giving the members as its principals all information relevant to union and matters entrusted to it.2.1 Duty of Court To Protect Laborers From Unjust Exploitation By Oppressive Employers And Union LeadersFair dealing is equally demanded of unions as well as of employers in their dealing with their employee. Where the union leadership as in this case at bar was recreant in its duty towards the union members, the courts must be vigilant to protect the individual interests of the union members. The union officer cannot refuse to grant a benefit or assistance to which a union member is entitled under the union constitution and by-laws. The union constitution is a covenant between the union and its members and among the members. 1. RIGHTS OF UNION MEMBERS1. Political right- the members right to vote and be voted for, subject to lawful provisions on qualifications and disqualifications.1. Deliberative and decision making right- the members right to participate in deliberations on major policy questions and decide them by secret ballot1. Rights over money matters- the members right against excessive fees; the right against unauthorized collection of contributions or unauthorized disbursements; the right to require adequate records of income and expenses and the right of access to financial records, the right to vote on officers compensation; the right to vote on proposed special assessments and be deducted a special assessment only with the members written consent.1. Right to information- the members right to be informed about the organizations constitution and by-laws and the CBA and about labor laws.Membership in the union does not divest the members of their primary standing as employees. In this capacity, an individual stands apart from the union. He has a personality and the right to make individual personal representation to the employer. The worker is an employee first and a union member second. As between the members and the union, the members are the principal, the union is the agent or representative. The sovereign power emanates from the people is as true as true in a state as it is in a labor union. 3.1 Eligibility for MembershipWhen, how and under what conditions does an employee become a union member? The answer depends on the unions constitution and by-laws inasmuch as Art 259 gives a labor organization the right to prescribe its own rules for the acquisition or retention of membership. An employee is qualified for union membership starting on the first day of service. An employees membership in a union however does not necessarily mean coverage by the CBA, if one exists. The CBA defines its coverage as agreed by the parties. It may state that it covers only regular employees, thus excluding the probationary employees, and even among regular employees, it may exclude certain positions or jobholders. Qualifying for union membership therefore does not necessarily mean inclusion in the coverage of the CBA. The reverse is equally true: membership in the CBU does not automatically mean membership in the union. Example: members of certain religious sects do not join unions although they are members of the bargaining unit. CBU members vote to select a bargaining union or to ratify the CBA. But only union members can vote to elect union officers, to strike or not to strike, or to decide major policy issues in the union. Summary: Inclusion in the CBU depends on the determination of its appropriateness under Art 239 and 266 Inclusion or membership in a union depends on the union constitution and by-laws, without prejudice to Art 291c Inclusion or coverage in the CBA depends on the stipulations of the CBA itself.

4. ELECTION OF UNION OFFICERS The officers of the union are elected directly by the members in secret ballot voting. The election takes place at intervals of 5 years which is the term of office of the union officers including those of national union, federation or trade union center. What positions to fill up, where and how the election should be done are matters left by the law to the unions constitution and by-laws or to agreement among the members. Only in the absence thereof will the Implementing Rules of Book V will apply. The Implementing Rules require the incumbent president to create an election committee within 60 days before expiration of the incumbent officers term. The rules specify the composition as well as the powers and duties of the election committee, but its rules and actions cannot contradict the Labor Code mandates. If the officers with expired term do not call an election, the remedy according to Rule XII is for atleast 30% of the members to file a petition with the DOLE Regional Office. The members frustration over the performance of the union officers, as well as their fear of a fraudulent election to be held under the latters supervision, does not justify disregard of the unions constitution and by- laws.

4.1 Eligibility of VotersOnly members of the union can take part in the election of union officers.US Federal Law: in any election required to be held by secret ballot, every member in good standing must have the right to vote for, or otherwise support the candidates of his choice without being subject to penalty, discipline or improper interference or reprisal of any kind by the union or any member thereof.Every member in good standing is entitled to one voteA member in good standing is any person who has fulfilled the requirements for membership in the union and who has neither voluntarily withdrawn from membership nor been expelled or suspended from membership after appropriate proceedings consistent with the lawful provisions of the unions constitution and by-laws. A labor organization may prescribe reasonable rules and regulations with respect to voting eligibility.While the right to vote may thus be deferred within reasonable limits, a union may not create special classes of non-voting membersA labor organization may condition the exercise of the right to vote on the payment of dues, since paying dues is a basic obligation of membership.2 qualifications1. Any rule denying dues-delinquent members the right to vote must be applied uniformly1. Members must be afforded a reasonable opportunity to pay dues, including a grace period which dues may be paid without any loss of rightsSubmission of the employees name with the Bureau of Labor Relations as qualified members of the union is not a sine qua non to enable said members to vote in the election of the unions officers.

4) Basadre 227-2414.2 Union officer must be an employeeIRR, Book V, Rule II, Sec. 3 [f] One should be employed in the company to qualify as officer of a union in that company. Although subsequent department orders deleted this provision, the membership qualification remains because it is required in the Code itself, in Art 241 (c), second sentence.4.3 Disqualification of Union OfficersArt. 241 (f). No person who has been convicted of a crime involving moral turpitude shall be eligible for election as a union officer or for appointment to any position in the union. Crime involving moral turpitude- characterized by an act of baseness, vileness or depravity in the private or social duties which a man owes his fellowmen, or to society in general, contrary to accepted and customary rule of right and duty between man and man, or conduct contrary to justice, honesty, modesty, or good morals.Art. 241 (e). No labor organization shall knowingly admit a member or continue in membership any individual who belongs to a subversive organization or who is engaged directly or indirectly in any subversive activity. One who cannot be a member cannot be a candidate for an office.4.4 Union Election Protest: Proclamation of Winners A protest regarding election of union officers is treated in the IRR as an intra/inter-union dispute. (Rule XI of D.O. No. 40-03 applies)5. ACTION AGAINST UNION OFFICERS- A union officer, after his election, may not be expelled from the union for past malfeasance or misfeasance. To do so would nullify the choice made by the union members.- Remedy against erring union officers is not referendum but expulsion.Kapisanan na Manggagawang Pinagyakap vs. Trajano (143 SCRA 236)If the union officers were guilty of the alleged acts imputed against them, the DOLE Sec. should have meted out the appropriated penalty on them, i.e., to expel them from the Union and not call for a referendum to decide the issue. Where the people have elected a man to office, it must be assumed that they did this with the knowledge of his life and character and that they disregarded or forgave his faults or misconduct if he had been guilty if any.6. DUE PROCESS IN IMPEACHMENTLitton Mills Employees Association-Kapatiran vs. Ferrer- Calleja, L-78061 (1988) there must be substantial compliance with the impeachment procedure as provided by the unions constitution and by-laws.

7. EXPULSION OF MEMBERA member of a labor union may be expelled only for a valid cause and by following the procedure outlined in the constitution and by-laws of the union.Ferrer et al. vs. NLRC-If after an investigation the petitioners were found to have violated union rules, then and only then should they be subjected to proper disciplinary measures.-Expulsion of a member for arbitrary or impetuous reason may amount to unfair labor practice by the union. This matter is taken up in the chapter on U.L.P. particularly Article 259.8. RELIEF WITHIN THE UNIONGeneral Rule: Redress must first be sought within the union itself in accordance with its constitution and by-laws.Exceptions: Where exhaustion of remedies within the union itself would practically amount to a denial of justice, it would not be insisted upon, as a condition to the right to invoke the aid of a court.Kapisanan ng mga Manggagawa sa MRR vs. Hernandez 20 SCRA 109In the case, noteworthy is the fact that the complaint was filed against the union and its incumbent officers, some of whom were members of the board of directors. The constitution and by-laws of the union provide that charges for any violations thereof shall be filed before the said board. But as explained by the lower court, if the complaints had done so the board of directors would in effect be acting as respondent investigator and judge at the same time. To follow the procedure indicated would be a farce under the circumstances, where exhaustion of remedies within the union itself would practically amount to a denial of justice or would be illusory or vain, it will not be insisted upon, particularly where property rights of the members are involved, as a condition to the right to invoke the aid of a court. When there is violation of due processVerceles, et al. vs, BLRThe union members have chronicled from the very beginning that they were indefinitely suspended without the benefit of a formal charge sufficient in form and substance. The rule on exhaustion of administrative remedies cannot squarely apply to them.9. CONSEQUENCE OF VIOLATION OF RIGHTSa) Cancellation of the union registrationb) Expulsion of the culpable officersHowever, another view holds that Art. 244 and 247 limit to only three the grounds for cancellation of union registration and violation of Article 249 is not one of the three.Exception: when 30 % not requiredThe 30% requirement is not mandatory. It states that a report of a violation of rights and conditions of membership in a labor organization may be made by at least thirty percent of all the members of a union or any member or members especially concerned. The use of the word may negates the notion that the assent of 30% of all members is mandatory. More decisive is the fact that the provision expressly declares that the report may be made, alternatively by any member or members specially concerned. And further confirmation that the assent of 30% of the union members is not a factor in the acquisition of jurisdiction by the BLR is furnished by Art. 226 of the same Labor code, which grants original and exclusive jurisdiction to the Bureau, over all inter-union and intra-union conflicts, and all disputes, grievances or problems arising from or affecting labor management relations, making no reference to any such 30% support requirement. (Verceles, et al. vs. BLR)10. VISITORIAL POWERArticle 288 authorizes the SOLE or his duly authorized representative to inquire into the financial activities of any labor organization on the basis of a complaint under oath, supported by a 20 percent of the membership in order to determine compliance or noncompliance with the laws and to aid in the prosecution of any violation thereof.11. CHECK-OFFS AND ASSESSMENTSA check-off is a method of deducting from an employees pay at prescribed period, the amounts due the union for fees, fines, or assessments. The right of a union to collect union dues is recognized under Article 291 (a).Art. 113, one of the lawful deductions from employees wage is for union dues, in cases where the right of the worker or his union to check-off has been recognized by the employer or authorized in writing by the individual worker concerned. But the amount of union dues must be reasonableArt. 249, prohibits the imposition of excessive or arbitrary fees. The amount and collection of union dues are questions that affect the entire membership; hence, they have to be approved by the members themselves. [Art. 249 (d)]Assessments, like Dues, may also be Checked-offDues- payments to meet the unions general and current obligations. The payment must be regular, periodic, and uniform. Payment used for a special purpose, especially if required only for a limited time, are regarded as assessment.Art. 249- No special assessment, attorneys fees, negotiation fees or any other extraordinary fees may be checked off from any amount due an employee without individual written authorization duly signed by the employee. The authorization should specifically state the amount, purpose and beneficiary of the deduction.Attorneys fees may not be deducted or checked off from any amount due to an employee without his written consent, except for mandatory activities under the code.Mandatory Activity- is a judicial process of settling dispute laid down by the law. An amicable settlement entered into by the management and the union is not a mandatory activity under the code. Moreover, the law explicitly requires the individual written authorization of each employee concerned, to make the deduction of attorneys fees valid.Deductions for union service fee are authorized by law and do not require individual check-off authorizations.However, the benefits awarded to the employees formed part of the collective bargaining negotiations although placed under compulsory arbitration. Notwithstanding its compulsory nature, compulsory arbitration is not the mandatory activity under the Code which dispenses with individual written authorizations for check-offs. It is a judicial process of settling deputes laid down by law. Besides, Art. 288 (b) does not except a CBA later placed under compulsory arbitration, from the ambit of its prohibition. In other words, individual written authorizations are needed to deduct from members salary the attorneys fee for concluding a CBA although compulsory arbitration.Special Assessment may be checked-off, but Art. 249 should be carefully complied with.Palacol, et al. vs. Pura Ferrer-Calleja, et al.The court strikes down the questioned special assessment for being a violation of Art. 249, par. (n) and (o), and Art. 228 (b) of the Labor Code.Ruling: 1. Requirements- The failure of the Union to comply strictly with the requirement set out by the law invalidates the questioned special assessment. Substantial compliance is not enough in view of the fact that the special assessment will diminish the compensation of the union members. Their express consent is required, and this consent must be obtained in accordance with the steps outlined by law, which must be followed to the letter. No shortcuts allowed. [Requirements under Article 249 (n) and (o) were violated in this case] 2. Effects of withdrawal of authorizations.- The withdrawal of the authorization is equivalent to no authorization at all. (See Art 249 paragraphs (n) and (o) requirements)3. Forms of disauthorizations.- There is nothing in the law which requires that the disauthorizations must be in individual form. It can be collective.4. Purpose of the special assessment.- xxx5. Art. 228 (b) of the Labor Code, similar charge.- The collection of special assessment partly for the payment services rendered by union officers, consultants and others may not be in the category of attorneys fees or negotiation fees. But there is no question that it is an exaction which falls within the category of a similar charge, and, therefore, within the coverage of the prohibition in the aforementioned article.6. Unlimited discretion of union president, disallowedThree Requisites to Collect Special Assessment (to be valid)a) Authorization by a written resolution of the majority of all the members at the general membership meeting duly called for the purpose;b) Secretarys record of the minutes of the meeting;c) Individual written authorization for check-off duly signed by the employee concerned.

>Article 249 (n and o)- Authorization should proceed form FREE CONSENT

>Check-off of agency fee- another allowable deduction from ees wage is agency fee. This is an amount equivalent to union dues, which a nonunion member pays to the union because he benefits from the CBA negotiated by the union. It is agency fee because in negotiating the CBA the union served as the employees agent. (Art 258 (e)

>Illegal check-off is a ground for cancellation of union registration (Art 246 (h) amended by R.A.9481)- on the part of the Employer, illegal check-off may give rise to a charge of illegal deduction, in violation of Art. 113.

>Employers Liability in Check-off Arrangement- Employers failure to make the requisite deductions may constitute a violation of a contractual commitment for which it may incur liability for unfair labor practice. But the employer does not, by that omission, incur liability to the union for the aggregate of dues or assessments uncollected from the union members or agency fees for non-union employees.

>Jurisdiction over Check-off DisputesThe Regional Director of DOLE, not the labor arbiter, has jurisdiction over check-off disputes. Under Art. 241 of the Labor Code, the Bureau of Labor Relations has jurisdiction over cases of violations thereof and to meet the appropriate penalty. The complaint of union members against a union resolution checking off 10% of their CBA benefits is not a money claim against the employers, even if the employer is named as respondent. The complaint against the union over which the labor arbiter has no jurisdiction.

5) Calo 242-256CHAPTER III RIGHTS OF LEGITIMATE LABOR ORGANIZATION

ART. 242 Rights of Legitimate Labor Organization

1. NOT ANY L.L.OThe first three rights mentioned in this article do not pertain to just about any union but only to the union that has been selected as the bargaining representative of the employees in the bargaining unit.The union whose demand for collective bargaining was rebuffed by the employer, because the union was not the certified bargaining agent, has no right to stage a strike. The strike is illegal. Such illegality is reason enough for the NLRC to declare that the union officers have lost their employment status.( Philippine Diamond hotel, etc. vs. Manila Diamond Hotel Employees Union, G.R. No. 158075, June 30, 2006)2. RIGHT OF UNION TO REPRESENT ITS MEMBERSIt is the function of a labor union to represent its members against the employers unfair labor practices. It can file an action in their behalf without the cumbersome procedure of joining each and every member as a separate party.(Davao free workers front vs. CIR, 60 SCRA 408 [1974])A labor union has the requisite personality to sue on behalf of its members for their individual money claims. It would be be an unwarranted impairment of the right to self-organization if such collective entities would be barred from instituting action in their representative capacity. (La Carlota Sugar Central vs. Court of Industrial Relations, 64 SCRA 78 [1975] )The means employed by the employer in dealing with the workers individually, instead of collectively through the union and its counsel, violates good morals as they undermine the unity of the union and fuels industrial disputes, contrary to the declared policy in the Industrial Peace Act. ( Pampanga Sugar Development Co., Inc. vs. CIR, 114 SCRA 725[1982] )2.1 Members Suspecting Their UnionTo act as representative of its members for the purposes of collective bargaining includes the power to represent its members for the purpose of enforcing the provisions of the CBA. When a union files a case for and in behalf of its members, a member or several members of that union will not be permitted to file in the same case a complaint-in-intervention even if it alleges that the union is not pursuing the case diligently. Such complaint, together with the motion for intervention, will have to be denied upon a finding that those members are already well represented by their union. The intervention may be allowed, however, when there is a suggestion of fraud or collusion or that the representative will not act in good faith for the protection of all interests represented by [the union]. (Acedera, et al. vs. International Container Terminal Services, Inc. et al., G.R. No. 146073, January 13, 2003.)3. COMPROMISE BINDING UPON MINORITY MEMBERS OF UNION; EXCEPTIONA compromise agreement between the Union and the Company, pursuant to which the complaint in an unfair labor practice case had been withdrawn and dismissed, is binding upon the minority members of the union. The action taken by said minority members in disauthorizing the counsel of record and filing another unfair labor practice case against the company is contrary to the policy of the Magna Carta of labor, which promotes settlement of differences between management and labor by mutual agreement. If said action were tolerated, no employer would ever enter into any compromise agreement for minority members of the union will always dishonour the terms of agreement and demand their better terms.(Dionela vs. Court of Industrial relations, 8 SCRA 832 [1963])The court, however, reached a different conclusion in one case. The union, said the court, had no authority to compromise the individual claims of members who did not consent to such settlement, Not having authorized their union to enter into such compromise, those members are not bound by the terms of the settlement; hence, they can still pursue their individual claims for reinstatement and backwages. (Golden donuts vs. NLRC, et al , G.R. Nos. 113666-68, January 19, 2000.)4. COMPROMISE OF MONEY CLAIMSMoney claims due to laborers cannot be the object of settlement or compromise effected by a union or counsel without specific individual consent of each laborer concerned. The beneficiaries are the individual complainants themselves. The union to which they belong can only assist them but cannot decide for them.A judgment based on a compromise agreement authorized by the members does not bind the individual members or complainants who are not parties thereto nor signatories therein. (Kaisahan ng mga manggagawa sa La Campana vs. Sarmiento, 133 SCRA 220 [1984].)Under the philosophy of collective responsibility, an employer who bargains in good faith should be entitled to rely upon the promises and agreements of the union representatives with whom he must deal under compulsion of law and contract. Where, however, collective bargaining process is not involved, and what is at stake are backwages already earned by the individual workers by way of overtime, premium and differential pay, and final judgment has been rendered in their favor, as in the present case, the real parties in interest with direct material interest, as against the union which has only served as a vehicle for collective action to enforce their just claims, are the individual workers themselves. Authority of the union to waive or quitclaim all or part of the judgment award in favor of the individual workers cannot be lightly presumed but must be expressly granted, and the employer, as judgment debtor, must deal in all good faith with the union as the agent the individual workers.( Heirs of Teodolo M. Cruz vs. Court of Industrial Relations, 30 SCRA 917 [1969])In another case, the court noted that the complainant union members had not ratified the Return-to-Work Agreement. It follows that they cannot be held bound by the Return-to-Work Agreement. For waiver thereof to be legally effective, the individual consent or ratification of the workers or employees involved must be shown.5. RIGHT TO BE FURNISHED WITH FINANCIAL STATEMENTTo better equip the union in preparing for or in negotiating with the employer, the law gives it the right to be furnished with the employers audited financial statements. There are four points in time when the union may ask in writing for these statements:1. after the union has been recognized by the employer as sole bargaining representative of the employees in the bargaining unit; or2. after the union is certified by DOLE as such sole bargaining representative; or3. during the collective bargaining negotiation; or 4. within the last 60 days of the life of a CBA.Under Article 253, the last 60 days of the CBA is the time to give notice to terminate or modify the CBA. Therefore, this is the time also for the union to gather fresh information on the financial condition of the company to enable it to prepare intelligently for the forthcoming CBA renegotiation.The audited financial statements, including the balance sheet and the profit loss statement, should be provided by the employer within 30 calendar days after receipt of the unions written request.6. RIGHT TO COLLECT DUESDues are defined as payments to meet the unions general and current obligations. The payment must be regular, periodic, and uniform. Payments used for special purpose, especially if required only for a limited time, are regarded as assessment.*The right of a union to collect union dues is already mentioned under the topic check-off in the comments under article 241. Such right is explicitly recognized in article 277.ART. 242-A Reportorial RequirementsNow, under the amendments as stated in Article 242-A, last sentence, such cancellation is no longer allowed[article 242-A .. failure to comply with the above requirements shall not be a ground for cancellation of union registration..]While article 242-A withholds cancellation, the implementing rules proceed with delisting. Apparently , the implementing rules consider delisting as different from cancellation even if they both lead to loss of the unions legal personality.TITLE VCOVERAGEArticle 243 Coverage and Employees Right to Self-organization.1. ORGANIZING IN GENERAL.The rights to organize and to bargain, in general sense, are given not exclusively to employees. Even workers who are not employees of any particular employer may form their organizations to protect their interests.Under Article 243 of this code, the right to organize refers also to forming, joining or assisting a labor organization. Connected to Article 246 this right carries with it the right to engage in group action, provided it is peaceful, to support the organizations objective which is not necessarily collective bargaining but, simply, to aid and protect its members. But this kind of group action must be differentiated from strike which, because it is work stoppage, must observe certain regulations; otherwise, the strike may be declared illegal and its leaders may be thrown out of their jobs.1.1 Coverage of the Right to Organize; ExceptionsThe right to form , join or assist a labor organization is granted to all kinds of employees of all kinds of employers --- Public or private, profit or non-profit, commercial or religious. Their usual form of organization is a union and the usual purpose is collective bargaining with their employers.But the seemingly all-inclusive coverage of all persons in Aricle 243 actually admits of exceptions. Under Article 245 managerial employees, regardless of the kind of organization where they are employed, may not join, assist or form any labor organization, meaning a labor union. Otherwise, they would be exposed to the temptation of colluding with the union during the negotiations to the detriment of the employer Supervisors are allowed to organize, but they cannot form, join or assist a rank-and-file union.2. RIGHT TO ORGANIZE CANNOT BE BARGAINED AWAYSouthern Philippines Federation of Labor (SPFL) vs. Calleja, G.R. No. 80882, April 24, 1989Held: Although we have upheld the validity of the CBA as the law among the parties, its provision cannot override what is expressly provided by law that managerial employees are ineligible to join, assist or form any labor organization. The right to self-organization must be upheld in the absence of an express provision of law to the contrary. It cannot be curtailed by a collective bargaining agreement.3.EMPLOYEES OF NON-PROFIT INSTITUTIONSThe rank-and-file employees of non-profit medical institutions are permitted to form, organize or join labor unions of their choice for purposes of collective bargaining. 4.EXCEPTION: EMPLOYEE-MEMBERS OF A COOPERATIVEOwners and/or members of the cooperatives are the ones who run and operate the business while the others are its employees. Irrespective of the number of shares owned by its members they are entitled to cast one vote each in deciding upon the affair of the cooperative.An employee of such a cooperative who is a member and co-owner thereof cannot invoke the right to collective bargaining, for certainly an owner cannot bargain with himself or his co-owners.However, insofar as it involves cooperatives with employees who are not members or co-owners thereof, such employees are entitled to exercise the rights of all workers to organization, collective bargaining negotiations and others as are enshrined in the Constitution and existing laws of the country.It is the fact of ownership of the cooperative, and not involvement in the management thereof, which disqualifies a member from joining any labor organization within the cooperative. (Benguet Electric Cooperative, Inc. vs. Ferrer-Calleja, G.R. No. 79025, December 29, 1989.) But member-employee of a cooperative may withdraw as members of the cooperative may withdraw as members of the cooperative in order to join a labor union.Membership in a cooperative is voluntary; inherent in it is the right not to join(Central Negros Electric Corp. vs. Sec. of Labor, et al., G.R. No. 94045, September 13, 1991.)4.1 Exception to Exception: ASSOCIATION, NOT UNIONWhile members of cooperative who are also its employees cannot unionize for bargaining purposes, the law does not prohibit them from forming an association for their mutual aid and protection as employees.5. EXCEPTION: INTERNATIONAL ORGANIZATIONSEmployees of an organization immuned from Philippines jurisdiction cannot unionize.Examples: International Rice Research Institute(IRRI and International Catholic Migration Commission (ICMC)The grant of such immunity is a political question whose resolution by the executive branch of government is conclusive upon courts.5.1 Waiver of ImmunityWaiver of its immunity is discretionary to IRRI. Without such express waiver the NLRC have no jurisdiction over IRRI even in cases of alleged illegal dismissal of any of its employees( Callado vs. International Rice Research Institute, G.R. No. 106483, May 22, 1995.)5.2 Foreign WorkersForeigners, whether natural or juridical, as well as foreign corporations, are strictly prohibited from engaging directly or indirectly in all forms of trade union activities. However, aliens working in the country with valid work permits may exercise the right of self-organization if they are nationals of a country that grants the same or similar right to Filipino workers. (Article 269 LC)6. EXCEPTION: RELIGIOUS OBJECTORS; IGLESIA NI CRISTO MEMBERSIn 1961, R.A. No. 3350 was passed to exempt from such compulsory union membership the followers of any religious sect(such as INC) whose teachings forbid membership in labor unions. The constitutionality of RA No. 3350 was upheld by the SC inVictoriano vs. Elizalde Rope Workers union, et al., G.R. No. L-25246, September 12, 1974What exception provides, therefore, is that members of said religious sects cannot be compelled or coerced to join labor unions even when said unions have closed shop agreements with the employers; that in spite of any closed shop agreement, members of said religious sects cannot be refused employment or dismissed from their jobs on the sole ground that they are not members of the Collective bargaining union.It may not be amiss to point out here that the free exercise of religious profession or belief is superior to contract rights. In case of conflicts, the latter must, therefore, yield to the former.Does the Exemption Still stand?The question has not been squarely answered, but four points must be noted:Firstly, the court cited the new labor code in rejecting the arguments assailing the validity of RA no 3350. The sense is that the labor code and RA. No. 3350 do not repel each otherSecondly, the exemption can be invoked under the freedom of religion clause in the present constitutions Bill of Rights.Thirdly, in the decision rendered in 1988 in kapatiran vs. calleja the court refused to compel the INK members to join the incumbent union.Fourthly, in the case of ebralinag vs. division superintendent of cebu, G.R. No. 95770, march 1,1993, the court in exempting jehovahs witnesses from compulsory participation in flag ceremonies, cited the religious objectors similar exemption from compulsory union membership. Clearly, as recent as 1993, the Sc acknowledges the existence or justification of the exemption granted by RA No. 3350 in 1961.Iglesia ni Kristo Members may form and join own unionKapatiran sa meat and canning division (tupas local chapter no. 1027) vs. the honourable BLR director Pura Ferrer-Calleja, et al. G.R. No. L-82914, june 20, 1988.

Note: In a June 1992 decision, the SC held INK members have the right to vote in a certification election. See reyes vs. trajano in the chapter on employee in collective bargaining.ART. 244 RIGHT OF EMPLOYEES IN THE PUBLIC SERVICE1. GOVERNMENT EMPLOYEES RIGHT TO ORGANIZE; LIMITATIONSThe highest law of the land guarantees to government employees the right to organize and to negotiate, but not to strike.Laws covering the government employees right to self-organize (Arizala, et al. vs. Court of appeals, et al., G.R. Nos. L-43633-34,September 14, 19901. PD no. 807 The effect was seemingly to prohibit government employees(including those employed in proprietary functions of the Government) to Strike for the purpose of securing changes of their terms and conditions of employment,2. 1987 constitution the right to self-organization shall not be denied to government employees.3.CSC memorandum Circular No.6 enjoins strikes by government officials and employees.to allow otherwise is to undermine or prejudice the government system.4.EO No. 180 the right to self-organization does indeed pertain all employees of all branches, subdivisions, Instrumentalities and agencies of the government, including government-owned or controlled corporations with original charters.

6) Cimafranca 257-271ART 253 [244]. RIGHT OF EMPLOYEES IN THE PUBLIC SERVICEEmployees of government corporations established under the Corporation Code Shall have the right to organize and bargain collectively with their respective employers.1. Government Employees right to organize limitations

-the highest law of the land guarantees to government employees the right to organize and negotiate but not to strike.

Arizala, et.al. vs. CA (Presidential Decree 807) The effect was to seemingly prohibit government employees (including those involved in proprietary functions of the government) to strike for the purpose of securing changes of their terms and conditions of employment something which they were allowed to do under the Civil Service Act of 1959.

The 1987 Constitution the right to self-organization shall not be denied to government employees.CSC Memorandum Circular No. 6 the commission enjoins, under pain of administrative sanctions, all government employees from staging strikes, demonstrations, mass leaves, walkouts, and other forms of mass action which will result in temporary stoppage or disruption of public services.Executive Order No. 180

1.1 Limited Purpose under EO 180, the rights of self-organization between employees of the government and those of the private sector differ greatly. PRIVATE SECTOR = includes rights to deal and negotiate with their respective employers to fix terms and conditions of employment, also they can engage in concerted activities like strikes, boycotts, picketing. GOVERNMENT EMPLOYEES = not available for purposes of collective bargaining but only for furtherance and protection of their interests.1.2 No Signing Bonus Employees and officers of the SSS are not entitled to signing bonus. The SSS FUND is NOT the money of the OFFICIALS.1.3 Excepted Employees Exception to EO 180, MEMBERS OF AFP, police officers, policemen, firemen and jail guards. FOR REASONS OF SECURITY AND SAFETY THEY ARE NOT ALLOWED TO UNIONIZE.1.3A Professors and Rank and File Employees PROFESSORS OF THE UNIVERSITY OF THE PHILIPPINES WHO ARE NOT EXERCISING MANAGERIAL OR HIGHLY CONFIDENTIAL FUNCTIONS ARE RANK AND FILE EMPLOYEES AND MAY UNIONIZE SEPERATELY FROM THE NON ACADEMIC PERSONNEL.1.4 Right to Strike Government employees may engage in concerted activities but must be exercised in accordance with law.2. Registration Government employees shall register with the CIVIL SERVICE COMMISSION AND THE DOLE. THE APPLICATION SHALL BE FILED WITH THE BUREAU OF LABOR RELATIONS OF THE DEPARTMENT. APPLICATIONS MAY ALSO BE FILED WITH THE REGIONAL OFFICES OF THE DOLE WHICH WILL BE TRANSMITTED TO THE BLR WITHIN 3 DAYS FROM RECEIPT THEREOF.3. Certification Election in Government Corporation A certification election to choose the union that will represent the employees MAYBE CONDUCTED WITH THE BUREAU OF LABOR RELATIONS IN A GOVERNMENT CORPORATION whether governed by the Labor Code or the Civil Service Rules 4. When PSLMC my rule on illegality of dismissal THE PSLMC HAS JURISDICTION TO HEAR CHARGES OF UNFAIR LABOR PRACTICES FILED BY GOVERNMENT EMPLOYEES AGAINST THEIR EMPLOYER, THE CIVIL SERVICE COMMISSION MAY ADOPT THE FINDINGS OF THE PSLMC AND ORDER THE EMPLOYER TO REINSTATE THE DISMISSED EMPLOYEES.5. UNION BUSTING IN A GOVERNMENT AGENCY = UNFAIR LABOR PRACTICE (pamantasan case. Sigeg mention sa libro pero walay summary)5.1. Even temporary employees may organize (self-explanatory) ART. 254 INELEGIBILITY OF MANAGERIAL EMPLOYEES TO JOIN ANY LABOR ORGANIZATION; RIGHT OF SUPERVISORY EMPLOYEES. managerial employees are not eligible to join, assist or form any labor organization. Supervisory employees shall not be eligible for membership in the collective bargaining unit of the rank and file employees but may join, assist, or form separate collective bargaining units and/or legitimate labor organizations of their own. The rank-and-file union and the supervisory union operating within the same establishment may join the same federation or national union.ART. 255 [245-A] EFFECT OF INCLUSION AS MEMBERS OF THE EMPLOYEES OUTSIDE THE BARGAINING UNITthe inclusion as union members of the employees outside the bargaining unit shall not be ground for the cancellation of the registration of the union. Said employees are automatically deemed removed from the list of membership of said union.1. categories of employees refer to ART 219 (3 classifications)2. Ineligibility of managers the term managers refer to anyone who is responsible for subordinates and other organizational resourcesa. first line managers lowest levelb. middle managers direct the activities of other managersc. top managers executives, responsible for overall management of the organizationthere will be conflict of interest. Managers will not be assured of their loyalty to the union because of the nature of their work in the establishment3. Evolution of supervisors rights to organize unlike managers, supervisors can organize.4. Definitions of Manager and Supervisor A supervisor has the power only to recommend while a managerial employee has the power to decide and do those acts. A manager must possess managerial powers (to lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees). If he can only recommend the exercise of any of these powers he is only a supervisor.-in short, a manager makes policy decisions or people decisions or both; a supervisor recommends those decisions. One is a decision maker, the other, a recommender.

7) Cogue 272-286Test of Supervisory Status whether a person possesses authority to effectively recommend managerial actions in the interest of his employer whether such authority is not merely routinary or clerical in nature, but requires the use of indepentdent action when such recommendatory powers are subject to evaluation, review and final action, the same, are not effective and not considered as an exercise of independent judgment as required by law

Characteristics of managerial rank:1. He is not subject to the riggid observance of regular office hours1. His work requires the consistent exercise of discretion and judgment in its performance1. The output produced or the result accomplished cannot be standardized in relation to a given period of time1. He manages a customarily recognized department or subdivision of the establishment, customarily and regularly directing the work of the other employees there1. He either has the authority to hire or discharge other employees or his suggestions and recommendations as to hiring and discharging, advancement and promotions or other change of status of other employees are given particular weight1. As a rule, he is not paid hourly wages nor subject to maximum hours of work

The power to recommend must not only be effective but should require the use of independent judgment should not be merely of a routinary or clerical nature

Not incompatible with ILO Convention on Freedom of Association as long as:1. That such workers have the right to form their own association to defend their interest1. That the categories of such staff are not defined so broadly as to weaken the organization of other owkers in the enterprise or branch of activity by depriving them of a substantial portion of their present or potential membership

Segregation of rank-andfile and supervisors Supervisory employees are allowed to form, join or assist separate labor organizations of their own, but they are not eligible for membership in a labor organization of the rank-and-file employees. Neither may rank-and file join a union of supervisors It will be doubly detrimental to the employer if the supervisors and rank-and-file, as members of only one union, could take a common stand against the employer.Confidential employees are those who assist and act in a confidential capacity to, or have access to confidential matters of, persons who exercise managerial functions in the field of labor relations (Philips case, GR No. 88957, June 25, 1992) are those who by reason of their position or nature of work are required to assist or act in a fiduciary manner to managerial employees and hence, are likewise privy to sensitive and highly confidential records. (Metrolab case, GR No. 108855, Feb. 28, 1996) do not constitute a distinct category of employees for purposes of the right to self-organize confidentiality is not a matter of rank, it is a matter of job content and authority every managerial position is confidential but not every confidential employee is managerial; he may be a supervisory or even a rank-and-file employee the confidentiality of the position should relate to labor relations (labor nexus)

In the Republic Planters Bank case, (GR No. 93468, Dec. 29, 1994) The Court noted that while the Labor Code singles out managerial employees as ineligible to join, assist, or form any labor organization, under the doctrine of necessary implication, confidential employees are similarly disqualified

In the Metrolab case, (GR No. 108855, Feb. 28, 1996)

Issue: Whether or not executive secretaries, having vital labor information, where confidential employees and should not be eligible to join in the bargaining unit of rank-and-file employees.

Ruling: These employees are confidential employees. By the very nature of their functions, they assist and act in a confidential capacity to, or have access to confidential matters of, persons who exercise managerial functions in the field of labor relations. As such, the rationale behind the ineligibility of managerial employees to form, assist, or join a labor union equally applies to them.

Forming part of the bargaining unit, the executive secretaries stand to benefit from any agreement executed between the Union and Metrolab. Such a scenario, thus, gives rise to a potential conflict between personal interests and their duty as confidential employees to act for and in behalf of Metrolab. They do not have to be union members to affect or influence either side.

Confidential employees cannot be classified as rank-and-file. The nature of employment of confidential employees is quite distinct from the rank-and-file, thus, warranting a separate category. Excluding confidential employees from the rank-and-file bargaining unit, therefore, is not tantamount to discrimination.

In the case of San Miguel Corp., (GR No. 110399, Aug. 15, 1997) Confidential employees are those who:1. assist or act in a confidential capacity1. to persons who formulate, determine, and effectuate management policies in the field of labor relations. The two criteria are cumulative, and both must be met if an employee is to be considered a confidential employee- that is, the confidential relationship must exist between the employee and his supervisor, and the supervisor must handle the prescribed responsibilites realting to labor relations Confidential employee rule: The broad rationale behind this rule is that employees should not be placed in a position involving a potential conflict of interest Access to information which is regarded by the employer to be confidential from the business standpoint, such as financial information or technical trade secrets, will not render an employee a confidential employee. It must be access to confidential labor relations information.

New CBA may include employees excluded from old CBA; Expired CBA may be modified, not just renewed. Regardless of the swinging court rulings, the employer and the union in an enterprise may negotiaite and agree whom to cover in their CBA. And they are free to change their agreement: people excluded before may be included now, or vice-versa.

Security Guards may join rank-and-file or supervisors union Under RA NO 7615, they may now freely join a labor organization of the rank-and-file or that of the supervisory union, depending on their rank.

Workers in export processing zones Export processing zones, anywhere in the Philippines, are part of Philippine territory which is subject to its sovereignty and laws. To them therefore applies with undiminished force the Philippine Constitution that guarantees the workers rights to organize, to strike and so forth. The zone workers cannot be denied these constitutional rights. ILO titled Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy states: Where governments of host countries offer special incentives to attract foreign investments, these incentives should not include any limitations on the workers freedom of association or the right to organize and bargain collectively.

ART. 256. NON-ABRIDGMENT OF RIGHT TO SELF-ORGANIZATION.

Concept of the right to self-organization Includes at least two rights1. the right to form, join, assist labor organizations, and1. the right to engage in lawful concerted activities The labor organization may be a union or association of employees. Its purpose may be collective bargaining or dealing with the employer. The right to form labor organization is twin to the right to engage in concerted activity. Although twins, they are not inseparable. Such group action, which should be held peacefully to remain lawful, can similarly be for collective bargaining purpose, but it can simply be for aid and protection of