Labor Law: Book V; Title IV Labor Organizations Chapter I Registration and Cancellation (Arts. 240-249)

   Book V

Labor Relations

Title IV

Labor Organizations

Chapter I

Registration and Cancellation

Arts. 240-249

Q: How do I organize my fellow workers into a union?
Q: If the business firm where we are working is new and small γƒΌ less than one year old and with less than 50 employees γƒΌ can we unionize?
Q: May the registration of a union be cancelled? Who may initiate such action and on what grounds?


Art. 240. Requirements of Registration. 
A federation, national union or industry or trade union center or an independent union shall acquire legal personality and shall be entitled to the rights and privileges granted by law to legitimate labor organizations upon issuance of the certificate of registration based on the following requirements:

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

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

(c) In case the applicant is an independent union, the names of all its members comprising at least twenty percent (20%) of all the employees in the bargaining unit where it seeks to operate;

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

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

Own Notes
  • The legal personality and entitlements to the rights and privileges of a federation, national union or industry or trade union center or an independent union shall commence upon receiving a certificate of registration, based on the following requirements:
    • Registration Fee: 
      • Fifty pesos (P50.00) 
    • Information: 
      • Names of officers
      • Addresses of officers
      • Principal address of the labor organization
      • Minutes of the organizational meetings
      • List of the workers who participated in such meetings
    • Independent Union:
      • Name of all its members, comprising at least twenty percent (20%) of all employees in the bargaining unit
    • Union in existence for one or more years:
      • Copies of its annual financial reports
    • Constitution and By-laws: 
      • Four copies of the union's constitution and by-laws
      • Minutes of its adoption or ratification
      • List of members who participated 
Notes
  • Article 234 of Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines, is further amended by Republic Act No. 9481 in 2007.
  • The 20% initial membership is required to register an independent union. This is not required to register a chapter created by federation. This rule helps federations to grow.

Art. 241. Chartering and Creation of a Local Chapter.
A duly registered federation or national union may directly create a local chapter by issuing a charter certificate indicating the establishment of the local chapter. The chapter shall acquire legal personality only for purposes of filing a petition for certification election from the date it was issued a charter certificate.

The chapter shall be entitled to all other rights and privileges of a legitimate labor organization only upon the submission of the following documents in addition to its charter certificate:

(a) The names of the chapter's officers, their addresses, and the principal office of the chapter; and

(b) The chapter's constitution and by-laws: Provided, That where the chapter's constitution and by-laws are the same as that of the federation or the national union, this fact shall be indicated accordingly.

The additional supporting requirements shall be certified under oath by the secretary or treasurer of the chapter and attested by its president.

Own Notes:
  • Creation of Local Chapter by Federation or National Union:
    • Charter certificate indicating the establishment of the local chapter
  • Legal Personality:
    • Only for purposes of filing a petition for certification election from the date it was issued a charter certificate
  • Documentation:
    • Names of the chapter's officers
    • Addresses of the chapter's officers
    • Principal office of the chapter
    • Chapter's constitution and by-law
  • Constitution and by-laws:
    • Same as that of the federation or the national union
    • Such fact shall be indicated
  • Additional Supporting Requirements:
    • Certified under oath by the secretary or treasurer of the chapter
    • Attested by chapter president
Notes:

Definitions
  • The workers' right to self-organization is guaranteed under the Constitution and the Labor Code. 
  • By this right, defined in Article 257, every employee, even temporary ones, except as provided in Article 255, is eligible for union membership beginning on the employee's first day of work.
  • "Labor Organization" means any union or association of employees in the private sector which exists in whole or in part for the purpose of collective bargaining or for dealing with employers concerning terms and conditions of employment. 
    • The existence of employer-employee relationship is essential for the exercise of the right of self organization for purposes of collective bargaining. Absence of such relationship affects the legality of the union itself. (La Suerte Cigar & Cigarette Factory, 123 SCRA 679 [1983])
  • "Legitimate Labor Organization" means any labor organization in the private sector registered or reported with the Department in accordance with Rules III and IV of these Rules (i.e., D.O. No. 40-03).
  • "Workers' Association" means an association of workers' organized for the mutual aid and protection of its members or for any legitimate purpose other than collective bargaining.
  • "Legitimate Workers' Association" means any workers' association which is duly registered with the Department.
Organization Broadly Defined
  • Thus, not every labor organization is a union; a worker's association is not a union.
  • The Constitution assures the people's right to form not only unions but "associations" and "societies." (Art. III, Sec. 8)
  • Moreover, not every union is a legitimate labor organization (LLO). 
    • It is the fact of being registered with the Department of Labor and Employment that makes a labor organization or a union "legitimate" in the sense that it is clothed with legal personality to deal with the employer in representation of its members. 
    • It thereby acquires the rights enumerated in Article 251. 
  • Nonregistration does not make the labor organization "illegitimate" or illegal since freedom of association is constitutionally guaranteed. 
    • But the unregistered organization does not possess the rights mentioned in Article 251. 
    • Nonetheless, an unregistered organization is covered by the law (Arts. 258 and 259) that prohibits "unfair labor practice" by an employer.
  • Indeed, registration is not a prerequisite to protection of workers' organizations. 
  • But, lacking legal personality, an unregistered organization cannot file a formal complaint in its name. 
  • The complainants have to be the individual members.
Labor Organization: Creation and Registration Methods
  • Article 240 specifies five requirements for issuance of the certificate of registration of an applicant labor organization, association or group of unions. 
    1. Registration Fee: 
      • Fifty pesos (P50.00) 
    2. Information: 
      • Names of officers
      • Addresses of officers
      • Principal address of the labor organization
      • Minutes of the organizational meetings
      • List of the workers who participated in such meetings
    3. Independent Union:
      • Name of all its members, comprising at least twenty percent (20%) of all employees in the bargaining unit
    4. Union in existence for one or more years:
      • Copies of its annual financial reports
    5. Constitution and By-laws: 
      • Four copies of the union's constitution and by-laws
      • Minutes of its adoption or ratification
      • List of members who participated 
  • The Implementing Rules, as modified by D.O. No. 40-03, segregate the requirements for:
    • independent union
    • local/chapter
    • federation or national union
    • workers' association. 
  • It also provides for mergers or consolidation of union.
  • A union at the enterprise level may be either:
    • an independent union or 
    • a chartered local.

Independent Union
  • An independent union is created and registered by the union organizers who are employees in an enterprise through their own action instead of of a charter by a federation or national union outside the enterprise.
  • The union thus independently created and registered has a legal through issuance of its own. 
  • But it may affiliate with a federation, national or industry personality union, in which case it may also be called an affiliate.
Chapter
  • A chapter or chartered local is created when a duly registered federation or national union issues a charter to a union in an enterprise and registers the charter with the Regional Office or the Bureau of Labor Relations accompanied by documents evidencing the establishment of such chapter. 
  • A chapter has to be registered, not just reported to DOLE. 
  • The federation should chapter has submit to the DOLE regional office two copies of:
    1. The charter certificate creating the chapter;
    2. The names of the chapter's officers, their addresses, and address of the chapter; and
    3. The chapter's constitution and by-laws.
      • Upon being issued a charter certificate, the chapter acquires legal personality for the purpose only of filing a petition for a certification election.
      • To be entitled to all the other rights of a legitimate labor organization, the chapter should submit the constitution and by-laws and the list of officers, as mentioned above.
  • These should be submitted within 30 days after receipt notice from the regional office.
  • A "chapter," "local" or "chartered local " has no legal personality of its own as long as it has not availed itself of independent registration. 
  • A chartered local may subsequently register as an independent union but remain as an affiliate of its mother union.
Registration Requirements: Independent Labor Union
  • The application for registration of an independent labor union shall be accompanied by the following documents:
    1. The name of the applicant labor union, its principal address, the name of its officers and their respective addresses, approximate number of employees in the bargaining unit where it seeks to operate, with a statement that it is not reported as a chartered local of any federation or national union;
    2. The minutes of the organizational meeting(s) and the list of employees who participated in the said meeting(s);
    3. The name of all its members comprising at least 20% of the employees in the bargaining unit;
    4. The annual financial reports if the applicant has been in existence for one or more years, unless it has not collected any amount from the members, in which case a statement to this effect shall be included in the application;
    5. The applicant's constitution and by-laws, minutes of its adoption or ratification, and the list of the members who participated in it. The list of ratifying members shall be dispensed with where the constitution and by-laws was ratified or adopted during the of the organizational ratification meeting. In such a case, the factual circumstances shall be recorded in the minutes of the organizational meeting(s).
Twenty Percent of "C.B.U."
  • No minimum or maximum number of members is required to register a chapter or an independent union.
    • But if the applicant is an independent union, its membership at the time of application for registration should be at least 20% of the collective bargaining unit (CBU).
    • The law promotes unionization, so 20% of any number is deemed enough for registrability.
  • The 20% minimum membership is required to register an independent union. 
    • But for ratifying the union's by-laws, a majority of the members constituting a quorum is enough. (Takata Phil. Corp., June 4, 2014)
  • "Bargaining unit" refers to the group of employees which the labor union will represent in dealing or bargaining with the employer. 
    • It is that cluster of jobs or positions that politically supports within the company the labor organization applying for registration. 
    • Bargaining unit, in other words, is the people represented by the representative union which therefore is called the bargaining agent.
    • In a school, for example, the teachers usually make up one bargaining unit and the non-teachers another unit. 
    • When bargaining with the employer, a unit can be represented by only one union even if there are rival unions within the unit. 
    • Such rivalry should first be resolved through an election (to be explained later). 
    • The employees are the principal, the union is the agent. 
    • "Bargaining unit" is explained further under Article 267. 
Union By-Laws
  • A union's constitution and by-laws (CBL) governs the relationship 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 in the CBL shall control. (Johnson and Johnson Labor Union, February 21, 1989)
  • But, of course, the union's constitution and by-laws cannot disregard the laws.
    • Under Article 292, for instance, any employee, whether employed for a definite period or not, shall, beginning on his first day of service, be considered an employee for purposes of membership in any labor union. 
    • The Supreme Court has reiterated the basic right of employees — even temporary employees — to form or join a labor organization. (Pamantasan ng Lungsod ng Maynila, February 21, 1995)
Organized Establishments
  • In labor relations context, an "organized establishment" refers to an enterprise where there exists a recognized or certified sole and exclusive bargaining agent. 
  • This bargaining agent refers to the union that formally represents the employees (called "bargaining unit") in dealing or negotiating with the employer.
  • How a union becomes bargaining agent is taken up under Article 267-272.

Art. 242. Action on application. 
The Bureau shall act on all applications for registration within thirty (30) days from filing.

All requisite documents and papers shall be certified under oath by the secretary or the treasurer of the organization, as the case may be, and attested to by its president.

Notes:
  • Action on Application:
    • Bureau of Labor Relations
    • Thirty (30) days from filing
  • Documentation:
    • Certified under oath by the secretary or the treasurer of the organization
    • Attested to by its president
  • The documents required to accompany an application for union registration must be true and correct.
  • Misrepresentation, false statements, or fraud are grounds for cancellation or denial of registration. 
  • Article 247 lists the grounds for cancellation of registration.

Art. 243. Denial of registration; appeal. 
The decision of the Labor Relations Division in the regional office denying registration may be appealed by the applicant union to the Bureau within ten (10) days from receipt of notice thereof.

Notes:
  • Appeal
    • Ten (10) days from receipt of notice
Application, Denial, and Appeal
  • Independent Union
    • Because an independent union or local chapter operates at the enterprise level, it applies for registration at the DOLE Regional Office where the union principally operates. 
    • If its application is denied by the regional director, the denial may be appealed to the Bureau of Labor Relations director. 
    • If still denied by the latter, the denial is appealable directly to the Court of Appeals (CA).
    • Dole Regional Office → Bureau of Labor Relations → Court of Appeals 
  • National Union or Federation
    • Because a national union or a federation operates in more than one region, it applies for registration directly with the Bureau of Labor Relations which is a national office, although the application may be initially received at the DOLE regional office. 
    • If the BLR director denies the application, the denial is appealable to the DOLE Secretary and then to the CA.
    • Bureau of Labor Relations → DOLE Secretary → Court of Appeals 
  • Whether the applicant is a local or a national union, note that the CA is at the third "station" of the registration route.

Art. 244. Additional requirements for federations or national unions. 
If the applicant for registration is a federation or a national union, it shall, in addition to the requirements of the preceding Articles, submit the following:

Proof of the affiliation of at least ten (10) locals or chapters, each of which must be a duly recognized collective bargaining agent in the establishment or industry in which it operates, supporting the registration of such applicant federation or national union; and

The names and addresses of the companies where the locals or chapters operate and the list of all the members in each company involved.

Notes:
  • Additional Requirements for Federations or National Unions
    1. Proof of the affiliation of at least ten (10) locals or chapters
      • each of which must be a duly recognized collective bargaining agent in the establishment or industry in which it operates, 
      • supporting the registration of such applicant federation or national union;
    2. The names and addresses of the companies where the locals or chapters operate 
    3. The list of all the members in each company involved
  • The opening phrase "Subject to Article 238" is deleted because Article 238 on Conditions for Registration of Federations Or National Unions has been repealed by E.O. No. 111 of 1986.
Registration Requirements: Federation or National Union
  • Originally:
    • national union — grouping of local unions
    • federation — grouping of national unions
  • But the unions themselves do not group in this manner, and Article 244 anyway mentions the same requirements for registering a federation or a national union; thus the distinction between the two has vanished.
  • The registration requirements for a federation (or national) union are the same as those for an independent union, except that:
    • the 20 % minimum membership is not required and instead
    • it should have as affiliates at least ten local unions, each of which is a bargaining agent in its enterprise.
  • Under D.O. No. 40-03, the reason for forming and registering a federation or national union is similar to that for a local union, namely, to bargain or to deal with employers about employment conditions for their member unions.
  • The other purpose of a national union or federation, since it operates on a larger scale is to participate in the formulation of "social and employment policies, standards and programs." 
  • National unions are members of the National Tripartite Industrial Peace Council (NTIPC).
Easy Registration of Chartered Local
  • Since it is state policy to foster a strong and united labor movement, the law allows federations or national unions to create chapters through issuance of charters. 
  • To facilitate the growth of chapters, their creation must be simple and easy, hence, unlike an independent union, a chartered local can be registered even without the 20 % minimum membership. 
  • It can even adopt as its own the constitution and by-laws of its mother union. 
  • Even the submission of books of accounts, which previously was a registration requirement, has been done away with. 
  • By means of chartering, therefore, an enterprise can be unionized silently and quickly.
  • Whether such administrative short cut is wise or unwise, fair or unfair, is itself a highly charged issue.
Revocation of Charter
  • The federation or national union may revoke the charter issued to the local or chapter.
  • The revocation is done by serving on the local or chapter a verified notice of revocation, copy furnished the Bureau of Labor Relations, on the ground of disloyalty or such other grounds as may be specified in the constitution and and by-laws of the federation. 
  • The revocation will 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. (Implementing Rules, Book V, Rule VIIl, Sec. 5)
  • The charters granted by the Federation are the sources and fountain of the rights and obligations of the workers' unions within the Federation.
Affiliation/Disaffiliation
  • An affiliate, as defined in the Implementing Rules, is:
    • an independent union affiliated with a federation or national union or
    • a chartered local which was subsequently granted independent registration but did not disaffiliate from its federation.
  • An independent union who wants to affiliate with a federation or national union submits the issue to its members. 
    • If majority of them vote affirmatively a resolution or request to affiliate is presented to the chosen federation or national union. 
    • If the latter accepts the affiliation, it offers a contract of affiliation. 
  • The relationship between the "mother" and "daughter" unions is therefore contractual, binding both sides. 
    • The "mother" assists in bargaining with the employer or manning a picket line. 
    • The "daughter" in turn remits part of the union dues, usually 50%.
  • Affiliation by a duly registered union with a national union or federation does not cause the local union to lose its legal personality. 
  • Despite affiliation the local union remains the basic unit free to serve the common interest of all its members. (Adamson & Adamson, 127 SCRA 268 [1984])
Right to Disaffiliate; Contractual Restrictions
  • Can the affiliate disaffiliate? Yes, but the terms of the contract of affiliation have to be observed.
  • Disaffiliation, it is submitted, cannot absolutely be prohibited, but it can be restricted by the contract of affiliation. 
    • The restriction may refer to the number of votes needed to authorize the disaffiliation or it may refer to the time the disaffiliation may be done. 
    • It may specify, for example, that three-fourths vote is needed or that the disaffiliation may take place only within the "freedom period." 
  • Despite contract restrictions the Court has ruled of a local union to disaffiliate from its mother union is well-settled.
  • In one case, the Court stated that when the local union withdrew from the old federation to join a new federation, it was merely exercising its primary right to self-organization for the effective enhancement and protection of common interests. 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. (People's Industrial and Commercial Employees, March 15, 1982)
  • While it is true that a local union is free to serve the interest of all its members and enjoys the freedom to disaffiliate, such right to disaffiliate maybe exercised and is thus considered protected labor activity only when warranted by circumstances. Generally, labor union may disaffiliate from the mother union to form immediately a local or independent union only during the 60-day freedom period preceding the expiration union of the CBA (Tanduay Distillery, 149 SCRA 470 [1987])
  • However, 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. (Volkschel Labor Union, 137 SCRA 42 [1985])
  • But, it is submitted, the contract of affiliation may require a bigger vote as a prerequisite to disaffiliation.
  • In the absence of a prohibition in the contract of affiliation, a local union may disaffiliate from the federation, even while there is a pending protest filed by the federation against the election of the local union officers. (Phil. Skylanders, Inc., G.R. No. 127374, January 31, 2002)
  • When intending to disaffiliate, it is advisable for the local to register as an independent union before it disaffiliates. When a union which is not independently registered disaffiliates from the federation, it is not entitled to the rights and privileges granted to a legitimate labor organization. It cannot file a petition for certification election. (Villa, April 20, 1983) 
    • Neither can it bargain with the employer nor stage a strike.
  • When a local union disaffiliates from a national union or federation, the latter ceases to be entitled to check-off dues. The employees' check-off authorization, even if declared irrevocable, is good only as long as they remain members of the union. 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 the check-off dues under a collective bargaining contract. (Volkschel Labor Union, 137 SCRA 42 [1985))
Substitutionary Doctrine
  • The "substitutionary doctrine" holds that the employees cannot revoke the validly executed collective bargaining contract with their employer by the simple expedient of changing their bargaining agent. 
    • If Union A, for example, negotiated a five-year CBA with the employer but later was replaced by Union B, Union B must respect the contract. 
  • The employees cannot renege on the collective bargaining contract by changing their bargaining agent. 
  • But the latter may negotiate with management for the shortening of the CBA period. (Elisco-Elirol Labor Union, December 29, 1977) 
  • Affiliation/disaffiliation is an affair between the parent and the daughter union. The employer is not involved and should not be adversely affected.
  • The CBA continues to bind the members of the new or disaffiliated and independent union up to the CBA's expiration date. (Associated Workers Union, July 30, 1990)

Art. 245. Cancellation of Registration; Appeal.
The certificate of registration of any legitimate labor organization, whether national or local, may be cancelled by the Bureau, after due hearing, only on the grounds specified in Article 247 hereof.


Art. 246. Effect of a Petition for Cancellation of Registration. 
A petition for cancellation of union registration shall not suspend the proceedings for certification election nor shall it prevent the filing of a petition for certification election.

In case of cancellation, nothing herein shall restrict the right of the union to seek just and equitable remedies in the appropriate courts.


Art. 247. Grounds for Cancellation of Union Registration.
The following may constitute grounds for cancellation of union registration:

(a) Misrepresentation, false statement or fraud in connection with the adoption or ratification of the constitution and by-laws or amendments thereto, the minutes of ratification, and the list of members who took part in the ratification;

(b) Misrepresentation, false statements or fraud in connection with the election of officers, minutes of the election of officers, and the list of voters;

(c) Voluntary dissolution by the members.


Notes: 
  • Cancellation of Registration; Appeal:
    • Any legitimate labor organization, whether national or local
    • May be cancelled by the Bureau, after due hearing
    • Cancellation can only happen based on specific grounds mentioned in Article 247
  • Effect of Petition for Cancellation:
    • Shall not suspend the proceedings for certification election
    • Shall not prevent the filing of a petition for certification election
    • Union shall have the right to seek just and equitable remedies in the appropriate courts
  • Grounds for Cancellation of Union Registration:
    • Misrepresentation, false statements, or fraud in:
      • adoption or ratification of constitution and by-laws
      • amendments
      • minutes of ratification
      • list of members who took part in the ratification
    • Misrepresentation, false statements, or fraud in:
      • election of officers
      • minutes of the election of officers
      • list of voters
    • Voluntary dissolution by members
  • Previously numbered 239, Article 247 as amended is further amended by Section 5 of R.A. No. 9481, effective June 14, 2007. It reduces to three the ten grounds for cancellation of union registration.
Cancellation
  • Cancellation of registration means that the union is no longer a legitimate labor organization. 
  • Its juridical personality as well as its statutory rights and privileges are suspended, but the cancellation does not invalidate an otherwise valid CBA which the union entered into before its certificate was cancelled
  • Holding an illegal strike has adverse consequences to the strikers, particularly the officers, but cancellation of their union registration is not one of those consequences. In other words, having held an illegal strike is not a reason in itself to cancel a union's registration. (Itogon-Suyoc Mines, August 30, 1968)
  • Similarly, the failure of a union to secure the renewal of its permit from the labor department will not cause the dismissal of the case it filed, if at the time it filed the petition it had juridical personality and the court had acquired jurisdiction over the case. (Philippine Land Air-Sea Labor Union [PLASLU], 93 Phil. 47, September 17, 1953)
Who May Seek Cancellation
  • Any party-in-interest may commence a petition for cancellation of registration, except in actions involving violations of Article 250 which can be commenced only by the members. 
    • Under Article 250 and Rule XIV of the IRR, 30% of the members should support the action against the union. 
    • However, any member or members specially concerned may also report any violation by the union or a union officer.
  • Is the employer a proper party to seek cancellation of a union's registration? Yes, such petitions have been filed by employers based on such grounds as lack of required documents, unlawful composition of union membership, or lack of 20% support of the bargaining unit. (See respectively Progressive Development Corp., February 4 1992; Toyota Motors, February 19, 1997; and Abbot Laboratories, January 26, 2000)
  • Petitions to cancel the registration of a local/chapter, affiliate or workers association operating within only one region should be filed with the DOLE Regional Office.
  • Petitions against federations, national or industry unions trade union centers or workers' associations operating in more than one region should be filed with the Bureau of Labor Relations.
Appeal
  • Cancellation ordered by a Regional Office is appealable to the Bureau of Labor Relations and from there, if proper, to the Court of Appeals.
  • Cancellation ordered by the Bureau itself is appealable to the office of the DOLE Secretary, not directly to the CA. (Note that this route is the same as in denial of the application for registration.)
  • Local Chapter:
    • Regional Office ⟶ Bureau of Labor Relations ⟶ Court of Appeals
  • Federations or National Unions:
    • Bureau of Labor Relations ⟶ DOLE Secretary  ⟶  Court of Appeals
Unexplained Deletions
  • Engaging in the "cabo" system was a reason to cancel a union's registration.
    • "Cabo "is a union that acts like a labor-only contractor because it gathers and supplies workers to an employer.
  • But this ground of union cancellation has been deleted by R. A. No. 9481 (effective June 14, 2007) and no explanation has been given for the deletion.
  • Two other important grounds of union cancellation have also been deleted, namely:
    1. "entering into collective bargaining agreements which provide terms and conditions of employment below minimum standards established by law", and
    2. "asking for or accepting attorney's fees or negotiation fees from employers." 
  • Both these acts are reprehensible and no well-meaning union should ever do them. But, strangely, R.A. No. 9481, which is suppose to "strengthen" the right to self-organization, deleted them. 
  • Neither are they listed in Article 250 as violations of the rights of members.
Art. 248. Voluntary Cancellation of Registration.
The registration of a legitimate labor organization may be cancelled by the organization itself. Provided, That at least two-thirds of its general membership votes, in a meeting duly called for that purpose to dissolve the organization: Provided, further, That an application to cancel registration is thereafter submitted by the board of the organization, attested to by the president thereof.

Notes: 
  • Voluntary Cancellation of Registration
    • May be done by the organization itself
    • At least 2/3 of its general membership votes
      • in a meeting duly called for the purpose of dissolving the organization
    • Application submitted by the board of the organization
      • attested to by the president
  • Under this amended Article (which used to be 239-A), the two-thirds of the members can decide to have their union's registration cancelled. 
  • But it appears that their decision can be rendered ineffectual by the board of the union and its president. 
  • The Article states that the decision of the two-thirds membership to dissolve the union has to be followed by an application for cancellation to be submitted by the board. If the board neglects or refuses to submit the application to cancel the union's registration, then the members' desire to cancel their union's registration will be defeated.
  • If this happens, it will mean a minority disregarding the will of the majority. It will amount to a mockery of the members' right to decide major policy questions, as recognized in Article 250 (d).

Art. 249. Equity of the incumbent. 
All existing federations and national unions which meet the qualifications of a legitimate labor organization and none of the grounds for cancellation shall continue to maintain their existing affiliates regardless of the nature of the industry and the location of the affiliates.

Notes: 
  • Equity of the Incumbent
    • All existing federations and national unions 
      • meet the qualifications of a legitimate labor organization 
      • none of the grounds for cancellation
    • shall continue to maintain their existing affiliates regardless of 
      • the nature of the industry and 
      • the location of the affiliates

Sample Problems:
Q: Differentiate Worker’s Associations with a Legitimate Labor Organization.
  • Worker’s associations are associations of workers organized for mutual aid and protection of their members. Unlike a Labor Organization, a Worker’s Association is organized for any legitimate purpose other than collective bargaining. 
  • A Labor Organization is a union or organization organized for the purpose of collective bargaining or dealing with employers on terms and conditions of employment. 
    • A Labor Organization acquires a legitimate status and becomes a Legitimate Labor Organization once registered or reported with the Department of Labor and Employment.
Q: Differentiate the Registration Process for Independent Unions and a Chartered Local.
  • Independent unions are unions which are created through the own initiative and action of the organizers and not through a charter by a federation or national union. The organizers file an application for registration along with the supporting documents including the names of at least 20% of the employees in the bargaining unit. Independent unions shall create their own constitution and by-laws which must be submitted as a supporting document. 
  • A chartered local are unions which are created through the issuance of a charter by a federation or national union and not through the own initiative and action of the organizers. The chapter must be registered with the Department of Labor and Employment, however the requirement of at least 20% of the employees in the bargaining unit is not required in a chartered local. The constitution and by-laws of chartered locals may be adopted from their mother union, which fact must be indicated upon registration. 
Q: When can a Chartered Union disaffiliate?
  • As a general rule, a chartered union may disaffiliate from its mother union only within the “freedom period” or the 60-day period before the expiration of the collective bargaining agreement. However, a chartered union may disaffiliate at any time, whether within the “freedom period” or not, provided that majority of the members approved the disaffiliation. 
  • Still, the contract of affiliation may require specific number of votes or a specific time to approve the disaffiliation which must be observed by the union. 

Q: What is the substitutionary doctrine? 
  • The substitutionary doctrine provides that members cannot revoke a valid and existing collective bargaining agreement with their employer through changing their collective bargaining agent. Despite a change with their collective bargaining agent, a valid and existing collective bargaining agreement with their employer shall be binding to the members of the new of disaffiliated independent union until the expiration of the contract. However, the employees may request to shorten the period of the collective bargaining agreement. 
Q: What are the grounds for cancellation of union registration? What is the effect of a petition for cancellation of registration? 
  • The following are the grounds of union registration: 
    • Misrepresentation, false statement, or fraud in:
      • Adoption, ratification or amendments of constitution and by-laws
      • Minutes of ratification 
      • List of members who took part in the ratification 
    • Misrepresentation, false statement, or fraud in: 
      • Election of officers 
      • Minutes of election of officers
      •  List of voters 
    • Voluntary dissolution of members 
  • A petition for cancellation of registration filed by a party-in-interest may commence except in actions involving rights and conditions of membership in a labor organization which can only be initiated by the members of such organizations



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