Labor Law: Book V; Title IV Labor Organizations Chapter II Rights and Conditions of Membership (Art. 250)

  Book V

Labor Relations

Title IV

Labor Organizations

Chapter II

Rights and Conditions of Membership

Art. 250

Q: If some of my fellow workers are organizing a union, can Irefuse to join it?
Q: Who are qualified to become union officers?
Q: As a union officer, what are my responsibilities?
Q: As a union member, what are my rights?
Q: Does the law limit the amounts of dues and assessments collectible from union members?

Art. 250. Rights and conditions of membership in a labor organization. 

The following are the rights and conditions of membership in a labor organization:

(a) No arbitrary or excessive initiation fees shall be required of the members of a legitimate labor organization nor shall arbitrary, excessive or oppressive fine and forfeiture be imposed;
 
(b) The members shall be entitled to full and detailed reports from their officers and representatives of all financial transactions as provided for in the constitution and by-laws of the organization;
 
(c) The members shall directly elect their officers, including those of the national union or federation, to which they or their union is affiliated, by secret ballot at intervals of five (5) years. No qualification requirements for candidacy to any position shall be imposed other than membership in good standing in subject labor organization. The secretary or any other responsible union officer shall furnish the Secretary of Labor and Employment with a list of the newly-elected officers, together with the appointive officers or agents who are entrusted with the handling of funds, within thirty (30) calendar days after the election of officers or from the occurrence of any change in the list of officers of the labor organization;
 
(d) The members shall determine by secret ballot, after due deliberation, any question of major policy affecting the entire membership of the organization, unless the nature of the organization or force majeure renders such secret ballot impractical, in which case, the board of directors of the organization may make the decision in behalf of the general membership;
 
(e) No labor organization shall knowingly admit as members or continue in membership any individual who belongs to a subversive organization or who is engaged directly or indirectly in any subversive activity;
 
(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;
 
(g) No officer, agent or member of a labor organization shall collect any fees, dues, or other contributions in its behalf or make any disbursement of its money or funds unless he is duly authorized pursuant to its constitution and by-laws;
 
(h) Every payment of fees, dues or other contributions by a member shall be evidenced by a receipt signed by the officer or agent making the collection and entered into the record of the organization to be kept and maintained for the purpose;
 
(i) The funds of the organization shall not be applied for any purpose or object other than those expressly provided by its constitution and by-laws or those expressly authorized by written resolution adopted by the majority of the members at a general meeting duly called for the purpose;
 
(j) Every income or revenue of the organization shall be evidenced by a record showing its source, and every expenditure of its funds shall be evidenced by a receipt from the person to whom the payment is made, which shall state the date, place and purpose of such payment. Such record or receipt shall form part of the financial records of the organization.
 
Any action involving the funds of the organization shall prescribe after three (3) years from the date of submission of the annual financial report to the Department of Labor and Employment or from the date the same should have been submitted as required by law, whichever comes earlier: Provided, That this provision shall apply only to a legitimate labor organization which has submitted the financial report requirements under this Code: Provided, further, that failure of any labor organization to comply with the periodic financial reports required by law and such rules and regulations promulgated thereunder six (6) months after the effectivity of this Act shall automatically result in the cancellation of union registration of such labor organization;
 
(k) The officers of any labor organization shall not be paid any compensation other than the salaries and expenses due to their positions as specifically provided for in its constitution and by-laws, or in a written resolution duly authorized by a majority of all the members at a general membership meeting duly called for the purpose. The minutes of the meeting and the list of participants and ballots cast shall be subject to inspection by the Secretary of Labor or his duly authorized representatives. Any irregularities in the approval of the resolutions shall be a ground for impeachment or expulsion from the organization;
 
(l) The treasurer of any labor organization and every officer thereof who is responsible for the account of such organization or for the collection, management, disbursement, custody or control of the funds, moneys and other properties of the organization, shall render to the organization and to its members a true and correct account of all moneys received and paid by him since he assumed office or since the last day on which he rendered such account, and of all bonds, securities and other properties of the organization entrusted to his custody or under his control. The rendering of such account shall be made:
At least once a year within thirty (30) days after the close of its fiscal year;
At such other times as may be required by a resolution of the majority of the members of the organization; and
Upon vacating his office.
The account shall be duly audited and verified by affidavit and a copy thereof shall be furnished the Secretary of Labor.

(m) The books of accounts and other records of the financial activities of any labor organization shall be open to inspection by any officer or member thereof during office hours;
 
(n) No special assessment or other extraordinary fees may be levied upon the members of a labor organization unless authorized by a written resolution of a majority of all the members in a general membership meeting duly called for the purpose. The secretary of the organization shall record the minutes of the meeting including the list of all members present, the votes cast, the purpose of the special assessment or fees and the recipient of such assessment or fees. The record shall be attested to by the president.
 
(o) Other than for mandatory activities under the Code, no special assessments, attorney’s fees, negotiation fees or any other extraordinary fees may be checked off from any amount due to an employee without an individual written authorization duly signed by the employee. The authorization should specifically state the amount, purpose and beneficiary of the deduction; and
 
(p) It shall be the duty of any labor organization and its officers to inform its members on the provisions of its constitution and by-laws, collective bargaining agreement, the prevailing labor relations system and all their rights and obligations under existing labor laws.

For this purpose, registered labor organizations may assess reasonable dues to finance labor relations seminars and other labor education activities.

Any violation of the above rights and conditions of membership shall be a ground for cancellation of union registration or expulsion of officers from office, whichever is appropriate. At least thirty percent (30%) of the members of a union or any member or members specially concerned may report such violation to the Bureau. The Bureau shall have the power to hear and decide any reported violation to mete the appropriate penalty.

Criminal and civil liabilities arising from violations of above rights and conditions of membership shall continue to be under the jurisdiction of ordinary courts.

Own Notes
  • Rights and conditions of membership in a labor organization
    1. No arbitrary or excessive initiation fees/fine and forfeiture
    2. Full and detailed reports of all financial transactions
    3. Direct election of officers
      • including in affiliated national union
      • by secret ballot
      • intervals of five (5) years
      • no qualification requirements for candidacy other than membership in good standing
      • responsibility of the secretary or any other union officer:
        • furnish the Secretary of Labor and Employment
        • list of the newly-elected officers
        • together with the appointive officers or agents entrusted with funds
        • within thirty (30) calendar days after the election of officers or from the occurrence of any change in the list of officers 
    4. Determination by secret ballot, after due deliberation
      • any question of major policy affecting the entire membership of the organization
      • unless impractical, either by:
        • nature of the organization or 
        • force majeure
      • in which case, the board of directors of the organization may make the decision
    5. No admission or continued membership individuals knowingly:
      • from subversive organization, or
      • engaged in subversive activity
    6. Ineligibility of person convicted of a crime involving moral turpitude:
      • election as a union officer, or
      • appointment to any position;
    7. No collection of any fees unless he is duly authorized pursuant to constitution and by-laws;
    8. Payment of fees shall be evidenced by a receipt:
      • signed by the officer or agent collecting
      • entered into the record of the organization kept and maintained
    9. Application of the funds of the organization
      • expressly provided by its constitution and by-laws
      • expressly authorized by written resolution 
        • adopted by the majority of the members 
        • general meeting duly called for the purpose;
    10. Record or receipt forming part of the financial records and prescription:
      • Record of every income or revenue of the organization
        • showing its source 
      • Receipt of every expenditure of its funds 
        • from the person payment is made, 
        • stating the date, place and purpose of payment
      • Prescription of any action involving the funds:
        • after three (3) years
          1. from submission of the annual financial report to DOLE
          2. from submission as required by law
          3. whichever is earlier: 
        • applicable only legitimate labor organization which submitted the financial report requirements 
        • failure of any labor organization to comply with the periodic financial reports automatically cancels union registration
    11. No compensation to officers other than the salaries:
      • specifically provided in constitution and by-laws, or 
      • in a written resolution 
        • duly authorized by a majority of all the members 
        • general membership meeting duly called for the purpose.
        • subject to inspection by the Secretary of Labor or his duly authorized representatives:
          • minutes of the meeting 
          • list of participants 
          • ballots cast 
        • irregularities in the approval ground for impeachment or expulsion
    12. True and correct account of all moneys received and paid and other properties of the organization entrusted:
      • by treasurer and every officer responsible 
        • since assumption of office, or 
        • since the last day of account rendered  
      • made:
        • at least once a year within thirty (30) days after the close of its fiscal year;
        • other times as may be required by a resolution of the majority of the members of the organization; and
        • upon vacating his office
      • account shall be duly audited and verified by affidavit
        • copy shall be furnished the Secretary of Labor
    13. Inspection of books of accounts and other records of the financial activities 
      • by any officer or member 
      • during office hours
    14. No special assessment or other extraordinary fees may be levied, unless:
      • authorized by a written resolution 
        • majority of all the members
        • general membership meeting called for the purpose 
          • secretary of the organization shall record the:
            • minutes of the meeting
            • list of all members present
            • votes cast
            • purpose of the special assessment
            • recipient of assessment or fees
          • record shall be attested to by the president
    15. No fees may be checked off from amount due to an employee:
      • Fees allowed:
        • mandatory activities under the Code
      • Fees not allowed:
        • special assessments
        • attorney’s fees
        • negotiation fees or 
        • other extraordinary fees 
      • Unless with:
        • individual written authorization by the employee
      • Authorization states the:
        • amount of the deduction
        • purpose of the deduction
        • beneficiary of the deduction
    16. Duty of labor organization and officers to inform its members on the provisions of:
      • constitution and by-laws
      • collective bargaining agreement
      • prevailing labor relations system
      • all their rights and obligations under existing labor laws.
        • labor organizations may assess reasonable dues to finance seminars and other education activities
  • Summary
    1. Political Right 
      • Right to elect and be elected as officer
      • Right to not engage with subversive activities
      • Right not to elect a person convicted of crime involving moral turpitude 
    2. Decision-making Right
      • Right to participate in deciding any question of major policy 
    3. Financial Rights 
      • Right against excessive fees
      • Right to require report of financial transactions
      • Right against unauthorized collections and disbursements 
      • Right to receipts 
      • Right to authorized application of funds
      • Right to require report of financial transactions
      • Right to accounting by treasurer or responsible officer 
      • Right to require record of expenses 
      • Right to access financial records
      • Right to vote on compensation of officers 
      • Right to vote on assessments and deductions 
    4. Right to Information
      • Right to be informed on the following: 
        • Organization’s constitution and by-laws
        • Collective Bargaining Agreement 
        • Labor Laws
  • Violation of the above rights and conditions of membership:
    • ground for cancellation of union registration
    • expulsion of officers from office
  • At least thirty percent (30%) of the members may report such violation to the Bureau. 
  • Jurisdiction
    • Bureau
      • power to hear and decide any reported violation to mete the appropriate penalty.
    • Ordinary Courts
      • Criminal and civil liabilities
Rights of Members
  • A labor union is supposed to be an instrument of industrial democracy.
    • It has to be an exemplar of honest, democratic and responsible leadership.
  • It is conceived upon the of principle of inverted pyramid whose base, consisting of the members, is above the officers. 
    • The officers authority, even their tenure in office, as well as the policy and major decisions of the organization, all are passed upon by the membership. 
    • In a labor union, the members — not the officers or directors — are the governing body.
  • Just as the High Court has stricken down unjust exploitation of laborers by oppressive employers, so will it strike down unfair treatment by their own unworthy leaders. Fair dealing is equally demanded of unions as well as of employers in their dealings with employees. (Heirs of Cruz, 30 SCRA 917)
  • The rights and conditions of membership laid down in Article 250 may be summarized as follows:
    • Political right
      • the member's right to vote and be voted for, subject to lawful provisions on qualifications and disqualifications
    • Deliberative and decision-making right 
      • the member's right to participate in deliberations on major policy questions and decide them by secret ballot.
    • Rights over money matters 
      • the member's 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 member's written authorization
    • Right to information
      • the member's right to be informed about the:
        • organization's constitution and by-laws 
        • collective bargaining agreement
        • labor laws.
  • These are rights of union members. 
  • As employees, the union members retain the right to directly present grievances to the employer at any time.
  • This right is protected in Article 267, last sentence of the first paragraph.
Complaint; Who may File
  • Any union member may file with the Regional Director a complaint for any violation of the constitution and by-laws or of the rights and conditions of membership under Article 250. 
  • However, if the issue involves the entire membership of the union, the complaint should be supported by at least 30% of the members of the union. The complaint may be filed in the Regional Office where the union is domiciled. (Implementing Rules, Book V, Rule XIV, Sec. 1)
  • Violation of Article 250 may serve as basis of a petition for the cancellation of the union's registration or to expel an officer. The article states that 30% of the members may report the violation. But the Supreme Court has ruled that the 30 percent is not mandatory. Any member specially concerned may report the violation. (Verceles, February 15, 2005)
  • "Union Account Examiners" are officers of the Bureau or in the Regional Offices assigned to conduct an audit of the books of accounts of a legitimate labor organization or workers' association.
Union Officers
  • The Implementing Rules require that within 60 days before the expiration of the term of the incumbent officers, the president of the labor organization or workers' association shall constitute a committee on election. 
    • It should be composed of at least three members who are not running for any position in the election. 
    • If there are identifiable parties within the organization or association each party shall have equal representation in the committee.
  • The election of union officers should be held in accordance with the provisions of the union's constitution and by-laws (CBL). 
    • For instance, an assembly composed of members and non-members of the union (although members of the bargaining unit) cannot "suspend" the constitution and by laws of the union and then and there elect a new set of officers to replace the incumbents. Such election which does not conform with the union's CBL is null and void, and it is not validated by negotiating and signing a collective bargaining agreement with the employer. (UST Faculty Union, November 16, 1999) The BLR correctly voided the election.
  • In the election of union officers, only the union members can vote; non-union members cannot, even though they are part of the bargaining to unit. (UST Faculty Union, November 16, 1999)
  • The Implementing Rules, before the 1997 amendments used to provide that a union officer in a company should be an employee of that company. The present Rules are silent on this point. But the requirement remains, as may be deduced from Article 250(c), second sentence.
  • A person who has been convicted by final sentence of a crime involving moral turpitude cannot be elected or appointed to any position in the union. (Art. 250[f])
    • A "crime involving moral turpitude" is one 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." (Tak, 106 Phil. 730)
  • Paragraph (c) of this Article specifies the five-year term of union officers.
    • "Term of Office" refers to the fixed period of five years during which the duly elected officers of a labor organization shall discharge the functions of their office.
  • In impeachment of a union officer, due process must be followed. (Litton Mills Employees, 167 SCRA 804 [1988])
  • Just as an officer is entitled to due process, so also is a member. 
    • In one case, the Court explicitly ruled that a 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. (Kapisanan ng mga Manggagawa, 101 Pril 18)
Fees
  • Attorney's 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. (Vengco, May 5, 1989) 
  • Even negotiation fee in collective bargaining is an obligation of the union and not of a particular member. (Art. 228[b])
  • Paragraph (n) of this Article refers to "levy" while paragraph (o) refers to "check-off" of a special assessment. 
    • "Levy" means imposition of a certain amount.
    • "Check-off" is an arrangement authorizing the employer to deduct from an employee's pay at prescribed periods the amounts due the union for fees, or assessments. 
      • The authorization must specify the amount, purpose and beneficiary of the deduction.
      • In short, check-off means collecting an amount through salary deduction.
  • The law does not easily allow the collection of "special assessment" from union members. 
  • Both provisions in paragraph (n) and paragraph (o) of Article 250 must be complied with. 
  • There are three documentary requisites:
      1. Union must submit to the company a written resolution of a majority of all the members at a general membership meeting duly called for the purpose (paragraph [n]);
      2. Individual written authorization duly signed by every employee in order that a special assessment may be validly collected from the employee's pay (paragraph [o]);
      3. Secretary's record of the minutes of the meeting should include the:
        • list of all members present
        • the votes cast
        • the purpose of special assessment or fees
        • the recipient of special assessment or fees
    • The failure of the Union to comply strictly with the requisites 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. (Palacol, February 26, 1990)
    • In a similar case the bargaining union, PEU, affiliated with NUWHRAIN (a national union). Because of the affiliation it was necessary to increase the amount of union dues and agency fee from one percent to two percent of the employees' salaries. The objecting employees proved, however, that the minutes of the general membership meeting cited by the PEU officers was silent as to any deliberation and formal approval of an increase from one percent to to percent of the obligatory union dues and agency fees. The courts upheld the union members' objection. Both the Court of Appeals and the Supreme Court ruled that the union failed to prove compliance with the requisites for a valid check off. The failure to comply with the requirements for a valid increase of union dues also renders the collection of increased agency fees unjustified, hence, illegal. (Peninsula Employees Union, December 1, 2016)
      • An employer who collects a special assessment without being armed with the required general assembly resolution and the written authorizations from union members may be charged with making illegal deductions each from of the the employees' salary.
        • But collection of "agency fee" from a non-union member does not require an individual authorization; see Article 259(e), second paragraph.
        Q:  Differentiate a special assessment from a union dues. 
        • Special Assessments are payments made to the union in order to fund special purpose or specific project or activities of the union. Unlike Union Dues, Special Assessments are only required for a limited time. 
        • Union Dues are payments made to the union in order to meet the general and current obligations of the union. Unlike Special Assessments, Union Dues are paid regularly and uniformly.

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