Labor Relations (Labor Organizations, Coverage) [Arts. 234

Art. 240. Requirements of Registration.

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

The 20% initial membership is required to register an independent union.

This is not required to register a chapter created by federation.

Art. 241. Chartering and Creation of a Local Chapter.

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

Definitions

"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.

"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.
"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

Not every labor organization is a union; a worker's association is not a union.
Not every union is a legitimate labor organization (LLO).

Being registered with the Department of Labor and Employment 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.

Registration is not a prerequisite to protection of workers' organizations.

Unregistered organization

❌ does not possess the rights mentioned in Article 251
❌ cannot file a formal complaint in its name, the complainants have to be the individual members
✅ covered by the law (Arts. 258 and 259) that prohibits "unfair labor practice" by an employer

Labor Organization: Creation and Registration Methods

Five requirements for issuance of the certificate of registration:

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

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.
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:

The charter certificate creating the chapter;
The names of the chapter's officers, their addresses, and address of the chapter; and
The chapter's constitution and by-laws.

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 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;
The minutes of the organizational meeting(s) and the list of employees who participated in the said meeting(s);
The name of all its members comprising at least 20% of the employees in the bargaining unit;
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;
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."

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"

It refers to the group of employees which the labor union will represent in dealing or bargaining with the employer.

It is the people represented by the representative union which therefore is called the bargaining agent.
When bargaining with the employer, a unit can be represented by only one union even if there are rival unions within the unit.

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.
The union's constitution and by-laws cannot disregard the laws.

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.

Art. 242. Action on application.

Action on Application:

Bureau of Labor Relations
Thirty (30) days from filing

Documentations:

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.

Art. 243. Denial of registration; appeal.

Appeal

Ten (10) days from receipt of notice

Application, Denial, and Appeal

Independent Union

Independent union or local chapter 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

National union or a federation 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.

Additional Requirements for Federations or National Unions

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;

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

Registration Requirements: Federation or National Union

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.

Reason for forming and registering a federation or national union:

to bargain or to deal with employers about employment conditions for their member unions;
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

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.

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.

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.

Affiliation by a duly registered union with a national union or federation does not cause the local union to lose its legal personality.

Right to Disaffiliate; Contractual Restrictions

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.

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.
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

Exception: 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.

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
bargain with the employer
stage a strike.

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.
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.
The CBA continues to bind the members of the new or disaffiliated and independent union up to the CBA's expiration date.

Art. 245. 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.

Art. 246. Effect of a Petition for Cancellation of Registration.

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

Art. 247. 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

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

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.

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

Art. 248. Voluntary Cancellation of Registration.

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

Two-thirds of the members can decide to have their union's registration cancelled.
But their decision can be rendered ineffectual by the board of the union and its president.

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.

Art. 249. Equity of the incumbent.

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

Suggested Questions

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

Chapter II

Rights and Conditions of Membership

Art. 250

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

No arbitrary or excessive initiation fees/fine and forfeiture
Full and detailed reports of all financial transactions
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

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

No admission or continued membership individuals knowingly:

from subversive organization, or
engaged in subversive activity

Ineligibility of person convicted of a crime involving moral turpitude:

election as a union officer, or
appointment to any position;

No collection of any fees unless he is duly authorized pursuant to constitution and by-laws;
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

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;

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

from submission of the annual financial report to DOLE
from submission as required by law
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

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

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

Inspection of books of accounts and other records of the financial activities

by any officer or member
during office hours

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

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

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

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

Decision-making Right

Right to participate in deciding any question of major policy

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

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

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.

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 Court has ruled that the 30 percent is not mandatory.

Any member specially concerned may report the violation.

"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).
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.
A union officer in a company should be an employee of that company.
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."

"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. (

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.
Even negotiation fee in collective bargaining is an obligation of the union and not of a particular member.

"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.
Collection of an amount through salary deduction.

The law does not easily allow the collection of "special assessment" from union members. There are three documentary requisites:

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;
Individual written authorization duly signed by every employee in order that a special assessment may be validly collected from the employee's pay;
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.

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.

Suggested Question

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.

Chapter III

Rights of Legitimate Labor Organizations

Art. 251. Rights of legitimate labor organizations.

Rights of a legitimate labor organization

act as the representative for collective bargaining
be certified as the exclusive representative of all employees for collective bargaining
be furnished by the employer, upon written request, the annual audited financial statements

within thirty (30) calendar days

from the date of receipt of the request
after the union has been duly recognized or certified as the sole and exclusive bargaining representative

within sixty (60) calendar days

before the expiration of the existing collective bargaining agreement

during the collective bargaining negotiation;

own property, real or personal, for the use and benefit of the labor organization and its members;
sue and be sued in its registered name; and
undertake all other activities designed to benefit the organization and its members, including:

cooperative
housing
welfare
other projects not contrary to law

Income and properties of legitimate labor organizations are exempt from taxes, duties and other assessments.

Applicable to income and properties that are actually, directly and exclusively used for their lawful purposes.
May only be withdrawn by a special law expressly repealing this provision.

Authority of the Union

A registered labor union has the requisite personality to sue on behalf of its members for their individual money claims.
But the 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.

It must be expressly granted, and the employer, as judgment debtor, must deal in all good faith with the union as the agent of the individual workers.

A judgment based on a compromise agreement authorized by the members does not bind the individual members or complainants who are not parties to it. (Kaisahan ng mga Manggagawa, 33 SCRA 220)

Union Registration, Unclear

In one case, it is not clear from the record whether the union is a registered organization. But considering that it filed petition for certification election and such petition was granted on appeal by the labor undersecretary the Court ruled that the union had the personality to sue in its own name to challenge the ULP acts committed by the employer. The union could institute the action in its representative capacity. (

Union Merger or Consolidation

Together with multi-employer bargaining, union merger and consolidation are new concepts (in the Philippines) introduced by D.O. No. 40-03.
"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;

that is, if Union A absorbs Union B, Union A remains and Union B disappears.
Another name of merger is "absorption."
One effect of merger is to transfer to the absorbing organization all the rights, interest and obligations of the absorbed organization.

"Consolidation" of unions refers to the creation or formation of a new union arising from the unification of two or more unions;

that is, if Union A and Union B consolidate themselves, both of them disappear and Union C is born.
Another name for consolidation is "amalgamation."
In consolidation, the newly created labor organization acquires all the rights, interest and obligations of the consolidating labor organizations.

The notice of merger or consolidation of local unions and of workers' associations shall be filed with the DOLE Regional Office where the organization is registered or with the BLR in case of federation or national union.
The notice of merger/consolidation shall be accompanied by the:

minutes of merger/consolidation convention
amended constitution and by-laws
minutes of its ratification

Art. 252. Reportorial Requirements.

Reportorial Requirements:

to be submitted to the Bureau

Constitution and by-laws, or amendments thereto

minutes of ratification
list of members who took part in the ratification

within thirty (30) days from adoption or ratification

List of officers

minutes of the election
list of voters

within thirty (30) days from election

Annual financial report

within thirty (30) days after the close of every fiscal year

List of members

at least once a year
whenever required by the Bureau

Failure to comply:

not a ground for cancellation of union registration
subject the erring officers or members to:

suspension
expulsion from membership
any appropriate penalty.

Suggested Question

Q: What are the rights of a Legitimate Labor Organization? Are these rights available to all labor organizations?

The following are the rights of a Legitimate Labor Organization:

To act as the representative for collective bargaining;
To be certified as the exclusive representative of all employees for collective bargaining;
To be furnished with the annual audited financial statements by the employer;
To own property for the use and benefit of the organization and its members;
To sue and be sued in its registered name; and
To undertake activities for the benefit of the organization and its members.

No, these rights are not available to all labor organizations. These rights are available only to the legitimate labor organization of the majority members of the bargaining union.

Title V

Coverage

Art. 253. Coverage and employees’ right to self-organization.

Own Notes

Covered Employees

Enterprises

commercial enterprises
industrial enterprises
agricultural enterprises

Institutions operating for profit or not

religious institutions
charitable institutions
medical institutions
educational institutions

Others

ambulant workers
intermittent workers
itinerant workers
self-employed people
rural workers
those without any definite employers

Notes

This Article mentions two rights:

the right to self-organize and
the right to form, join or assist labor organization

"Organizing" is frequently equated with "unionizing" but the two are not the same.

All persons may organize for a lawful purpose, but to say that all persons may form labor unions is not accurate.

Even employees of traditionally nonprofit organizations like religious a charitable, medical, or educational institutions may unionize.

Art. 254. Right of employees in the public service.

Government Corporations under the Corporation Code

right to organize
right to bargain collectively

Other Employees in Civil Service

right to form associations for purposes not contrary to law

Government Employees; "C.N.A."

Government employees covered by E.O. No. 180 may organize, even unionize, and negotiate employment condition fixed by law but they cannot strike.
Government employees:

may organize
may unionize
may negotiate collective negotiation agreements (CNA) or memorandum of agreement (MOA) with their employers.

Their organizations have to be registered with the Civil Service Commission and the DOLE.
The governing law on this and related matters is E.O. No. 180, issued in 1987.
The Executive Order applies to "government employees," referring to:

employees of all branches, subdivisions, instrumentalities, and agencies of the Government
including government-owned or -controlled corporations with original charters from Congress.

The Executive Order, however, does not apply to:

members of the Armed Forces
including police officers
policemen
firemen
jail guards

Not eligible to join the rank-and-file organization:

High-level employees doing:

policy-making
managerial, or
confidential duties

The resolution of complaints, grievances, and cases involving government employees" is not ordinarily left to collective bargaining or other related concerted activities, but to "Civil Service Law and labor laws and procedures whenever applicable."

In case any dispute remains unresolved after exhausting all available remedies under existing laws and procedures, the parties may jointly refer the dispute to the (Public Sector Labor-Management) Council for appropriate action.

Memorandum Circular No. 6 of the Civil Service Commission, issued on April 21, 1987, enjoins strikes by government officials and employees.

Government Corporations Registered with SEC

For employees or government corporations incorporated under the Corporation Code and registered with the Securities and Exchange Commission, the governing labor relations law is the Labor Code, not E.O. No. 180.

Art. 255. Ineligibility of managerial employees to join any labor organization; right of supervisory employees.

Managerial Employees

not eligible to join, assist or form any labor organization

Supervisory Employees

not eligible for membership in a labor organization of the rank-and-file employees
may join, assist or form separate labor organizations of their own

Art. 256. Effect of Inclusion as Members of Employees Outside the Bargaining Unit.

Effect of Inclusion of Employees Outside Bargaining Unit

not a ground for the cancellation of the registration of the union
employees are automatically deemed removed from the list of membership

Supervisors and Managers

“Managerial employee” is one who is vested with the powers or prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees.

decision-maker

Supervisory employees are those who, in the interest of the employer, effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment.
All employees not falling within any of the above definitions are considered rank-and-file employees for purposes of this Book.

recommender

The power to decide and do managerial acts is separated from the power to recommend those managerial acts, such as laying down policy, hiring or dismissing employees.

Supervisor — power only to recommend
Managerial employee — power to decide and do those acts

They pertain to either policy decisions or people (personnel) decisions.

The recommendation is:

discretionary or judgmental (not clerical)
independent (not a dictation of someone else),
effective (given particular weight in making the management decision)

If these qualities are lacking or, worse, if the power to recommend is absent, then the person is not really a supervisor but a rank-and-file employee and therefore may join rank-and-file organization.
The prohibition of unionization of managerial employees does not violate the Philippine Constitution.

Segregation

Article 255 allows supervisory employees to form, join, or assist separate labor organizations of their own, but they are not eligible for membership in labor organization of the rank-and-file employees.

Confidential Employees

The court sustained the exclusion of confidential rank-and-file employees from the rank-and-file union.

The court extended to confidential employees the prohibition against managers' membership in unions.
By the 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.

Legal secretaries, though neither managers nor supervisors, are confidential employees.
The Court excluded the confidential employees not only from union membership but from the rank-and-file bargaining unit itself.

Hence, the union security clause in the CBA requiring payment of agency fee or compulsory union membership does not apply to the confidential staff.

In unionization context, confidential employees are limited to those who:

assist or act in a confidential capacity
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.
The definition of "confidential employee" intends to exclude from the bargaining unit those employees who, in the normal course of their duties become aware of management policies relating to labor relations.

Security Guards

Security guards may join a labor organization of the rank-and-file or that of the supervisory union, depending on their rank.

Coop Members

An employee of a cooperative who is also a member and co-owner cannot invoke the right to collective bargaining, for certainly an owner cannot bargain with himself or his co-owners.
In cooperatives, however, with employees who are not members or co-owners thereof, such employees are entitled to exercise the rights of workers to self-organization, collective bargaining, and other rights enshrined in the Constitution and existing laws.
But even as regards the employees who are members of the cooperative, their incapacity to to bargain bargain does not stop them from forming their organization which is not union. Its purpose is not to collectively bargain with the cooperative but to extend aid and protection to its members.

International Organization

A certification election cannot be conducted in an international organization which the the Philippine Government has granted immunity from local jurisdiction.

Examples of such international organizations are the:

International Rice Research Research Institute (IRRI)
International Catholic Migration Commission (ICMC).

The grant of such immunity is a political question whose resolution the of Executive Branch of Government is conclusive upon the Courts.

Religious Objectors

Under the Industrial Peace Act — the labor relations law before the passage of the Labor Code — persons whose religion forbade membership in labor unions (e.g., Iglesia ni Cristo), could not be compelled into union membership.

Art. 257. Non-abridgment of right to self-organization.

Unlawful Acts in Exercise of Right to Self-organization

restrain
coerce
discriminate against
unduly interfere

Right to Self-organization

right to form, join, or assist labor organizations for the purpose of collective bargaining
right to engage in lawful concerted activities

Notes

Article 253 declares that all persons employed in enterprises or institutions have the right to self-organize.
And this "right to self organize," according to Article 257, includes at least two components, namely:

right to form, join, or assist labor organizations
right to engage in lawful concerted activities

The two rights as well as their purposes are shielded from abridgement by "any person"

whether a private person or a public officer
whether in a private or public organization, and
whether in an employment relationship or outside of it

The two rights, says this Article 257, pertain to "employees and workers, although Article 219(g) defines a labor organization as a union or association of "employees.
The right to organize carries with it the right to engage in group action.

But the group action by a non-union cannot be work stoppage; only union may resort to work stoppage, subject to legal conditions and requirements.
These are detailed in Articles 278 through 280.

The right to organize, says this Article, should not be abridged or curtailed. Any act intended to weaken or defeat the right is regarded by law as an offense, which is technically called "unfair labor practice" (ULP).

Suggestion Questions

Q: Differentiate Managerial Employees mentioned in Article 255 of the Labor Code on Labor Relations and Managerial Employees in Labor Standards.

Managerial Employees in Labor Relations pertains to those with powers and prerogatives to lay down and execute management policies. Unlike the definition in Labor Standards, a managerial employee is distinct from supervisory employees who recommends managerial acts.
Managerial Employees in Labor Standards pertains to those with primary duties consisting of management of the establishment, or the department or subdivision of such establishment. Unlike the definition in Labor Relations, managerial employees include all the officers and members of the managerial staff.

Q: Who are excluded from the coverage of the right to self-organization?

As a general rule, all persons may exercise their right to self-organization.
However, the following are not allowed to form labor organization for collective bargaining purposes:

Managerial Employees
Co-owners of Cooperative
Foreign Workers
International Organizations
Religious Members
Others disqualified by law or court rulings

Q: What is the effect if managers, supervisor are intermixed as members of a rank and file labor organization?

If managers are supervisor are intermixed as members of a rank and file labor organization, it would cause conflict in the existing employment structure. It could potentially destroy the existing structure by crossing the line dividing the management and labor.
There could be challenges in representation and management and conflict of interests, specially that managerial employees are the same persons deciding on management policies. Mixing them together in one organization would undermine the effectivity of the collective bargaining agreement.

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Labor Relations (Labor Organizations, Coverage) [Arts. 234 - 257]

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