LABOR RELATIONS

RIGHT TO SELF-ORGANIZATION

Self-organization is a fundamental right guaranteed by the Philippine

Constitution and the Labor Code. Employees have the right to form, join or assist
labor organizations for the purpose of collective bargaining or for their mutual aid
and protection. Whether employed for a definite period or not, any employee shall
be considered as such, beginning on his first day of service, for purposes of
membership in a labor union. (UST Faculty Union v. Bitonio)

The right to self-organization is not limited to unionism, Workers may also

form or join an association for mutual aid and protection and for other legitimate
purposes. (Samahan ng Manggagawa sa Hanjin Shipyard v. BLR, G.R. No.
211145, October 14, 2015 [Mendoza, J.])

The right to self-organization is expressly recognized in Section 8, of

Article III, and Section 3 of Article XIII of the Constitution.

Non-Abridgement of the Right to Self-organization (Art. 257, LC)

It shall be unlawful for any person to restrain, coerce, discriminate against, or
unduly interfere with employees and workers in their exercise of the right to self-
organization.

-see: Articles 257, LC. Non-Abridgment of Right to Self-Organization; and 253.

Coverage and Employees’ Right to Self-Organization; and D.O. 40-03 Coverage
on the Right to Self-Organization, Rule II

Labor Organization – means any union or association of employees which exists

in whole or in part for the purpose of collective bargaining or of dealing with
employers concerning terms and conditions of employment. (Art. 219 (g), Labor
Code. If it is duly registered with Department of Labor and Employment, and
includes any branch or local thereof, it is called a “legitimate labor organization”
(Art. 219 (h), LC).

Bargaining unit – it has been defined as a group of employees of a given employer,

comprised of all or less than all of the entire body of employees, which the
collective interest of all the employees, consistent with equity to the employer,
indicate to be the best suited to serve the reciprocal rights and duties of the parties
under the collective bargaining provisions of the law.
Bargaining representative – as defined in Art. 219(j), of Labor Code, means a
legitimate labor organization whether or not employed by the employer.

Exclusive Bargaining Representative – legitimate labor union duly recognized or

certified as the sole and exclusive bargaining representative or agent of all the
employees in a bargaining unit.

Independent Union – any labor organization operating at the enterprise level whose
legal personality is derived through an independent action for registration with the
BLR of DOLE prescribed under Art. 240 of the Labor Code. It may be affiliated
with a federation, national or industry union, in which case it may also be referred
to as an affiliate.

Worker’s Association – association of workers organized for the mutual aid and
protection of its members or for any legitimate purpose other than collective
bargaining.

Legitimate Worker’s Association – association of workers organized for mutual aid

and protection of its members or for any legitimate purpose other than collective
bargaining registered with DOLE.

Persons/Employees who are not Granted the Right to Self-Organization

1. Employees of International organizations with immunities such as UN, IRRI and

International Catholic Immigration Commission (ICIC v. Calleja[1990]).
2. Members of the Armed Forces of the Philippines, including police officers,
policemen, firemen and jailguards (E.O. 180, Sec. 4);
3. Managerial employees (Art. 219, Labor Code); Art. 255 [245] L.C.
4. Confidential employees (Metrolab Industries, Inc., v. Roldan-Confesor, G.R.
108855, Feb. 28, 1996)
5. High level government employees (E.O. 180, Sec. 3);
6. Aliens without valid working permits but are nationals of a country which do not
grant Filipinos to exercise the right of self-organization and to join or assist labor
organizations. (Art. 283, LC; D.O. 9, Rule II, Sec. 2(1997));
7. Non-employees (Rosario Bros., Inc., v. Ople, (1984).
8. Government employees including government-owned and controlled
corporations with original charter (Arizala v. C.A., G.R. 43633-34 (1990); Art. 254
[244] LC.
9. Employees of cooperatives who are at the same time its members (Benguet
Electric Coop., Inc., v. Ferrer-Calleja (1989). However, they may form a worker’s
association (Nueva Ecija I Electric Coop., Inc., Employees’ Assoc., v. NLRC,
(2000); and
10. Subversives or those engaged in subversive activities. 

COLLECTIVE BARGAINING AGREEMENT

– refers to the negotiated contract between a legitimate labor organization and the
employer concerning wages, hours of work and all other terms and conditions of
employment in a bargaining unit. (D.O. No. 9, Rule I, [pp])
C.B.A. –
…, including mandatory provisions for grievances and arbitration machineries. (B5
R1 S1 (jj), IRR)
-‘’A method of resolving disputes over collective interests of labor vis-à-vis
those of capital arrived at through negotiation xxx’’ – PV Fernandez
-a process where the parties discuss their demands and counter demands and,
after haggling, agree on a compromise, reflecting concessions mutually given,
resulting on a contract.’’ – (CM Aquino v. NLRC, G.R. No. 87653, Feb. 11, 1992)

The fundamental factors in determining the appropriate collective bargaining

unit are: (1) the will of the employees (Globe Doctrine); (2) affinity and unity of
the employees’ interest, such as substantial similarity of work and duties, or
similarity of compensation and working conditions (Substantial Mutual Interests
Rule); (3) prior collective bargaining history; and (4) similarity of employment
status. (San Miguel Corp. v. Laguesma[1994].)

CONCEPT OF UNFAIR LABOR PRACTICE (ULP)

In determining whether an act of unfair labor practice was committed, the

totality of the circumstances must be considered. In Great Pacific Life Employees
Union vs. Great Pacific Life Assurance Corporation, this Court discussed that if
the unfair treatment does not relate to or affect the workers’ right to self-organize,
it cannot be deemed unfair labor practice. A dismissal of a union officer is not
necessarily discriminatory, especially when that officer committed an act of
misconduct. In fact, union officers are held to higher standards:
While an act or decision of an employer may be unfair, certainly not every
unfair act or decision constitutes unfair labor practice as defined and enumerated
under Article 248 of the Labor Code. (Adamson University Faculty and Employees
Union vs. Adamson University, G.R. No. 227070, March 9, 2020 [J.Leonen])

The prohibited acts are related to the worker’s right to self-organization and
to the observance of the collective bargaining agreement. Without such element,
the acts, even if unfair, are not unfair labor practices. (General Santos Coca-Cola
Plant Free Workers Union-Tupas v. Coca-Cola Bottlers Phils., Inc., G.R.
178647[2009]).

For purposes of prescription, within what period from the time the cause of
action accrued should this ULP be filed?

-Unfair labor practice shall be brought by complaint under the Labor Code
not later than 1 year from date of commission (Art. 305, LC). As to its criminal
aspect, it shall be prosecuted within 3 years from date of finality of the ULP
judgment (Art. 305.LC) – see Bar Q/A 2019 A.10 (c) pp. 217-218, Kato [2020] ed.
 See also: Arts. 259[248] unfair labor practices of employers; 260[249] unfair
labor practices of labor organizations and 258[247] Concept of ULP and Procedure
for Prosecution Thereof.

PEACEFUL CONCERTED ACTIVITIES

Strike – as defined under Article 219 (formerly Article 212) [o] of the Labor Code,
a strike means any temporary stoppage of work by the concerted action of
employees as a result of an industrial or labor dispute. (Bigg’s, Inc., v. Boncacas,
G.R. Nos. 200487 & 200636, March 6, 2019 [J.Caguioa])

Lockout – the temporary refusal of an employer to furnish work as a result of an

industrial or labor dispute. (Art. 219 [p], LC.

Picketing – the marching to and fro at the employer’s premises, usually

accompanied by the display of placards and other signs making known the facts
involved in a labor dispute.

Boycotts – the concerted refusal to patronize an employer’s goods or services and

to persuade others to a like refusal.

Slowdown – a “strike on the installment plan,” a willful reduction in the rate of

work by concerted action of workers for the purpose of restricting the output of the
employer, in relation to a labor dispute. This is generally condemned as inherently
illicit and unjustifiable.

The Labor Code allows only two (2) kinds of strike/lock-out:

(a) Economic strike – is defined as one which is to force wage and other
concessions from the employer which is not required by law to grant.
(Consolidated Labor Assoc.of the Phil. V. Marsman & Co.)

(b) ULP strike – is called against the unfair labor practices of the employer,
usually for the purpose of making him desist from further committing such
practices.

NB: All other forms of strikes, viz.: lightning strike, sit-down strike, slowdown,
wildcat, etc. are prohibited for lack of valid purpose or failure to comply with
procedure requirements.

Six CATEGORIES OF AN ILLEGAL STRIKE: (National Union of Workers in

Hotel Restaurant and Allied Industries)
1. When it is contrary to a specific prohibition of law, such as strike by
employees performing governmental functions; or
 2. When it violates a specific requirement of law, such as Article 263(now 278)
LC on the requisites of a valid strike; or
3. When it is declared for an unlawful purpose, such as inducing the employers
to commit an unfair labor practice against non-union employees; or
4. When it employs unlawful means in the pursuit of its objective, such as
widespread terrorism of non-strikers, for example, prohibited acts under Art.
264[e](now 279[e],LC, or
5. When it is declared in violation of an existing injunction, such as injunction,
prohibition or order issued by the DOLE Secretary and/or the NLRC under
Art. 263(now 278),LC; or
6. When it is contrary to an existing agreement, such as a no-strike clause or
conclusive arbitration clause.

REQUIREMENTS OF A VALID STRIKE

Under Article 278 (263) (c) (d) (e) (f) of the Labor Code, there are different
procedural requirements depending on the ground of the strike: (Bigg’s, Inc., v.
Boncacas, G.R. Nos. 200487 & 200636, March 6, 2019 [J.Caguioa])

(c) In cases of bargaining deadlocks, the duly certified or recognized

bargaining agent may file a notice of strike or the employer may file a notice of
lockout with the Ministry at least 30 days before the intended date thereof. In cases
of unfair labor practice, the period of notice of strike shall be 15 days and in the
absence of a duly certified or recognized bargaining agent, the notice of strike may
be filed by any legitimate labor organization in behalf of its members. However, in
case of dismissal from employment of union officers duly elected in accordance
with the union constitution and by-laws, which may constitute union busting where
the existence of the union is threatened, the 15-day cooling off period shall not
apply and the union may take action immediately.

(d) The notice must be in accordance with such implementing rules and
regulations as the Minister of Labor and Employment may promulgate.

(e) During the cooling-off period, it shall be the duty of the Ministry to
exert all efforts at mediation and conciliation to effect a voluntary settlement.
Should the dispute remain unsettled the lapse of the requisite number of days from
the mandatory filing of the notice, the labor union may strike or the employer may
declare a lockout.

(f) A decision to declare a strike must be approved by a majority of the

total union membership in the bargaining unit concerned, obtained by secret ballot
in meetings or referenda called for that purpose. A decision to declare a lockout
must be approved by a majority of the board of directors of the corporation or
association or of the partners in a partnership, obtained by secret ballot in a
meeting called for that purpose. The decision shall be valid for the duration of the
dispute based on substantially the same grounds considered when the strike or
lockout vote was taken. The Ministry may, at its own initiative or upon the request
of any affected party, supervise the conduct of the secret balloting. In every case,
the union or the employer shall furnish the Ministry the results of the voting at
least seven days before the intended strike or lockout, subject to the cooling-off
period herein provided.
 [T]he cooling-off period is mandatory. The cooling-off period is not merely
a period during which the union and the employer must simply wait. The purpose
of the cooling-off period is to allow the parties to negotiate and seek a peaceful
settlement of their dispute to prevent the actual conduct of the strike. In other
words, there must be genuine efforts to amicably resolve the dispute. (Bigg’s, Inc.,
v. Boncaras, G.R. Nos. 200487 & 200636, March 6, 2019 [J.Caguioa])

The purpose of maintaining the status quo [under Art. 278(g) of the Labor
Code of the Phils.] is to avoid any disruption to the economy while the labor
dispute is being resolved in the proper forum. The objective is to minimize, if not
totally avert, any damage that such labor dispute might cause upon the national
interest by occasion of any work stoppage or slow-down. It follows then… that the
directive to maintain the status quo extends only until the labor dispute has been
resolved. (Albay Electric Cooperative, Inc., v. ALECO Labor Employees
Organization, G.R. No. 241437, September 14, 2020 [J. Caguioa])

Based on the foregoing, from the date the DOLE Secretary assumes
jurisdiction over a dispute until its resolution, the parties have the obligation to
maintain the status quo while the main issue is being threshed out in the proper
forum – which could be with the DOLE Secretary or with the NLRC. This is to
avoid any disruption to the economy and to the industry of the employer – as this is
the potential effect of a strike or lockout in an industry indispensable to the
national interest – while the DOLE Secretary or the NLRC is resolving the dispute.
(San Fernando Coca-Cola Rank-and-File Union (SACORU) vs. Coca-Cola
Bottlers Philippines, Inc., G.R. No. 200499, October 4, 2017 [J.Caguioa])

Ergo, the Secretary of Labor may assume jurisdiction if, in his

opinion, there is a labor dispute likely to result in a strike or lockout in an industry
indispensable to the national interest. (Bar Q/A 2017 XIV (a) p. 185, Kato [2020]
ed.)