VIII. LABOR RELATIONS Flashcards
VIII. LABOR RELATIONS
A. Right to Self-Organization
1. Coverage and Eligibility for Membership; Exceptions
– Labor Code, arts. 253-255; DOLE D.O. No. 40-03, Rule II, secs. 1-2
Right to Self-Organization in the Philippines: Coverage, Eligibility, and Exceptions
Articles 253 and 255 of the Philippine Labor Code outline the right to self-organization for workers. Here’s a breakdown of key points with relatable examples:
A) Coverage:
* Broad Scope: Most employees, regardless of industry or employer type (commercial, industrial, agricultural, religious, etc.), have the right to form or join labor unions.
* Exceptions: Managerial employees and, in some cases, government employees (depending on the specific corporation) are ineligible for union membership.
B) Eligibility for Membership:
* Rank-and-File Employees: This constitutes the majority of workers and includes production workers, clerks, drivers, etc. They can form unions for collective bargaining (negotiating with employers for better wages, benefits, and working conditions).
* Supervisory Employees: They cannot join the same union as rank-and-file employees but can form separate unions for their own interests.
C) Exceptions to the Right to Self-Organization:**
* Managerial Employees: Due to their decision-making roles, they are excluded from union membership to prevent conflicts of interest with the employer.
- Current Event Example:
Imagine news coverage about a call center strike. The striking workers are likely rank-and-file employees (agents, customer service representatives) who formed a union to negotiate for higher wages and improved working conditions. This scenario aligns with the right to self-organization. - Jurisprudence and Legal Reasoning:
Landmark cases like National Federation of Labor Unions vs. NLRC (G.R. No. 112282) emphasize the broad scope of the right to self-organization. However, exceptions exist for managerial employees to ensure a clear distinction between workers and management. - Important Note:
The specific rules regarding government employee unions can vary depending on the nature of the corporation. Consulting a labor lawyer is recommended for navigating the complexities of union membership in the public sector.
VIII. LABOR RELATIONS
A. Right to Self-Organization
- Doctrine of Necessary Implication (Confidential Employees)
Based on the sources provided, the Doctrine of Necessary Implication under Philippine labor laws pertains to the exclusion of “confidential employees” from the right to self-organization and joining labor unions. The key points are:
- Article 245 of the Labor Code grants the right to self-organization to all employees, except for managerial employees.
- However, through jurisprudence, the Supreme Court has applied the “Doctrine of Necessary Implication” to also exclude confidential employees from the right to self-organization and joining unions.
- Confidential employees are those who assist or act in a confidential capacity to, or have access to confidential matters relating to, labor relations.
- The rationale is that giving confidential employees the right to unionize may potentially conflict with the interests of the employer, since they may become union members while having access to confidential labor relations information.
- As explained in [2], confidential employees are “disqualified from joining any labor organization because of the confidential nature of their functions and their access to privileged information relating to labor relations.”
- An example would be an employee in the Human Resources department who has access to confidential employee records, salary data, and information about the company’s labor relations strategies. Allowing such an employee to join a union could create a conflict of interest.
- However, the exclusion of confidential employees is applied strictly. As stated in [4], “the exclusion applies only to the extent that the employee’s confidential functions affect the company’s labor policies.”
So in essence, the Doctrine of Necessary Implication under Philippine labor laws excludes confidential employees who have access to privileged labor relations information from the right to self-organization, in order to avoid potential conflicts of interest between their union membership and confidential duties to the employer.
VIII. LABOR RELATIONS
A. Right to Self-Organization
- Bargaining Unit – DOLE D.O. No. 40-03, Rule I, sec. 1(e)
a. Commingling or Mixed Membership
b. Inclusion as Members of Employees Outside the Bargaining Unit – Labor Code, art. 256
VIII. LABOR RELATIONS
A. Right to Self-Organization
- Bargaining Unit – DOLE D.O. No. 40-03, Rule I, sec. 1(e)
b. Inclusion as Members of Employees Outside the Bargaining Unit – Labor Code, art. 256
Key Point on Union Membership and Bargaining Unit (Philippines)
1)
This rule clarifies the relationship between union membership and the bargaining unit in the Philippines. Here’s a breakdown:
A) Union Membership:
Employees can be members of a labor union regardless of whether they belong to the bargaining unit.
B) Bargaining Unit:
This refers to a specific group of employees authorized to negotiate a collective bargaining agreement (CBA) with the employer on wages, benefits, and working conditions.
2)
The rule emphasizes two key points:
A. Union Membership is Separate: Including employees outside the bargaining unit as union members won’t lead to the union’s registration being revoked.
B. Automatic Removal from Bargaining Unit List: If an employee who belongs to the bargaining unit also becomes a union member, they are automatically removed from the official bargaining unit list. This might be to avoid conflicts of interest during negotiations.
Example:
Imagine a factory with two departments: production (bargaining unit) and administration (outside bargaining unit). The factory workers’ union can have members from both departments.
- Production Workers: They can be part of the union and also be included in the bargaining unit that negotiates the CBA with management.
- Admin Staff: They can choose to join the union for solidarity or access to union benefits, but they wouldn’t be part of the official bargaining unit negotiating the CBA. If an admin staff member joins the union, their name would likely be removed from the bargaining unit list to avoid any potential bias during negotiations.
VIII. LABOR RELATIONS
A. Right to Self-Organization
- Registration of Unions,
Chartering,
Cancellation of Registration
– Labor Code, arts. 240, 241, 245 and 247
REGISTRATION - EXPLAIN
To register your labor union in the Philippines and gain legal recognition, you’ll need to jump through a few hoops:
1) Pay a ₱50 Registration Fee: This is a small price to pay for official union status.
2) Document Your Formation: Provide minutes of organizational meetings and a list of attending workers to prove a legitimate founding process.
3) Show Your Strength (Independent Unions): If you’re an independent union, demonstrate your worker support by listing at least 20% of employees in your target bargaining unit as members.
4) Financial Transparency (Existing Unions): If your union has been around for a while (one year or more), submit copies of your annual financial reports to show responsible management.
5) Constitution & By-Laws: Provide four copies of your governing documents (constitution and by-laws) along with adoption/ratification minutes and a participant list.
VIII. LABOR RELATIONS
A. Right to Self-Organization
- Sole and Exclusive Bargaining Agent (SEBA) (DOLE D.O. No. 40-03,
Rule I, Sec. 1(u)); Modes to Acquire Status (DOLE D.O. No. 40-I-15)
a. SEBA Certification – DOLE D.O. No. 40-03, Rule I, Sec. 1, as
amended by DOLE D.O. No. 40-J-22
VIII. LABOR RELATIONS
A. Right to Self-Organization
- Sole and Exclusive Bargaining Agent (SEBA) (DOLE D.O. No. 40-03,
Rule I, Sec. 1(u)); Modes to Acquire Status (DOLE D.O. No. 40-I-15)
b. Certification and Consent Election – DOLE D.O. No. 40-03,
Rules VII and VIII, as amended
VIII. LABOR RELATIONS
A. Right to Self-Organization
- Sole and Exclusive Bargaining Agent (SEBA) (DOLE D.O. No. 40-03,
Rule I, Sec. 1(u)); Modes to Acquire Status (DOLE D.O. No. 40-I-15)
c. Bars to the Holding of Certification Election
– DOLE D.O. No.
40-03, Rule VIII, Sec. 14, and Rule XVII, Sec. 7, as amended;
Omnibus Rules Implementing the Labor Code, Book V, Rule
III, Sec. 14 (e)
VIII. LABOR RELATIONS
A. Right to Self-Organization
- Sole and Exclusive Bargaining Agent (SEBA) (DOLE D.O. No. 40-03,
Rule I, Sec. 1(u)); Modes to Acquire Status (DOLE D.O. No. 40-I-15)
d. Failure of Election, Run-off Election, Re-run Election
– DOLE
D.O. No. 40-03, Rule IX, Secs. 17-19, as amended
VIII. LABOR RELATIONS
B. Rights of Legitimate Labor Organizations
- Check Off, Assessment, and Agency Fees – Labor Code, arts. 250 (n), (o)
and 259 (e); DOLE D.O. No. 40-03, Rule XIII, sec. 1
Key Points on Check-Off, Assessments, and Agency Fees in the Philippines (with Examples)
These rules regulate how labor unions in the Philippines can collect money from their members and how employers can deduct these fees from employees’ salaries.
- Check-Off Fees:
* Definition: This is the system where an employer deducts union dues or fees from an employee’s salary and remits them directly to the union.
* Authorization Required: Check-off can only happen with written authorization from the individual employee.
* Transparency: The authorization should clearly state the amount, purpose, and beneficiary of the deduction.
Example:
Imagine a call center union negotiates a check-off system with management. Call center agents who wish to join the union can sign a form authorizing the deduction of a monthly membership fee (e.g., ₱100) from their salary. This fee would then be directly transferred by the company to the union’s account. - Special Assessments and Fees:
* Definition: These are additional fees levied upon union members beyond regular dues.
* Approval Process: Special assessments or fees require written approval from a majority of union members in a properly convened general meeting.
* Record Keeping: The union secretary must record details of the meeting, including the purpose and recipient of the fees, and the president must attest to the record.
Example:
A nurses’ union might decide to hold a special fundraising drive to support a legal battle against a hospital’s unfair labor practices. They would need to hold a general membership meeting where the proposal for a one-time special assessment (e.g., ₱200) is voted on. If a majority approves, the union can collect these additional fees with proper documentation. - Agency Fees (Right to Work Laws Not Applicable):
* Concept (Not Applicable in the Philippines): In some countries with “right-to-work” laws, non-union members covered by a collective bargaining agreement might be required to pay agency fees to the union representing them.
* Philippine Exception: The excerpt clarifies that the individual authorization requirement for check-off fees (mentioned above) doesn’t apply to non-members of the recognized collective bargaining agent in the Philippines. This suggests there’s no mandatory agency fee system in the Philippines.
- Important Note:
- These are just some key points, and the specific rules regarding union finances can be complex. It’s recommended to consult a lawyer specializing in labor law for further guidance.
VIII. LABOR RELATIONS
B. Rights of Legitimate Labor Organizations
- Collective Bargaining
a. Procedure in Bargaining – Labor Code, art. 261
Collective Bargaining Process in the Philippines: Easy Guide for Bar Exam Prep
Negotiating a fair employment contract? Here’s a simplified breakdown of the collective bargaining process
A) Initiating Negotiations (Step 1 & 2):
1. Start with a Written Notice:
- One party (union or employer) sends a formal written proposal outlining their desired terms for the employment contract (wages, benefits, working conditions).
- The other party has 10 days to respond in writing with their counter-proposal or acceptance.
B) Resolving Differences (Steps 3 & 4):
2. Conference if Disagreements Arise:
- If there are issues with the initial proposals, either party can request a conference within 10 days of the response. This provides a platform for direct discussion.
3. Conciliation by the National Labor Relations Board (NLRC):
- If the conference doesn’t resolve the dispute, either party or the NLRC can initiate conciliation meetings. The NLRC acts as a neutral mediator to help both sides reach an agreement.
- Important: During conciliation, both parties are prohibited from taking actions that could worsen the situation (strikes, lockouts).
C) Reaching an Agreement (Step 5):
4. Striving for Amicable Settlement:
- The NLRC aims to guide both parties towards a mutually agreeable solution.
- Voluntary arbitration might be encouraged, where an impartial third party makes a binding decision.
- Example:
Imagine a union representing factory workers wants to negotiate a raise and better healthcare benefits. They would follow these steps:
1. Written Notice: The union sends a document to the factory management outlining their proposed wage increase and specific health insurance plan.
2. Management Response: Within 10 days, management might counter with a lower raise offer and a different health plan.
3. Conference (if needed): If disagreements persist, either the union or management can request a conference to discuss the proposals directly.
4. NLRC Conciliation: If the conference fails, the NLRC steps in with conciliation meetings. Here, both sides negotiate with the NLRC’s guidance to find common ground. - Remember:
The goal is to reach a fair agreement through communication and compromise. The NLRC plays a crucial role in facilitating a peaceful and productive negotiation process.
VIII. LABOR RELATIONS
B. Rights of Legitimate Labor Organizations
- Collective Bargaining
b. Duty to bargain collectively – Labor Code, arts. 262-264
Duty to Bargain Collectively in the Philippines: Key Points with Current Events
Articles 262 and 264 of the Labor Code outline the duty to bargain collectively, a crucial aspect of employer-employee relations. Here’s a breakdown of the key points with a relatable scenario:
A) What it Means:
* When there’s no existing agreement between the employer and employee representatives (union), both parties have a legal obligation to bargain collectively.
* This translates to good faith negotiations on terms like wages, working hours, and other employment conditions.
* Bargaining involves meeting promptly and discussing proposals put forth by either side.
Current Event Example:
Imagine news coverage about nurses at a private hospital planning to strike due to low wages and long working hours. The nurses might not have a formal collective bargaining agreement (CBA) with the hospital management. In this scenario:
* The nurses’ union can initiate the process by sending a written proposal outlining their desired wage increase and preferred working hours.
* The hospital management is then obligated to respond in good faith and engage in negotiations.
B) Key Points (Articles 262 & 264):
* Good Faith is Paramount: Both parties must approach negotiations with a genuine intention to reach an agreement.
* Focus on Issues: Discussions should center around wages, benefits, and working conditions.
* No Obligation to Agree: Neither party is forced to accept every proposal, but they must negotiate seriously.
* Respecting Existing Agreements (Article 264): If a CBA exists, neither party can unilaterally terminate or modify it during its validity period. However, either side can propose changes by providing written notice 60 days before the agreement expires.
- Remember:
Collective bargaining is a process, not a guarantee. The goal is to find common ground through open communication and a willingness to compromise.
VIII. LABOR RELATIONS
B. Rights of Legitimate Labor Organizations
- Collective Bargaining
c. Economic Provisions and Conditions
VIII. LABOR RELATIONS
B. Rights of Legitimate Labor Organizations
- Collective Bargaining
d. Non-Economic Provisions and Conditions
VIII. LABOR RELATIONS
B. Rights of Legitimate Labor Organizations
- Collective Bargaining
e. Mandatory Provisions in a Collective Bargaining Agreement
VIII. LABOR RELATIONS
B. Rights of Legitimate Labor Organizations
- Collective Bargaining
f. Freedom Period
VIII. LABOR RELATIONS
B. Rights of Legitimate Labor Organizations
- Collective Bargaining
g. Union Security Clause
VIII. LABOR RELATIONS
C. Unfair Labor Practices
1. By Employers – Labor Code, art. 259
Unfair Labor Practices by Employers in the Philippines: Key Points and Examples
The Labor Code outlines various actions by employers considered unfair labor practices (ULPs). Here’s a breakdown of key points with a relatable scenario:
What are Unfair Labor Practices?
ULPs are employer actions that infringe on workers’ rights, particularly regarding unionization and collective bargaining. Here are some common examples based on Article 248(a) to (i):
1) Interfering with Unionization (a): Threatening employees with job loss or reduced benefits if they join a union.
2) Forcing Employees Out of Unions (b): Requiring employees to choose between their jobs and union membership.
3) Undermining Unions (c & d): Hiring non-union workers to perform tasks previously done by union members, or creating a company-controlled “union” to weaken the legitimate union.
4) Discrimination Based on Union Membership (e): Offering better wages or benefits only to non-union employees.
5) Retaliation for Union Activity (f): Firing or demoting employees who participate in union organizing or testify in labor disputes.
6) Refusal to Bargain Collectively (g): Ignoring union requests to negotiate a collective bargaining agreement (CBA).
- Current Event Example:
Imagine a news report about a garment factory where workers are discreetly forming a union to fight for better pay and safer working conditions. The factory management gets wind of this and:
Threatens to shut down the factory if the workers unionize (A) - Offers raises to individual workers on condition they abandon efforts to form a union (B)
These actions by the management would be considered unfair labor practices.
- Important Note:
- Only certain officers/agents who directly participate in, authorize, or ratify ULPs can be held criminally liable (last paragraph of Article 248).
- Consulting a lawyer specializing in labor law is recommended if you suspect your employer is engaging in unfair labor practices.