LabRel 2: Up to 245

Title BUREAU OF LABOR RELATIONS

III

Art. 226. Bureau of Labor Relations. The Bureau of Labor Relations and the Labor Relations Divisions in the regional offices of the Department of Labor, shall have original and exclusive authority to act, at their own initiative or upon request of either or both parties, on all inter-union and intraunion conflicts, and all disputes, grievances or problems arising from or affecting labormanagement relations in all workplaces, whether agricultural or non-agricultural, except those arising from the implementation or interpretation of collective bargaining agreements which shall be the subject of grievance procedure and/or voluntary arbitration. The Bureau shall have fifteen (15) working days to act on labor cases before it, subject to extension by agreement of the parties. (As amended by Section 14, Republic Act No. 6715, March 21, 1989).
Functions and jurisdiction now confined to union matters, collective bargaining registry, and labor education. 1987 Administrative Code: o Set policies, standards and procedures on the registration and supervision of legitimate labor union activities including denial, cancellation and revocation of union permits. o Policies, standards and procedures related to collective bargaining agreements o Examination of financial records of accounts of LOrgs to determine compliance with relevant laws o Orientation to workers for schemes and projects to improve the standard of living Inter-union and intra-union dispute: o Inter-union: any conflict between and among legitimate labor unions involving representation questions for CB purposes or to any other conflict between legitimate labor unions.

any violation of the rights and conditions of membership, violation of disagreement over any provision of the unions Constitution or bylaws, or disputes arising from chartering or affiliation of union. A complaint involving either may be filed by a legitimate labOrg (LLO) or its members. When the issue affects the entire membership, it must be supported by 30% of the membership. Other related labor relations disputes: any conflict between a labor union and the employer, or any individual, entity or group that is not a labor organization. o The complaint may be filed by a party in interest who is not necessarily a union or a union member, as opposed to previous two. Whether of the 1st or 2nd category, the complaint or petition shall be filed with the DOLE Regional Office where the LO is registered if it involves an independent union, a chartered local, or a workers association. If complaint involves federation or industry/national union, file with BLR itself.

DO No. 40-03: 15 March 2003 Objectives: 1. Simplify the formation and registration of unions, especially chartered locals 2. Simplify and expedite holding certification elections 3. Authorize union merger, consolidation and change of name 4. Promote responsible unionism (administration of union funds) 5. Authorize deregistration of CBAs. Effect of pendency of inter/intra UDs: rights, relationships and obligations of the parties shall

o Intra-union: any conflict between and among union members, including grievances arising from

continue to remain the same during pendency and until finality of decision. Pendency not a prejudicial question to petition for certification election or suspension of proceedings for CE.

duplicating conciliation proceedings and delaying disposition of the proceedings.

Appeal: a. Med-Arbiter and Regional Director decisions appealable to Bureau by any party within 10 days from receipt, copy furnished the opposing party. b. Decisions of Bureau Director in original capacity appealable to the Office of the Secretary within the same period. c. Where to file: Regional Office or Bureau where the complaint originated. d. Period to reply: 10 days from receipt of the memorandum on appeal. e. Decision of Bureau/Office Secretary: rendered within 20 days from receipt of the entire records of the case. Filing of memorandum of appeal stays execution of judgment. Bureau or Sec may call the parties to a clarificatory hearing in aid of appellate jurisdiction. f. Finality: 10 days after receipt. Only one motion for recon allowed.

Art. 227. Compromise agreements. Any compromise settlement, including those involving labor standard laws, voluntarily agreed upon by the parties with the assistance of the Bureau or the regional office of the Department of Labor, shall be final and binding upon the parties. The National Labor Relations Commission or any court, shall not assume jurisdiction over issues involved therein except in case of non-compliance thereof or if there is prima facie evidence that the settlement was obtained through fraud, misrepresentation, or coercion. Assistance of BLR or regional office of the DOLE is necessary in the execution of a valid compromise agreement. NLRC or any court can only assume jurisdiction over issues involved in compromise if: o There is noncompliance o Prima facie evidence of fraud, misrepresentation or coercion in obtaining the settlement. Formal requisites of CA: o In writing o Signed in the presence of the Reg Dir or his authorized representative o SPA authorizing legal counsel to enter into compromise on behalf of client Dire necessity is not a ground for annulling a valid CA. Not all waivers and quitclaims are void as against public policy, especially if valid and freely entered into. When it comes to individual benefits accruing to members of a union from a favorable judgment, the members themselves become the real parties in interest and it is for them to accept or reject individually the fruits of litigation, not the union

Extent of BLR authority: broad and expansive, but no authority to order a referendum among union members to decide whether to expel or suspend union members, nor to forward case to TUCP for arbitration. Referendum among union members to decide if they want to be affiliated with a federation: yes.

Katarungang Pambarangay not applicable to Labor Disputes: it would defeat the purpose of the law by

Authority to compromise is not lightly presumed and should be established by evidence. Even when a compromise agreement is approved by a LArb, it cannot have the effect of res judicata upon persons not parties to the CA; res judicata requires identity of parties. A CA may be effected at any stage of the proceeding, and even when there is already a final executory judgment (Magbanua vs. Uy). Compromise agreement: one entered into by parties in order to avoid litigation or put an end to one already commenced. Even if contracted without the assistance of LArbs, still valid. Options when CA is violated: o Enforce by writ of execvution o Rescind and insist upon original demand

Secretary, or when it is at issue in any judicial litigation, or when public interest or national security so requires. Within thirty (30) days from the execution of a Collective Bargaining Agreement, the parties shall submit copies of the same directly to the Bureau or the Regional Offices of the Department of Labor and Employment for registration, accompanied with verified proofs of its posting in two conspicuous places in the place of work and ratification by the majority of all the workers in the bargaining unit. The Bureau or Regional Offices shall act upon the application for registration of such Collective Bargaining Agreement within five (5) calendar days from receipt thereof. The Regional Offices shall furnish the Bureau with a copy of the Collective Bargaining Agreement within five (5) days from its submission. The Bureau or Regional Office shall assess the employer for every Collective Bargaining Agreement a registration fee of not less than one thousand pesos (P1,000.00) or in any other amount as may be deemed appropriate and necessary by the Secretary of Labor and Employment for the effective and efficient administration of the Voluntary Arbitration Program. Any amount collected under this provision shall accrue to the Special Voluntary Arbitration Fund. The Bureau shall also maintain a file and shall undertake or assist in the publication of all final decisions, orders and awards of the Secretary of Labor and Employment, Regional Directors and the Commission. (As amended by Section 15, Republic Act No. 6715, March 21, 1989) Once duly entered into and signed by the parties, a CBA becomes effective as between the parties regardless of whether or not it has been certified by the BLR.

Art. 229. Issuance of subpoenas. The Bureau shall have the power to require the appearance of any person or the production of any paper, document or matter relevant to a labor dispute under its jurisdiction, either at the request of any interested party or at its own initiative. Art. 230. Appointment of bureau personnel. The Secretary of Labor and Employment may appoint, in addition to the present personnel of the Bureau and the Industrial Relations Divisions, such number of examiners and other assistants as may be necessary to carry out the purpose of the Code. (As amended by Section 15, Republic Act No. 6715, March 21, 1989) Art. 231. Registry of unions and file of collective bargaining agreements. The Bureau shall keep a registry of legitimate labor organizations. The Bureau shall also maintain a file of all collective bargaining agreements and other related agreements and records of settlement of labor disputes and copies of orders and decisions of voluntary arbitrators. The file shall be open and accessible to interested parties under conditions prescribed by the Secretary of Labor and Employment, provided that no specific information submitted in confidence shall be disclosed unless authorized by the

Art. 232. Prohibition on certification election. The Bureau shall not entertain any petition for certification election or any other action which may disturb the administration of duly registered existing collective bargaining agreements affecting the parties except under Articles 253, 253-A and 256 of

this Code. (As amended by Section 15, Republic Act No. 6715, March 21, 1989) Contract-bar rule: while a valid and registered CBA is subsisting, the Bureau is not allowed to hold an election contesting the majority status of the incumbent union. CBA bars the holding of an inert-union electoral contest. Election is only allowed during the freedom period: last 60 days of the fifth year of the CBA, to avoid union politicking. Med-Arbiters in DOLE regional offices that hear petitions for certification election.

all the employees in the bargaining unit where it seeks to operate; (d) If the applicant union has been in existence for one or more years, copies of its annual financial reports; and (e) Four copies of the constitution and bylaws of the applicant union, minutes of its adoption or ratification, and the list of the members who participated in it."
ART. 234-A. Chartering and Creation of a Local Chapter. - A duly registered federation or national union may directly create a local chapter by issuing a charter certificate indicating the establishment of the local chapter. The chapter shall acquire legal personality only for purposes of filing a petition for certification election from the date it was issued a charter certificate.

Art. 233. Privileged communication. Information and statements made at conciliation proceedings shall be treated as privileged communication and shall not be used as evidence in the Commission. Conciliators and similar officials shall not testify in any court or body regarding any matters taken up at conciliation proceedings conducted by them.

The chapter shall be entitled to all other rights and privileges of a legitimate labor organization only upon the submission of the following documents in addition to its charter certificate: (a) The names of the chapter's officers, their addresses, and the principal office of the chapter; and

TitleIV LABOR ORGANIZATIONS Chapter REGISTRATION AND CANCELLATION I

Art. 234. Requirements of registration. A federation, national union or industry or trade union center or an independent union shall acquire legal personality and shall be entitled to the rights and privileges granted by law to legitimate labor organizations upon issuance of the certificate of registration based on the following requirements: (a) Fifty pesos (P50.00) registration fee; (b) The names of its officers, their addresses, the principal address of the labor organization, the minutes of the organizational meetings and the list of the workers who participated in such meetings; (c) In case the applicant is an independent union, the names of all its members comprising at least twenty percent (20%) of

(b) The chapter's constitution and by-laws: Provided, That where the chapter's constitution and by-laws are the same as that of the federation or the national union, this fact shall be indicated accordingly. The additional supporting requirements shall be certified under oath by the secretary or treasurer of the chapter and attested by its president Art. 235. Action on application. The Bureau shall act on all applications for registration within thirty (30) days from filing. All requisite documents and papers shall be certified under oath by the secretary or the treasurer of the organization, as the case may be, and attested to by its president.

Art. 236. Denial of registration; appeal. The decision of the Labor Relations Division in the regional office denying registration may be appealed by the applicant union to the Bureau within ten (10) days from receipt of notice thereof. Art. 237. Additional requirements for federations or national unions. Subject to Article 238, if the applicant for registration is a federation or a national union, it shall, in addition to the requirements of the preceding Articles, submit the following: a. Proof of the affiliation of at least ten (10) locals or chapters, each of which must be a duly recognized collective bargaining agent in the establishment or industry in which it operates, supporting the registration of such applicant federation or national union; and b. The names and addresses of the companies where the locals or chapters operate and the list of all the members in each company involved. Right to self-organization: Article XIII of 1987 Constitution o Labor organization: any union or association of employees in the private sector which exists in whole or in part for the purpose of collective bargaining, mutual aid, interest, cooperation, protection, or other lawful purposes. Not always a union; may be a employees association organized for purposes not of CB but dealing with Er concerning terms and conditions of employment. o LLO: LO in the private sector registered with the DOLE. o Union: any LO in the private sector organized for collective bargaining and other legitimate purposes. Not every union is legitimate; only those registered are LLO.

Non-registration: no legal personality, but union still subsists (no rights of an LLO) o Exclusive Bargaining Representative: LLO duly certified or recognized as the sole and exclusive bargaining representative or agent of all the employees in a bargaining unit. o Workers association: association of workers organized for mutual aid and protection of its members or any legitimate purpose other than collective bargaining. o Legitimate workers association: registered with Department. Classification of LOs 1. At the national level: a. National union/federation: any labor organization with at least ten locals/chapters or affiliates each of which must be a duly certified CB agent. b. Industry union: any group of legitimate LOs operating within an identified industry, organized for CB or for dealing with ERs concerning terms and conditions of employment within an industry, or for participating in the formulation of social and employment policies , standards and programs in such industry. c. Trade Union Center: group of national unions or federations organized for mutual aid and protection of its members, for assisting such members in CB, or for participating in the formulation of social and employment policies, standards and programs. d. Alliance: an aggregation of unions existing in one line of industry, or in a conglomerate, a group of franchisees, a geographical area, or an industrial center. Each member union retains its own identity and structure. It cannot represent its members in CBA negotiations. e. Company union: LO which in whole or in part is employer controlled or dominated (prohibited).

2. Enterprise level: a. Independent: created by independent registration. Has legal personality of its own. b. Chapter: if created through chartering from a federation or national union. - federation issues charter to union in enterprise and registers the creation of the charter where the applicant operates. - charter has no personality of its own, but may register itself independently after. Enterprise level unions: RA 9481 1. Registrable even if initial membership is less than 20% of the bargaining unit (easier to create a chapter than an independent union, to foster strong unified labor movement by expediting the growth of federations or national unions). 2. Once issued a charter, the chapter acquires a legal personality to file petition for CE. All other rights are conditioned upon submission of ff confirming documents: a. names and addresses of the officers and members of the union. b. chapters constitution and by-laws which may be the same as that of the federation. - these must be certified under oath by the Sec or Treasurer and attested by the Pres. 3. Petition to cancel union registration does not prevent filing or hearing of petition for CE. 4. 3 grounds for cancellation of registration: falsehood about CBL, or about election of officers, and voluntary dissolution. 5. Cancellation by action of members: at least 2/3 of the membership may vote to dissolve their org, but it requires a subsequent application to cancel to be submitted by the board of the organization, attested by the president.

6. Reportorial reqs of every LLO: a. adoption or amendments to Cosntitution or bylaws b. election of officers, with list of votes to be submitted in 30 days c. annual financial reports w/in 30 days from close of fiscal year d. annual list of members non-submission: sanction on officer; not ground for cancellation. Supervisors union and rank-and-file union in same company may affiliate with same federation. Commingling: excludible members automatically deemed removed. Federation who files PCE on behalf of a chapter cannot be required to identify the chapters officers and members. Employer is a bystander in the PCE: no right to oppose petition; limited to being informed about the petition and to being required to submit a list of employees if a CE will be held.

Effect of registration under the corporation law (SEC and not the DOLE): org has juridical personality before courts, but does not have the rights and privileges of a LLO. Where to register: regional Office where applicant principally operates. Federations and national unions: Regional Office or Bureau, but only Bureau can act on it.

Registration requirements: 1. Federation or national union:

a. statement indicating name of applicant union, principal address, name of officers and their addresses. b. minutes of the org meetings and list of participants therein. c. annual financial reports if union has been in existence for 1 or more years, unless it has not collected any amount from its members (statement to that effect necessary) d. applicants constitution and by-laws, minutes of adoption and ratification, list of ratifying members. e. resolution of affiliation of at least 10 LLOs whether independent unions or chartered locals, each a certified bargaining agent in the establishment it seeks to operate. f. name and addresses of the companies where the affiliates operate and the list of all members in each company involved. Same for LOs operating within an identified industry seeking to be registered as federations.

3. local/chapters constitution and by-laws, but where it is the same as that of the federation, this shall be indicated accordingly. - certified under oath by the Sec or Treas of local chapter and attested by Pres. Note: the recognition of the BLR is not a ministerial function. CBU is different from and bigger than a union. Union members come from the CBU and there can be several rival unions within a CBU. Constitution and by-laws: reasonable, uniform and not discriminatory, not contrary to public policy or law of the land are the only standards as to validity. Govern the relationship between and among members of union and union itself.

Reasons for joining a union: 1. Need to improve conditions. 2. Discontent with wages. 3. Inadequate benefits.

2. Independent LO: 4. No feeling of justice. Same as above except (e) and (f) 5. Insecurity. 3. Workers association: 6. Poor supervision. Same as above except (e) and (f) 7. Lack of communication. Amendments: in the absence of other requirements, by a majority vote of the members. Major policy questions are deliberated upon by secret ballot.

3. Chartered local: 1. Charter certificate issued by the federation or national union 2. Names and addressesof local chapters officers, and chapters principal office.

Common reqs of registration: 1. reg fee

2. certified under oath by Sec or Treasurer and attested by Pres 3. 1 original and 2 duplicate copies shall be submitted to the Regional Office or Bureau

3. total number of members of union and names of approving members 4. cert of aff issued by the federation in favor of the independently registered union 5. written notice to the employer if the aff union is incumbent bargaining agent.

Action on the registration applications: 1. 10 days from receipt: approve and issue certificate/acknowledge notice report or - deny for failure to comply with requirements within 5 days after receipt, Bureau notify Lo concerned in writing, stating reasons. 30 days from notice to comply 2. Appeal: - by RO: to Bureau then CA. - by Bureau in original action: Labor Sec. - memorandum of appeal filed with the RO/bureau that issued denial/return. - Bureau or LabSec shall decide within 20 days. Effect on existing CBA: CBA binds members up to its expiration date. Substitutionary doctrine: employees cannot revoke the validly executed CBA with their employer by changing their bargaining agent. Revocation of charter by federation, how done: service of verified notice of revocation, copy furnished the Bureau, on grounds of disloyalty or other valid grounds specified in constitution. If unregistered, legal personality of charter is divested upon receipt by Bureau. Effect of cancellation of registration of federation on chapters: chapters lose their status as LLO unless latter are covered by registered CBA, in which case they shall be allowed to register as independent unions, failing which they lose personality upon expiration of CBA. Merger or consolidation: Effect of disaffiliation on legal status: if the affiliate is not a independently registered, it does not have the rights of a LLO. When to disaffiliate: generally, free period (see above). Exceptions: before the onset of the freedom period, but by majority of members in the bargaining unit via secret balloting, and only if no period was stipulated.

Disaffiliation: a right, but must be exercised according to the terms of the affiliation.

Affiliation: an affiliate is an independently registered union that enters into an agreement of affiliation with a federation or a national union. Reasons: assistance, manpower, utilize expertise in bargaining proposals Requirements of report of affiliation: filed with Regional Office that issued certificate of Registration, accompanied by: 1. resolution of unions BoD approving affiliation 2. minutes of general membership meeting approving aff

Merger/absorption: one labor org absorbs another, resulting in the cessation of latters existence. Latters obligations are transferred to former, and latter is usually smaller than former. Consolidation/amalgamation: formation of a new union from unification of two or more unions. Unions are more or less of the same size, and new LO acquires rights and obligations of its parents. Reasons for merger: 1. access to resources and expertise 2. eliminate interorg conflicts 3. maintain job security and institutional survival Notice of merger, where filed: RegOff that issued the reg cert/ cert of creation of the chartered local of either the merging or consolidating labor org. Requirements: a. minutes of merger/consolidation convention or general meetings, with members who approve the same b. amended constitution and by-laws and minutes of ratification unless it transpired in the merger (stated accordingly) Cert of registration, contents: 1. registration number of merging LOs. 2. new name of the merged LO (change of name shall not affect legal personality) 3. fact of merger 4. name of labor orgs merged or consolidated 5. office or business address 6. date when each acquired legitimate personality Art. 238. Cancellation of registration; appeal. The certificate of registration of any legitimate labor organization, whether national or local, shall

be cancelled by the Bureau if it has reason to believe, after due hearing, that the said labor organization no longer meets one or more of the requirements herein prescribed. ART. 238-A. Effect of a Petition for Cancellation of Registration. - A petition for cancellation of union registration shall not suspend the proceedings for certification election nor shall it prevent the filing of a petition for certification election. In case of cancellation, nothing herein shall restrict the right of the union to seek just and equitable remedies in the appropriate courts."

Art. 239. Grounds for cancellation of union registration. The following shall constitute grounds for cancellation of union registration: a. Misrepresentation, false statement or fraud in connection with the adoption or ratification of the constitution and by-laws or amendments thereto, the minutes of ratification and the list of members who took part in the ratification; b. Misrepresentation, false statements or fraud in connection with the election of officers, minutes of the election of officers, the list of voters; c. Voluntary dissolution by the members

Art. 239-A. Voluntary cancellation of registration. 2/3 of the general vote in a meeting called for the purpose of voluntarily cancelling registration; provided application to cancel reg is thereafter submitted by the board of the org, attested to by the President. Art. 240. Equity of the incumbent. All existing federations and national unions which meet the qualifications of a legitimate labor organization and none of the grounds for cancellation shall continue to maintain their existing affiliates regardless of the nature of the industry and the location of the affiliates.

Effect of cancellation of reg: loss of entitlement to rights under Art 242 of the LC. Deleted grounds: Cabo system person under the guise of a labor org supplying employees to employers with or without any consideration whether as agent of the employer or as ostensible independent contractor. Sweetheart contract: CBA which provides for terms and conditions of employment below minimum standards established by law. Asking for or accepting attorneys fees from the employer still exists as ULP, though. Reportorial reqs in administrative cancellation (2 copies each): 1. Amendment to constitution and by-laws and minutes of adoption of the same 2. Annual financial reports within 30 days after the close of each fiscal year (coincides with actual year) 3. Updated list of newly elected officers 30 days after each regular or special election or from occurrence of any change in officers or agents of LOrg 4. updated list of individual members of chartered locals, within 30 days after the close of each fiscal year 5. updated list of chartered locals and member orgs, CBAs executed and effectivity period within 30 days after each fiscal year - failure to submit the same for 5 consecutive years authorizes Bureau to institute cancellation proceedings. Who file petition for cancellation: any party in interest, except for violations of 241, which can only be commenced by members of the Lorg concerned. Where filed: Regional Director or Bureau

Chapter II RIGHTS AND CONDITIONS OF MEMBERSHIP Art. 241. 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 bylaws 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 newlyelected 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; (As amended by Section 16, Republic Act No. 6715, March 21, 1989) 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; (As amended by Section 16, Republic Act No. 6715, March 21, 1989) 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: 1. At least once a year within thirty (30) days after the close of its fiscal year; 2. At such other times as may be required by a resolution of the majority of the members of the organization; and

3. 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.

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. RIGHTS of union members: 1. Political to vote and be voted for, subject to lawful provisions governing qualifications and disqualifications. 2. Deliberative and decision-making right- right to participate in deliberations on major policy questions and decide by secret ballot. 3. Rights over money matters rights against excessive fees, unauthorized collections or disbursements, access to financial records, vote on officers compensation and special assessments and be deducted a special assessment only with members written authorization 4. Right to information about the constitution and by-laws and the CBA and labor laws.

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, attorneys 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

Membership in union does not mean coverage of existing CBA, as the latter defines its coverage by agreement of parties. Election of union officers: intervals of 5 years. If officers with expired term do not call an election, at least 30% of members must file petition with DOLE Regional Office. Only union members can vote: member in good standing. One who has completed the requirements of membership and who has neither voluntarily withdrawn nor been expelled.

A union may not create special classes of nonvoting members. Right to vote may be conditioned on payment of dues, subject to the following: a. rule must be uniform. b. members must be given reasonable opportunity to pay dues, including grace period. Union officer must be an employee. Disqualification of union officer: person convicted of a crime involving moral turpitude shall be eligible for election as union officer. Acts of baseness, vileness, depravity in the private or social duties which a man owes his fellowmen or society in general, contrary to justice, honesty, modesty or good morals. Membership: any subversive organization or engaged directly or indirectly in subversive activity.

Checkoff: method for deducting from employees pay at prescribed period, the amounts due the union for fines, fees, or assessments. Amount should be reasonable.

Dues: payments to meet the unions general and current obligations. Payment must be rergular, periodic and uniform. If for a special purpose, it is called an assessment (also capable of checkoff)

Attorneys fees may not be deducted without consent of employee, unless mandatory activities. A judicial process of settling dispute laid down by law. Amicable settlement: no.

Agency fee: amount which a nonunion member pays the union for CBA benefits. May be checked off. Illegal checkoff is not a ground for cancellation. Chapter RIGHTS OF ORGANIZATIONS III LABOR

Remedy against erring officers: Union expulsion. A union officer may not be dismissed from union for past acts of malfeasance or misfeasance. Impeachment or expulsion must afford due process.

LEGITIMATE

Art. 242. Rights of legitimate labor organizations. A legitimate labor organization shall have the right: a. To act as the representative of its members for the purpose of collective bargaining; b. To be certified as the exclusive representative of all the employees in an appropriate bargaining unit for purposes of collective bargaining; c. To be furnished by the employer, upon written request, with its annual audited financial statements, including the balance sheet and the profit and loss statement, within thirty (30) calendar days from the date of receipt of the request, after the union has been duly recognized by the employer or

Generally, relief against erring officers must be sought within union itself. Exceptions: where exhaustion of administrative remedies would thwart justice.

Visitorial power of DOLE Sec: inquire into financial activities of LOrg based on complaint under oath, supported by 20% of the membership Checkoffs and assessments:

certified as the sole and exclusive bargaining representative of the employees in the bargaining unit, or within sixty (60) calendar days before the expiration of the existing collective bargaining agreement, or during the collective bargaining negotiation; d. To own property, real or personal, for the use and benefit of the labor organization and its members; e. To sue and be sued in its registered name; and f. To undertake all other activities designed to benefit the organization and its members, including cooperative, housing, welfare and other projects not contrary to law. Notwithstanding any provision of a general or special law to the contrary, the income and the properties of legitimate labor organizations, including grants, endowments, gifts, donations and contributions they may receive from fraternal and similar organizations, local or foreign, which are actually, directly and exclusively used for their lawful purposes, shall be free from taxes, duties and other assessments. The exemptions provided herein may be withdrawn only by a special law expressly repealing this provision. First 3 rights pertain to union that has been selected as bargaining representative of employees in the bargaining unit. Members doubting their union: may intervene in an action only when there is a suggestion of fraud or collusion or bad faith. Money claims due to laborers cannot be the object of settlement or compromise effected by counsel without specific individual consent.

3. Within the freedom period of a CBA. 4. During CB negotiation. ART. 242-A. Reportorial Requirements. - The following are documents required to be submitted to the Bureau by the legitimate labor organization concerned: (a) Its constitution and by-laws, or amendments thereto, the minutes of ratification, and the list of members who took part in the ratification of the constitution and by-laws within thirty (30) days from adoption or ratification of the constitution and by-lam or amendments thereto; (b) Its list of officers, minutes of the election of officers, and list of voters within thirty (30) days from election; (c) Its annual financial report within thirty (30) days after the close of every fiscal year; and (d) Its list of members at least once a year or whenever required by the Bureau. Failure to comply with the above requirements shall not be a ground for cancellation of union registration but shall subject the erring officers or members to suspension, expulsion from membership, or any appropriate penalty."

Title COVERAGE

When union may ask employer for financial statement: 1. After recognition by the employer as the bargaining representative of the employees. 2. After DOLE certification as sole bargaining agent.

Art. 243. Coverage and employees right to selforganization. All persons employed in commercial, industrial and agricultural enterprises and in religious, charitable, medical, or educational institutions, whether operating for profit or not, shall have the right to self-organization and to form, join, or assist labor organizations of their own choosing for purposes of collective bargaining. Ambulant, intermittent and itinerant workers, selfemployed people, rural workers and those without any definite employers may form labor organizations for their mutual aid and protection.

Covers all kinds of employees, even employees in nonprofit orgs like churches, medical or educational institutions.

Exceptions: Managerial employees Employee-members of cooperative (coowner cannot bargain with himself, but he may renounce co-ownership to join union) International organizations granted immunity from local jurisdiction by RP like IRRI o Immunity may be waived; discretionary Foreigners and foreign corporations o Aliens with work permits in the country are allowed if their country of nationality extends the same right to Filipinos. INC members may form and join union

of management policies, hire, transfer, dismiss, lay off employees. Govt employees organizations shall register with the CSC and DOLE. Application filed with BLR. A CE to choose the union that will represent the employees may be conducted by the BLR in a government corporation, whether governed by the CS rules or LC. PSLMC has authority to hear and decide ULP cases filed by govt employees against employer. If issue is closely interrelated to dismissal, PSLMC may also decide on issue of dismissal. Even temporary employees may organize.

Art. 245. Ineligibility of managerial employees to join any labor organization; right of supervisory employees. Managerial employees are not eligible to
join, assist or form any labor organization. Supervisory employees shall not be eligible for membership in the collective bargaining unit of the rank-and-file employees but may join, assist or form separate collective bargaining units and/or legitimate labor organizations of their own. The rank and file union and the supervisors' union operating within the same establishment may join the same federation or national union. ART. 245-A. Effect of Inclusion as Members of Employees Outside the Bargaining Unit. - The inclusion as union members of employees outside the bargaining unit shall not be a ground for the cancellation of the registration of the union. Said employees are automatically deemed removed from the list of membership of said union.

Art. 244. Right of employees in the public service. Employees of government corporations established under the Corporation Code shall have the right to organize and to bargain collectively with their respective employers. All other employees in the civil service shall have the right to form associations for purposes not contrary to law. (As amended by Executive Order No. 111, December 24, 1986) Right to organize and negotiate, but not to strike Excluded from negotiation are the terms and conditions that are fixed by law: those that require appropriations of funds, and those that involve the exercise of management prerogatives. Excepted employees: members of the AFP, including police officers, firemen and jail guards for security and safety purposes High-level employees: one whose functions are policy-determining, managerial, or one whose duties are confidential in nature. o Exercise of powers like recommendation of managerial functions, formulation or execution

Managerial employees: Types: 1. First line managers direct employees only and not other managers. Ex. Supervisors. 2. Middle managers: direct the activities of other managers and sometimes those of direct employees. Ex. Plant manager

3. Top manager: responsible for the overall management of the organization. Ex. CEO, SVP, Pres.
Art. 245 constitutional? Yes. Purpose is to prevent conflict of interest. Prevent a union dominated by employer interest, or a business dominated by employee interests. Supervisors can unionize. o Test of supervisory role: possession of authority to act for interest of employer and make recommendations that are: Not clerical but requires independent judgment Independent Given particular weight Characteristics of manager: o Not subject to observance of office hours o Work requires consistent exercise of discretion o Output can be standardized in relation to a period of time o Authority to hire or discharge employees o Not paid hourly wages as a rule nor subject to maximum hours of work Confidential employees: assist and act in a confidential capacity to or have access to confidential matters of persons who exercise managerial functions in labor relations. Disqualified from being members of unions by virtue of the doctrine of necessary implication: what is implied in a statute is as much a part thereof as what is expressed. Confidentiality may attach to a managerial, supervisory, or rank-and-file job. Security guards may join rank-and-file or supervisors union.