PRO HONORUM ET GLORIAM

LABOR LAW ESSENTIALS

From Dean Salvador Poquiz lecture (Overview of Labor Law)
During the 2010 Arellano Law Bar Review Program
With special emphasis on Labor Relations

CONSTITUTIONAL PROVISION

Art. 13 Rights of worker

o Rights to self organization
o Rights to living wage
o Right to collective bargaining or negotiation
o Right to security of tenure
o Right to just and humane condition of work
o Right to engage in peaceful concerted activities
o Right to strike in accordance with law
o Right to participate in formulation of policy and decision making
processes with the management (Principle of co-determination,
principle of shared responsibilities)
o Right to profit sharing benefits
Art. 12, Sec.6
o Principle of Distributive Justice defusing, regulate the
enjoyment of property ownership for the common good via the
power of eminent domain.
Art. 19, Sec.5 right to self organization of government
o Cannot have CBA but can have CNA
Art. 19, Sec. 2 (1) Scope of Civil Service
o Chartered government corp., governed by CSC
o Subsidiary of chartered government corp. organized under
Corporation Code, LC.(Corporate offspring)

TYPES OF EMPLOYEES
1. Regular employees
Whether continuous of broken, so long as the employment is for more
than one year, regular employment.
Constant Rehiring, renewal of contract plus one year = regular
employment
Necessary and desirable to the usual business or trade of the
employer
Usual trade and business = main undertaking of the employer
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Men in Law Fraternity and Sorority
Arellano University School of Law

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Expiration of the training period

o Training Period
For Apprentice not more than 6 months but not less than
3 months
Combo of Theoretical Instruction plus OJT(Practical
application)
The apprenticeship period is considered as the
probationary period
Double apprenticeship is not allowed (apprenticeship
plus probationary period). It is against public policies.
Apprentice is entitled to not less than 75% of the
minimum wage as issued by the wage board.
Q: Is the apprentice entitled to full month pay? A:
Upon the expiration of the apprenticeship period or if
the training company availed of the tax deduction
scheme for apprenticeship salary, must pay 100%.

Learnership engaged in non apprenticiable or less

skilled work, OJT plus optional theoretical instruction
Not less than 3 months
No double learnership, period is probationary period
Fixed at 75% of minimum wage as per wage order
Once taken in after learning period, entitled to full
compensation
Disabled/Handicapped maybe regular employee if
employed in a job which is usually necessary and desirable
to the usual trade of business of the employer which his
performance is not affected by his disability.
Age, Physical, mental and sensory defects
Nature of Training as an apprentice or learner
apply the rule

NB: Q: Who has jurisdiction over learnership and apprenticeship

disputed? A: Plant Committee then Department of Labor and
Employment. Labor Arbiter has no jurisdiction. (PAL vs Pano)
2. Probationary Employment
Period can be less than six months, if favorable to the employee as
provided for the employer.
SC: 18 months probationary period can be warranted when the job
required extensive training. The law provides for six months.
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Men in Law Fraternity and Sorority
Arellano University School of Law

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During this period, employees are required to comply with the

employers standards.
Probation extension: allowed when agreed upon by the parties when
necessary to comply with the probationary standards of the employer.
What is prohibited is double probation.
But after the extension, the employee still have not reached the
standards, employer can terminate the employee.

3. Seasonal Employment
From season to season
Performing the same task
4. Project Employment
Hired for specific undertaking or project
Upon termination of project, automatic cessation of employer and
employee relationship
Q: What if there is illegal dismissal during the project? Answer:
Reinstatement during the period of the project and back wages but
only during the term of the project.
Q; when can a project employee be a regular employee? A: Employers
are required to submit termination report of the project to the nearest
to the DOLE Office, failure to do this would make project employees as
regular employee.
5.

Non - project Employees

Hired without reference to a specific project or job.
Hence, they belong to a work pool.
Q: Are they required to go under probationary period? A: Yes.
They will be assigned to various projects or phase of such.

6.

Fixed Term Employees

Contractual employees
Upon signing of the contract, employees knew when it will expire
Once rehired, they will morphed into regular employment. EXPTN:
Seamen, even if rehired cannot be regular employees (Millares vs
NLRC)

7. Casual Employees
Activity performed is not usually necessary or desirable in the usual
business or trade of the ER (not regular); not project; not seasonal.
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Men in Law Fraternity and Sorority
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He is uniquely regular because his regularness attaches only to the

particular activity that he has been doing while still a casual.

Prescriptive Period:
1. Purely Money Claims 3 years
2. Criminal cases under LC -3 years, as a general rule.
Exemptions are:
a. Simple Illegal Recruitment 5 years
b. Qualified Illegal Recruitment - 20 years
3. ECC Cases -3 years
4. Illegal Dismissal 4 years
5. GSIS Claims 4 years
Exemption: Payment of premium, its 20 years.(SC)
6. SSS Claims for payment of premiums, 10 years
7. Sexual Harassment 3 years but SC, no prescription, even after four
years.
Requirements for Appeal
1. Payment of appeal fee
o Jurisdictional requirement no payment, appeal will be dismissed
for lack of jurisdiction
2. Submission of memorandum of appeal to LA a quo who will submit it to
the NLRC office which has appellate jurisdiction over the LA a quo.
o The NLRC Commissioner can notify the parties to have amicable
settlement base on Art. 221 of LC.
o No amicable settlement, proceed with decision.
o When affirmed in toto, reinstated to the payroll.
o Losing party, file Motion for Reconsideration. Only one MR is
allowed. This is a condition sine qua non for filing of certiorari.
(St. Martins Funeral Home vs. NLRC)
o When MR denied, file a certiorari under Rule 65 to CA within 60
days.
o When Certiorari was denied or unfavorable, file MR again, then
when denied thus upholding NLRC decision, certiorari to SC.
o SC can only review question of law, but can review question of
facts when
1. When decision of LA, NLRC and CA are contrary, in collision
or diametrically opposed to each other.(SC)
o Filing and reckoning period
Reckoning Period: Upon receipt of the counsel of record
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Men in Law Fraternity and Sorority
Arellano University School of Law

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Philpost: The date of mailing, date of filing

Private Carrier: The date of receipt of private party,
date of filing

3. Pay appeal Bond

o Cash and surety bond only, but
UERM Case: Property bond can be posted provided it is
sufficient to cover the monetary award
Bank certification, irrevocable bank guarantee are not
allowed
Q: Can you file a motion to reduce bond? A; Yes, but it must
be coupled with the payment of the reasonable amount of
the bond. Without the payment, the period will not be
tolled.
JURISDICTION OF LABOR ARBITER
Exclusive and Original Jurisdiction
1. Unfair labor practices
2. Termination cases
3. Big Money claims, 5k up
More than 5k, LA has jurisdiction
i. EXPTN: Big Money Claims bore out of the
power of inspection of Secretary of Labor.
ii.
Power of inspection by Sec. of Labor via the
Regional Director or his representatives. Can
be done moto propio or by a Labor Standards
Complaint of an employee supported by 20% of
all the employees of the employer/plant.
1. Enforcement Order has the force and
effect of a writ of execution.
2. When amount is contested:
If the pieces of evidence are readily
available in the ordinary course of
inspection, the Regional Office
retains jurisdiction. If not, it will be
transmitted
for
compulsory
arbitration
to
the
Regional
Arbitration Branch of the NLRC,
thus LA.
4. Small money claims with demand for reinstatement
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Men in Law Fraternity and Sorority
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5k or less, but with claim for reinstatement.

Without demand for reinstatement, Regional Director.
Thus his decision is appealable directly to the NLRC.
5. Other cases involving employer employee relationships
Causal relation between employer employee.
Without this, regular courts will have jurisdiction.
Apply the Four Fold Test to determine employer employee
i. Selection and engagement of the putative
employee
ii.
Manner of payment of salary or wages
iii.
Presence or absence of the power of dismissal
iv.
Presence or absence of the power control
1. Has primacy over all other
2. Q: Are all kinds of control indicative of
EE-EM relationship? A: No. If there is
lesser control, no relationship. More
control, there is relationship (Jay Sonza
case)
3. Other test in determining relationship.
Economic relations test Sevilla vs.
CA:
The
prevailing
economic
relationship
of
employer
and
employee can be indicative of a
relationship.
Q: Are there instances when there
is
no
formal
contract
of
employment but the law mandates
the existence of employer
employee relationship? A: Yes. 1. In
cases of labor only contracting. As
penalty, actual employer deemed
as employer of the contractual
employee, the contractor will be
deemed as the agent of the former.
Q:
Can
contractual
employees form a union in
the
actual
employers
premises when there is a
labor only contracting? A.1:
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Yes,
because
the
law
mandates that the actual
employer is the employee of
the contractors employee.
A.2: In cases of Working
Scholars
under the
law, the agreement, no
employer

employee
relationship.
Requirements: There must
be a real opportunity to finish
the course.
NB: For purposes of civil
damages,
the
working
scholar will be treated as
employee and the school as
an employer, particularly in
quasi-delics.
6. Legality of strike and Lockout
Strike is the most lethal weapon on employees
i. May affect the socio-economic situation of a
country that is why there is a law on strike.
ii.
Requirements to stage a lawful strike
1. Based on a valid ground
Two Grounds
CBA Deadlock
ULP
Union Busting (w/c is also
ULP)
o NB:
Inter/Intra
Union
Disputes, wage distortion
issues are not strikable
issues.
2. Approved by the majority of the total
membership of the union through strike
voting
3. Filing of a Notice of strike
To be filed with NCMB, which will
look into the factual grounds of the
strike. It will either dismiss it by
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Men in Law Fraternity and Sorority
Arellano University School of Law

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PRO HONORUM ET GLORIAM

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Men in Law Fraternity and Sorority
Arellano University School of Law

issuing a preventive mediation

order which will have the effect of
making the strike illegal if it still
undertaken and will convert the
issue
into
a
preventive
mediation case.
Must be filed before 30 days in
case of CBA Deadlock and 15 days
for ULP. The period is known as the
Cooling Off Period. Here, the
Grievance Machinery in the CBA
will be exhausted.
7 days after failure of the
Grievance Machinery, the issue will
be
submitted
to
Voluntary
Arbitration conducted by a 3rd nonpartisan person known as the
Voluntary Arbitrator whose decision
will be appealable to the CA under
Rule 43.
Principle of Improved Offer
through secret balloting, union
members can choice whether or
not to accept the improved offer of
the union.
Principle of Reduced Offer
through secret balloting, the BOD
or members of the governing body
of the company can choice WON to
accept the reduced offer of the
union.
In both cases, it will have the
effect of retuning to industrial
peace=workers
return
to
work,
employer
accepts
workers
and
resumes
operation.

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Compulsory
Arbitration

when
the
government
intervenes.
Q: During the cooling off period,
officers
of
the
union
were
dismissed
that
seems
to
tantamount to union busting. May
the union immediately strike? A:
SC: If there is union busting and
the union has already complied
with the 24 hour prior notice rule, 7
day strike report and the notice of
strike has already been submitted,
then a strike can be staged.
4. Compliance of the 24 hour prior notice
rule of strike vote
Separate notice to DOLE and
employer of the place, time and
date of the strike vote 24 hours
before it is staged.
5. Submission of the strike vote report
Must be submitted 7 days before
the strike.
Q: What if the strike vote was
submitted during the cooling off
period? A.: The strike vote 7 day
period must be reckoned from the
expiration of the cooling off period.
6. Compliance of the doctrine of means and
purposes
The purpose of the strike must
be legal and the means to
attain the purpose must be
also legal. (e.g. uttering libelous
remarks during the strike. Thus,
commission of illegal acts during a
lawful strike, the strike can be
declared illegal.)
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Men in Law Fraternity and Sorority
Arellano University School of Law

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7.

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Men in Law Fraternity and Sorority
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For Hospitals and Medical Institutions:

designation of an effective skeletal force.
NB: Officers of the union is liable
for dismissal for masterminding the
illegal strike. Basis: Doctrine of
Vicarious Liability.
Members of the union who actively
participated in the illegal strike will
also be liable for dismissal.
Q:
Are
the
abovementioned
dismissed employees entitled to
back pay? A: As a general rule, no.
Reason: No work, no pay. But if
they are:
Discriminatorily dismissed
Illegally
locked
out
by
employer
When
the
workers
unconditionally offer to return
to work but they were denied
to return to work.
they can return to work
Once a strike is declared legal, the
workers cannot be liable for
damages that occurred during the
strike based on the doctrine of
damnum absque injuria.
You must be unionized (legitimate,
registered) before your strike can
be declared legal.
Q: Can a union not registered
conduct a Certification election? A:
Yes, in case of a local chapter
issued with a chapter certificate.
Here the charter member was
issued a charter for purposes of
certificate election. Other privileges
accorded to a union will be
withheld for the meantime until

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completion
of
the
other
requirements.
Principle of Comingling the
rank and file union and the
supervisory union of the same
company can join the same
federation.
Q: Can government employees
unionize? A. Yes. But they dont
have the power to collectively
bargain. They can only have the
power to collectively negotiate.
They also cannot strike because
according
to
SC,
strike
of
government employees is a civil
service offense. They serve the
people.
If
you
allow
the
government employees to strike, it
will
tremendously
affect
the
delivery of public service. It
tantamount
ultimately
as
an
assault to the sovereignty.
GOCC employees without original
charters can unionize and strike.
LRTA vs Benus: SC said LRTA is a
GOCC with original charter, thus its
employees cannot strike. However,
employees of its subsidiaries or
Corporate Offspring of GOCC with
or without original charter, can
strike.
Managerial,
and
Confidential
employees cannot join a labor
union and strike.
For confidential employee, they
must have access to labor relations
matters to be disqualified for union
membership.
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Men in Law Fraternity and Sorority
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iii.

Cooperative employees who are

also members thereof cannot
unionize.
Religious Objectors can choose not
to join a union. However they can
vote in certification election.

Types of Strikes
1. Authorized strikes
There must be a strike vote.
2. Unauthorized strikes
When the there is no strike vote
Wild Cat strike
3. General Strike
No EE-EM Relationship
Welga ng Bayan SC a form of
Sympathetic Strike
Political in Nature
Industry wide strike e.g. all
employees of the air transportation
in the RP
According to SC, these strikes are
unwarranted
4. Lightning Strike
Brief strike that was stage in short
duration
5. Slowdown Strike
To reduce company reduction
Types
I. Sit down strikers
remain in the plant but
they reduce company
reduction
II.
Quickie some may
remain in the plant or
some may be outside
the plant
6. Economic Strike
Staged as a result of a collective
bargaining deadlock

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Men in Law Fraternity and Sorority
Arellano University School of Law

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7. ULP Strike
Staged in violation of the workers
right to self organization
7. Damages
8. Employees of GOCC without original charter
9. OFW
Based on Section 10 of RA 8042 as amended RA
10022
10.
Over certain churchmen (pastor, ministers)
If its purely religious function, LA has no jurisdiction.
But if not, it has jurisdiction.
11.
Collateral Matters
Incidental to the main case
Q: Can a LA award attorneys fees in an illegal
dismissal case? A: Yes. When the LA has jurisdiction
over the main issue of the case, it has jurisdiction
over collateral and incidental matters.
12.
3rd Party Compliant of a party not connected to a
Labor case that has been affected by its execution.
NB. Except as otherwise provided by this code. These matters are
beyond the jurisdiction of the Labor Arbiter.
1.
2.
3.
4.

Inter/Intra Corporate Disputes

Training and learnership agreement disputes
Labor cases against company under rehabilitation proceedings
International bodies and organizations
o This will be violative of the convention on protocol and a violation
of its functional immunity.
o DFA vs CA: ADB is an international organization outside the reach
of LA.
5. Art. 263 (g) Assumption power, preemptive power
Provides that the President or Secretary of Labor can
assume jurisdiction of a labor dispute involving industries
indispensable to national interest for its resolution.
The state and government is a passive party.
Q: Can assumption be moto propio? A: Yes.
Q: Can one of the parties to a labor dispute involving a
labor dispute in an industry indispensable to national
interest file a motion for assumption? A: Yes, either by the
union or the employer.
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Men in Law Fraternity and Sorority
Arellano University School of Law

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Once assumption is made, an assumption order will be

issued.
Legal effects of assumption order:
Once issued, it has the effect of a writ of injunction.
A return to work order is deemed written on the
assumption order.
The workers must report back to work. Failure to do
so would mean that they are now engaging in a
prohibited/illegal activity.
All issues cognizable by the labor arbiter under art.
217 can now be resolved by the assumption officer,
when it is raised under assumption.
UST Faculty Union vs. UST: Assumption of jurisdiction
contemplates actual reinstatement only. Thus, no
choice between payroll or actual reinstatement
unlike in illegal dismissal.

POWERS AND JURISDICTION OF THE NLRC

1. Contempt Power
Two Types
i. Indirect Contempt
1. To be dealt with by the NLRC and its
rules.
ii.
Direct Contempt
1. By the Rules of Court (R71)
2. Injunctive Power
2. Certification Power
Art. 263 (g) Assumption powers of President and/or
Secretary of Labor.
The President or the Secretary of Labor, upon
assumption, can also certify the labor dispute
assumed to compulsory arbitration. Thus, it is
certified to the NLRC which will resolve the dispute.
Q: Can the labor dispute be certified for voluntary
arbitration? A: Yes. If the Secretary of Labor deems it
fit for voluntary arbitration.
3. Appellate Power
Decisions of LA under Art. 217
Decisions of LA under Art. 128 (b) in relations to
contested cases
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Decisions of LA arbiter in wage distortion in nonunionize companies.

Elements of wage distortion (Pru Bankers Case)
i. Existence hierarchy of positions
ii. There in an increase in the lower pay
class with no corresponding increase
higher pay class
iii. Abolition of the two groups or classes
iv. Wage distortion applies only to the same
region
NB: Q: Who has jurisdiction over wage
distortion problem?
A: For unionize establishment
Voluntary Arbitrator
For non - unionize
establishment Labor Arbiter.
NB: Although wage distortion
problems are not strikable, but for
failure to pay the increase pursuant
to the wage order, the employer
will be liable to pay double the
amount of the increase under the
Doctrine of Double Indemnity.

Decisions of the LA pursuant to Sec. 10 of RA 8042 in

cases of OFW.
Decisions of the RD of their adjudicatory functions
under Art. 129 of LA.
o Adjudicatory Function
Indications:
1. Filed by house worker or
employee
2. No
more
employer
and
employee
3. No more claim for reinstatement
4. Claim is not more than 5k.

4. Injunctive Power
A hearing must be conducted to observe due
process.
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Men in Law Fraternity and Sorority
Arellano University School of Law

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Q: Is there a provision in the LC that a TRO is issued

without conducting a hearing by the NLRC? A: Yes, a
TRO is a mere interlocutory order. Thus can be issued
ex parte. But for injunction, a hearing is
indispensible

ILLEGAL DISMISSAL (Step by step procedure)

File it with the Regional Arbitration Branch of the NLRC which has
territorial jurisdiction over the workplace of the complainant.
Mandatory Preliminary Conference. Resort to amicable settlement as
per Art. 221 of the LC. Second MPC, if first attempt is not successful.
After second MPC, no amicable settlement, LA will mandate parties to
submit position papers.
o SC: Position papers proceedings are not in violation of due
process. Through their papers, they are heard. Plus, technical
matters are not binding in labor proceedings being an
administrative proceeding.
o Q: Can one of the parties file a motion to have a trial type
proceeding? A: Yes, but subject to the discretion of the LA.
When final paper has been submitted, LA has 30 days to decide.
Ten calendar days to appeal
No appeal, immediately self-executory as to the reinstatement
aspect. No need for writ of execution.
Virgen Shipping case: As to other matters, a writ of execution is
needed. To be filed after period to appeal expired and no appeal is
made.
After the motion for execution, LA will set it for pre-execution
conference to abbreviate the proceedings as to Art. 221 of LC.
If after the pre-execution conference, no settlement, proceed to
execution.
Garnishment and levy is allowed when no money to answer for the
judgment.
3rd party complaint is cognizable by LA for execution.
o Instances when you can lift or quash the writ of execution:
Issued against a non-party
Issued on account of graft and corruption
Issued on account that the awards is incomplete
Irregularly issued

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Men in Law Fraternity and Sorority
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NB: Doctrine of Immutability of Final Judgment: Final judgments are final and
cannot be modified.

Grounds for Appeal

o Grave abuse of discretion
o Graft and corruption
o Serious errors in the finding of fact
o Fraud

COLLECTIVE BARGAINING AGREEMENT

Q: What are the modes of determining the representation status?

1. Voluntary Recognition it requires that there is no other
union. Only one union has the support of the majority of
the employees. The employer and employee must inform
the Regional Director of the DOLE of the fact of the
voluntary recognition. From date of recognition, the union
becomes a legitimate labor organization.
o Q: Does the one year bar rule also apply to
voluntary recognition? A: Yes, no election can
be held, 12 months from the date of the final
voluntary recognition election results.
2. Consent election the election was agreed upon by two or
more union.
o Q: Is intervention of DOLE required in consent
election? A: No. Intervention is subject to the
discretion of workers.
o One year bar rule also applies.
3. Certification election one which is conducted among
three or more union. This is treated as the sole concern of
the employees and the employer is a mere by stander and
it is the best forum in determining the will of the
employees.
o Sole Concern Rule
o By stander Rule
o Best Forum Rule
Majority must vote 50% plus one
One of the unions or a no union should have
garnered the majority vote. (Second Majority Rule)
Provided 50% of the majority validly cast their
votes.

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Men in Law Fraternity and Sorority
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A no union may win in certification election. When
a no union win, the one year bar rule will still
applies.
In consent election, 25 % Subscription or Consent
Requirement must be present. If attained, holding
of certification election is mandatory, if not
discretionary. SC: Even if 25% not attained,
consent election can still be held because it is the
best way to attain the will of the workers.
Instances when holding of certification election is
not allowed:
i. Contract Bar Rule no CE can be conducted
during the lifespan of the CBA except during
the 60 day period (Freedom Period) before
the expiration of the 5 year life span of the
CBA
Exemption to the contract bar rule:
a) If the CBA is not registered
o Still valid as to parties but
a
CE
can
now
be
conducted.
b) If the CBA is incomplete,
inadequate or sub standard.
(Sweetheart Contract)
c) If the CBA is hastily entered into
or prematurely extended.
d) In cases of mass disaffiliation in
the bargaining agent.
o Q: Can the remaining
officers of the union still
bargain
with
the
employer? A: Yes. Until
and unless it lost in a
certification election, it is
still the bargaining agent.
ii.
One Year Bar Rule no CE may be held one
year after the final result of a prior election.
This applies to all election.
iii.
Deadlock Bar Rule a notice of strike is filed
with the NCMB which has been the subject
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Men in Law Fraternity and Sorority
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of conciliation, mediation, exhaustion of

grievance machineries, improved offer
balloting, reduced offer balloting.
iv.
Charge of Company Union Rule SC: If there
is charged of company unionism which is an
unfair labor practice, it is a prejudicial
question which must be resolved first before
conducting a certification election.
v. Negotiation Bar Rule if there is a collective
bargaining negotiation in the company
premises, it will be a bar for certification
election.
vi.
Appeal Bar Rule if there is pending appeal
over a decision of the med arbiter elevated
to the Secretary of Labor, pending decision,
no certification election can be held.
4. Run off or second election
o Contested between two unions garnering the
highest number of votes in a prior election
o A no union does not exist in a runoff election
Contents of a CBA
1. Preamble
2. Union prerogatives
3. Management prerogatives
4. Economic clauses
5. Non economic clauses
6. Union Security Clauses
7. Escalator Clause
8. Family planning clauses
9. Union Education Clauses
10.
Grievance Machinery Clause
11.
Drug Free Provision Clause
12.
Separability Clause
13.
Effectivity Clause
14.
Automatic Renewal Clause
15.
No strike, no lock out clauses
1. Q: can the union waive the right to strike? A: Generally, no.
EXPT: By inserting in the CBA a no strike, no lock out
clause
Term of CBA
1. As to representation aspects 5 years
2. As to renegotiation aspects 3 years

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Men in Law Fraternity and Sorority
Arellano University School of Law

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Q: Upon expiration of the CBA, and no new CBA has been agreed upon
yet, what will govern? A: Old CBA subsists under the Principle of CBA
Continuity.
Q: Can the parties agree to suspend collective bargaining for 10 years?
A: Yes, in order to provide stability and predictability of collective
bargaining agreements for the benefit of both parties.
SC: The Company can sue employees for violation of a CBA provision.
Q: Why do workers unionize? A: 1. In order to have relative equality in
the bargaining process with the employer. 2. Security of tenure. 3.
Attain maximum economic benefits in the collective bargaining
agreement.
Q: Can a single employee bargain with management? A: Yes, there is
no law prohibiting individual bargaining.
Q: If an employer is already giving out voluntary benefits, can the
employees still demands for 13th Month Pay? A: It depends. If the
amount of voluntary benefits given is equal to the amount of the 13 th
Month Pay, no more. But if its less, they can.
In the event that the CBA is approved, it will govern the company
premises or the law of the plant. Thus, the law of the plant is another
name for a CBA.
Whatever benefits that the CBA may bring, non members of the union
are also benefitted. They are not required to pay union dues but they
will pay agency fees that will be of the same amount as that of union
dues. Payment of the agency fee is known as the agency shop,
maintenance of the treasury shop, anti-hitchhiker clause, antifree rider clause.
Q: Is there still a need for the union and the company to agree to
impose agency shop? A: No need. The agency shop agreement is
already provided for by law.
Doctrine of Union Monopoly/Exclusive Right Rule the certified
union is the only bargaining agent allowed to bargain with the
management to the exclusion of the other unions in the plant or
company premises.

UNFAIR LABOR PRACTICES

Pyke Laygo
Men in Law Fraternity and Sorority
Arellano University School of Law

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PRO HONORUM ET GLORIAM

An act either by the employer or the union, their agent or

representatives which violates the constitutional right of the workers to
self organization.
There must be employer and employer relationship.
Instances when ULP can be committed even if there is no EE-EM
relationship:
1. When committed by agents or representative
2. Yellow dog contract an applicant is made to denounce
his membership to a union or promised not to join one
as a condition for employment. Hence, being an
applicant, no employer and employee relationship yet.
Two Types of ULP
o By employer
1. Interference, restraint , coercion in the formation of a
union
Discourage the formation or continuation of a
union
3 ways of commission
i. Economic
ii. Psychological
iii. Physical
2. Yellow dog contract
3. Discrimination
Not per se illegal. Only if its designed, calculated
to discriminate the officers and members of union
with regards to benefits due to all employees.
It maybe management prerogative. But if its a
grand design to undermine the union, then it is
ULP
4. Forming or assisting in forming a company dominated
union
SC: Passivity of a union is an indication of a
company dominated union.
Organize with help or assistance of management.
Economic, legal support from employer
5. Refusal to bargain collectively
Duty to bargain collectively mutual obligation of
the parties to bargain and negotiate with matters
regarding terms of employment and adjustments

Pyke Laygo
Men in Law Fraternity and Sorority
Arellano University School of Law

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PRO HONORUM ET GLORIAM

of grievance machineries for redress of grievances

promptly, expeditiously and in good faith.
Standards of Collective Bargaining;
i. Mutual either the parties may initiate
collective bargaining.
Union may submit CBA proposal.
Employer, after 10 days, may
submit a counter proposal.
Failure to submit a counter
proposal will amount to refusal
to bargain, thus a ULP and the
CBA submitted by the union will
be governing CBA in the plant.
Q: A counter proposal was
submitted, the employer made
it hard for employees to bargain
during the negotiations with no
real intention to sign a CBA. Is
the employer guilty of ULP? A:
Yes, the employer is guilty of
Surface Bargaining.
Blue Sky Bargaining - the
union submitted a proposal
which
contains
economic
demands beyond the reach and
capacity of the employers, thus
sky high.
Runaway Shop when the
employer remove his plant or
office from one place to another
in order to evade unionism or
collective
bargaining
and
relocate it to another place
which is called as runaway area.
Q: Is it valid to strike in the
Runaway
Area?
A:
Yes.
According to the Labor Code,
strike
areas
also
include
runaway areas.

Pyke Laygo
Men in Law Fraternity and Sorority
Arellano University School of Law

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PRO HONORUM ET GLORIAM

ii. Prompt
iii. Good faith
Q: What if employer submit a
counterproposal on a take it or
leave it basis, is the employer
liable for refusal to bargain
collectively?
A:
Yes.
The
employer
is
guilty
of
Boulwarism.
This
is
considered a malpractice which
is a violation of good faith
bargaining.
6. Contracting out of services
SC: Mere contracting out within the period of six
months is valid. But if it goes beyond six months,
it is ULP. Because employer deny the strikers the
opportunity to pursue their work.
7. Gross and flagrant violations of the CBA
Refers to economic provisions
o By Union
1. Interference, restraint , coercion in the formation of a union
2. Discrimination
3. Payment of Negotiation Fees
It is when in order to settle economic provisions in
CBA, union demands from employer negotiation fees.
Sweetheart Contract when the CBA was not able
to get full economic benefits for employees, or its an
incomplete CBA. Example: when CBA does not have
an arbitration clause.
o NB: An incomplete CBA does not bar a
certification election. Thus not bar on
holding another certification election
during the 12 month ban.
4. Gross and flagrant violations of CBA
5. Refusal to bargain collectively
6. Featherbedding Activities

Pyke Laygo
Men in Law Fraternity and Sorority
Arellano University School of Law

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PRO HONORUM ET GLORIAM

Union demanding from employers for fees on

services rendered or not rendered, performed or not
performed.
Prolonging the work
In short, the union is engaged in extortion

Pyke Laygo
Men in Law Fraternity and Sorority
Arellano University School of Law

Page 24