Alan Hubert P.

Chu
Reviewer in Labor Relations (CBA Process) 3S

THE CBA PROCESS

ORGANIZED ESTABLISHMENT UNORGANIZED ESTABLISHMENT

A firm or company where there is a recognized or An enterprise where no union has yet been duly
certified exclusive bargaining agent. (Rule 1, Sec.1 (bb) recognized or certified as bargaining representative.
Omnibus Rules Implementing the Labor Code)

LEGITIMATE LABOR ORGANIZATION

Any labor organization duly registered with the Department of Labor and
Employment and includes any branch, local or affiliate thereof. (Book V, Rule
I, Sec. 1 of the Omnibus Rules Implementing the Labor Code)

VOLUNTARY RECOGNITION

The process whereby the employer recognizes a legitimate labor organization

as the exclusive bargaining representative of the employees in the
appropriate bargaining unit after showing that the labor organization is
supported by at least majority of the employees in the bargaining unit.

Applies only in unorganized establishments.

CERTIFICATION ELECTION

The process of determining through secret ballot the sole and exclusive
representative of the employees in an appropriate bargaining unit, for
purposes of collective bargaining or negotiation. (Book V, Rule I, Sec. 1 of the
Omnibus Rules Implementing the Labor Code)

CONSENT ELECTION

The election voluntarily agreed upon by the parties to determine the issue of
majority representation of all the workers in the appropriate collective
bargaining unit. (Book V, Rule I, Sec. 1 of the Omnibus Rules Implementing the
Labor Code)

EXCLUSIVE BARGAINING AGENT

Any legitimate labor union duly recognized or certified as the sole and
exclusive bargaining representative or agent of all the employees in a
bargaining unit. (Implementing Rules of the Labor Code, as amended by D.O.
No. 40-03)

COLLECTIVE BARGAINING

Obligation to meet and convene promptly and expeditiously in good faith for the
purpose of negotiating an agreement with respect to wages, hours of work and all
other terms and conditions of employment including proposals for adjusting any
grievances or questions arising under such agreement and executing a contract
incorporating such agreements if requested by either party but such duty does not
compel any party to agree to a proposal or to make any concession. (Art. 252 of the
Labor Code)

COLLECTIVE BARGAINING AGREEMENT

Refers to the negotiated contract between a legitimate labor organization

and the employer concerning wages, hours of work and all other terms and
conditions of employment in a bargaining unit, including mandatory
provisions for grievances and arbitration machineries. (Book V, Rule I, Sec. 1
of the Omnibus Rules Implementing the Labor Code)

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 Alan Hubert P. Chu
Reviewer in Labor Relations (CBA Process) 3S

RATIFICATION EXECUTION OF THE COLLECTIVE BARGAINING AGREEMENT

The agreement negotiated by the employees bargaining agent should be ratified or approved by the
majority of all the workers in the bargaining unit. (Art. 231 of the Labor Code and Book V, Rule XVII, Section
2 of the Implementing Rules)

Which comes first: ratification or execution? The Labor Code does not specify, or at least Art. 231 is not clear
on the matter. In practice, the sequence usually depends on the likelihood of ratification as judged by the
union. If the union strongly feels there will be no ratification problem, the CBA is finalized, signed by the
parties, and posted. If there is no such certainty, the CBA is drafted, initiated by the parties, and this clean
draft is posted. If and when ratified, the CBA is finalized and formal signing follows. (Cesario Alvero
Azucena, Jr., The Labor Code with Comments and Cases, Volume II, 7 th Edition, p. 392)

REGISTRATION OF THE COLLECTIVE BARGAINING AGREEMENT

The collective agreement, having been properly ratified, should be registered

with the DOLE Regional Office where the bargaining union is registered or
where it principally operates. Article 231 requires the registration within
thirty (30) calendar days from execution of the agreement.
Failure to register the CBA does not make it invalid or unenforceable. Its non-
registration, however, renders the contract-bar rule inoperative.

IMPLEMENTATION AND RENEGOTIATION

The collective bargaining process does not end with the signing and execution of the CBA.
The parties have the mutual obligation during the term of the agreement to meet and
confer promptly and expeditiously and in good faith for the purpose of adjusting any
grievances or questions arising under such agreement. To violate this obligation is unfair
labor practice. (Republic Savings Bank v. CIR, GR No. L- 20303, Sept. 27, 1967)

Renegotiation applies only to the renegotiable provisions, that is, those that do not
pertain to the identity and political status of the bargaining union.

AUTOMATIC RENEWAL OF THE COLLECTIVE BARGAINING AGREEMENT

Until a new Collective Bargaining Agreement has been executed by and between the
parties, they are duty-bound to keep the status quo and to continue in full force and effect
the terms and conditions of the existing agreement. The law does not provide for any
exception nor qualification as to which of the economic provisions of the existing
agreement are to retain force and effect, therefore, it must be understood as
encompassing all the terms and conditions in the said agreement. (New Pacific Timber &
Supply Company, Inc. v. NLRC, GR No. 124224, March 17, 2000)

NOTES AND COMMENTS:

In order to reach a collective bargaining registration as a labor union should

agreement, there should first exist an precede the recognition or certification
exclusive bargaining representative in thereof.
accordance with Article 255 of the Labor
Code. However, in order to qualify as an It should be noted that not every union is
exclusive bargaining agent of all the legitimate; only those properly registered
employees in the bargaining unit, are considered a legitimate labor

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 Alan Hubert P. Chu
Reviewer in Labor Relations (CBA Process) 3S

organization. But non-registration does not fraternal and similar organizations, local or
mean it is illegitimate, it simply is foreign, which are actually, directly and
unregistered and has no legal personality. It exclusively used for their lawful purposes,
exists legally but does not possess the shall be free from taxes, duties and other
rights of a legitimate labor organization. assessments. The exemptions provided
(Cesario Alvero Azucena, Jr., The Labor herein may be withdrawn only by a special
Code with Comments and Cases, Volume II, law expressly repealing this provision. (As
7th Edition, p. 179) amended by Section 17, Republic Act No.
6715, March 21, 1989)
Article 242 of the Labor Code enumerates
the rights of a legitimate labor organization, THREE METHODS OF DETERMINING
some of which is to act as a representative THE BARGAINING UNION
of its members for the purpose of collective
bargaining and to be certified as the
1. Voluntary Recognition
exclusive representative of all the
2. Certification Election with or
employees in an appropriate bargaining
without run-off, and
unit for purposes of collective bargaining.
3. Consent Election
242. Rights of legitimate labor
I. VOLUNTARY RECOGNITION
organizations. A legitimate labor
organization shall have the right:
The process whereby the employer
recognizes a legitimate labor organization
a. To act as the representative of its
as the exclusive bargaining representative
members for the purpose of
of the employees in the appropriate
collective bargaining;
bargaining unit after showing that the labor
organization is supported by at least
b. To be certified as the exclusive
majority of the employees in the bargaining
representative of all the
unit.
employees in an appropriate
bargaining unit for purposes of
collective bargaining; REQUISITES:

c. To be furnished by the employer, 1. Possible only in an unorganized

upon written request, with its establishment because in an
annual audited financial organized establishment the
statements, including the balance employer cannot voluntarily
sheet and the profit and loss recognize any new union in
statement, within thirty (30) accordance with Article 256
calendar days from the date of which requires the employer to
receipt of the request, after the continue recognizing and dealing
union has been duly recognized by with the incumbent union as
the employer or certified as the sole long as it has not been properly
and exclusive bargaining replaced by another union;
representative of the employees in 2. Only one union is asking for
the bargaining unit, or within sixty recognition otherwise, the rivalry
(60) calendar days before the must be resolved through an
expiration of the existing collective election;
bargaining agreement, or during the 3. The union voluntarily recognized
collective bargaining negotiation; should be the majority union
as indicated by the fact that
d. To own property, real or personal, member of the bargaining unit
for the use and benefit of the labor did not object to the projected
organization and its members; recognition.

e. To sue and be sued in its registered PROCEDURES AND REQUIREMENTS:

name; and
The Omnibus Rules Implementing the
f. To undertake all other activities Labor Code, as revised by D.O. No. 40-03
designed to benefit the organization provides:
and its members, including
cooperative, housing, welfare and Section 1. When and where to file. - In
other projects not contrary to law. unorganized establishments with only one
legitimate labor organization, the employer
Notwithstanding any provision of a general may voluntarily recognize the
or special law to the contrary, the income representation status of such a union.
and the properties of legitimate labor Within thirty (30) days from such
organizations, including grants, recognition, the employer and union shall
endowments, gifts, donations and submit a notice of voluntary recognition
contributions they may receive from with the Regional Office which issued the

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 Alan Hubert P. Chu
Reviewer in Labor Relations (CBA Process) 3S

recognized labor union's certificate of Entry of voluntary recognition shall bar

registration or certificate of creation of a the filing of a petition for certification
chartered local. election by any labor organization for a
period of one (1) year from the date of
Section 2. Requirements for voluntary entry of voluntary recognition. Upon
recognition. - The notice of voluntary expiration of this one-year period, any
recognition shall be accompanied by the legitimate labor organization may file a
original copy and two (2) duplicate copies of petition for certification election in the same
the following documents: bargaining unit represented by the
voluntarily recognized union, unless a
(a) a joint statement under oath of collective bargaining agreement between the
voluntary recognition attesting to the fact of employer and voluntarily recognized labor
voluntary recognition; union was executed and registered with the
Regional Office in accordance with Rule
(b) certificate of posting of the joint
XVII of these Rules.
statement of voluntary recognition for
fifteen (15) consecutive days in at least two EXPLANATION: The employer and the
(2) conspicuous places in the establishment union should conclude and register a CBA
or bargaining unit where the union seeks to within one year from voluntary recognition,
operate; otherwise, the recognition will lapse and a
rival union may petition for a certification
(c) the approximate number of employees in
election.
the bargaining unit, accompanied by the
names of those who support the voluntary
recognition comprising at least a majority of
the members of the bargaining unit; and II. CERTIFICATION ELECTION

(d) a statement that the labor union is the The process of determining through secret
only legitimate labor organization operating ballot the sole and exclusive representative
within the bargaining unit. of the employees in an appropriate
bargaining unit, for purposes of collective
All accompanying documents of the notice bargaining or negotiation. (Book V, Rule I,
for voluntary recognition shall be certified Sec. 1 of the Omnibus Rules Implementing
under oath by the employer representative the Labor Code)
and president of the recognized labor
union.
WHO FILES A PETITION FOR
Section 3. Action on the Notice. - Where CERTIFICATION ELECTION (PCE)
the notice of voluntary recognition is
sufficient in form, number and substance Department Order No. 40-03 amending the
and where there is no other registered labor implementing rules of the Labor Code
union operating within the bargaining unit provides:
concerned, the Regional Office, through the
Labor Relations Division shall, within ten Section 1. Who may file. -Any legitimate
(10) days from receipt of the notice, record labor organization may file a petition for
the fact of voluntary recognition in its roster certification election.
of legitimate labor unions and notify the
labor union concerned. When requested to bargain collectively, an
employer may file a petition for
Where the notice of voluntary recognition is certification election with the Regional
insufficient in form, number and Office. If there is no existing registered
substance, the Regional Office shall, within collective bargaining agreement in the
the same period, notify the labor union of bargaining unit, the Regional Office shall,
its findings and advise it to comply with the after hearing, order the conduct of a
necessary requirements. Where neither the certification election.
employer nor the labor union failed to
complete the requirements for voluntary NB: In all cases, whether the petition for
recognition under Section 2 of this Rule certification election is filed by an employer
within thirty (30) days from receipt of the or a legitimate labor organization, the
advisory, the Regional Office shall return employer shall not be considered a party
the notice for voluntary recognition together thereto with a concomitant right to oppose
with all its accompanying documents a petition for certification election.
without prejudice to its re-submission.
The employers participation in such
Section 4. Effect of recording of fact of proceedings shall be limited to:
voluntary recognition. - From the time of
recording of voluntary recognition, the 1. being notified or informed of
recognized labor union shall enjoy the petitions of such nature; and
rights, privileges and obligations of an 2. submitting the list of employees
existing bargaining agent of all the during the pre-election conference
employees in the bargaining unit.

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 Alan Hubert P. Chu
Reviewer in Labor Relations (CBA Process) 3S

should the Med-Arbiter act favorably c. If the dispute is not settled, the
on the petition. (Art. 258-A) Board shall intervene upon request
of either or both parties or at its own
Section 2. Where to file. - A petition for initiative and immediately call the
certification election shall be filed with the parties to conciliation meetings. The
Regional Office which issued the Board shall have the power to issue
petitioning union's certificate of subpoenas requiring the attendance
registration/certificate of creation of of the parties to such meetings. It
chartered local. shall be the duty of the parties to
participate fully and promptly in the
The petition shall be heard and resolved by conciliation meetings the Board may
the Med-Arbiter. call;
Where two or more petitions involving the
d. During the conciliation proceedings
same bargaining unit are filed in one
in the Board, the parties are
Regional Office, the same shall be
prohibited from doing any act which
automatically consolidated with the Med-
may disrupt or impede the early
Arbiter who first acquired jurisdiction.
settlement of the disputes; and
Where the petitions are filed in different
Regional Offices, the Regional Office in
e. The Board shall exert all efforts to
which the petition was first filed shall
settle disputes amicably and
exclude all others; in which case, the latter
encourage the parties to submit
shall indorse the petition to the former for
their case to a voluntary
consolidation.
arbitrator. (As amended by Section
Section 3. When to file. - A petition for 20, Republic Act No. 6715, March
certification election may be filed anytime, 21, 1989)
except:
(c) when a bargaining deadlock to which
(a) when a fact of voluntary recognition an incumbent or certified bargaining agent
has been entered or a valid certification, is a party had been submitted to
consent or run-off election has been conciliation or arbitration or had become
conducted within the bargaining unit the subject of a valid notice of strike or
within one (1) year prior to the filing of lockout;
the petition for certification election.
Where an appeal has been filed from the (d) when a collective bargaining
order of the Med-Arbiter certifying the agreement between the employer and a
results of the election, the running of the duly recognized or certified bargaining
one year period shall be suspended until agent has been registered in accordance
the decision on the appeal has become final with Article 231 of the Labor Code. Where
and executory; such collective bargaining agreement is
registered, the petition may be filed only
(b) when the duly certified union has within sixty (60) days prior to its expiry.
commenced and sustained negotiations
in good faith with the employer in Section 4. Form and contents of
accordance with Article 250 of the Labor petition. - The petition shall be in writing,
Code within the one year period referred verified under oath by the president of
to in the immediately preceding petitioning labor organization. Where the
paragraph; petition is filed by a federation or national
union, it shall verified under oath by the
president or its duly authorized
NB: Art. 250. Procedure in collective
representative. The petition shall contain
bargaining. The following procedures shall
the following:
be observed in collective bargaining:
(a) the name of petitioner, its address, and
a. When a party desires to negotiate an affiliation if appropriate, the date and
agreement, it shall serve a written number of its certificate of registration. If
notice upon the other party with a the petition is filed by a federation or
statement of its proposals. The other national union, the date and number of the
party shall make a reply thereto not certificate of registration or certificate of
later than ten (10) calendar days creation of chartered local;
from receipt of such notice;
(b) the name, address and nature of
b. Should differences arise on the employer's business;
basis of such notice and reply,
either party may request for a (c) the description of the bargaining unit;
conference which shall begin not
later than ten (10) calendar days (d) the approximate number of employees in
from the date of request. the bargaining unit;

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 Alan Hubert P. Chu
Reviewer in Labor Relations (CBA Process) 3S

(e) the names and addresses of other 3) if another union had been previously
legitimate labor unions in the bargaining recognized voluntarily or certified in a valid
unit; certification, consent or run-off election,
that the petition is filed outside the one-
(f) a statement indicating any of the year period from entry of voluntary
following circumstances: recognition or conduct of certification or
run-off election and no appeal is pending
1) that the bargaining unit is unorganized thereon.
or that there is no registered collective
bargaining agreement covering the (g) in an organized establishment, the
employees in the bargaining unit; signature of at least twenty-five percent
(25%) of all employees in the appropriate
2) if there exists a duly registered collective bargaining unit shall be attached to the
bargaining agreement, that the petition is petition at the time of its filing; and
filed within the sixty-day freedom period of
such agreement; or (h) other relevant facts.
Determine whether the PCE should
be processed further or dismissed
PROCEDURE:

Petition for Certification Election Determine the bargaining unit that

will participate, the identity of the
contending union and the possibility
Preliminary conference of holding a consent election instead
Appeal if
of a certification election.
organized
Approve
establishment*
d
Hearings and Pleadings
Conduct the If the unions agree to hold a
Denied Certification consent election, then the PCE
Election will no longer be heard.

Appeal

Consent election

Pre-election
conference
Run-off Election Valid
if all the Election
requirements Voting
Failure of
are present.
Election

Canvassing

Proclamation and Certification

*Approval of a PCE in an unorganized

bargaining unit is never appealable
because the law wants to unionize the Appeal to the Secretary as
ununionized.
provided by D.O. No. 40-E-03

Action on the Petition: Preliminary

Conference
Department Order No. 40-03 amending the
implementing rules of the Labor Code
provides:

Section 5. Raffle of the case. - Upon the Where there is only one Med-Arbiter in the
filing of the petition, the Regional Director region, the raffle shall be dispensed with
or any of his/her authorized representative and the petition shall be assigned to
shall allow the party filing the petition to him/her.
personally determine the Med-Arbiter
assigned to the case by means of a raffle.

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 Alan Hubert P. Chu
Reviewer in Labor Relations (CBA Process) 3S

Section 6. Notice of preliminary shall be resolved by the Med-Arbiter in the

conference. - Immediately after the raffle of same order or decision granting or denying
the case or receipt of the petition, the same the petition.
shall be transmitted to the Med-Arbiter,
who shall in the same instance prepare and Section 12. Failure to appear despite
serve upon the petitioning party a notice for notice. - The failure of any party to appear
preliminary conference. The first in the hearing(s) when notified or to file its
preliminary conference shall be scheduled pleadings shall be deemed a waiver of its
within ten (10) days from receipt of the right to be heard. The Med-Arbiter,
petition. however, when agreed upon by the parties
for meritorious reasons may allow the
Within three (3) days from receipt of the cancellation of scheduled hearing(s). The
petition, the Med-Arbiter shall cause the cancellation of any scheduled hearing(s)
service of notice for preliminary conference shall not be used as a basis for extending
upon the employer and incumbent the 15-day period within which to terminate
bargaining agent in the subject bargaining the same.
unit directing them to appear before
him/her on a date, time and place Section 13. Order/Decision on the
specified. A copy of the notice of petition. - Within ten (10) days from the
preliminary conference and petition for date of the last hearing, the Med-Arbiter
certification election shall be posted in at shall issue a formal order granting the
least two conspicuous places in the petition or a decision denying the same. In
establishment. organized establishments, however, no
order or decision shall be issued by the
Section 9. Preliminary Conference; Med-Arbiter during the freedom period.
Hearing. - The Med-Arbiter shall conduct a
preliminary conference and hearing within The order granting the conduct of a
ten (10) days from receipt of the petition to certification election shall state the
determine the following: following:

(a) the bargaining unit to be represented; (a) the name of the employer or
establishment;(b) the description of the
(b) contending labor unions; bargaining unit;

(c) possibility of a consent election; (c) a statement that none of the grounds for
dismissal enumerated in the succeeding
(d) existence of any of the bars to paragraph exists;
certification election under Section 3 of this
Rule; and (d) the names of contending labor unions
which shall appear as follows: petitioner
(e) such other matters as may be relevant union/s in the order in which their
for the final disposition of the case. petitions were filed, forced intervenor, and
no union; and
Action on the Petition: Hearing and
Pleadings (e) a directive upon the employer and the
contending union(s) to submit within
Department Order No. 40-03 amending the ten(10) days from receipt of the order, the
implementing rules of the Labor Code certified list of employees in the bargaining
provides: unit, or where necessary, the payrolls
covering the members of the bargaining
Section 11. Number of Hearings;
unit for the last three (3) months prior to
Pleadings. - If the contending unions fail to
the issuance of the order.
agree to a consent election during the
preliminary conference, the Med-Arbiter RATIONALE:
may conduct as many hearings as he/she
may deem necessary, but in no case shall During the entire 60-day freedom period,
the conduct thereof exceed fifteen (15) up to its last day, the door should remain
days from the date of the scheduled open for any union to file a PCE or a motion
preliminary conference/hearing, after for intervention.
which time the petition shall be
considered submitted for decision. The Action on the Petition: Denial
Med-Arbiter shall have control of the
proceedings. Postponements or The Med-Arbiter may either approve or
continuances shall be discouraged. disapprove the petition to hold a
Certification election. The denial has to be
Within the same 15-day period within based on a ground specified by law, those
which the petition is heard, the contending provided by D.O. No. 40-03 and R.A. No.
labor unions may file such pleadings as 9481 of 2007.
they may deem necessary for the immediate
resolution of the petition. Extensions of
time shall not be entertained. All motions

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 Alan Hubert P. Chu
Reviewer in Labor Relations (CBA Process) 3S

Grounds for denial of the petition: 2nd ground: The mere filing of a petition to
cancel the petitioners registration DOES
1. Non-appearance of the petitioner NOT cause the suspension or dismissal of
for two consecutive scheduled the PCE. To serve as a ground the legal
conferences before the Mediator- personality of the petitioner should have
Arbiter despite notice; been revoked or cancelled with finality.
2. The petitioning union or
national/federation is not listed in 3rd ground: This ground obligates the
the Departments registry of petitioning union to submit a duly issued
legitimate labor unions OR that its charter certificate of the chapter at the time
registration certificate has been the union files its PCE.
cancelled with finality in
accordance with Rule XIV of D.O. 4th ground: The employees right to
No. 40-03 as amended; unionize and the unions right to file a
3. Failure of a local/chapter or petition for certification election are
national union/federation to founded on the existence of employer-
submit a duly issued charter employee relationship.
certificate upon filing of the
petition for certification election; 5th ground: The law does not want more
4. Absence of employer-employee than one election in a twelve-month period.
relationship between all the The certification year bar however, does not
members of the petitioning union apply if there was a failure of election nor to
and the establishment where the a unit clarification petition filed during the
proposed bargaining unit is sought certification year.
to be represented;
The certification year bar presupposes that
5. Filing a petition within one (1)
there was an actual conduct of election.
year from the date of recording of
the voluntary recognition, or within 6th ground: The negotiation bar or deadlock
the same period from a valid bar applies because negotiation is still on-
certification, consent or run-off going or that the negotiation is caught in a
election where no appeal on the deadlock. The deadlock does not erase the
results of the certification, consent fact that there is negotiation which is a
or run-off election is pending; barrier to holding a certification election.
6. Where a duly certified union has
commenced and sustained REASON: To ensure stability in the
negotiations with the employer in relationship of the workers and the
accordance with Art. 250 of the management.
Labor Code within the one-year
period referred to in Section 14.d of Deadlock Bar however, does not apply if the
the Implementing Rules OR where deadlock is artificial.
there exists a bargaining deadlock
which has been submitted to 7th ground: The contract bar rule is
conciliation or arbitration or has intended to ensure stability in the
become the subject of a valid notice relationship of the workers and the
of strike or lockout where an management by preventing frequent
incumbent or certified bargaining modifications of any CBA earlier entered
agent is a party; into by them in good faith and for the
7. Filing the petition before or after stipulated original period.
the freedom period of a duly
registered collective bargaining The contract bar rule also applies in cases
agreement; provided that the sixty- where there has been no new CBA that has
day period based on the original been concluded. Art. 253 of the Labor Code
CBA shall not be affected by any provides that: it shall be the duty of both
amendment, extension or renewal of parties to keep the status quo and to
the CBA; continue in full force and effect the terms
8. In an organized establishment, the and conditions of the existing agreement
failure to submit the twenty-five during the 60-day period and/or until a
percent (25%) signature new agreement is reached by the parties.
requirement to support the filing of
the petition for certification election. 8th ground: In the case of California
Manufacturing Corp. v. Laguesma, GR No.
POINTS TO REMEMBER: 97020, June 8, 1992, the court ruled that
the requirement is relevant only when it
1st ground: As a counter-measure on the becomes mandatory to conduct a
possibility of a racket scheme, the DOLE certification election. In all other instances,
relentlessly pursues a cleansing program the DISCRETION, according to the rulings
by delisting unions under Rule XV of the of this tribunal, ought to be ordinarily
same D.O. No. 40-03 as amended by D.O. exercised in favor of a petition for
No. 40-F-03. certification.

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 Alan Hubert P. Chu
Reviewer in Labor Relations (CBA Process) 3S

Action on the Petition: Approval Department Order No. 40-03 amending the
implementing rules of the Labor Code
Conducting the Certification election: provides:
Pre-election Conference
Section 1. Raffle of the case. - Within
twenty-four (24) hours from receipt of the
Receipt of notice of entry of final notice of entry of final judgment granting
judgment granting the conduct of the conduct of a certification election, the
certification election Regional Director shall cause the raffle of
the case to an Election Officer who shall
24 Hours have control of the pre-election conference
and election proceedings.
Regional Director shall cause the Section 2. Pre-election conference. -
raffle of the case to an Election Within twenty-four (24) hours from receipt
Officer of the assignment for the conduct of a
certification election, the Election Officer
24 Hours from receipt of assignment shall cause the issuance of notice of pre-
election conference upon the contending
unions and the employer, which shall be
Election Officer shall cause the
scheduled within ten (10) days from receipt
issuance of notice of pre-election of the assignment.
conference upon the contending
unions and the employer The pre-election conference shall set the
mechanics for the election and shall
determine, among others, the following:

(a) date, time and place of the election,

Pre-election conference which shall not be later than forty-five (45)
days from the date of the first pre-election
Must be within 10 days from receipt of conference, and shall be on a regular
the assignment working day and within the employer's
Must be completed within 3 days from premises, unless circumstances require
date of the first hearing otherwise;

(b) list of eligible and challenged voters;

Certification Election
(c) number and location of polling places or
booths and the number of ballots to be
Must not be later than 45 days from prepared with appropriate translations, if
date of the first pre-election necessary;
conference
(d) name of watchers or representatives and
their alternates for each of the parties
Election precincts during election;
close
(e) mechanics and guidelines of the election.
The election precincts shall open and Section 3. Waiver of right to be heard. -
close on the date and time agreed Failure of any party to appear during the
upon during the pre-election pre-election conference despite notice shall
conference. be considered as a waiver to be present and
to question or object to any of the
Canvass of votes agreements reached in said pre-election
conference. Nothing herein, however, shall
The opening and canvass shall proceed deprive the non-appearing party or the
immediately after the precincts have employer of its right to be furnished notices
closed. of subsequent pre-election conferences and
to attend the same.
Transmit records of the case Section 4. Minutes of pre-election
to Med-arbiter. conference. - The Election Officer shall keep
Med-arbiter shall issue an the minutes of matters raised and agreed
order proclaiming the results upon during the pre-election conference.
The parties shall acknowledge the
of the election.
completeness and correctness of the entries
in the minutes by affixing their signatures
thereon. Where any of the parties refuse to
sign the minutes, the Election Officer shall
note such fact in the minutes, including the
reason for refusal to sign the same. In all

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 Alan Hubert P. Chu
Reviewer in Labor Relations (CBA Process) 3S

cases, the parties shall be furnished a copy engaged and linked by employer-employee
of the minutes. relationship are qualified to participate in
the certification election, IRRESPECTIVE of
The pre-election conference shall be the period of their employment.
completed within thirty (30) days from the
date of the first hearing. Conducting the Certification election:

Section 6. Posting of Notices. - The The Voting

Election Officer shall cause the posting of
notice of election at least ten (10) days Department Order No. 40-03 amending the
before the actual date of the election in two implementing rules of the Labor Code
(2) most conspicuous places in the provides:
company premises. The notice shall
contain: Section 7. Secrecy and sanctity of the
ballot. - To ensure secrecy of the ballot, the
(a) the date and time of the election; Election Officer, together with the
authorized representatives of the
(b) names of all contending unions; contending unions and the employer, shall
before the start of the actual voting, inspect
(c) the description of the bargaining unit the polling place, the ballot boxes and the
and the list of eligible and challenged polling booths.
voters.
Section 8. Preparation of ballots. - The
The posting of the notice of election, the Election Officer shall prepare the ballots in
information required to be included therein English and Filipino or the local dialect,
and the duration of posting cannot be corresponding to the number of voters and
waived by the contending unions or the a reasonable number of extra ballots. All
employer. ballots shall be signed at the back by the
Election Officer and authorized
Conducting the Certification election: representative of each of the contending
unions and employer. Failure or refusal to
The Voters
sign the ballots shall be considered a waiver
Department Order No. 40-03 amending the thereof and the Election Officer shall enter
implementing rules of the Labor Code the fact of such refusal or failure in the
provides: records of the case as well as the reason for
the refusal or failure to sign.
Section 5. Qualification of voters;
inclusion-exclusion. - All employees who Section 9. Marking of votes. - The voter
are members of the appropriate bargaining must put a cross ( x ) or check ( ) mark in
unit sought to be represented by the the square opposite the name of the union
petitioner at the time of the issuance of the of his choice or "No Union" if he/she does
order granting the conduct of a certification not want to be represented by any union.
election shall be eligible to vote. An
If a ballot is torn, defaced or left unfilled in
employee who has been dismissed from
such a manner as to create doubt or
work but has contested the legality of the
confusion or to identify the voter, it shall be
dismissal in a forum of appropriate
considered spoiled. If the voter
jurisdiction at the time of the issuance of
inadvertently spoils a ballot, he/she shall
the order for the conduct of a certification
return it to the Election Officer who shall
election shall be considered a qualified
destroy it and give him/her another ballot.
voter, unless his/her dismissal was
declared valid in a final judgment at the Section 10. Challenging of votes. - An
time of the conduct of the certification authorized representative of any of the
election. contending unions and employer may
challenge a vote before it is deposited in the
In case of disagreement over the voters' list
ballot box only on any of the following
or over the eligibility of voters, all contested
grounds:
voters shall be allowed to vote. But their
votes shall be segregated and sealed in (a) that there is no employer-employee
individual envelopes in accordance with relationship between the voter and the
Sections 10 and 11 of this Rule. company;
NB: The list of voters should be based on (b) that the voter is not a member of the
the employer-certified list of employees in appropriate bargaining unit which
the CBU or payrolls. If the employer does petitioner seeks to represent.
not submit the list or payrolls, the union
may submit its own list i.e. SSS list. Section 11. Procedure in the challenge of
votes. - When a vote is properly challenged,
Only the employees who are directly the Election Officer shall place the ballot in
employed by the employer and working an envelope which shall be sealed in the
along the activities to which the employer is presence of the voter and the

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 Alan Hubert P. Chu
Reviewer in Labor Relations (CBA Process) 3S

representatives of the contending unions and transmitted to the Med-Arbiter,

and employer. The Election Officer shall together with the minutes and results of the
indicate on the envelope the voter's name, election, within twenty-four (24) hours from
the union or employer challenging the the completion of the canvass.
voter, and the ground for the challenge. The
sealed envelope shall then be signed by the Where the election is conducted in more
Election Officer and the representatives of than one region, consolidation of results
the contending unions and employer. The shall be made within fifteen (15) days from
Election Officer shall note all challenges in the conduct thereof.
the minutes of the election and shall be
responsible for consolidating all envelopes NB: Failure of any party or the employer or
containing the challenged votes. The his/her/their representative to appear
envelopes shall be opened and the question during the election proceedings shall be
of eligibility shall be passed upon only if the considered a waiver to be present and to
number of segregated voters will materially question the conduct thereof.
alter the results of the election.
Proclamation and Certification
Section 12. On-the-spot questions. - The
To have a valid election, at least majority of
Election Officer shall rule on any question
all the eligible voters in the unit must have
relating to and raised during the conduct of
cast their votes.
the election. In no case, however, shall the
election officer rule on any of the grounds Proclamation and certification of the
for challenge specified in the immediately result of the election. - Within twenty-four
preceding section. (24) hours from final canvass of votes, there
being a valid election, the Election Officer
Section 13. Protest; when perfected. -
shall transmit the records of the case to the
Any party-in-interest may file a protest
Med-Arbiter who shall, within the same
based on the conduct or mechanics of the
period from receipt of the minutes and
election. Such protests shall be recorded in
results of election, issue an order
the minutes of the election proceedings.
proclaiming the results of the election and
Protests not so raised are deemed waived.
certifying the union which obtained a
The protesting party must formalize its majority of the valid votes cast as the sole
protest with the Med-Arbiter, with specific and exclusive bargaining agent in the
grounds, arguments and evidence, within subject bargaining unit, under any of the
five (5) days after the close of the election following conditions:
proceedings. If not recorded in the minutes
(a) no protest was filed or, even if one was
and formalized within the prescribed
filed, the same was not perfected within the
period, the protest shall be deemed
five-day period for perfection of the protest;
dropped.
(b) no challenge or eligibility issue was
NB: The employer deserves condemnation
raised or, even if one was raised, the
for ignoring the employees request for
resolution of the same will not materially
permission for some time out to attend to
change the results of the elections.
the hearing of their petition before the Med-
Arbiter. It is an act of interference with the The winning union shall have the rights,
employees right to self-organization, privileges and obligations of a duly certified
contrary to the prohibition against unfair collective bargaining agent from the time
labor practice. the certification is issued.
Conducting the Certification election: Where majority of the valid votes cast
results in "No Union" obtaining the
Canvassing of Votes
majority, the Med-Arbiter shall declare such
The voting shall close on the date and time fact in the order.
agreed upon in the pre-election conference.
Certification of Collective Bargaining
Canvassing shall immediately follow.
Agent. - The union which obtained a
Canvassing of votes. - The votes shall be majority of the valid votes cast shall be
counted and tabulated by the Election certified as the sole and exclusive
Officer in the presence of the bargaining agent of all the employees in the
representatives of the contending unions. appropriate bargaining unit within five (5)
Upon completion of the canvass, the days from the day of the election provided
Election Officer shall give each no protest is recorded in the minutes of the
representative a copy of the minutes of the election.
election proceedings and results of the
Failure of election. - Where the number of
election. The ballots and the tally sheets
votes cast in a certification or consent
shall be sealed in an envelope and signed
election is less than the majority of the
by the Election Officer and the
number of eligible voters and there are no
representatives of the contending unions
material challenged votes, the Election

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 Alan Hubert P. Chu
Reviewer in Labor Relations (CBA Process) 3S

Officer shall declare a failure of election in ILLUSTRATION:

the minutes of the election proceedings.
The CBU has 100 members.
Effect of failure of election. - A failure of
election shall not bar the filing of a motion 80 voted: Union One: 30
for the immediate holding of another
certification or consent election within six Union Two: 15
(6) months from date of declaration of
Union Three: 15
failure of election.
No union: 20
Action on the motion. - Within twenty-
four (24) hours from receipt of the motion, No invalid votes.
the Election Officer shall immediately
schedule the conduct of another 1st Question: Which Union won? NONE.
certification or consent election within
fifteen (15) days from receipt of the motion REASON: Not one of the unions got the
and cause the posting of the notice of majority of the 80 valid votes.
certification election at least ten (10) days
prior to the scheduled date of election in 2nd Question: Is run-off election proper?
two (2) most conspicuous places in the YES
establishment. The same guidelines and list
of voters shall be used in the election. REASON: The contending unions obtained
60 votes which even exceed one-half of the
RUN-OFF ELECTION votes cast. The run-off will be between the
labor unions receiving the two highest
When proper. - When an election which number of votes. In the given example,
provides for three (3) or more choices Union One will face BOTH Union Two and
results in none of the contending unions Three because these two tied for the second
receiving a majority of the valid votes cast, highest number of union votes.
and there are no objections or challenges
which if sustained can materially alter the III. CONSENT ELECTION
results, the Election Officer shall motu
propio conduct a run-off election within ten The election voluntarily agreed upon by the
(10) days from the close of the election parties to determine the issue of majority
proceedings between the labor unions representation of all the workers in the
receiving the two highest number of votes; appropriate collective bargaining unit.
provided, that the total number of votes for (Book V, Rule I, Sec. 1 of the Omnibus Rules
all contending unions is at least fifty (50%) Implementing the Labor Code)
percent of the number of votes cast.
CONSENT ELECTION v. CERTIFICATION
"No Union" shall not be a choice in the run- ELECTION
off election.
A consent election is voluntarily agreed
Notice of run-off elections shall be posted upon by the parties, with or without the
by the Election Officer at least five (5) days intervention of the Department while a
before the actual date of run-off election. certification election is ordered by the
Department.
Qualification of voters. - The same voters'
list used in the certification election shall Both may take place in an unorganized or
be used in the run-off election. The ballots organized establishment.
in the run-off election shall provide as
choices the unions receiving the highest Consent Election; Agreement. - In case
and second highest number of the votes the contending unions agree to a consent
cast. The labor union receiving the greater election, the Med-Arbiter shall not issue a
number of valid votes cast shall be certified formal order calling for the conduct of
as the winner, subject to Section 20, Rule certification election, but shall enter the
IX. fact of the agreement in the minutes of the
hearing. The minutes of the hearing shall
REQUISITES: be signed by the parties and attested to by
the Med-Arbiter. The Med-Arbiter shall,
1. a VALID ELECTION took place; immediately thereafter, forward the records
2. the election presented at least of the petition to the Regional Director or
THREE CHOICES. e.g. Union One, his/her authorized representative for the
Union Two, and No Union; determination of the Election Officer by the
3. not one of the unions obtained the contending unions through raffle. The first
MAJORITY of the valid votes; pre-election conference shall be scheduled
4. the total number of votes for all the within ten (10) days from the date of entry
unions is at least 50% of the votes of agreement to conduct consent election.
cast; and
5. there is no unresolved challenged
votes or election protest.

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 Alan Hubert P. Chu
Reviewer in Labor Relations (CBA Process) 3S

Effect of Consent Election FOUR RELATED PROCESS IN

COLLECTIVE BARGAINING
The results shall constitute a bar to the
holding of a certification election for one (1) 1. Negotiation between the
year from the holding of such consent representatives of the management
election. Where an appeal has been filed and the union over wages, hours,
from the results of the consent election, the and other terms and conditions of
running of the one-year period shall be employment;
suspended until the decision on appeal has 2. Execution of a written contract
become final and executory. embodying the terms agreed upon;
3. Negotiation of any questions arising
as to the interpretation or
application of the contract; and
EXCLUSIVE BARGAINING AGENT
4. Negotiation over the terms of a new
contract or proposed modifications,
Any legitimate labor union duly recognized
when an existing agreement is
or certified as the sole and exclusive
validly opened for negotiations.
bargaining representative or agent of all the
employees in a bargaining unit.
JURISDICTIONAL PRECONDITIONS OF
(Implementing Rules of the Labor Code, as
COLLECTIVE BARGAINING
amended by D.O. No. 40-03)

Back at the enterprise level, the employer is

Appropriateness of Bargaining unit
not under any legal duty to initiate contract
The determination of what constitutes a negotiation. The mechanics of collective
proper bargaining unit lies primarily in the bargaining are set in motion only when the
discretion of the Bureau, since no following jurisdictional preconditions are
individual factor is given by law decisive present, namely:
weight.
1. possession of the status of majority
The basic test of a bargaining units representation of the employees
acceptability or appropriateness is whether representative in accordance with
it will best assure to all employees the any of the means of selection or
exercise of their collective bargaining rights. designation provided for by the
Labor Code;
Four Factors in determining the 2. proof of majority representation; and
Appropriate Bargaining Unit 3. a demand to bargain under Art. 250
par. (a) of the Labor Code.
1. Globe Doctrine the express will or
desire of the employees When single enterprise bargaining
2. Community of Interest Doctrine available. - Any voluntarily recognized or
the substantial similarity of work certified labor union may demand
and duties negotiations with its employer for terms
3. Prior collective bargaining history and conditions of work covering employees
4. Employee status, such as: in the bargaining unit concerned.
Temporary, seasonal and
probationary employees. Procedure in single enterprise bargaining
A recognized or certified labor union that
COLLECTIVE BARGAINING desires to negotiate with its employer shall
submit such intention in writing to the
Obligation to meet and convene promptly employer, together with its proposals for
and expeditiously in good faith for the collective bargaining.
purpose of negotiating an agreement with
respect to wages, hours of work and all The recognized or certified labor union and
other terms and conditions of employment its employer may adopt such procedures
including proposals for adjusting any and processes they may deem appropriate
grievances or questions arising under such and necessary for the early termination of
agreement and executing a contract their negotiations. They shall name their
incorporating such agreements if requested respective representatives to the
by either party but such duty does not negotiation, schedule the number and
compel any party to agree to a proposal or frequency of meetings, and agree on wages,
to make any concession. (Art. 252 of the benefits and other terms and conditions of
Labor Code) work for all employees covered in the
bargaining unit.
It denotes negotiations looking forward to a
collective agreement. When multi-employer bargaining
available. - A legitimate labor union(s) and
employers may agree in writing to come
together for the purpose of collective
bargaining, provided:

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 Alan Hubert P. Chu
Reviewer in Labor Relations (CBA Process) 3S

(a) only legitimate labor unions who are 4) the duration of the current collective
incumbent exclusive bargaining agents may bargaining agreement, if any, entered into
participate and negotiate in multi-employer by each employer with the counterpart
bargaining; legitimate labor union.

(b) only employers with counterpart (c) Each employer or concerned labor union
legitimate labor unions who are incumbent shall express its willingness or refusal to
bargaining agents may participate and participate in multi-employer bargaining in
negotiate in multi-employer bargaining; and writing, addressed to its corresponding
exclusive bargaining agent or employer.
(c) only those legitimate labor unions who Negotiations may commence only with
pertain to employer units who consent to regard to respective employers and labor
multi-employer bargaining may participate unions who consent to participate in multi-
in multi-employer bargaining. employer bargaining;
Procedure in multi-employer bargaining. (d) During the course of negotiations,
Multi-employer bargaining may be initiated consenting employers and the
by the labor unions or by the employers. corresponding legitimate labor unions shall
discuss and agree on the following:
(a) Legitimate labor unions who desire to
negotiate with their employers collectively 1) the manner by which negotiations shall
shall execute a written agreement among proceed;
themselves, which shall contain the
following: 2) the scope and coverage of the
negotiations and the agreement; and
1) the names of the labor unions who desire
to avail of multi-employer bargaining; 3) where appropriate, the effect of the
negotiations on current agreements or
2) each labor union in the employer unit; conditions of employment among the
parties.
3) the fact that each of the labor unions are
the incumbent exclusive bargaining agents WHEN BARGAINING SHOULD BEGIN
for their respective employer units;
If the three jurisdictional preconditions are
4) the duration of the collective bargaining present, the collective bargaining should
agreements, if any, entered into by each begin within the 12 months following the
labor union with their respective employers. determination and certification of the
employees exclusive bargaining
Legitimate labor unions who are members representative.
of the same registered federation, national,
or industry union are exempt from STAGES IN THE NEGOTIATION FOR A
execution of this written agreement. COLLECTIVE BARGAINING AGREEMENT
(b) The legitimate labor unions who desire 1. Preliminary process service of a
to bargain with multi-employers shall send written notice upon the other party
a written notice to this effect to each with a statement of its proposals.
employer concerned. The written agreement The other party shall make a reply
stated in the preceding paragraph, or the thereto not later than ten (10)
certificates of registration of the federation, calendar days from receipt of such
national, or industry union, shall notice.
accompany said notice. 2. Negotiation process involves the
process of meeting not later than
Employers who agree to group themselves ten (10) calendar days from the date
or use their existing associations to engage of request for conference between
in multiemployer bargaining shall send a the representatives of the employer
written notice to each of their counterpart and the bargaining union for the
legitimate labor unions indicating their purpose of discussing and adjusting
desire to engage in multi-employer their differences in order to
bargaining. Said notice shall indicate the conclude an agreement.
following: 3. Execution process this involves
the signing and execution of a
1) the names of the employers who desire to
written document, ordinarily called
avail of multi-employer bargaining;
the Collective Bargaining
2) their corresponding legitimate labor Agreement.
organizations; 4. Publication process this involves
posting of the CBA in two
3) the fact that each corresponding conspicuous places in the place of
legitimate union is any incumbent exclusive work of the company at least five (5)
bargaining agent; days prior to the ratification thereof
by the members of the bargaining
unit.

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 Alan Hubert P. Chu
Reviewer in Labor Relations (CBA Process) 3S

5. Ratification process this involves Board shall have the power to issue
the act of ratifying the newly- subpoenas requiring the attendance
concluded CBA by at least majority of the parties to such meetings. It
of the members of the bargaining shall be the duty of the parties to
unit. participate fully and promptly in the
6. Registration process this conciliation meetings the Board may
pertains to the registration of the call;
duly ratified CBA with the Bureau of
Labor Relations or the Regional d. During the conciliation proceedings
Office of the DOLE by submitting in the Board, the parties are
five (5) copies thereof with the other prohibited from doing any act which
documentary requirements and may disrupt or impede the early
paying the required registration fee. settlement of the disputes; and
7. Administration process This
involves the joint administration of e. The Board shall exert all efforts to
the CBA by the employer and the settle disputes amicably and
bargaining union during the entire encourage the parties to submit
lifetime thereof which is set by law their case to a voluntary arbitrator.
at five (5) years.
8. Interpretation and application COLLECTIVE BARGAINING AGREEMENT
process this concerns the
interpretation, application and A CBA, as used in Art. 252 of the Labor
enforcement of the stipulations Code, refers to a contract executed upon
embodied in the CBA to give effect request of either the employer or the
thereto. exclusive bargaining representative of the
employees incorporating the agreement
PROCEDURE IN COLLECTIVE reached after negotiations with respect to:
BARGAINING
1. wages;
Serve written notice with 2. hours of work and
statement of proposals upon 3. all other terms and conditions of
the other party. employment including proposals for
adjusting any grievances or
Reply not later than 10 days from receipt questions arising under such
agreement.
Reply of other party FOUR FORMS OF UNFAIR LABOR
PRACTICE IN BARGAINING
If differences arise on the basis of notice and reply
1. Failure or refusal to meet and
Conference convene;
2. Evading the mandatory subjects of
If the dispute is not settled bargaining;
3. Bad faith in bargaining, including
failure or refusal to execute the
Board shall intervene, call CBA, if requested; and
parties to conciliation 4. Gross violations of the CBA
meetings
DO ECONOMIC EXIGENCIES JUSTIFY
REFUSAL TO BARGAIN?
a. When a party desires to negotiate an
agreement, it shall serve a written NO. An employer has been held not guilty of
notice upon the other party with a a refusal to bargain by adamantly
statement of its proposals. The other REJECTING the unions economic demands
party shall make a reply thereto not where he is operating at a loss, on a low
later than ten (10) calendar days profit margin, or in a depressed industry,
from receipt of such notice; AS LONG AS HE CONTINUES TO
NEGOTIATE.
b. Should differences arise on the
basis of such notice and reply, MANDATORY SUBJECTS OF
either party may request for a BARGAINING
conference which shall begin not
later than ten (10) calendar days 1. Wages
from the date of request. 2. Hours of Work
3. Other Terms and Conditions of
c. If the dispute is not settled, the Employment i.e. bonuses, pensions
Board shall intervene upon request and retirement plans, vacations and
of either or both parties or at its own holidays, seniority, transfer, lay-offs,
initiative and immediately call the employee workloads, work rules and
parties to conciliation meetings. The

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 Alan Hubert P. Chu
Reviewer in Labor Relations (CBA Process) 3S

regulations, rent of company houses II. Where a CBA exists

and union security arrangements.
General Rule:
NB: Where the subject of the dispute is a When there is a collective
mandatory bargaining subject, either party bargaining agreement, the duty
may bargain to an impasse as long as he to bargain collectively shall also
bargains in good faith. mean that neither party shall
terminate nor modify such
Where the subject is non-mandatory, a agreement during its lifetime.
party may not insist on bargaining to the
point of impasse. His insistence may be Exception:
construed as evasion of the duty to bargain. Either party can serve a written
notice to terminate or modify the
agreement at least sixty (60)
Deadlock synonymous with impasse or a days prior to its expiration date.
standstill which presupposes reasonable It shall be the duty of both
effort at good faith bargaining but despite parties to:
noble intentions does not conclude an 1. keep the status quo and
agreement between the parties. 2. to continue in full force and
effect the terms and
It signals the need to continue bargaining conditions of the existing
with the assistance of a third party as agreement during the 60-day
conciliator or arbitrator whose first aim is period and/or until a new
to get the parties back to the negotiating agreement is reached by the
table and help them craft a win-win parties.
solution.
RATIFICATION
Bargaining in Bad Faith

1. Surface Bargaining going through The agreement negotiated by the employees

the motions of negotiating without bargaining agent should be ratified or
any legal intent to reach an
approved by the majority of all the workers
agreement.
2. Shifting Bargaining Positions in the bargaining unit. (Art. 231 of the Labor
repeated shifts in position and Code and Book V, Rule XVII, Section 2 of the
attitude whenever a tentative Implementing Rules)
agreement is reached
3. Blue Sky Bargaining making WHEN IS RATIFICATION NOT NEEDED
exaggerated or unreasonable
proposals. - When the CBA is a product of an
arbitral award by an appropriate
NB: There is no per test of good faith in government authority or by a
bargaining. voluntary arbitrator. However, the
The good faith or bad faith is an inference
CBA still needs to be posted in two
to be drawn from the facts and is largely a
matter for the NLRBs expertise. conspicuous places in the
The charge of bad faith should be raised workplace, but the posting is for the
while the bargaining is in progress. information of, and not ratification
by, the employees affected.
DUTY TO BARGAIN COLLECTIVELY
I. Where NO CBA exists RATIONALE
a. to meet and convene promptly
and expeditiously in good faith To require ratification of the CBA in
for the purpose of negotiating an case of arbitral awards will be
agreement with respect to INCONSISTENT with the nature of
wages, hours of work and all
arbitration as a dispute-settlement
other terms and conditions of
employment including proposals device.
for adjusting any grievances or
questions arising under such EXECUTION
agreement and
b. to executing a contract Which comes first: ratification or execution?
incorporating such agreements if The Labor Code does not specify, or at least
requested by either party but Art. 231 is not clear on the matter. In
such duty does not compel practice, the sequence usually depends on
any party to agree to a the likelihood of ratification as judged by
proposal or to make any
the union. If the union strongly feels there
concession.
will be no ratification problem, the CBA is
finalized, signed by the parties, and posted.

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 Alan Hubert P. Chu
Reviewer in Labor Relations (CBA Process) 3S

If there is no such certainty, the CBA is Neglecting, deviating from or violating the
drafted, initiated by the parties, and this terms of the CBA is considered an unfair
clean draft is posted. If and when ratified, labor practice under Art. 248 in relation to
Art. 261 of the Labor Code.
the CBA is finalized and formal signing
follows. (Cesario Alvero Azucena, Jr., The
Labor Code with Comments and Cases, RENEGOTIATION
Volume II, 7th Edition, p. 392)
Renegotiation applies only to the
UNWRITTEN OR UNSIGNED AGREEMENT renegotiable provisions, that is, those that
do not pertain to the identity and political
A collective bargaining agreement is valid status of the bargaining union.
though not reduced in writing or signed, if
neither party requests a written instrument All nonpolitical nonrepresentational issues
(Art. 252 of the Labor Code) may be reopened and renegotiated.

REGISTRATION AUTOMATIC RENEWAL OF THE CBA

WHERE TO FILE Until a new Collective Bargaining

Agreement has been executed by and
The collective agreement, having been between the parties, they are duty-bound to
properly ratified, should be registered with keep the status quo and to continue in full
the DOLE Regional Office where the force and effect the terms and conditions of
bargaining union is registered or where it the existing agreement. The law does not
principally operates. provide for any exception nor qualification
as to which of the economic provisions of
Article 231 requires the registration within the existing agreement are to retain force
thirty (30) calendar days from execution of and effect, therefore, it must be understood
the agreement. as encompassing all the terms and
conditions in the said agreement. (New
Failure to register the CBA does not make it Pacific Timber & Supply Company, Inc. v.
invalid or unenforceable. Its non- NLRC, GR No. 124224, March 17, 2000)
registration, however, renders the contract-
bar rule inoperative. DURATION OF THE CBA
a. With respect to the representational
REGISTRATION REQUIREMENTS aspect, the same lasts for 5 years.

The application for CBA registration shall - Refers to the identity and majority
be accompanied by the original and two (2) status of the union that negotiated
duplicate copies of the following documents the CBA as the exclusive bargaining
which must be certified under oath by the representative.
representative(s) of the employer(s) and
labor union(s) concerned: b. With respect to the other provision
(economic and non-economic), the
(a) the collective bargaining agreement; same may last for a maximum
(b) a statement that the collective period of 3 years after the execution
bargaining agreement was posted in at least of the CBA.
two (2) conspicuous places in the
establishment or establishments concerned Rules on Effectivity and Retroactivity of
for at least five (5) days before its New CBA (Apply Only to Provisions Other
ratification; and than Representational)
(c) a statement that the collective
bargaining agreement was ratified by the I. CBA as a Result of Negotiations
majority of the employees in A. With Previous CBA
the bargaining unit of the employer or 1. Effectivity of new CBA entered
employers concerned. into within 6 months after the
expiration of the old CBA:
No other document shall be required in the Retroact to the date following
registration of collective bargaining the expiry date.
agreements. 2. Effectivity of new CBA entered
into after 6 months following
the expiration of the old CBA:
IMPLEMENTATION General Rule: Effective on the date
agreed upon by the parties.
Article 252 of the Labor Code emphasizes If there is no agreement, the arbitral
the faithful adherence to the contract as a award will retroact to the day after
continuation of the duty to bargain. the end of the 6-month period after
the expiration of the old CBA.

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 Alan Hubert P. Chu
Reviewer in Labor Relations (CBA Process) 3S

B. New and First-Ever CBA (No

previous CBA) Effective on date
agreed upon by the parties.

II. Arbitral Awards

A. With Previous CBA

1. Arbitral awards final within 6
months from old CBA: Retroact to
the date following the expiration of
the old CBA.
2. Arbitral awards final after 6
months following the expiration of
the old CBA:
General Rule: the agreement between
the parties.
If there is no agreement, retroact to
the 1st day following the 6-month
period.

B. New and First-Ever CBA (No previous

CBA) - Labor Secretarys discretion will
be followed.

Article 253 Article 253-A/256

Freedom Period
1. The notice of 1. Representation
intention to aspect of the CBA
terminate, amend, shall be for a term of
or alter the 5 years. A petition for
provisions of the certification election
CBA shall be filed may be entertained
within the 60-day and a certification
period, election may be
immediately prior conducted within the
to the expiration of 60-day period
the CBA. immediately prior to
the expiration of the
2. The economic CBA.
provisions,
however, may be
renegotiated not
later than 3 years.
Those economic
provisions entered
within 6 months
from the expiration
of their term as
fixed in the CBA
shall retroact to
the day
immediately
following such
date, if beyond 6
months the
effectivity is by
agreement of the
parties.
What may be changed during the 60-day
Freedom Period
Re-negotiable Representational
provisions of the aspect may be
CBA, particularly resolved by holding a
the non- certification election.
representational
aspect (Economic
provisions may be
renegotiated not
later than 3 years).

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