L B a a b s o i r c L a s w a 2 A h 2 o 0 r 1 n 0 b o o 1 k 1 p r D i n s c i i n p i l d e , t e j r u m r i i n s e d i c b t y i o t n h e o v a e l r l e t g h a e t s i u o b n

LABOR RELATIONS LAW

A. INTRODUCTION 1. Constitutional basis a. Sections 10 & 18, Article II, 1987 Constitution Section 10. The State shall promote social justice in all phases of national development. Section 18. The State affirms labor as a primary social economic force. It shall protect the rights of workers and promote their welfare. b. Section 3, Article XIII, 1987 Constitution ARTICLE XIII LABOR Section 3. The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all. It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure, humane conditions of work, and a living wage. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law. The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace. The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns to investments, and to expansion and growth. 3. Goal of Labor Relations Social Justice The case of Calalang vs Williams is known for the elegant exposition of the definition of social justice. In this case, Justice Laurel defined social justice as neither communism, nor despotism, nor atomism, nor anarchy but humanization of laws and equalization of social and economic forces by the State so that justice in its rational and objectively secular conception may at least be approximated. Protection to Labor Antamok Goldfields Mining Co. vs. CIR 70 Phil 340 "The promotion of social justice to insure the wellbeing and economic security of all the people' was thus inserted as vital principle in our Constitution. (Sec. 5, Art. II, Constitution.) And in order that this declaration of principle may not just be an empty medley of words, the Constitution in various sections thereof has provided the means towards its realization. For instance, section 6 of Articles XIII declares that the State "shall afford protection to labor, especially to working women and minors, and shall regulated the relations between landowner and tenant, and between labor and capital in industry and in agriculture." The same section also states that "the State may provide for compulsory arbitration." 4. Construction and/or Interpretion Labor Relations it defines the status, rights, duties, and the institutional mechanisms that govern his individual and collective interactions between employer, employees and their representatives. (CA Azucena) Eastern Shipping Lines vs. POEA 166 SCRA 523 Whatever doubts may still remain regarding the rights of the parties in this case are resolved in favor of the private respondent, in line with the express mandate of the Labor Code and the principle that those with less in life should have more in law. Labor Relations Law vs. Labor Standards Labor Relations a. Regulates the institutional relationship between the workers organized into a union and the employers, either standing alone or with other employer's association. b. Deals with the legal control of the employer-employee relations to the end that disputes concerning terms and conditions of employment will be served by collective bargaining. Labor Standards a. Deals with minimum standards as wages, hours of work and other terms and conditions of employment.

b. Provides the minimum of what society feels is necessary to maintain the helath, safety and decent living of employees.

2. Concept Labor Relations Law it deals with the legal control of the employeremployee relations to the end view that disputes concerning terms and conditions od employnebt will be served by collective bargaining.

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When the conflicting interests of labor and capital are weighed on the scales of social justice, the heavier influence of the latter must be counter-balanced by the sympathy and compassion the law must accord the underprivileged worker. This is only fair if he is to be given the opportunity and the right to assert and defend his cause not as a subordinate but as a peer of management, with which he can negotiate on even plane. Labor is not a mere employee of capital but its active and equal partner. Meralco vs. NLRC GR 78763 vs. Sec. Of labor GR 151379

This Court declared that it recognizes the exercise of management prerogatives and it often declines to interfere with the legitimate business decisions of the employer. This is in keeping with the general principle embodied in Article XIII, Section 3 of the Constitution, which is further echoed in Article 211 of the Labor Code. However, as expressed in PAL v. National Labor Relations Commission, this privilege is not absolute, but subject to exceptions. One of these exceptions is when the Secretary of Labor assumes jurisdiction over labor disputes involving industries indispensable to the national interest under Article 263(g) of the Labor Code. This provision states:
(g) When, in his opinion, there exists a labor dispute causing or likely to cause a strike or lockout in an industry indispensable to the national interest, the Secretary of Labor and Employment may assume jurisdiction over the dispute and decide it or certify the same to the Commission for compulsory arbitration. Such assumption or certification shall have the effect of automatically enjoining the intended or impending strike or lockout as specified in the assumption or certification order. If one has already taken place at the time of assumption or certification, all striking or locked out employees shall immediately return to work and the employer shall immediately resume operations and readmit all workers under the same terms and conditions prevailing before the strike or lockout. x x x

In carrying out and interpreting the Labor Code's provisions and its implementing regulations, the workingman's welfare should be the primordial and paramount consideration. This kind of interpretation gives meaning and substance to the liberal and compassionate spirit of the law as provided for in Article 4 of the New Labor Code which states that "all doubts in the implementation and interpretation of the provisions of the Labor Code including its implementing rules and regulations shall be resolved in favor of labor" (Abella v. NLRC, G.R. No. 71812, July 30,1987,152 SCRA 140). Colgate Palmolive Phils. vs. Ople GR. 73681

The Constitutional mandate that the State shall "assure the rights of the workers to self-organization, collective bargaining, security of tenure and just and humane conditions of work," should be achieved under a system of law... When an overzealous official by-passes the law on the pretext of retaining a laudable objective, the intendment or purpose of the law will lose its meaning as the law itself is disregarded. Under the law, respondent Minister is duly mandated to equally protect and respect not only the labor or workers' side but also the management and/or employers' side. The law, in protecting the rights of the laborer, authorizes neither oppression nor self-destruction of the employer. 5. Economic Basis of Labor Relations a. Interests of Management Management Prerogative may be taken as the freedom to administer the affairs of a business enterprise such that the costs of running it would be below the expected earnings or receipts. In short, the ELBOW ROOM IN THE QUEST FOR PROFITS (Chu vs. NLRC GR 106107)

b. Interests of Labor Seven Cardinal Rights of Workers 1. rights to organize 2. to conduct collective bargaining or negotiation with management 3. to engage in peaceful concerted activities, including strike in accordance with law 4. to enjoy security of tenure 5. to work under humane conditions 6. to receive a living wage 7. to participate in policy and decision-making processes affecting their rights and benefits as may be provided by law. (Sec. 3, Art. XIII)

Limitation: the Company's prerogatives must be exercised in GOD FAITH and with due regard to the rights of labor. A priori, they are not absolute prerogatives but are subject to legal limits, collective bargaining agreements, and the general principles of fair play and justice (Phil-Sing Transit vs. NLRC) see Sec. 3, Art XIII, 1987 Constitution

University of Immaculate Concepcion, Inc.

c. Balancing of interests thru regulation by the State of labor relations law

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(police power) The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns to investments, and to expansion and growth. (sec. 4, par.4, Art. XIII, 1987 Constitution). The Hon. Court of Appeals, The Secretary of Labor and Employment, and The Manila Diamond Hotel G.R. No. 140518, As a general rule, the State encourages an environment wherein employers and employees themselves must deal with their problems in a manner that mutually suits them best. This is the basic policy embodied in Article XIII, Section 3 of the Constitution,which was further echoed in Article 211 of the Labor Code. Hence, a voluntary, instead of compulsory, mode of dispute settlement is the general rule. However, Article 263, paragraph (g) of the Labor Code, which allows the Secretary of Labor to assume jurisdiction over a labor dispute involving an industry indispensable to the national interest, provides an exception: (g) When, in his opinion, there exists a labor dispute causing or likely to cause a strike or lockout in an industry indispensable to the national interest, the Secretary of Labor and Employment may assume jurisdiction over the dispute and decide it or certify the same to the Commission for compulsory arbitration. Such assumption or certification shall have the effect of automatically enjoining the intended or impending strike or lockout as specified in the assumption or certification order. If one has already taken place at the time of assumption or certification, all striking or locked out employees shall immediately return to work and the employer shall immediately resume operations and readmit all workers under the same terms and conditions prevailing before the strike or lockout. 2. Trade Unionism Art. 211. Declaration of Policy. It is the policy of the State: b.) To promote free trade unionism as an instrument for the enhancement of democracy and the promotion of social justice and development; c.) To foster the free and voluntary organization of a strong and united labor movement; Art. 212. Definitions. g.) "Labor organization" means any union or association of employees which exists in whole or in part for the purpose of collective bargaining or of dealing with employers concerning terms and conditions of employment.

B.

State Policies on Labor Relations 1. Method of Dispute Settlement see Sec. 3, Art XIII, 1987 Constitution

Art. 211. Declaration of Policy. A. It is the policy of the State: a. To promote and emphasize the primacy of free collective bargaining and negotiations, including voluntary arbitration, mediation and conciliation, as modes of settling labor or industrial disputes. XXX Kiok Loy vs. NLRC, 141 SCRA 179 Collective bargaining which is defined as negotiations towards a collective agreement, one of the democratic frameworks under the New Labor Code, designed to stabilize the relation between labor and management and to create a climate of sound and stable industrial peace. It is a mutual responsibility of the employer and the Union and is characterized as a legal obligation. So much so that Article 249, par. (g) of the Labor Code makes it an unfair labor practice for an employer to refuse "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 grievance or question arising under such an agreement and executing a contract incorporating such agreement, if requested by either party. While it is a mutual obligation of the parties to bargain, the employer, however, is not under any legal duty to initiate contract negotiation. The mechanics of collective bargaining is set in motion only when the following jurisdictional preconditions are present, namely, (1) possession of the status of majority representation of the employees' representative in accordance with any of the means of selection or designation provided for by the Labor Code; (2) proof of majority representation; and (3) a demand to bargain under Article 251, par. (a) of the New Labor Code . ...

Manila Diamond Hotel Employees Union vs.

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Definition of Trade Union Activities Art. 270. Regulation of foreign assistance. amended by Section 33, Republic Act No. 6715, March 21, 1989)

a.

No foreign individual, organization or entity may give any donations, grants or other forms of assistance, in cash or in kind, directly or indirectly, to any labor organization, group of workers or any auxiliary thereof, such as cooperatives, credit unions and institutions engaged in research, education or communication, in relation to trade union activities, without prior permission by the Secretary of Labor. "Trade union activities" shall mean: 1. organization, formation and administration of labor organization; 2. negotiation and administration of collective bargaining agreements; 3. all forms of concerted union action; 4. organizing, managing, or assisting union conventions, meetings, rallies, referenda, teach-ins, seminars, conferences and institutes; 5. any form of participation or involvement in representation proceedings, representation elections, consent elections, union elections; and 6. other activities or actions analogous to the foregoing. 3. Worker Enlightenment

Victoria vs. Inciong, 157 SCRA 339 The purpose in requiring a prior clearance from the Secretary of Labor in cases of shutdown or dismissal of employees, is to afford the Secretary ample opportunity to examine and determine the reasonableness of the request. Consequently,private respondent acted in good faith when it terminated the employment of petitioner upon a declaration of illegality of the strike. Ratio This is a matter of responsibility and of answerability. Petitioner as a union leader, must see to it that the policies and activities of the union in the conduct of labor relations are within the precepts of law and any deviation from the legal boundariesshall be imputable to the leader. He bears the responsibility ofguiding the union along the path of law and to cause the unionto demand what is not legally demandable, would fomentanarchy which is a prelude to chaos. Reasoning As a strike is an economic weapon at war with the policy of the Constitution and the law at that time, a resortthereto by laborers shall be deemed to be a choice of remedypeculiarly their own and outside of the statute, and as such, thestrikers must accept all the risks attendant upon their choice. Ifthey succeed and the employer succumbs, the law will not standin their way in the enjoyment of the lawful fruits of their victory.But if they fail, they cannot thereafter invoke the protection ofthe law for the consequences of their conduct unless the rightthey wished vindicated is one which the law will, by all means,protect and enforce. 4. Adequate machinery for Expeditious Dispute Settlement Art. 211. Declaration of Policy. A. It is the policy of the State: e.) To provide an adequate administrative machinery for the expeditious settlement of labor or industrial disputes. Art. 212. Definitions. a. "Commission" means the National Labor Relations Commission or any of its divisions, as the case may be, as provided under this Code. b. "Bureau" means the Bureau of Labor Relations and/or the Labor Relations Divisions in the regional offices established under Presidential Decree No. 1, in the Department of Labor. c. "Board" means the National Conciliation and Mediation Board established under Executive Order No. 126.

Art. 211. Declaration of Policy. A. It is the policy of the State: d.) To promote the enlightenment of workers concerning their rights and obligations as union members and as employees. Chapter II RIGHTS AND CONDITIONS OF MEMBERSHIP Art. 241. Rights and conditions of membership in a labor organization. The following are the rights and conditions of membership in a labor organization: p.) It shall be the duty of any labor organization and its officers to inform its members on the provisions of its constitution and by-laws, collective bargaining agreement, the prevailing labor relations system and all their rights and obligations under existing labor laws. Art. 277. Miscellaneous provisions. a.) All unions are authorized to collect reasonable membership fees, union dues, assessments and fines and other contributions for labor education and research, mutual death and hospitalization benefits, welfare fund, strike fund and credit and cooperative undertakings.(As

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d. "Council" means the Tripartite Voluntary Arbitration Advisory Council established under Executive Order No. 126, as amended. assigned to a member for the writing of the opinion. It shall be mandatory for the division to meet for purposes of the consultation ordained herein. A certification to this effect signed by the Presiding Commissioner of the division shall be issued and a copy thereof attached to the record of the case and served upon the parties. The Chairman shall be the Presiding Commissioner of the first division and the four (4) other members from the public sector shall be the Presiding Commissioners of the second, third, fourth and fifth divisions, respectively. In case of the effective absence or incapacity of the Chairman, the Presiding Commissioner of the second division shall be the Acting Chairman. The Chairman, aided by the Executive Clerk of the Commission, shall have administrative supervision over the Commission and its regional branches and all its personnel, including the Executive Labor Arbiters and Labor Arbiters. The Commission, when sitting en banc shall be assisted by the same Executive Clerk and, when acting thru its Divisions, by said Executive Clerks for the second, third, fourth and fifth Divisions, respectively, in the performance of such similar or equivalent functions and duties as are discharged by the Clerk of Court and Deputy Clerks of Court of the Court of Appeals. (As amended by Section 5, Republic Act No. 6715, March 21, 1989)

I.

NLRC; Labor Arbiters

Art. 212. Definitions. a. "Commission" means the National Labor Relations Commission or any of its divisions, as the case may be, as provided under this Code.

NATIONAL LABOR RELATIONS COMMISSION Chapter I CREATION AND COMPOSITION Art. 213. National Labor Relations Commission. There shall be a National Labor Relations Commission which shall be attached to the Department of Labor and Employment for program and policy coordination only, composed of a Chairman and fourteen (14) Members. Five (5) members each shall be chosen from among the nominees of the workers and employers organizations, respectively. The Chairman and the four (4) remaining members shall come from the public sector, with the latter to be chosen from among the recommendees of the Secretary of Labor and Employment. Upon assumption into office, the members nominated by the workers and employers organizations shall divest themselves of any affiliation with or interest in the federation or association to which they belong. The Commission may sit en banc or in five (5) divisions, each composed of three (3) members. Subject to the penultimate sentence of this paragraph, the Commission shall sit en banc only for purposes of promulgating rules and regulations governing the hearing and disposition of cases before any of its divisions and regional branches, and formulating policies affecting its administration and operations. The Commission shall exercise its adjudicatory and all other powers, functions, and duties through its divisions. Of the five (5) divisions, the first, second and third divisions shall handle cases coming from the National Capital Region and the parts of Luzon; and the fourth and fifth divisions, cases from the Visayas and Mindanao, respectively; Provided that the Commission sitting en banc may, on temporary or emergency basis, allow cases within the jurisdiction of any division to be heard and decided by any other division whose docket allows the additional workload and such transfer will not expose litigants to unnecessary additional expense. The divisions of the Commission shall have exclusive appellate jurisdiction over cases within their respective territorial jurisdictions. [As amended by Republic Act No. 7700]. The concurrence of two (2) Commissioners of a division shall be necessary for the pronouncement of judgment or resolution. Whenever the required membership in a division is not complete and the concurrence of two (2) commissioners to arrive at a judgment or resolution cannot be obtained, the Chairman shall designate such number of additional Commissioners from the other divisions as may be necessary. The conclusions of a division on any case submitted to it for decision shall be reached in consultation before the case is

Chapter II POWERS AND DUTIES Art. 217. Jurisdiction of the Labor Arbiters and the Commission. a. Except as otherwise provided under this Code, the Labor Arbiters shall have original and exclusive jurisdiction to hear and decide, within thirty (30) calendar days after the submission of the case by the parties for decision without extension, even in the absence of stenographic notes, the following cases involving all workers, whether agricultural or nonagricultural: 1. Unfair labor practice cases;

2. Termination disputes; 3. If accompanied with a claim for reinstatement, those cases that workers may file involving wages, rates of pay, hours of work and other terms and conditions of employment; 4. Claims for actual, moral, exemplary and other forms of damages arising from the employeremployee relations; 5. Cases arising from any violation of Article 264 of this Code, including questions involving the legality of strikes and lockouts; and 6. Except claims for Employees Compensation, Social Security, Medicare and maternity benefits, all other claims arising from employer-employee relations, including those

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of persons in domestic or household service, involving an amount exceeding five thousand pesos (P5,000.00) regardless of whether accompanied with a claim for reinstatement. b. The Commission shall have exclusive appellate jurisdiction over all cases decided by Labor Arbiters. c. Cases arising from the interpretation or implementation of collective bargaining agreements and those arising from the interpretation or enforcement of company personnel policies shall be disposed of by the Labor Arbiter by referring the same to the grievance machinery and voluntary arbitration as may be provided in said agreements. (As amended by Section 9, Republic Act No. 6715, March 21, 1989) Title III BUREAU OF LABOR RELATIONS Art. 226. Bureau of Labor Relations. The Bureau of Labor Relations and the Labor Relations Divisions in the regional offices of the Department of Labor, shall have original and exclusive authority to act, at their own initiative or upon request of either or both parties, on all inter-union and intraunion conflicts, and all disputes, grievances or problems arising from or affecting labor-management relations in all workplaces, whether agricultural or non-agricultural, except those arising from the implementation or interpretation of collective bargaining agreements which shall be the subject of grievance procedure and/or voluntary arbitration. The Bureau shall have fifteen (15) working days to act on labor cases before it, subject to extension by agreement of the parties. (As amended by Section 14, Republic Act No. 6715, March 21, 1989).

II.

National Conciliation Mediation Board IV. Voluntary Arbitration Advisory Council

Art. 212. Definitions. a. "Board" means the National Conciliation and Mediation Board established under Executive Order No. 126.

Art. 212. Definitions. Title VII COLLECTIVE BARGAINING AND ADMINISTRATION OF AGREEMENTS Art. 250. Procedure in collective bargaining. The following procedures shall be observed in collective bargaining: c.) If the dispute is not settled, the Board shall intervene upon request of either or both parties or at its own initiative and immediately call the parties to conciliation meetings. The Board shall have the power to issue subpoenas requiring the attendance of the parties to such meetings. It shall be the duty of the parties to participate fully and promptly in the conciliation meetings the Board may call; d.) During the conciliation proceedings in the Board, the parties are prohibited from doing any act which may disrupt or impede the early settlement of the disputes; and e.) The Board shall exert all efforts to settle disputes amicably and encourage the parties to submit their case to a voluntary arbitrator. (As amended by Section 20, Republic Act No. 6715, March 21, 1989) a. "Commission" means the National Labor Relations Commission or any of its divisions, as the case may be, as provided under this Code.

Title VII-A GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION

Art. 260. Grievance machinery and voluntary arbitration. The parties to a Collective Bargaining Agreement shall include therein provisions that will ensure the mutual observance of its terms and conditions. They shall establish a machinery for the adjustment and resolution of grievances arising from the interpretation or implementation of their Collective Bargaining Agreement and those arising from the interpretation or enforcement of company personnel policies. All grievances submitted to the grievance machinery which are not settled within seven (7) calendar days from the date of its submission shall automatically be referred to voluntary arbitration prescribed in the Collective Bargaining Agreement. For this purpose, parties to a Collective Bargaining Agreement shall name and designate in advance a Voluntary Arbitrator or panel of Voluntary Arbitrators, or include in the agreement a procedure for the selection of such Voluntary Arbitrator or panel of Voluntary Arbitrators, preferably from the listing of qualified Voluntary Arbitrators duly accredited by the Board. In case the parties fail to select a Voluntary Arbitrator or panel of Voluntary Arbitrators, the Board shall designate the Voluntary Arbitrator or panel of Voluntary Arbitrators, as may be necessary, pursuant to the selection procedure agreed upon in the Collective Bargaining Agreement, which shall act with the same force and effect as if the Arbitrator or panel of Arbitrators has been selected by the parties as described above.

III. Bureau of labor relations; Labor Relations Division

Art. 212. Definitions.

a. "Bureau" means the Bureau of Labor Relations and/or the Labor Relations Divisions in the regional offices established under Presidential Decree No. 1, in the Department of Labor.

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Art. 261. Jurisdiction of Voluntary Arbitrators or panel of Voluntary Arbitrators. The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have original and exclusive jurisdiction to hear and decide all unresolved grievances arising from the interpretation or implementation of the Collective Bargaining Agreement and those arising from the interpretation or enforcement of company personnel policies referred to in the immediately preceding article. Accordingly, violations of a Collective Bargaining Agreement, except those which are gross in character, shall no longer be treated as unfair labor practice and shall be resolved as grievances under the Collective Bargaining Agreement. For purposes of this article, gross violations of Collective Bargaining Agreement shall mean flagrant and/or malicious refusal to comply with the economic provisions of such agreement. The Commission, its Regional Offices and the Regional Directors of the Department of Labor and Employment shall not entertain disputes, grievances or matters under the exclusive and original jurisdiction of the Voluntary Arbitrator or panel of Voluntary Arbitrators and shall immediately dispose and refer the same to the Grievance Machinery or Voluntary Arbitration provided in the Collective Bargaining Agreement. resolution such as the voluntary submission of a dispute to the Regional Director for mediation, to the National Conciliation and Mediation Board (NCMB) for preventive mediation, or to the intervention of a regional or local tripartite peace council for the same purpose. 2. All REQUESTS shall be in writing and filed with the Office of the Secretary. A REQUEST shall state: a. the name and address of the employer; b. the name of the certified bargaining agent, or the employee representative duly designated in writing by a majority of the employees where there is no collective bargaining agent; c. the number of employees affected by the potential or ongoing dispute; and d. a brief description of the potential or ongoing dispute. 3. Upon receipt of the REQUEST, the Office of the Secretary shall forthwith notify the parties and invite them for conference. The conference for REQUESTS coming from the National Capital Region, Regions III, IV-A or IV-B shall be held at the Office of the Secretary of Labor and Employment unless the Secretary otherwise directs. The conference for REQUESTS coming from the other regions shall be conducted by the Regional Director for the Secretary. 4. The Office of the Secretary or the Regional director, in the proper case, shall proceed to intervene after the parties shall have manifested that; a. they voluntarily submit their potential or ongoing dispute to intervention by the Office of the Secretary of Labor and Employment; b. there is no pending notice of strike or lockout or any related complaint in relation with their potential or ongoing dispute; c. they shall refrain from any strike or lockout or any form of work stoppage or from filing any related complaint while the Secretary's intervention is in effect; and d. they shall abide by the agreement reached, whose terms may be enforced through the appropriate writs issued by the Secretary of Labor and Employment. All agreements settling the dispute shall be in writing and signed by the parties as well as the official who mediated the dispute. 5. The parties and officials or employees of the Department of Labor and Employment who took part in the intervention proceedings shall not testify in any court or body regarding the disclosures, submissions or positions made by the parties in these proceedings. 6. If the intervention fails, either or both parties may avail themselves of the remedies provided under the Labor Code. Alternatively, the parties may submit their dispute to the Office of the Secretary for voluntary arbitration. Such voluntary arbitration shall be limited to the issues defined in the parties' submission to voluntary arbitration agreement

Art. 262. Jurisdiction over other labor disputes. The Voluntary Arbitrator or panel of Voluntary Arbitrators, upon agreement of the parties, shall also hear and decide all other labor disputes including unfair labor practices and bargaining deadlocks.

V.

Administrative Intervention for Dispute Avoidance *DOLE Circular No. 1, Series of 2006)

D.O.L.E. CIRCULAR No. 1 Series of 2006 ADMINISTRATIVE INTERVENTION FOR DISPUTE AVOIDANCE In line with the objectives of the Republic Act No. 9285, Executive Order No. 523 dated 07 April 2006, and the mandate of the Department of Labor and Employment to promote industrial peace, this administrative procedure for the voluntary settlement of labor disputes is hereby established. 1. Either or both the employer and the certified collective bargaining agent (or the representative of the employees where there is no certified bargaining agent) may voluntarily bring to the Office of the Secretary of Labor and Employment, through a REQUEST FOR INTERVENTION, any potential or ongoing dispute defined below. A potential or ongoing dispute refers to: a. a live and active dispute; b. that may lead to a strike or lockout or to massive labor unrest; and c. is not the subject of any complaint or notice of strike or lockout at the time a REQUEST FOR INTERVENTION is made. This recourse is separate from the established dispute resolution modes of mediation, conciliation and arbitration under the Labor Code, and is an alternative to other voluntary modes of dispute

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and shall be decided on the basis of the parties' position papers and submitted evidence. The Office of the Secretary shall resolve the dispute within sixty (60) days from the parties' submission of the dispute for resolution. 7. This circular shall take effect fifteen (15) days after publication in a newspaper of general publication. Done in the City of Manila, Philippines, 11 August 2006. St. Martins Funeral Homes vs. NLRC, 295 SCRA 494 All references in the amended Section 9 of BP No. 129 to supposed appeals from the NLRC to the Supreme Court are interpreted and declared to mean and refer to petitions for certiorari under Rule 65. Therefore, all such petitions should be initially filedin the CA in strict observance of the doctrine on thehierarchy of courts. *** The Supreme Court issued a ruling that effectively revised the procedure of appeals from decisions of the NLRC. In its decision, the High Court cited the provision of the Judiciary Reorganization Act of 1980 (Sec. 9 BP No. 129), as amended by Rep. Act 7902 deleting the exclusion of the Labor Code from the jurisdiction of the Court of Appeals, and granting that Court limited powers to conduct trials and hearings in cases within its jurisdiction. This exclusion of the Labor Code was reworded into "except those falling within the appellate jurisdiction of the Supreme Coup in accordance with the Constitution, the Labor Code x x x" But the High Court pointed out that there are no cases in the Labor Code wherein the decisions are within the appellate jurisdiction of the Supreme Court, or of any court for that matter. It also noted, upon a review of the pertinent legislative records, that it was the intendment of Congress to reduce the workload of the Supreme Court without depriving litigants of the privilege of review by an appellate tribunal. Accordingly, the Supreme Court held that all references in the amended Sec. 9ofBP 129 to supposed appeals (the term was described as a "lapsus plumage"- a slip of the pen) from the NLRC to the Supreme Court should be interpreted and declared to mean and refer to petitions for certiorari under Rule 65, RC. It mentioned, In passing, that the special civil action of certiorari is within the concurrent original jurisdiction of the Supreme Court and Court of Appeals. Thus, the Supreme Court ordered that all such petitions should henceforth be initially filed in the Court of Appeals, In strict observance of the doctrine on the hierarchy of courts as the appropriate forum for the relief desired. (St. Martin Funeral Homes vs.NLRC, 295 SCRA 494). The above-cited doctrine on hierarchy of courts means that a litigant cannot seek relief directly from the Supreme Court where the same is available in the lower courts in the exercise of their original or concurrent jurisdiction, or is even mandated by law to be sought therein. (Santiago vs. Vasquez et al, 278 SCRA 155) While this corrected procedure adds another level to the resolution of labor disputes, the Supreme Court noted that it All parties to the dispute are entitled to attend the arbitration proceedings. The attendance of any third party or the exclusion of any witness from the proceedings shall be determined by the Voluntary Arbitrator or panel. Hearings may be adjourned for cause or upon agreement by the parties. Unless the parties agree otherwise, it is mandatory for the Voluntary Arbitrator or Arbitration panel to render an award or decision within 20 calendar days from the date of submission of the dispute to voluntary arbitration. offers litigants the advantage to have all the evidence on record reexamined and reweighed by a fact- finding Court with its increased component divisions, and correspondingly affirmed, modified or reversed. For its part, the NLRC has since stressed recourse to the voluntary modes of resolving labor disputes, including mediation and conciliation, to ensure expeditious action in labor cases, and to give meaning to the express constitutional preference for the use of voluntary modes in settling industrial disputes (Art. XIII, Sec. 3, Const.) PROCEEDINGS IN VOLUNTARY ARBITRATION. The Military Arbitrator or panel of Voluntary Arbitrators has the power to hold hearings, receive evidences and take whatever action is necessary to resolve the issue or issues subject of the dispute, including efforts to effect a voluntary settlement between the parties.

Delta Ventures, etc. vs. Cabato, 327 SCRA 521 Basic as a hornbook principle, jurisdiction over the subject matter of a case if conferred by law and detrermined by the allegations in the complaint which comprise a concise statement of the ultimate facts constitutingthe petitioner's cause of action. Ostensibly the complaint before the trial court was for the recovery of possession and injunction,but in essence it was an action challenging the legality or propriety of the levy vis-avis the alias writ of execution,including the acts performed by the Labor Arbiter and the Deputy Sheriff implementing the writ. The complaint was ineffect a motion to quash the writ of execution of a decision rendered on a case properly within the jurisdiction of the Labor Arbiter, to wit: Illegal Dismissal and Unfair Labor Practice.Considering the factual setting, it is then logical to conclude thatthe subject matter of the third party claim is but an incident ofthe labor case, a matter beyond the jurisdiction of regional trialcourts. Precedent abound confirming the rule that said courts have nojurisdiction to act on labor cases or various incidents arisingtherefrom, including the execution of decisions, awards ororders. Jurisdiction to try and adjudicate such cases pertains exclusively to the proper labor official concerned under theDepartment of Labor and Employment. To hold otherwise is tosanction split jurisdiction which is obnoxious to the orderlyadministration of justice. The broad powers granted to the Labor Arbiter and to theNational Labor Relations Commission by Articles 217, 218

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and224 of the Labor Code can only be interpreted as vesting in themjurisdiction over incidents arising from, in connection with orrelating to labor disputes, as the controversy underconsideration, to the exclusion of the regular courts. Having established that jurisdiction over the case rests with theCommission, we find no grave abuse of discretion on the part ofrespondent Judge Cabato in denying petitioner's motion for theissuance of an injunction against the execution of the decision ofthe National Labor Relations Commission. 7. Wage Fixing Art. 211. Declaration of Policy. B. To encourage a truly democratic method of regulating the relations between the employers and employees by means of agreements freely entered into through collective bargaining, no court or administrative agency or official shall have the power to set or fix wages, rates of pay, hours of work or other terms and conditions of employment, except as otherwise provided under this Code. (As amended by Section 3, Republic Act No. 6715, March 21, 1989) Chapter STRIKES AND LOCKOUTS Art. 263. Strikes, picketing and lockouts. g.) When, in his opinion, there exists a labor dispute causing or likely to cause a strike or lockout in an industry indispensable to the national interest, the Secretary of Labor and Employment may assume jurisdiction over the dispute and decide it or certify the same to the Commission for compulsory arbitration. Such assumption or certification shall have the effect of automatically enjoining the intended or impending strike or lockout as specified in the assumption or certification order. If one has already taken place at the time of assumption or certification, all striking or locked out employees shall immediately return-to-work and the employer shall immediately resume operations and readmit all workers under the same terms and conditions prevailing before the strike or lockout. The Secretary of Labor and Employment or the Commission may seek the assistance of law enforcement agencies to ensure compliance with this provision as well as with such orders as he may issue to enforce the same. In line with the national concern for and the highest respect accorded to the right of patients to life and health, strikes and lockouts in hospitals, clinics and similar medical institutions shall, to every extent possible, be avoided, and all serious efforts, not only by labor and management but government as well, be exhausted to substantially minimize, if not prevent, their adverse effects on such life and health, through the exercise, however legitimate, by labor of its right to strike and by management to lockout. In labor disputes adversely affecting the continued operation of such hospitals, clinics or medical institutions, it shall be the duty of the striking union or locking-out employer to provide and maintain an effective skeletal workforce of medical and other health personnel, whose movement and services shall be unhampered and unrestricted, as are necessary to insure the proper and adequate protection of the life and health of its patients, most especially emergency cases, for the duration of the strike or lockout. In such cases, therefore, the Secretary of Labor and Employment may immediately assume, within twenty four (24) hours from knowledge of the occurrence of such a strike or lockout, I

5. Industrial Peace Art. 211. Declaration of Policy. A. It is the policy of the State: f.) To ensure a stable but dynamic and just industrial peace see Sec. 3, Art XIII, 1987 Constitution 6. Worker's Participation in Decision-Making and Policy-Making Processes Affecting Rights. Duties and Welfare Philippine Airlines vs, NLRC, 225 SCRA 301 Employees have a right to participate in the deliberation of matters which may affect their rights and the formulation of policies relative thereto and one such matter is the formulation of a code of discipline. Meralco Electric vs. Quisumbing, 326 SCRA 172 Ratio (On the requirement of consultation imposed by the Secretary in cases of contracting out for 6 months or more) A line must be drawn between management prerogatives regarding business operations per se and those which affect the rights of employees, and in treating the latter, the employer should see to it that its employees are at least properly informed of its decision or modes of action in order to attain a harmonious labor-management relationship and enlighten the workers concerning their rights. Hiring of workers is within the employer's inherent freedom to regulate and is a valid exercise of its managementprerogative subject only to special laws and agreements onthe matter and the fair standards of justice. Reasoning The management cannot be denied the faculty of promoting efficiency and attaining economy by a study of what units are essential for its operation. It has the ultimate determination of whether services should be performed by its personnel or contracted to outside agencies. Absent proof that management acted in a malicious or arbitrary manner, the Court will not interfere with the exercise of judgment by an employer.

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jurisdiction over the same or certify it to the Commission for compulsory arbitration. For this purpose, the contending parties are strictly enjoined to comply with such orders, prohibitions and/or injunctions as are issued by the Secretary of Labor and Employment or the Commission, under pain of immediate disciplinary action, including dismissal or loss of employment status or payment by the locking-out employer of backwages, damages and other affirmative relief, even criminal prosecution against either or both of them. The foregoing notwithstanding, the President of the Philippines shall not be precluded from determining the industries that, in his opinion, are indispensable to the national interest, and from intervening at any time and assuming jurisdiction over any such labor dispute in order to settle or terminate the same. Chapter II MINIMUM WAGE RATES Art. 99. Regional minimum wages. The minimum wage rates for agricultural and non-agricultural employees and workers in each and every region of the country shall be those prescribed by the Regional Tripartite Wages and Productivity Boards. (As amended by Section 3, Republic Act No. 6727, June 9, 1989). provinces or localities if in the judgment of the Regional Board, conditions make such local differentiation proper and necessary to effectuate the purpose of this Title. Any person, company, corporation, partnership or any other entity engaged in business shall file and register annually with the appropriate Regional Board, Commission and the National Statistics Office, an itemized listing of their labor component, specifying the names of their workers and employees below the managerial level, including learners, apprentices and disabled/handicapped workers who were hired under the terms prescribed in the employment contracts, and their corresponding salaries and wages. Where the application of any prescribed wage increase by virtue of a law or wage order issued by any Regional Board results in distortions of the wage structure within an establishment, the employer and the union shall negotiate to correct the distortions. Any dispute arising from wage distortions shall be resolved through the grievance procedure under their collective bargaining agreement and, if it remains unresolved, through voluntary arbitration. Unless otherwise agreed by the parties in writing, such dispute shall be decided by the voluntary arbitrators within ten (10) calendar days from the time said dispute was referred to voluntary arbitration. In cases where there are no collective agreements or recognized labor unions, the employers and workers shall endeavor to correct such distortions. Any dispute arising therefrom shall be settled through the National Conciliation and Mediation Board and, if it remains unresolved after ten (10) calendar days of conciliation, shall be referred to the appropriate branch of the National Labor Relations Commission (NLRC). It shall be mandatory for the NLRC to conduct continuous hearings and decide the dispute within twenty (20) calendar days from the time said dispute is submitted for compulsory arbitration. The pendency of a dispute arising from a wage distortion shall not in any way delay the applicability of any increase in prescribed wage rates pursuant to the provisions of law or wage order. As used herein, a wage distortion shall mean a situation where an increase in prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and among employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills, length of service, or other logical bases of differentiation. All workers paid by result, including those who are paid on piecework, takay, pakyaw or task basis, shall receive not less than the prescribed wage rates per eight (8) hours of work a day, or a proportion thereof for working less than eight (8) hours. All recognized learnership and apprenticeship agreements shall be considered automatically modified insofar as their wage clauses are concerned to reflect the prescribed wage rates. (As amended by Republic Act No. 6727, June 9, 1989)

Art. 124. Standards/Criteria for minimum wage fixing. The regional minimum wages to be established by the Regional Board shall be as nearly adequate as is economically feasible to maintain the minimum standards of living necessary for the health, efficiency and general well-being of the employees within the framework of the national economic and social development program. In the determination of such regional minimum wages, the Regional Board shall, among other relevant factors, consider the following: a. The demand for living wages; b. Wage adjustment vis--vis the consumer price index; c. The cost of living and changes or increases therein; d. The needs of workers and their families; e. The need to induce industries to invest in the countryside; f. Improvements in standards of living;

g. The prevailing wage levels; h. Fair return of the capital invested and capacity to pay of employers; i. j. Effects on employment generation and family income; and

The equitable distribution of income and wealth along the imperatives of economic and social development. The wages prescribed in accordance with the provisions of this Title shall be the standard prevailing minimum wages in every region. These wages shall include wages varying with industries,

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REPUBLIC ACT NO. 6727 AN ACT TO RATIONALIZE WAGE POLICY DETERMINATION BY ESTABLISHING THE MECHANISM AND PROPER STANDARDS THEREFOR, AMENDING FOR THE PURPOSE ARTICLE 99 OF, AND INCORPORATING ARTICLES 120, 121, 122, 123, 124, 126 AND 127 INTO, PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES, FIXING NEW WAGE RATES, PROVIDING WAGE INCENTIVES FOR INDUSTRIAL DISPERSAL TO THE COUNTRYSIDE, AND FOR OTHER PURPOSES. Sec. 2. It is hereby declared the policy of the State to rationalize the fixing of minimum wages and to promote productivityimprovement and gain-sharing measures to ensure a decent standard of living for the workers and their families; to guarantee the rights of labor to its just share in the fruits of production; to enhance employment generation in the countryside through industry dispersal; and to allow business and industry reasonable returns on investment, expansion and growth. The State shall promote collective bargaining as the primary mode of setting wages and other terms and conditions of employment; and, whenever necessary, the minimum wage rates shall be adjusted in a fair and equitable manner, considering existing regional disparities in the cost of living and other socioeconomic factors and the national economic and social development plans. on account of any threat, prohibited or unlawful act, except against the person or persons, association or organization making the threat or committing the prohibited or unlawful act or actually authorizing or ratifying the same after actual knowledge thereof; 2. That substantial and irreparable injury to complainants property will follow; 3. That as to each item of relief to be granted, greater injury will be inflicted upon complainant by the denial of relief than will be inflicted upon defendants by the granting of relief; 4. That complainant has no adequate remedy at law; and 5. That the public officers charged with the duty to protect complainants property are unable or unwilling to furnish adequate protection. Such hearing shall be held after due and personal notice thereof has been served, in such manner as the Commission shall direct, to all known persons against whom relief is sought, and also to the Chief Executive and other public officials of the province or city within which the unlawful acts have been threatened or committed, charged with the duty to protect complainants property: Provided, however, that if a complainant shall also allege that, unless a temporary restraining order shall be issued without notice, a substantial and irreparable injury to complainants property will be unavoidable, such a temporary restraining order may be issued upon testimony under oath, sufficient, if sustained, to justify the Commission in issuing a temporary injunction upon hearing after notice. Such a temporary restraining order shall be effective for no longer than twenty (20) days and shall become void at the expiration of said twenty (20) days. No such temporary restraining order or temporary injunction shall be issued except on condition that complainant shall first file an undertaking with adequate security in an amount to be fixed by the Commission sufficient to recompense those enjoined for any loss, expense or damage caused by the improvident or erroneous issuance of such order or injunction, including all reasonable costs, together with a reasonable attorneys fee, and expense of defense against the order or against the granting of any injunctive relief sought in the same proceeding and subsequently denied by the Commission. The undertaking herein mentioned shall be understood to constitute an agreement entered into by the complainant and the surety upon which an order may be rendered in the same suit or proceeding against said complainant and surety, upon a hearing to assess damages, of which hearing, complainant and surety shall have reasonable notice, the said complainant and surety submitting themselves to the jurisdiction of the Commission for that purpose. But nothing herein contained shall deprive any party having a claim or

8. Labor Injunction

Art. 254. Injunction prohibited. No temporary or permanent injunction or restraining order in any case involving or growing out of labor disputes shall be issued by any court or other entity, except as otherwise provided in Articles 218 and 264 of this Code. (As amended by Batas Pambansa Bilang 227, June 1, 1982)

Art. 218. Powers of the Commission. The Commission shall have the power and authority: a. To enjoin or restrain any actual or threatened commission of any or all prohibited or unlawful acts or to require the performance of a particular act in any labor dispute which, if not restrained or performed forthwith, may cause grave or irreparable damage to any party or render ineffectual any decision in favor of such party: Provided, That no temporary or permanent injunction in any case involving or growing out of a labor dispute as defined in this Code shall be issued except after hearing the testimony of witnesses, with opportunity for crossexamination, in support of the allegations of a complaint made under oath, and testimony in opposition thereto, if offered, and only after a finding of fact by the Commission, to the effect: 1. That prohibited or unlawful acts have been threatened and will be committed and will be continued unless restrained, but no injunction or temporary restraining order shall be issued

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cause of action under or upon such undertaking from electing to pursue his ordinary remedy by suit at law or in equity: Provided, further, That the reception of evidence for the application of a writ of injunction may be delegated by the Commission to any of its Labor Arbiters who shall conduct such hearings in such places as he may determine to be accessible to the parties and their witnesses and shall submit thereafter his recommendation to the Commission. (As amended by Section 10, Republic Act No. 6715, March 21, 1989) e. No person engaged in picketing shall commit any act of violence, coercion or intimidation or obstruct the free ingress to or egress from the employers premises for lawful purposes, or obstruct public thoroughfares. (As amended by Batas Pambansa Bilang 227, June 1, 1982)

REPUBLIC ACT NO. 8791

May 23, 2000

Art. 264. Prohibited activities. a. No labor organization or employer shall declare a strike or lockout without first having bargained collectively in accordance with Title VII of this Book or without first having filed the notice required in the preceding Article or without the necessary strike or lockout vote first having been obtained and reported to the Ministry. No strike or lockout shall be declared after assumption of jurisdiction by the President or the Minister or after certification or submission of the dispute to compulsory or voluntary arbitration or during the pendency of cases involving the same grounds for the strike or lockout. Any worker whose employment has been terminated as a consequence of any unlawful lockout shall be entitled to reinstatement with full backwages. Any union officer who knowingly participates in an illegal strike and any worker or union officer who knowingly participates in the commission of illegal acts during a strike may be declared to have lost his employment status: Provided, That mere participation of a worker in a lawful strike shall not constitute sufficient ground for termination of his employment, even if a replacement had been hired by the employer during such lawful strike. b. No person shall obstruct, impede, or interfere with, by force, violence, coercion, threats or intimidation, any peaceful picketing by employees during any labor controversy or in the exercise of the right to selforganization or collective bargaining, or shall aid or abet such obstruction or interference. c. No employer shall use or employ any strike-breaker, nor shall any person be employed as a strike-breaker. d. No public official or employee, including officers and personnel of the New Armed Forces of the Philippines or the Integrated National Police, or armed person, shall bring in, introduce or escort in any manner, any individual who seeks to replace strikers in entering or leaving the premises of a strike area, or work in place of the strikers. The police force shall keep out of the picket lines unless actual violence or other criminal acts occur therein: Provided, That nothing herein shall be interpreted to prevent any public officer from taking any measure necessary to maintain peace and order, protect life and property, and/or enforce the law and legal order. (As amended by Executive Order No. 111, December 24, 1986)

AN ACT PROVIDING FOR THE REGULATION OF THE ORGANIZATION AND OPERATIONS OF BANKS, QUASIBANKS, TRUST ENTITIES AND FOR OTHER PURPOSES Section 22. Strikes and Lockouts. - The banking industry is hereby declared as indispensable to the national interest and, notwithstanding the provisions of any law to the contrary, any strike or lockout involving banks, if unsettled after seven (7) calendar days shall be reported by the Bangko Sentral to the secretary of Labor who may assume jurisdiction over the dispute or decide it or certify the sane to the National Labor Relations Commission for compulsory arbitration. However, the President of the Philippines may at any time intervene and assume jurisdiction over such labor dispute in order to settle or terminate the same. (6-E)

Rationale for Prohibition: Caltex Filipino Managers & Supervisors Association vs. CIR

9. Tripartism ART. 275. Tripartism and tripartite conferences. (a) Tripartism in labor relations is hereby declared a Statepolicy. Towards this end, workers and employers shall, as faras practicable, be represented in decision and policymakingbodies of the government. (b) The Secretary of Labor and Employment or his dulyauthorized representatives may, from time to time, call anational, regional, or industrial tripartite conference ofrepresentatives of government, workers and employers forthe consideration and adoption of voluntary codes ofprinciples designed to promote industrial peace based onsocial justice or to align labor movement relations withestablished priorities in economic and social development.In calling such conference, the Secretary of Labor andEmployment may consult with accredited representatives ofworkers and employers. (As amended by Section 32,Republic Act No. 6715, March 21, 1989).

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C. Right to Self-Organization 1. Basis a. Constitutional Basis Art III Sec 8.- The right of the people, including those employed in the public and private sectors, to form unions,associations, or societies for purposes not contrary to law shall not be abridged. Art XIII, Sec 3. - The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all. It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure, humane conditions of work, and a living wage. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law. The State shall promote the principle of sharedresponsibility between workers and employers and the preferential use of voluntary modes in settling disputes,including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace. The State shall regulate the relations between workers andemployers, recognizing the right of labor to its just share inthe fruits of production and the right of enterprises toreasonable returns to investments, and to expansion andgrowth. b. Statutory basis ART. 243. Coverage and employees right to selforganization. - All persons employed in commercial,industrial and agricultural enterprises and in religious charitable, medical, or educational institutions, whetheroperating for profit or not, shall have the right to self-organization and to form, join, or assist labor organizations of their own choosing for purposes of collective bargaining. Ambulant, intermittent and itinerant workers, selfemployed people, rural workers and those without any definite employers may form labor organizations for their mutual aid and protection.(As amended by Batas Pambansa Bilang 70, May 1, 1980). ART. 244. Right of employees in the public service. Employees of government corporations established under the Corporation Code shall have the right to organize and to bargain collectively with their respective employers. All other employees in the civil service shall have the right to form associations for purposes not contrary to law. (As amended by Executive Order No. 111,December 24, 1986). ART. 245. Ineligibility of managerial employees to join any labororganization; right of supervisory employees. Managerial employees are not eligible to join, assist or form any labor organization. Supervisory employees shall not be eligible for membership in a labor organization of the rank-and-file employees but may join, assist or form separate labor organizations of their own. (As amended by Section 18, RepublicAct No. 6715, March 21, 1989). RULING Self-organization is a fundamental right to form, join or assist labor organizations for collective bargaining, mutual aid and protection. Whether employed for a definite period or not, employee shall be considered as such, beginning 1st day of service, for purposes of membership in a labor union. Corollary to this right is the prerogative not join. The election can't be considered as exercise of right to selforganization because the petitioners' frustration over the performance of the respondents could not justify the method they chose to impose their will on the union. National Union of Bank Employees vs. Ministry of Labor 110 SCRA 274 the pendency of the petition for cancellation of the registration certificate of herein petitioner union is not a bar to the holding of a certification election. because there is no order directing such cancellation. - As aptly ruled by respondent Bureau of Labor Relations Director Noriel: "The rights of workers to self-organization finds general and specific constitutional guarantees. Section 7, Article IV of the Philippine Constitution provides that the right to form associations or societies for purposes not contrary to law shall not be abridged. This right is more pronounced in the case of labor. Section 9, Article II (ibid) specifically declares that the State shall assure the rights of workers to self-organization, collective bargaining, security of tenure and just and humane conditions of work. Such constitutional guarantees should not be lightly taken much less easily nullified. A healthy respect for the freedom of association demands that acts imputable to officers or members be not easily visited with capital punishments against the association itself" 2. Extent and Scope of Right Reyes vs. Trajano Logically, the right NOT to join, affiliate with, or assist any union, and to disaffiliate or resign from a labor organization, is subsumed in the right to join, affiliate with, or assist any union, and to maintain membership therein. The right to form or join a labor organization necessarily includes the right to refuse or refrain from exercising said right. It is self-evident that just as no one should be denied the exercise of a right granted by law, so also, no one should be compelled to exercise such a conferred right. The fact that a person has opted to acquire membership in a labor union does not preclude his subsequently opting to renounce such membership. UST Faculty Union vs. Bitonio 318 SCRA 186

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Pan American World Airways, Inc. vs. Pan-American Employees Assn. 275 SCRA 1202 There is both a constitutional and statutory recognition that laborers have the right to form unions to take care of their interests vis-a-vis their employers. The moment management displays what in this caseb appears to be a grave but unwarranted distrust in the union officials discharging their functions just because a strike was resorted to, then the integrity of the collective bargaining process itself is called into question. It would have been different if there were a rational basis for such fears, purelyspeculative in character. The record is bereft of the slightestindication that any danger, much less one clear and present, is to be expected from their return to work.If petitionerwere to succeed in their unprecedented demand, thelaborers in this particular union would thus be confrontedwith the sad spectacle of the leaders of their choicecondemned as irresponsible, possibly even constituting amenace to the operations of the enterprise. That is anindictment of the gravest character, devoid of any factualbasis. What is worse, the result, even if not intended, wouldbe to call into question their undeniable right to choose theirleaders, who must be treated as such with all the respect towhich they are legitimately entitled. The fact that theywould be paid but not be allowed to work is, to repeat, toadd to the infamy that would thus attach, to themnecessarily, but to respondent union equally. membership over that or membership in the cooperative. The avowed policy of the State to afford fall protection to labor and to promote the primacy of free collective bargaining mandates that the employees' right to form and join unions for purposes of collective bargaining be accorded the highest consideration. - Membership in an electric cooperative which merely vests in the member a right to vote during the annual meeting becomes too trivial and insubstantial vis-a-vis the primordial and more important constitutional right of an employee to join a union of his choice. Besides, the 390 employees ofCENECO, some of whom have never been members of the cooperative, represent a very small percentage of the cooperative's total membership of 44,000. It is inconceivable how the withdrawal of a negligible number of members could adversely affect the business concerns and operations of CENECO. 3. Workers with Right of Self-Organization Sec. 8, Art. III, 1987 Constitution Section 8. The right of the people, including those employed in the public and private sectors, to form unions, associations, or societies for purposes not contrary to law shall not be abridged. Sec. 3, Art. XIII, 1987 Constitution ARTICLE XIII LABOR Union of Supervisors vs. Sec of Labor 109 SCRA 138 Luna's remarks at the meeting of an official board are privileged in nature as a valid exercise of his constitutional freedom of expression. He addressed his remarks to the body that has jurisdiction over the question of management of the assets ofthe Provident Fund. Luna's remarks were intended to protect the interests of the members of the Provident Fund from what he honestly believed was a risky venture on the part of th emanagement. -His protests could even be treated as union activity by the Industrial Peace Act, which assures the employees'right "to selforganization and to form, join or assistlabor organizations of their own choosing and to engagein concerted activities for the purpose of collectivebargaining and other mutual aid and protection ... " (Sec.3, Rep. Act 875). Section 3. The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all. It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure, humane conditions of work, and a living wage. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law. The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace. The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns to investments, and to expansion and growth.

Central Negros, etc. vs. Sec of Labor 201 SCRA 584 Membership in the cooperative is on a voluntary basis. Hence, withdrawal therefrom cannot be restricted unncessarily. The right to join an organization necessarily includes the equivalent right to join the same. The right of the employees to self-organization is a compelling reason why their withdrawal from the cooperative must be allowed. As pointed out by CURE, the resignation of the memberemployees is an expression of their preference for union

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Workers Qualifications Art. 277 (c) Labor Code a. Any employee, whether employed for a definite period or not, shall, beginning on his first day of service, be considered as an employee for purposes of membership in any labor union. (As amended by Section 33, Republic Act No. 6715)

Required Action - Constitution and By-Laws

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