Presentation outline: WHAT FACTORS ARE NECESSARY FOR THE SUCCESS OF LABOR

MANAGEMENT COOPERATION?
WHAT IS LABOR-MANAGEMENT COOPERATION?

Labor-management cooperation is a state of relations where labor and  Attitudes

management work handing-hand to accomplish certain goals using mutually o sincerity - mutual support
acceptable means. o mutual trust - openness
o commitment - teamwork
It is the outcome of a continuing process of enhancing mutual trust and o mutual respect - objectivity
respect through:  Appropriate skills
o leadership - facilitation
o information sharing o communication - team building
o discussion o problem-solving - planning
o consultation  Suitable structure
o negotiations o addresses identified needs and concerns
o can be formal, informal or both
o assures adequate representation of labor and management
as schemes of workers' participation in decision making process on matters
o ensures attainment of decisions through consensus
not covered by collective bargaining agreements.
o provides feedback mechanism at all levels of the organization
WHY IS THERE A NEED FOR LABOR AND MANAGEMENT TO COOPERATE?
WHAT ARE USUALLY COVERED BY LABOR-MANAGEMENT COOPERATION
PROGRAMS?
Primary, because labor and management are social partners sharing a
common interest in the success and growth of the enterprise and the
economy Specifically,
Sharing of information, discussions, consultations and negotiations on
matters outside the collective bargaining agreement which may cover, among
o to promote workers' participation in decision-making processes
others, areas of management decisions like:
o to create a labor relations climate conducive to productivity
improvement
o to improve the quality of working life
o personnel policies
o to achieve and sustain economic growth
o production plans
o business expansion programs
WHAT ARE THE MECHANISMS TO PROMOTE LABOR - MANAGEMENT
o productivity improvement programs
COOPERATION?
o productivity gain-sharing programs
o job security
o improvement of quality of worklife
1. Direct participation mechanisms through small group activities like quality o occupational health and safety programs
control circles or productivity improvement circles o introduction of new technology and machinery
2. Indirect participation mechanisms through joint consultative bodies like labor- o retrenchment programs
management councils or committees o business mergers or closure
3. Combination of direct and indirect participation mechanisms like joint bodies o workers' welfare and livelihood programs
and small group activities o sports, recreation and social activities
WHAT BENEFITS CAN WORKERS DERIVE FROM LABOR-MANAGEMENT 3. To foster the free and voluntary organization of a strong and united labor
COOPERATION PROGRAMS? movement;
4. To promote the enlightenment of workers concerning their rights and
obligations as union members and as employees;
 Opportunity to participate in policy and decision-making process 5. To provide an adequate administrative machinery for the expeditious
 A channel of communication to top management settlement of labor or industrial disputes;
 Means to make inputs in solving operational problems and management 6. To ensure a stable but dynamic and just industrial peace;
plans affecting workers in the workplace 7. To ensure the participation of workers in decision and policy-making
 Avenues for employees to air complaints that cannot be appropriately processes affecting their rights, duties and welfare; and
addressed in the grievance procedure 8. To encourage a truly democratic method o regulating the relations between
 Opportunity to demonstrate that the union is a responsible organization with a the employers and employees by means of agreements freely entered into
constructive role to play beyond the traditional contract negotiations and through collective bargaining, no court or administrative agency or official
grievance settlement shall have the power to set or fix wages, rates of pay, hours of work, or other
 Opportunity for self-improvement and on-the- job leadership training terms and conditions of employment, except as otherwise provided under this
Code. (Labor Code, Article 211)
Important terms in labor relations:
WHAT BENEFITS CAN MANAGEMENT DERIVE FROM LABOR-MANAGEMENT 1. "Employer" includes any person acting in the interest of an employer, directly
COOPERATION PROGRAMS? or indirectly. The term shall not include any labor organization or any of its
officers or agents except when acting as employer.
2. "Employee" includes any person in the employ of an employer. The term shall
 A forum to share information about business conditions, quality problems, not be limited to the employees of a particular employer, unless the Code so
product development and other matters that demonstrate the role of explicitly states. It shall include any individual whose work has ceased as a
employees in the success of the enterprise. result of or in connection with any current labor dispute or because of any
 An opportunity for advanced discussions of operational problems and plans, unfair labor practice if he has not obtained any other substantially equivalent
particularly those affecting employee work schedules, overtime, lay-offs, and regular employment.
transfers etc. 3. "Labor organization" means any union or association of employees which
 A means to relate with the union without being bogged down in labor relations exists in whole or in part for the purpose of collective bargaining or of dealing
issues. with employers concerning terms and conditions of employment.
 Opportunity to demonstrate responsiveness to constructive suggestions and 4. "Legitimate labor organization" means any labor organization duly registered
valid complaints of employees in improving the workplace. with the Department of Labor and Employment, and includes any branch or
 Means to tap the large reservoir of know-how and creativeness of local thereof.
employees. 5. "Company union" means any labor organization whose formation, function or
 A channel of communication with employees. administration has been assisted by any act defined as unfair labor practice
 Enhancement of human factor in organizational effectiveness. by this Code.
6. "Bargaining representative" means a legitimate labor organization whether or
Policy Objectives of Labor Relations Law: not employed by the employer.
1. To promote and emphasize the primacy of free collective bargaining and 7. "Unfair labor practice" means any unfair labor practice as expressly defined
negotiations, including voluntary arbitration, mediation and conciliation, as by the Code.
modes of settling labor or industrial disputes; 8. "Labor dispute" includes any controversy or matter concerning terms and
2. To promote free trade unionism as an instrument for the enhancement of conditions of employment or the association or representation of persons in
democracy and the promotion of social justice and development; negotiating, fixing, maintaining, changing or arranging the terms and
 conditions of employment, regardless of whether the disputants stand in the The State is also required to “guarantee the rights of all workers to self-
proximate relation of employer and employee. organization, collective bargaining and negotiations, and peaceful concerted
9. "Managerial employee" is one who is vested with the powers or prerogatives activities, including the right to strike in accordance with law.2
to lay down and execute management policies and/or to hire, transfer, The Bill of Rights provides “the right of the people including those employed
suspend, lay-off, recall, discharge, assign or discipline employees. in the public and private sectors, to form unions, associations, or societies for
Supervisory employees are those who, in the interest of the employer, purposes not contrary to law, shall not be abridged.”3
effectively recommend such managerial actions if the exercise of such Right to self-organization?
authority is not merely routinary or clerical in nature but requires the use of It is the right of the employees to form, join, assist in the formation of a labor
independent judgment. All employees not falling within any of the above organization o their own choosing or purposes of collective bargaining though
definitions are considered rank-and-file employees for purposes of this Book. representatives of their own choosing and to engage in lawful concerted activities for
10. "Voluntary Arbitrator" means any person accredited by the Board as such or purposes of collective bargaining or for their mutual aid and protection. 4 it also
any person named or designated in the Collective Bargaining Agreement by includes the freedom not to join a labor union. 5
the parties to act as their Voluntary Arbitrator, or one chosen with or without Labor organization (LO)?
the assistance of the National Conciliation and Mediation Board, pursuant to Means any union or association of employees which exists in whole or in part
a selection procedure agreed upon in the Collective Bargaining Agreement, for the purpose of collective bargaining or of dealing with employers concerning
or any official that may be authorized by the Secretary of Labor and terms and conditions of employment.
Employment to act as Voluntary Arbitrator upon the written request and Who may unionize for purposes of collective bargaining?
agreement of the parties to a labor dispute. The following shall have the right to self-organization and to form, join, or assist labor
11. "Strike" means any temporary stoppage of work by the concerted action of organizations:
employees as a result of an industrial or labor dispute. 1. Private sector: Labor Code, Article 243
12. "Lockout" means any temporary refusal of an employer to furnish work as a a) All persons employed in commercial, industrial and agricultural enterprises
result of an industrial or labor dispute. b) Religious, charitable, medical, or educational institutions, whether operating
13. "Internal union dispute" includes all disputes or grievances arising from any for profit or not
violation of or disagreement over any provision of the constitution and by- c) Employees of government-owned and/or controlled corporation (GOCCs)
laws of a union, including any violation of the rights and conditions of union without original charters established under the Corporation Code
membership provided for in this Code. d) Front-line managers, commonly known as supervisory employees
14. "Strike-breaker" means any person who obstructs, impedes, or interferes with  Supervisory employees cannot become members of RnF Labor Union
by force violence, coercion, threats or intimidation any peaceful picketing by e) Alien employees
employees during any labor controversy affecting wages, hours or conditions  Valid working permit from DOLE
of work or in the exercise of the right of self organization or collective  National of a country which grants the same or similar rights to
bargaining. Filipino workers or which has ratifies either ILO Convention No. 87 or
15. “Strike area” means the establishment of the employer struck against, as well ILO Convention No. 98 by the DFA.
as the immediate vicinity actually used by picketing strikers in moving to and f) Working children
fro before all points of entrance to and exit from said establishment." (Labor  Provided that neither management nor any collective bargaining union
Code, Art. 212) shall threaten or coerce working children to join, continue or withdraw
Right to self-organization of such union.
Constitutional bases g) Homeworkers
Under the 1987 Constitution, it is mandated that “the State affirms labor as a
primary social economic force. It shall protect the rights of workers and promote
2
their welfare.”1 Section 3, (Labor), Article XIII (Social Justice and Human Rights, 1987 Constitution
3
Section 8, Article III (Bill of Rights), 1987 Constitution
4
Art. 253, Labor Code
1 5
Section 18, Article II (Declaration of Principles and State Policies, 1987 Constitution Alcantara, Samson S. Reviewer in Labor and Social Legislation at p. 361
  Should be registered incidental to his duties and is not necessary in the performance of
h) Employees of cooperatives said duties. Such access can be regarded by the employer to be
 Except member-employees because they are deemed as co-owners, confidential to the business standpoint, such as financial
irrespective of their degree of involvement in management information or technical trade secrets but there MUST be a
i) Employees of legitimate contractors not with principal but with the contractor showing that he has access to confidential information relates to
 Exercised against the independent contractor which employed them, employer’s labor relations.6
not against the principal o To allow him would give rise to potential conflict of interest
2. Public sector: c. Employees of cooperatives who are its members
a. All rank-and-file employees o all branches, subdivisions, instrumentalities d. Employees of international organizations with immunities such as UN,
and agencies of government, including GOCCs with original charters IRRI and International Catholic Migration Commission
Who cannot form, join or assist (JAF) LO?
1. Private sector: 2. Public sector:
a. Managerial employees a. High-level employees whose functions are normally considered as
 Top Mgt – composed of a comparatively small group of policy-making or managerial or whose duties are of a highly
executives. Responsible for overall management of the confidential nature;
organization. It establishes operating policies and guides the b. Members of the Armed Forces of the Philippines
organization’s interaction with its environment. Typical titles of c. Police Officers
top managers are “chief executive officers”, “president”, or d. Policemen
“senior vice-president”. Actual titles vary from one organization e. Firemen
to another and are not always a reliable guide to membership f. Jailguards
in the highest management classification. g. Government Employees including that of a GOCC with original
 Middle Mgt – refers to more than one level in an organization. charters
Middle managers direct the activities of other managers and  Terms and conditions of employment or improvements in
sometimes also those of operating employees. Implements government services may be subject of negotiations between
their organization’s policies and to balance the demands of duly recognized employee’s organizations and appropriate
their superiors with the capacities of their subordinates. Ex. government authorities. An exception, however are those with
Plant Manager terms and conditions of employment that are fixed by law.
 First-line Mgt – lowest level in an organization at which h. Non-employees
individuals are responsible for the work of others. They direct
operating employees only, they do not supervise other Bargaining Unit?
managers. Ex. Foreman, production supervisor, technical A group of employees sharing mutual interests within a given employer unit,
supervisor, clerical supervisor. Often called as supervisors. comprised of all or less than all the entire body of employees in the employer unit or
 Nos. 1 and 2 are absolutely prohibited from JAF LO but No. 3 are any specific occupation or geographical grouping within such employer unit. It is the
allowed to JAF LO for purposes of collective bargaining. group that the bargaining agent represents. An employee need not be a union
member for him to be part of the bargaining unit.
b. Confidential employees, if: A collective bargaining unit is always a group of employees. It may be all the
 Assist or act in a confidential capacity supervisors or all the rank-and-file employees in the company. For example in a
 Persons or officers who formulate, determine and effectuate manufacturing firm, there can be a unit of all R&F factory workers or all R&F sales
management policies specifically the field of labor relations. force. In a school, one CBU may include only teachers and another CBU may
o They can be rank-and-file or supervisory employees, but in the include non-teaching staff.
normal course of his duties, he becomes aware of management
policies relating to labor relations but should not be mere 6
Sugbuanon Rural Bank, Inc. v. Laguesma, G.R. No. 116194, Feb. 2, 2000
The composition must therefore be appropriate, meaning the members share 3. Consent election
common concerns and common interest (mutual bargaining interest in the terms and 4. Run-off election
conditions of employment as will ensure to all employees their collective bargaining 5. Re-run election
rights) such that there is similarity of work and duties or similarity of compensation
and working conditions, but there is no hard as fast rule as to the determination of a 1. Voluntary recognition
bargaining unit. One CBU can be as numerous as thousands or can be less than a  "Voluntary Recognition" refers to the process by which a legitimate labor
hundred. The law fixes no minimum nor maximum number. 7 union is recognized by the employer as the exclusive bargaining
Test to determine an appropriate bargaining unit? representative or agent in a bargaining unit, reported with the Regional
1. Community or mutuality of interest – similar employment status, duties and Office in accordance with Rule VII, Section 2 of these Rules.10
responsibilities and substantially similar compensation and working  Proper only when there is only one legitimate labor organization existing
conditions and operating in a bargaining unit. It is not proper when there are two or
2. Globe doctrine – the determining factor is the worker’s desire to belong to a more contending unions.
single bargaining unit or three separate and district bargaining units  Department Order No. 40-03, Rule VII, Section 2.
3. Collective bargaining history – this is not decisive nor conclusive, apply the Requirements for voluntary recognition. - The notice of voluntary
community or mutuality interest doctrine recognition shall be accompanied by the original copy and two (2)
4. Employment status – For example, casual employees and day-to-day basis duplicate copies of the following documents:
employment cannot belong the same CBU composed of regular or (a) a joint statement under oath of voluntary recognition attesting to
permanent employees because they do not have mutuality or commonality of the fact of voluntary recognition;
interest. (b) certificate of posting of the joint statement of voluntary recognition
for fifteen (15) consecutive days in at least two (2) conspicuous places
Exclusive Bargaining Agent / Representative? in the establishment or bargaining unit where the union seeks to
Refers to a legitimate labor union duly recognized or certifies as the “sole and operate;
exclusive bargaining representative or agent” of all employees in a bargaining unit. (c) the approximate number of employees in the bargaining unit,
A Labor union recognized or certified as the “sole and exclusive bargaining accompanied by the names of those who support the voluntary
representative or agent” means that it shall remain as such during the existence of recognition comprising at least a majority of the members of the
the CBA, to the exclusion of other labor organizations, and no petition questioning its bargaining unit; and
majority status shall be entertained nor shall certification election be conducted (d) a statement that the labor union is the only legitimate labor
outside of the 60-day freedom period immediately before the expiry date of the 5- organization operating within the bargaining unit. All accompanying
year term of the CBA. documents of the notice for voluntary recognition shall be certified
It shall represent its members including non-members who are included in the under oath by the employer representative and president of the
bargaining unit.8 But the designation of a bargaining union, however, does not recognized labor union.
deprive an individual employee or group of employees to exercise their right at  When and where to file: Within thirty (30) days from such recognition, the
anytime to present grievances directly to their employer, with or without the employer and union shall submit a notice of voluntary recognition with the
intervention of the bargaining union.9 Regional Office which issued the recognized labor union's certificate of
Modes of determining the Sole and Exclusive Bargaining Agent? registration or certificate of creation of a chartered local.
1. Voluntary recognition
2. Certification election 2. Certification election (CE)
 "Certification Election" or "Consent Election" refers to the process of
determining through secret ballot the sole and exclusive representative of
7
Azucena (VolumeII) 197-198
8
National Brewey & Allied Labor Union of the Philippines v. San Miguel Brewery, Inc., G.R. No.
10
L18170, Aug. 31, 1963 Sec. 2, Rule VII, Book V, Rule to implement the Labor Code, as amended by Department Order No.
9
Article 255, Labor Code 40-03, Series of 2003 (February 17, 2003)
 the employees in an appropriate bargaining unit for purposes of collective  There are different procedure in an unorganized establishment (no
bargaining or negotiation. A certification election is ordered by the certified or recognized collective bargaining union or agent) and
Department, while a consent election is voluntarily agreed upon by the organized establishment
parties, with or without the intervention by the Department.11  Conducted only upon the order of the Med-Arbiter of the Bureau of Labor
 Requirements: Relations (BLR) of the Department of Labor and Employment (DOLE).
o Legitimate union - Duly registered and listed in the registry of  Most democratic method of determining the choice of the employees of
legitimate labor unions of the BLR or that its legal personality has their bargaining representatives.
not been revoked or cancelled  Department Order No. 40-03, Rule VIII, Section 1 – 3.
o Organized establishment – filed within 60-day freedom period,
25% written support of the members of the bargaining unit Who may file. Any legitimate labor organization may file a petition for
o Not in violation of the four bar rules certification election. When requested to bargain collectively, an
 Two kinds of majority votes: employer may file a petition for certification election with the Regional
o In the validity if the process of certification election itself – atleast Office. If there is no existing registered collective bargaining agreement in
the majority of all eligible voters in the appropriate bargaining unit the bargaining unit, the Regional Office shall, after hearing, order the
must have cast their votes conduct of a certification election.
o To be certified as the collective bargaining agent – majority of the Legitimate labor organization:
valid votes cast. 1. Independent union
 In case of failure of election, another election can be held within six (6) 2. National union or federation which has already issued a
months from the date of declaration of failure. charter certificate to its local chapter participating in the
 Proclamation and certification of the result of the election. - Within twenty- certification union
four (24) hours from final canvass of votes, there being a valid election, 3. Local chapter which has be issued a charter certificate by
the Election Officer shall transmit the records of the case to the Med- the national union or federation
Arbiter who shall, within the same period from receipt of the minutes and Where to file. - A petition for certification election shall be filed with the
results of election, issue an order proclaiming the results of the election Regional Office which issued the petitioning union's certificate of
and certifying the union which obtained a majority of the valid votes cast registration/certificate of creation of chartered local.
as the sole and exclusive bargaining agent in the subject bargaining unit,
under any of the following conditions: The petition shall be heard and resolved by the Med-Arbiter.
(a) no protest was filed or, even if one was filed, the same was
not perfected within the five-day period for perfection of the Where two or more petitions involving the same bargaining unit are filed
protest; in one Regional Office, the same shall be automatically consolidated
(b) no challenge or eligibility issue was raised or, even if one with the Med-Arbiter who first acquired jurisdiction. Where the petitions
was raised, the resolution of the same will not materially are filed in different Regional Offices, the Regional Office in which the
change the results of the elections. petition was first filed shall exclude all others; in which case, the latter
The winning union shall have the rights, privileges and obligations of a shall indorse the petition to the former for consolidation.
duly certified collective bargaining agent from the time the certification is
issued. Where majority of the valid votes cast results in "No Union" When to file.
obtaining the majority, the Med-Arbiter shall declare such fact in the  General Rule: In the absence of a CBA duly registered in
order. accordance with Article 231 of the Labor Code, a petition for
certification election may be filed at any time.12
 Exception: Certification election cannot be held:
11
Section 1 (h), Rule 1, Book V, Rules to implement the Labor Code, as amended by Department
12
Order No. 40-03, Series of 2003 (February 17, 2003) Section 3, Rule VIII, Book V, Rules to implement the Labor Code
 o Certification year bar rule  To ensure the stability in the modifications of
 A consent or run-off election has been any CBA earlier entered into by them in good
conducted within the bargaining unit within one faith and for the stipulated original period.
(1) year prior to the filing of the petition for  There are jurisprudential exceptions.
certification election. 3. Consent election
o Negotiation bar rule  Refers to the process of determining through secret ballot the sole
 No CE should be entertained while the sole and and exclusive representative of the employees in an appropriate
exclusive bargaining agent and the employer bargaining unit for purposes of collective bargaining or negotiation.
have commenced and sustained May be with or without the intervention of DOLE.14
negotiations in good faith within the period of Certification Election Consent Election
one (1) year from the date of a valid To determine the sole and exclusive collective bargaining agent
certification, consent, run-off or re-run election Ordered by DOLE Mutually agreed by the parties,
or from the date of voluntary recognition with or without the intervention of
 There is no law or rule that imposes a particular DOLE
restrictive period within which the parties should Electoral exercise Purpose is to determine the issue
conclude the CBA. In other word, the of majority representation of all
negotiations may last for months, even years, workers in an appropriate
and during the period of negotiations, no collective bargaining unit
petition for CE can be filed. Contending labor unions can agree to have a consent elections, if agreed
o Bargaining deadlock bar rule before a Med-Arbiter during the preliminary conference.
 when a bargaining deadlock to which an
incumbent or certified bargaining agent is a 4. Run-off election
party had been submitted to conciliation or  Organized establishment:
arbitration or had become the subject of a valid o Election between the labor unions receiving the two (2)
notice of strike or lockout highest number of vote in a certification election or consent
 Collective bargaining deadlock – situation election with three (3) or more choice, where such a
where there is a failure in the collective certification election or consent election results in none of the
bargaining negotiations between the collective three (3) or more choices receiving the majority of the valid
bargaining agent and the employer resulting in votes cast, provided that the total number of votes for all
an impasse or stalemate.13 (A complete contending unions is atleast 50% of the number of the votes
blocking or stoppage in the negotiations) cast.15
o Contract bar rule  Conducted within 10 days from the close of the election proceedings
 when a collective bargaining agreement between the labor unions receiving the two (2) highest number of
between the employer and a duly recognized or votes
certified bargaining agent has been registered 5. Re-run election
with the BLR  There was a valid CE but was nullified. When there are irregularities
 CE can only be filed within the 60-day freedom committed during the conduct of the certification election:
period prior to its expiry o Disenfranchisement of voters
o Lack of secrecy

14
Section 1 (h), Book V, Rules to implement the Labor Code
13 15
San Miguel Corp v NLRC, G.R. No.99266, March 2, 1999 Article 256, Labor Code; Section 1, Rule I, Book V, Rules to implement the Labor Code
 o Fraud - Attorney’s fees, negotiations fees and similar charges can only be charged
o Bribery against union funds
Local Union and Mother Union? - These fees can be deducted from employee’s pay but only with specific
written authorization.
Mother Union
 The federation or national union is most commonly known as “mother union”. Right to Collective Bargaining?
Affliate
 Refers to: Article III, Section 3, par 2, Constitution
o Independent Union: affliated with a federation or a national union “It shall guarantee the rights of all workers to self-organization,
o Local Chapter: which has been subsequently granted independent collective bargaining and negotiations, and peaceful concerted
registration but did not disaffiliate from the federation or national union activities, including the right to strike in accordance with law. They
which created it. It is created through the mode of chartering by a mother shall be entitled to security of tenure, humane conditions of work,
union. and a living wage. They shall also participate in policy and decision-
Purpose: to strengthen the collective bargaining leverage of the affiliate or increase making processes affecting their rights and benefits as may be
the bargaining power in respect of the terms and conditions of labor. provided by law.”
Relationship: The mother union, acting for and in behalf of its affiliate, has the status
of an agent, while the local union remains the principal – the basic unit of the Duty to bargain collectively?
association free to serve the common interest of all its members, subject only to the - Means the performance of a mutual obligation to meet and
restraints imposed by the constitution and by-laws of the association through a convene promptly and expeditiously in good faith for the purpose of
contract of agency. negotiating an agreement with respect to wages, hours of work and
The employees cannot revoke the validly executed collective bargaining contract all other terms and conditions of employment, including proposals for
with their employer by the simple expedient of changing their bargaining agent. The adjusting any grievances or questions arising under such agreement
new agent would have to respect the said contract, except in negotiating with the and executing a contract incorporating such agreements if requested
management for the shortening thereof and they shall not be bound by the personal by either party but such duty does not compel any party to agree to a
undertakings of the hostile labor organization of the deposed collective bargaining proposal or to make any concession.19
agent.16 - Concluding a CBA is the ultimate purpose, but the law does not
compel one. The duty to bargain does not include the obligation to
Union Dues and Special Assessments reach to an agreement. 20

All unions are authorized to collect reasonable amounts of: When there is no CBA
1. Membership dues
2. Union dues 1. In accordance with any agreement or voluntary arrangement
3. Assessments providing for a more expeditious manner of collective
4. Fines bargaining.
5. Contributions for labor education and research, mutual death and 2. Follow the provisions of the Labor Code (Article 250)
hospitalization benefits welfare fund strike fund and credit and cooperative
undertaking17; and When there is a CBA
6. Agency fee18 (from non-members of the bargaining agent who successfully
negotiated the CBA)
18
Article 248 (e), Labor Code
16 19
Seno v. Mendoza, G.R. No. L-20565,November 29, 1967, 21 SCRA 1124 Article 252, Labor Code
17 20
Article 241 (o) and 277 (a), Labor Code Kiok Loy v. NLRC, GR No. 54334, January 22, 1986
 During the lifetime of the CBA, the duty to bargain collectively shall - Refers to the mechanism for the adjustment and resolution of
mean that neither party shall terminate nor modify such agreements. grievances arising from the interpretation or implementation of a CBA
However either party can serve a written notice to terminate or modify and those arising from interpretation and implementation of company
the agreement at least sixty (60) days prior to its expiration date. It shall policies. 24
be the duty of both parties to keep the status quo and to continue in full - Grievance Procedure: internal rules of procedure established by the
force and effect the term and conditions of the existing agreement parties in their CBA with voluntary arbitration as the terminal step,
during the 60-day period and/or until a new agreement is reached by which are intended to resolve all issues arising from the
the parties. implementation and interpretation of their collective agreement. It is
that part of the CBA which provides for a peaceful way of settling
- Automatic renewal clause differences and misunderstanding between the parties.25
- Adjudicatory mechanism, which set into motion only when a dispute
What is a Collective Bargaining Agreement? or grievance occurs.

-refers to the negotiated contract between a duly recognized or II. Voluntary Arbitration?
certified exclusive bargaining agent of workers and their employer, - Mode of settling labor-management disputes in which the parties
concerning wages, hours of work and all other terms and conditions of select a component, trained and impartial third person who is tasked
employment in the appropriate bargaining unit, including mandatory to decide on the merits of the case and whose decision is final and
provisions of grievances and arbitration machineries. executor.26
- executed upon request of the exclusive bargaining representative
and the employer III. No Strike, No-Lockout Clause?
Requisites: - An expression of the firm commitment of the parties thereto that, on
1. Employee-employer relationship – employer and members of the the part of the union, it will not mount a strike during the effectivity of
bargaining unit being represented by the bargaining agent;21 the CBA, and on the part of the employer, that will not stage a
2. The bargaining agent must have the majority support of the members lockout during the lifetime thereof. It includes economic strikes (force
of the bargaining unit established through the modes sanctioned by wage or other concessions) and unfair labor practice.
law; 22and - Violation of the clause will amount to illegality of strike
3. A lawful demand to bargain is made in accordance with law 23 - What should be done? Submit to voluntary arbitration.

Mandatory provisions of CBA: IV. Labor Management Council?

1. Grievance Procedure - Implement the constitutionally mandated right of workers to
2. Voluntary Arbitration participate in policy and decision making process of the
3. No Strike – No Lockout Clause establishment where they are employed insofar as said process will
4. Labor Management Council (LMC) directly affect their rights benefits and welfare.
- If these provisions are not reflected in the CBA, its registration will be - A preventive mechanism, to prevent and avoid disputes or
denied by the BLR. grievances by co-determining the proper policies that should be
implemented by the employer in respect of the workers’ rights,
I. Grievance Machinery? benefits and welfare

21 24
Allied Free Workers Union v. Compania Maritima,G.R. No. 22951, January 31, 1967 Article 360, Labor Code
22 25
Articles 255 to 258, Labor Code No. 12, NCMB Primer on Grievance Settlement and Voluntary Arbitration
23 26
Article 250, Labor Code Sec 1 9d), Rule II, NCMB Revised Guidelines in the Conduct of Voluntary Arbitration Proceeding
Duration of the CBA workers.27 The only exception from the right not to join are those who
- Representation aspect: 5 years of a CBA from the effectivity are already members of another union at the time of the signing of
- All other provisions: subject to negotiations after first 3 years of the 5- the CBA.
year lifetime of the CBA - It does not violate the constitutional right to freedom of association,
as it presumably benefits all employees in the bargaining unit since
Representation aspect refers to the identity and majority status of the such a union would be in a better position to demand improved
bargaining agent that successfully negotiated the CBA as the exclusive benefits and conditions of work from the employer.
bargaining representative of the employees in the appropriate bargaining
unit concerned. Exemptions:
1. Prohibited based on religious grounds
Renegotiation on all provisions (economic or non-economic) of the CBA 2. Already members or in service of a union other than the
except the representation aspect can be made after the lapse of the first bargaining agent at the time the CBA took effect
three (3) years of its five (5) year lifetime. This should only pertain to the 3. Confidential employees
terms and conditions of the parties relationship for the last remaining two (2) 4. Supervisory employees
years of the CBA’s 5 year term. 5. Excluded by express terms of the agreeement

This means that the representation status of the incumbent exclusive

bargaining agent which may only be questioned during the 60-day freedom
period.

Freedom Period?
- The 60-day freedom period the a provision in a CBA that the parties
thereto are bound to observe th terms and conditions therein set
forth until its expiration. Neither party is allowed to terminate nor
modify such agreement during its lifetime.
- The only time the parties are allowed to terminate or modify the
agreement is within the so-called “freedom period“ of atleast sixty
(60) days prior to its expirationdate by serving a notice to that effect.
- Service of notice to terminate, amend and modify the CBA and
challenging by another union the majority status of the bargaining
agent by filing an appropriate petition for certification election.

Union Security Clause?

- It is a generic term which is applied to and comprehends “closed
shops”, “maintenance of membership” or any other form of
agreement which imposes upon the employees the obligation to
acquire or retain union membership as a condition to heir continued
employment. Its purpose is to guarantee the continued existence of
the union through enforced membership for the benefit of the

27
BPI vs BPI Employees Union-Davao Chapter-Federation of Unions in BPI Unibank, GR No. 164301,
August 10, 2010