REVIEWER ON LABOR RELATIONS
A. RIGHT TO SELF                    4. The right to form or join a labor
          ORGANIZATION                          organization necessarily includes the
                                                right to refuse or refrain from
                                                exercising said right. [Reyes v.
RIGHT TO SELF-ORGANIZATION:                     Trajano, G.R. No. 84433 (1992)]
A FUNDAMENTAL RIGHT
                                             5. The freedom to form organizations
                                                would be rendered nugatory if
       Self-organization       is      a        they could not choose their own
fundamental right guaranteed by the             leaders to speak on their behalf and
Philippine Constitution and the Labor           to   bargain    for    them.    [Pan-
Code. Employees have the right to               American World Airways, Inc v.
form, join or assist labor organizations        Pan-American Employees Association,
for the purpose of collective bargaining        G.R. No. L-25094 (1969)]
or for their mutual aid and protection.
[UST Faculty Union v. Bitonio, G.R. No.      6. Recognition of the tenets of the sect
131235 (1999)]                                  should not infringe on the basic
                                                right of self- organization granted
                                                by the Constitution to      workers,
INFRINGEMENT OF THE RIGHT TO                    regardless of religious affiliation.
SELF ORGANIZATION                               [Kapatiran sa Meat and Canning
                                                Division v. Calleja, G.R. No. 82914
       It shall be unlawful for any             (1988)]
person to restrain, coerce, discriminate
against or unduly interfere with
employees and workers in their                1. WHO MAY OR MAY NOT
exercise of the right to self-organization       EXERCISE THE RIGHT
[Art. 257]
                                                a. All employees
SCOPE OF RIGHT TO SELF-                         b. Government employees of
ORGANIZATION                                       corporations created under the
1. Right to form, join or assist labor             Corporation Code
   organizations of their own choosing          c. Supervisory Employees
   for the purpose of collective                d. Aliens with valid working permits
   bargaining through representatives           e. Security personnel
   of their own choosing [Art. 257].
                                                (a) All Employees
2. Right      to engage    in   lawful
                                                      All     persons    employed      in
   concerted activities for the same
   purpose (collective bargaining) or           commercial, industrial and agricultural
   for their mutual aid and protection          enterprises and in religious, charitable,
   [Art. 257]                                   medical or educational institutions,
                                                whether operating for profit or not,
3. The right of any person to                   shall have the right to self-organization
   join an organization also includes           and to form, join or assist         labor
   the right to leave that organization         organizations of their own choosing
   and join another one. [Heritage Hotel        for purposes of collective bargaining.
   Manila    v. PIGLAS- Heritage, G.R.          (Presumes        an     employer-employee
   No. 177024 (2009)]
                                                relationship)
                          REVIEWER ON LABOR RELATIONS
       Ambulant,       intermittent and
                                                    All government employees can
itinerant workers, self-employed people,
                                             form, join or assist employees’
rural workers and those without any
                                             organizations of their own choosing for
definite employers may form labor
                                             the furtherance and protection of their
organizations for their mutual aid
                                             interests. They can also form, in
and protection. [Art. 253]
                                             conjunction        with       appropriate
      Employees        of     non-profit     government      authorities,          labor-
organizations are now permitted to form,     management           committees,       work
organize or join labor unions of their       councils and other forms of workers’
choice for purposes of collective            participation schemes to achieve the
bargaining [FEU-Dr. Nicanor Reyes            same objectives. [E.O. 180, Sec. 2 (1987)]
Medical Foundation Inc. v. Trajano, G.R.
No. 76273 (1987)]                            (c) Supervisory Employees
      Any employee, whether employed               Supervisory employees are those
for a definite period or not, shall,         who, in the interest          of    the
beginning on his first day of service, be    employer,        effectively recommend
considered       an     employee       for   such managerial actions if the exercise
purposes of membership in any labor          of such authority is not merely
union. [Art. 292(c)]                         routinary or clerical in nature but
                                             requires the use of independent
(b) Government employees of                  judgment. [Art. 219(m)]
    corporations created under the
    Corporation Code
                                                    What       is  essential is   the
       The right to self-organization        nature of the employee’s function
shall not be denied to government            and not the nomenclature or title
employees. [Sec. 2(5), Art. IX-B,            given to the job which determines
Constitution]                                whether the employee has rank-and-
                                             file or managerial status or whether
       Employees     of   government         he      is      a supervisory employee.
corporations established under the           [Tagaytay Highlands International Golf
Corporation Code shall have the right        Club,      Inc.   v.  Tagaytay Highlands
to     organize  and    to    bargain        Employees Union-PTGWO, G.R. 142000
collectively with their respective           (2003)]
employers.
                                             (d) Aliens with valid working permits
       All other employees in the civil
                                             General Rule: All aliens, natural or
service shall have the right to form
                                             juridical, [ … ] are strictly prohibited
associations for purposes not contrary
                                             from engaging directly or indirectly in
to law. [Art. 254]
                                             all forms of trade union activities. [Art.
                                             284]
                         REVIEWER ON LABOR RELATIONS
EXCEPTION: Aliens may exercise the
right to self-organization and join or assist
labor unions for purposes of collective            Ineligibility of Managerial Employees;
bargaining, provided the following requisites      Rights of Supervisory Employees
are fulfilled:
                                                          Managerial employees are not
1. With valid working permits issued by            eligible to join, assist or form any labor
   the DOLE; and                                   organization. [Art. 255]
2. They are nationals of a country
   which grants the same or similar rights to
                                                          Supervisory employees shall not be
   Filipino workers [Art. 284]
   a. As certified by DFA; OR                      eligible for membership in the collective
   b. Has ratified either ILO Conventions          bargaining unit of the rank-and-file
       No. 87 and 98 [Sec. 2, Rule II, Book V,     employees but may join, assist or form
       IRR]                                        separate collective      bargaining units
                                                   and/or legitimate labor organizations of
(e) Security personnel                             their own. The rank and file union and
      The security guards and other                the supervisors' union operating within
personnel employed by the security service         the same establishment may join the same
contractor shall have the right:                   federation or national union.
 1. To form, join, or assist in the formation of   Rationale:
    a labor organization of their own choosing            Supervisory employees, while in
    for purposes of collective bargaining and      the     performance     of    supervisory
 2. To engage in concerted activities which        functions, become the alter ego of the
    are not contrary to law including the
    right to strike. [D.O. No. 14 Series of        management in the making and the
    2001      (Guidelines      Governing     the   implementing of key decisions at the
    Employment and Working Conditions of           sub-managerial level. Certainly, it
    Security Guards and Similar Personnel in       would be difficult to find unity or
    the Private                                    mutuality of interests in a bargaining
    Security Industry)]                            unit consisting of a mixture of rank-
                                                   and-file and supervisory employees.
        On Dec. 24, 1986, President Corazon        [Toyota Motor Phil. Corp. v. Toyota Motor
Aquino issued EO No. 111 which                     Phil. Corp. Labor Union, G.R. No. 121084
eliminated the provision which made                (1997)]
security guards ineligible to join any labor
organization. In 1989, Congress passed RA
6715 which also did not impose limitations         SUPERVISOR AND RANK                AND
                                                   FILE UNION AFFILIATION
on the ability of security guards to join
labor organizations. Thus, security guards
                                                   The rank and file union and the
“may now freely join a labor organization of       supervisors’ union operating within the
the rank-and-file or that of the supervisory       same establishment may join the same
union, depending on their rank.” [Manila           federation or national union. [Art. 255]
Electric Co. v. SOLE, G.R. No. 91902 (1991)]
                         REVIEWER ON LABOR RELATIONS
a. DOCTRINE OF NECESSARY
   IMPLICATION
       While Art. 245 [now 255] of the
Labor Code singles out managerial
employees as ineligible to join, assist or    CONFIDENTIAL INFORMATION:
form any labor organization, under the        MUST RELATE TO LABOR
doctrine of necessary implication,            RELATIONS AND NOT FROM A
confidential        employees          are    BUSINESS STANDPOINT
similarly disqualified. This doctrine
states that what is implied in a statute is          An employee must assist or act in a
as much a part thereof as that which is       confidential      capacity and    obtain
expressed. [Metrolab Industries Inc. v.       confidential information relating to
Roldan-Confessor, G.R. No. 108855             labor relations policies. Exposure to
(1996)]                                       internal business operations of the
                                              company is not per se a ground for the
                                              exclusion in the bargaining unit. [Coca-
NATURE OF ACCESS TEST
                                              Cola Bottlers v. IPTEU,
       Confidential employees, by the         G.R. No. 193798 (2015)]
nature of their functions, assist and
act in a confidential capacity to, or
have access to confidential matters of,
persons who exercise managerial               Rationale of Exclusion of Confidential
                                              Employees
functions in the field of labor relations.
Requisites                                          If confidential employees could
1. The confidential relationship must         unionize in order to bargain for
   exist between the       employees          advantages for themselves, then they
   and       his supervisor, and              could be governed by their own
                                              motives rather than the interest of the
2. The supervisor must handle the
   prescribed responsibilities relating       employers.
   to labor relations. [San Miguel
   Supervisors and Exempt Union v.                   Moreover,      unionization    of
   Laguesma, G.R. No. 110399                  confidential employees        for    the
   (1997)]                                    purpose      of    collective bargaining
                                              would mean the extension of the law
 FUNCTION TEST:                               to persons or individuals who are
 NOMENCLATURE IS              NOT             supposed to act in the interest of the
 CONTROLLING                                  employers. It is not far-fetched that in
                                              the course of collective bargaining,
                                              they might jeopardize that interest
        The mere fact that an employee is
                                              which they are duty bound to protect.
 designated “manager” does not ipso
                                              [Metrolab Industries Inc. v. Roldan-
 facto make him one. Designation
                                              Confessor, G.R. No. 108855 (1996)]
 should be reconciled with the actual
 job description of the employee. [Paper
 Industries Corp. of the Philippines.
 v. Laguesma, G. R. No.101738 (2000)]
                          REVIEWER ON LABOR RELATIONS
OTHER PEOPLE WHO CANNOT FORM,                 Exception: Employees who withdrew
JOIN OR ASSIST LABOR                          their membership from the cooperative
ORGANIZATIONS                                 are entitled to form or join a labor union
                                              for the negotiations of a Collective
(a) New Employees                             Bargaining Agreement. [Central Negros
                                              Electric Cooperative, Inc. v. DOLE,
       [Persons     who]     are    not       G.R. No. 94045 (1991)]
employees of [a company] are not
entitled to the constitutional right to       (c) Employees        of International
join or form a labor organization for             Organizations
purposes of collective bargaining.
[ … ] The question       of     whether              International organizations are
employer-employee relationship exists is      endowed with some degree of
a primordial consideration before             international legal personality. They are
extending labor benefits under the            granted jurisdictional immunity, as
workmen's       compensation,     social      provided     in    their   organization’s
security, Medicare, termination pay and       constitutions, to safeguard them from
labor relations law. [Singer Sewing           the disruption of their functions.
Machine Co. v. Drilon,
G.R. No. 91307, 1991]                                Immunity [ … ] is granted to
                                              avoid interference by the host country
      But employees of the contractor         in their internal workings. The
can still form a labor union; the labor       determination      [by    the executive
union can be established to bargain with      branch] has been held to be a
the contractor but not with the principal     political question conclusive upon the
employer. [Prof. Battad]                      Courts in order not to embarrass
                                              apolitical     department of
(b) Employee-member of a Cooperative          Government. [Hence], a certification
                                              election cannot be conducted in an
General Rule:                                 international organization to   which
                                              the Philippine Government has granted
    An employee of a cooperative who
is a member and co-owner thereof              immunity from local jurisdiction.
cannot invoke the right to collective         [International      Catholic  Migration
bargaining for certainly an owner             Commission v. Calleja, G.R. No. 85750
cannot bargain with himself or his co-        (1990)]
owners. [Batangas-Electric Cooperative
Labor Union v. Romeo A. Young,
G.R. No. 62386 (1988)]                        (d) Members of the AFP, Policemen,
                                                  Police Officers, Firemen, and Jail
        Irrespective of the degree of their       Guards
participation in the actual management
                                                    Members       of     the    AFP,
of the cooperative, all members thereof
                                              Policemen, Police Officers, Firemen
cannot form, assist or join a labor
                                              and    Jail   Guards      are expressly
organization for the purpose of
                                              excluded by EO 180, Sec. 4 from the
collective bargaining. [Benguet Electric
                                              coverage of the EO 180 which
Cooperative v. Ferrer-Calleja, G.R. No.
                                              provides guidelines for the exercise of
79025 (1989)]
                                              the right to organize of government
                                              employees.
                            REVIEW ER ON LABOR RELATIONS
SUMMARY - Who Cannot Form, Join or                   oppressive fine and forfeiture be imposed. [Art.
Assist Labor Organizations                           250(e)]
a. Managerial employees
                                                     Prohibition on subversive activities or
b.   Confidential employees
                                                     membership
c.   Non-employees                                   No labor organization shall knowingly admit as
d.   Member-employee of a cooperative
                                                     members or continue in membership any
e.   Employees of international organizations
                                                     individual who:
f.   High-level government employees                 1. Belongs to a subversive organization; or
g.   Members of the AFP, police officers,            2. Who is engaged directly or indirectly in any
     policemen, firemen and jail guards                  subversive activity;
2. Commingling or Mixture of                         Unions cannot arbitrarily exclude qualified
   Membership                                        applicants
                                                     Unions are not entitled to arbitrarily exclude
Effect of Inclusion of Employees Outside
                                                     qualified applicants for membership, and a
the Bargaining Unit or Commingling                   closedshop provision would not justify the
General Rule: It shall not be a ground for the
                                                     employer in discharging, or a union in insisting
cancellation of the registration of the union.       upon the discharge of, an employee whom the
Said employees are automatically deemed              union thus refuses to admit to membership,
removed from the list of membership of said          without any reasonable ground therefor.
union. [Art. 256]
                                                     Needless to say, if said unions may be
                                                     compelled to admit new members, who have
Exception: Unless such mingling was brought          the requisite qualifications, with more reason
about by misrepresentation, false statement or       may the law and the courts exercise the
fraud under Art. 247 (Grounds for cancellation       coercive power when the employee involved is
of Union Registration) of the Labor Code.            a long-standing union member, who, owing to
[SMCC-Super v. Charter Chemical and                  provocations of union officers, was impelled to
Coating Corporation, G.R. No. 169717 (2011)]         tender his resignation which he forthwith
                                                     withdrew or revoked. [Salunga v. CIR, G.R.
3. Rights and Conditions of                          No. L-22456 (1967)]
   Membership
                                                     Members who seek destruction of union
        a. Nature of Relationship                    lose right to remain as members
                                                     Inherent in every labor union, or any
           i. Member-Labor Union                     organization for that matter, is the right of self-
                                                     preservation. When members of a labor union,
The nature of the relationship between the           therefore, sow the seeds of dissension and
union and its members is fiduciary in nature,        strife within the union; when they seek the
which arises from the dependence of the
                                                     disintegration and destruction of the very union
employee on the union, and from the
                                                     to which they belong, they thereby forfeit their
comprehensive power vested in the union with
                                                     rights to remain as members of the union which
respect to the individual. The union may be
                                                     they seek to destroy. [Villar v. Inciong, G.R. No.
considered but the agent of its members for the
                                                     L-50283-84 (1983)]
purpose of securing for them fair and just
wages and good working conditions. [Heirs of                    ii. Labor Union-Federation
Cruz v. CIR, G.R. No. L-23331-32 (1969)]
                                                     Local unions do not owe their creation and
Admission and Discipline of Members
                                                     existence to the national federation to which
No arbitrary or excessive initiation fees shall be
                                                     they are affiliated but, instead, to the will of their
required of the members of a legitimate labor
                                                     members, [ … ] The local unions remain the
organization nor shall arbitrary, excessive or
                                 REVIEW ER ON LABOR RELATIONS
basic units of association, free to serve their
own interests subject to the restraints imposed        The chapter shall be entitled to all other rights
by the constitution and by-laws of the national        and privileges of a legitimate labor organization
federation, and free also to renounce the              only upon the submission of the following
affiliation upon the terms laid down in the            documents in addition to its charter certificate:
agreement which brought such affiliation into          1. The names of the chapter's officers, their
existence. [Philippine Skylanders, Inc. v.                 addresses, and the principal office of the
NLRC, G.R. No. 127374 (2002)]                              chapter; and
                                                       2. The chapter's constitution and by-laws:
Union Chartering                                           Provided, That where the chapter's
Affiliate                                                  constitution and by-laws are the same as
An independent union affiliated with a                     that of the federation or the national union,
federated, national union or a chartered local             this fact shall be indicated accordingly.
which was subsequently granted independent
registration but did not disaffiliate from its         The additional supporting requirements shall
federation, reported to the Regional Office and        be:
the Bureau in accordance with Rule III, Secs. 6        1. Certified under oath by:
and 7 [Sec. 1(b), Rule I, Book V, IRR]                     a. Secretary; or
                                                           b. Treasurer
Independent Union                                      2. Attested by: Its president [Art. 241]
A labor organization operating at the enterprise
level that acquired legal personality through          Lesser requirements for Chartered locals
independent registration under Art. 234 of the         The intent of the law in imposing less
Labor Code and Rule III, Sec. 2-A [Sec. 1(x),          requirements in the case of a branch or local of
Rule I, Book V]                                        a registered federation or national union is to
                                                       encourage the affiliation of a local union with a
National Union or Federation                           federation or national union in order to increase
A group of legitimate labor unions in a private        the local unions’ bargaining powers respecting
establishment      organized   for    collective       terms and conditions of labor. [SMCEU-
bargaining or for dealing with employers               PTGWO v. SMPEU-PDMP, G.R. No. 171153
concerning      terms    and   conditions      of      (2007)]
employment for their member union or for
participating in the formulation of social and         Trade Union Centers cannot create locals
employment policies, standards and programs,           or chapters
registered with the BLR in accordance with             Art. 241 mentions only “a duly registered
Rule III Sec. 2-B [Sec. 1(ll), Rule I, Book V,         federation or national union.”
IRR]
                                                       The solemn power and duty of the Court to
Chartered Local (Local Chapter)                        interpret and apply the law does not include the
A labor organization in the private sector             power to correct by reading into the law what is
operating at the enterprise level that acquired        not written therein. [SMCEU-PTGWO v.
legal personality through registration with            SMPEU-PDMP, G.R. No. 171153 (2007)]
Regional Office [Sec. 1(j), Rule I, Book V, IRR]
                                                       National Union or Federation v. Trade
A duly registered federation or national union         Unions
may directly create a local chapter by issuing a         National Union or
                                                                              Trade Unions
charter certificate indicating the establishment             Federation
of the local chapter. The chapter shall acquire         With at least ten  Composed of a
legal personality only for purposes of filing a         (10) locals or     group of registered
petition for certification election from the date it    chapters (or       national unions or
was issued a charter certificate.                       independent unions federations
                                 REVIEW ER ON LABOR RELATIONS
 [Sec. 2-B(5), Rule                                   Mere affiliation does not divest the local union
 III, Book V, IRR],                                   of its own personality, neither does it give the
 each of which must                                   mother federation the license to act
 be a duly                                            independently of the local union. It only gives
 recognized                                           rise to a contract of agency, where the former
 collective bargaining                                acts in representation of the latter. Hence, local
 agent [Art. 244]                                     unions are considered principals while the
 Can directly create      Cannot directly             federation is deemed to be merely their agent.
 local chapter [Art.      create local chapter        [Insular Hotel Employees Union NFL v.
 241]                     [SMCEU-PTGWO v.             Waterfront Insular Hotel, G.R. No. 174040-41
                          SMPEU-PDMP,                 (2010)]
                          G.R. No. 171153
                          (2007)]
                                                                      (a) Disaffiliation
Purpose of Affiliation
To foster the free and voluntary organization of      In the absence of specific provisions in the
a strong and united labor movement [Art. 218-         federation’s         constitution      prohibiting
A(c)]                                                 disaffiliation or the declaration of autonomy of
                                                      a local union, a local may dissociate with its
The sole essence of affiliation is to increase, by    parent union. [Malayang Manggagawa sa M.
collective action, the common bargaining              Greenfield v. Ramos, G.R. No. 113907 (2000)]
power of local unions for the effective
enhancement and protection of their interests.        Local unions have the right to separate from
Admittedly, there are times when without              their mother federation on the ground that as
succor and support local unions may find it           separate and voluntary associations, local
hard, unaided by other support groups, to             unions do not owe their creation and existence
secure justice for themselves. [Philippine            to the national federation to which they are
Skylanders, Inc. v. NLRC, G.R. No. 127374             affiliated but, instead, to the will of their
(2002)]                                               members. [Philippine Skylanders, Inc. v.
                                                      NLRC, G.R. No. 127374 (2002)]
Nature of Relationship: Agency
The mother union, acting for and on behalf of         A local union is free to serve the interests of all
its affiliate, had the status of an agent while the   its members, including the freedom to
local union remained the basic unit of the            disaffiliate or declare its autonomy from the
association, free to serve the common interest        federation to which it belongs when
of all its members subject only to the restraints     circumstances warrant, in accordance with the
imposed by the constitution and by-laws of the        constitutional guarantee of freedom of
association. [...] The same is true even if the       association. [Malayang Samahan ng mga
local is not a legitimate labor organization.         Manggagawa sa M. Greenfield, Inc. v. Ramos,
[Filipino Pipe and Foundry Corp v. NLRC, G.R.         G.R. No. 113907 (2000)]
No. 115180 (1998)]
                                                      Period of Disaffiliation
Effect of Affiliation                                 Generally, a labor union may disaffiliate from
Inclusion of [the federation’s initials] in the       the mother union to form a local or independent
registration is merely to stress that they are its    union only during the 60-day freedom period
affiliates at the time of registration. It does not   immediately preceding the expiration of the
mean that said local unions cannot stand on           CBA. However, even before the onset of the
their own. [Adamson v. CIR, G.R. No. L-35120          freedom period, disaffiliation may be carried
(1984)]                                               out when there is a shift of allegiance on the
                                                      part of the majority of the members of the
                                                      union. [Alliance of Nationalist and Genuine
                                REVIEW ER ON LABOR RELATIONS
Labor Organization v. Samahan ng mga                 The “substitutionary” doctrine provides that the
Manggagawang Nagkakaisa sa Manila Bay                employees cannot revoke the validly executed
Spinning Mills, G.R. No. 118562 (1996)]              collective bargaining contract with their
                                                     employer by the simple expedient of changing
[A] local union which has affiliated itself with a   their bargaining agent.
federation is free to sever such affiliation
anytime and such disaffiliation cannot be            It is in the light of this that the phrase “said new
considered disloyalty. [Malayang Manggagawa          agent would have to respect said contract”
sa M. Greenfield v. Ramos, G.R. No. 113907           must be understood. It only means that the
(2000)]                                              employees, thru their new bargaining agent,
                                                     cannot renege on their collective bargaining
Effect of Disaffiliation                             contract, except of course to negotiate with
On legal personality                                 management for the shortening thereof.
A registered independent union retains its legal     [Benguet Consolidated v. BCI Employees and
personality while a chartered local loses its        Workers Union-PAFLU, G.R. No. L-24711
legal personality unless it registers itself.        (1968)]
No effect on CBA                                     Conditions to apply the doctrine
A disaffiliation does not disturb the                1. Change of bargaining agent (through
enforceability and administration of a collective       affiliation, disaffiliation, or other means);
agreement; it does not occasion a change of             and
administrators of the contract nor even an           2. Existing CBA with the previous bargaining
amendment of the provisions thereof.                    agent [Benguet Consolidated v. BCI
[Volkschel Labor Union v. BLR, No. L-45824              Employees and Workers Union-PAFLU,
(1985)]                                                 G.R. No. L-24711 (1998)]
Obligation to pay union dues is                      Effects
coterminous with membership                          1. New bargaining agent cannot revoke and
“The employees’ check-off authorization, even            must respect the existing CBA; and
if declared irrevocable, is good only as long as     2. It may negotiate with management to
they remain members of the union concerned”.             shorten the existing CBA’s lifetime.
A contract between an employer and the
parent organization as bargaining agent for the
employees is terminated by the disaffiliation of             B. BARGAINING UNIT
the local of which the employees are members.
[Volkschel Labor Union v. BLR, No. L-45824
(1985)]                                              Definition
                                                     “Bargaining Unit” refers to a group of
Power to represent principal severed
                                                     employees sharing mutual interests within a
By [the local union’s disaffiliation from the
                                                     given employer unit, comprised of all or less
federation], the vinculum that previously bound      than all of the entire body of employees in the
the two entities was completely severed. [The        employer unit or any specific occupational or
federation] was divested of any and all power        geographical grouping within such employer
to act in representation of the union. Thus, any     unit. [Sec. 1(e), Rule I, Book V, IRR]
act performed by [the federation] affecting the
interests and affairs of the [local union] is        It is a group of employees of a given employer,
rendered without force and effect. [ANGLO v.         comprised of all or less than all of the entire
Samana, G.R. No. 118562 (1996)]                      body of employees, which the collective
                                                     interests of all the employees indicate to be
                (b) Substitutionary Doctrine         best suited to serve reciprocal rights and duties
                                                     of the parties consistent with equity to the
                                  REVIEW ER ON LABOR RELATIONS
employer. [Belyca Corp. v. Calleja, G.R. No.           University v. DLSU Employees Association EA,
77395 (1988) citing Rothenberg]                        G.R. No. 109002, (2000)]
Functions of an Appropriate Bargaining                 Rationale
Unit                                                   A prior agreement as to the exclusion of
1. An ELECTORAL DISTRICT. – It marks the               monthly-paid rank-and-file employees from the
   boundaries of those who may participate in          bargaining union of the daily-paid rank-and-file
   a certification election.                           can never bind subsequent federations and
2. An ECONOMIC UNIT. – They are a group                unions. as employees were not privy to that
   of employees with community of interests.           agreement. And even if [they were privy, it can
3. A SOVEREIGN BODY. – It selects the sole             never bind subsequent federations and unions
   and exclusive bargaining agent.                     because it is a curtailment of the right to self-
                                                       organization guaranteed by the labor laws
Role of a bargaining unit                              [General Rubber & Footwear Corp. v. BLR,
The labor organization designated or selected          G.R. No. 74262 (1987)]
by the majority of the employees in an
appropriate collective bargaining unit shall be        Corporate Entities
the exclusive representative of the employees          General Rule: Two companies having
in such unit for the purpose of collective             separate juridical personalities shall NOT be
bargaining. [Art. 267]                                 treated as a single bargaining unit. [Diatagon
                                                       Labor Federation Local v. Ople, G.R. No. L-
Right of individual or group of employees to           44493-94 (1980)]
present grievances
An individual employee or group of employees           Exception: Pervasive Unitary Aspect of
shall have the right at any time to present            Management Doctrine
grievances to their employer. [Art. 267]               The cross-linking of the agencies’ command,
                                                       control, and communication systems indicate
CBA Coverage                                           their unitary corporate personality. Accordingly,
It is a well-settled doctrine that the benefits of a   the veil of corporate fiction [...] should be lifted
collective bargaining agreement extend to the          for the purpose of allowing the employees of
laborers and employees in the collective               the three agencies to form a single labor union.
bargaining unit, including those who do not            A settled formulation of the doctrine of piercing
belong to the chosen bargaining labor                  the corporate veil is that when two business
organization. [Mactan Workers Union v.                 enterprises are owned, conducted, and
Aboitiz, G.R. No. L-30241 (1972)]                      controlled by the same parties, both law and
                                                       equity will, when necessary to protect the rights
Note: An employee employed, whether for a              of third parties, disregard the legal fiction that
definite period is not, is an EE for purposes of       these two entities are distinct and treat them as
joining a union [Art. 292(c)]. But, whether or not     identical or as one and the same. [Ang Lee v.
a union member, an EE part of the CBU is               Samahang         Manggagawa           ng     Super
entitled to CBA benefits unless excluded under         Lamination, G.R. No. 193816 (2016)]
the CBA.
                                                       Determining whether or not to establish
Effect of Prior Agreement                              separate bargaining units
A prior CBA excluding a group of employees             The fact that the businesses are related, that
from the bargaining unit of rank-and-file              some of the employees are the same persons
employees does not bar the parties from                working in the other company and the physical
renewing the existing CBA and proposing and            plants, offices and facilities are in the same
discussing modifications or amendments                 compound are NOT sufficient to justify piercing
thereto during the freedom period. [De La Salle        the corporate veil. [Indophil Textile Mills
                                REVIEW ER ON LABOR RELATIONS
Workers Union v. Calica, G.R. No. 96490             the several categories to select the group
(1992)]                                             which each chooses as a bargaining unit.
                                                    [Kapisanan ng mga Manggagawa sa Manila
Spun-off corporations                               Road Co. v. Yard Crew Union, G.R. Nos. L-
The transformation of the companies is a            16292-94 (1960)]
management prerogative and business
judgment which the courts cannot look into          Rationale: Highly skilled or specialized
unless it is contrary to law, public policy or      technical workers may choose to form their
morals. [...] Considering the spin-offs, the        own bargaining unit because they may be in
companies would consequently have their             better position to bargain with the employer
respective and distinctive concerns in terms of     considering the market value of their skills.
the nature of work, wages, hours of work and
other conditions of employment. [...] The nature    Community or Mutuality of Interests
of their products and scales of business may        The basic test in determining the appropriate
require different skills, volumes of work, and      bargaining unit is that a unit, to be appropriate,
working conditions which must necessarily be        must affect a grouping of employees who have
commensurate by different compensation              substantial, mutual interests in wages, hours,
packages. [San Miguel Union v. Confesor,            working conditions, and other subjects of
G.R. No. 111262 (1996)]                             collective bargaining. [UP v. Ferrer-Calleja,
                                                    G.R. No. 96189, (1992)]
TEST TO DETERMINE THE CONSTITUENCY
OF AN APPROPRIATE BARGAINING UNIT –                 Rationale: There are greater chances of
4 Factors:                                          success for the collective bargaining process.
1. Will of the Employees (Globe Doctrine)           The bargaining unit is designed to maintain the
2. Affinity and unity of employees’ interest        mutuality of interest among the employees in
    (Substantial Mutual Interests Rule)             such unit.
3. Prior collective bargaining history
4. Employment status [Democratic Labor              When the interest between groups has
    Association v. Cebu Stevedoring Co. Inc,        changed over time, there is reason to dissolve,
    G.R. No. L-10321 (1958); University of the      change or expand a certain bargaining unit.
    Philippines v. Ferrer-Calleja, G.R. No.
    96189 (1992)]                                   Prior Collective Bargaining History
                                                    The existence of a prior collective bargaining
Note: Where the employment status was not at        history is neither decisive nor conclusive in the
issue but the nature of work of the employees       determination of what constitutes an
concerned; the Court stressed the importance        appropriate bargaining unit. [Sta. Lucia East
of the 2nd factor. [Belyca Corp. v. Calleja, G.R.   Commercial Corporation v. SOLE, G.R. No.
No. 77395 (1988)]                                   162355 (2009)]
Other factors:                                      Employment Status
1. Geography and Location                           Among the factors to be considered [is the]
2. Policy of avoiding fragmentation of the          employment status of the employees to be
   bargaining unit                                  affected    [regular,     casual,    seasonal,
                                                    probationary, etc.], that is the positions and
Globe Doctrine                                      categories of work to which they belong [....]
A practice designated as the “Globe doctrine,”      [Belyca Corp. v. Calleja, G.R. No. 77395
sanctions the holding of a series of elections,     (1988)]
not for the purpose of allowing the group
receiving an overall majority of votes to           Geography and Location
represent all employees, but for the specific       Geography and location only play a significant
purpose of permitting the employees in each of      role if:
                               REVIEW ER ON LABOR RELATIONS
a. The separation between the camps [...] and
   the different kinds of work in each [...] all
   militate in favor of the system of separate                C. BARGAINING
   bargaining units;                                         REPRESENTATIVE
b. [When] the problems and interests of the
   workers are peculiar in each camp or
                                                   The labor organization designated or selected
   department;
                                                   by the majority of the employees in an
c. The system of having one collective             appropriate collective bargaining unit shall be
   bargaining unit in each camp [...] [has         the exclusive representative of the employees
   operated satisfactorily in the past.]           in such unit for the purpose of collective
   [Benguet Consolidated Inc. and Balatok          bargaining. [Art. 267]
   Mining Co. v. Bobok Lumberjack
   Association, G.R. No. L-11029 (1958)]           Labor Management Council
                                                   Any provision of law to the contrary
Policy of Avoiding Fragmentation of the
                                                   notwithstanding, workers shall have the right:
Bargaining Unit
                                                   a. To participate in policy and decision-
It bears noting that the goal of the DOLE is
                                                      making processes of the establishment
[geared] towards “a single employer wide unit         where they are employed insofar as said
which is more to the broader and greater              processes will directly affect their rights,
benefit of the employees working force.”              benefits and welfare.
                                                   b. To form labor-management councils, for
The philosophy is to avoid fragmentation of the       this purpose [Art. 267]
bargaining unit so as to strengthen the
employees’ bargaining power with the                Selection of Representatives
management. To veer away from such goal            In organized establishments,
would be contrary, inimical and repugnant to       • the workers’ representatives to the council
the objectives of a strong and dynamic                 shall be nominated by the exclusive
unionism. [Phil. Diamond Hotel and Resort Inc          bargaining representative.
v. Manila Diamond Hotel and Employees
                                                   In establishments where no legitimate labor
Union, G.R. No. 158075 (2006)]
                                                   organization exists,
                                                   • the workers representative shall be elected
Confidential employees lumped with
management                                             directly by the employees at large. [Sec. 2,
Since the confidential employees are very few           Rule XXI, Book V, IRR]
in number and are, by practice and tradition,      Qualification of Voters
identified with the supervisors in their role as
                                                   Eligible Voter
representatives of management, such identity
                                                   Eligible voter refers to a voter belonging to the
of interest has allowed their inclusion in the
                                                   appropriate bargaining unit that is the subject
bargaining unit of supervisors-managers for
                                                   of the petition for certification election [Sec.
purposes of collective bargaining in turn as
                                                   1(q), Rule VIII, Book V, IRR]
employees in relation to the company as their
employer. [Filoil Refinery Corp. v. Filoil         All employees who are members of the
Supervisory and Confidential Employees             appropriate bargaining unit three (3) months
Union, G.R. No. L-26736 (1972)]                    prior to the filing of the petition shall be eligible
                                                   to vote. [Sec. 6, Rule IX, Book V, IRR]
                                                   Note: Rule VIII, Sec. 14 (f) and Rule IX, Sec. 6
                                                   refer to employees as those employed 3
                                                   months prior to the issuance of the order/the
                                                   filing of the petition for certification election
                                 REVIEW ER ON LABOR RELATIONS
while Rule IX, Sec. 2 reckon the period of            Non-participation in previous election has
employment from the “time of filing the               no effect
petition”. This difference has not been resolved      [Failure to take part in previous elections is no
in any case before the Supreme Court.                 bar to the right to participate in future elections.]
                                                      No law, administrative rule or precedent
All rank and file employees in the appropriate        prescribes forfeiture of the right to vote by
bargaining unit, whether probationary or              reason of neglect to exercise the right in past
permanent are entitled to vote. The Code              certification elections. [Reyes v. Trajano, G.R.
makes no distinction as to their employment           No. 84433 (1992)]
status. [...] All they need to be eligible to
support the petition is to belong to a bargaining     1. Determination of Representation
unit. [Airtime Specialists, Inc. v. Ferrer-Calleja,      Status
G.R. No. 80612-16 (1990)]
                                                      Methods of Establishing Majority Status
Rationale for Non-Distinction Policy                  a. Sole and Exclusive Bargaining Agent
Collective bargaining covers all aspects of the          (SEBA) Certification
employment relation and the resultant CBA             b. Consent Election
binds all employees in the bargaining unit. All       c. Certification Election
rank and file employees, probationary or              d. Run-Off Election
permanent, have a substantial interest in the         e. Re-Run election
selection of the bargaining representative.
[Airtime Specialists, Inc. v Ferrer-Calleja,          Note: D.O. No. 40-I-15 replaced Voluntary
supra.]                                               Recognition with SEBA certification, as of
                                                      September 7, 2015.
Dismissed employees [Sec. 6, Rule IX, Book
V, IRR]                                                       a. SEBA Certification
General Rule: [Dismissed] employees [who]
contested legality of the dismissal in a forum of     PROCEDURE [RULE VII, BOOK V, IRR]
appropriate jurisdiction at the time of the           1. File Request for SEBA Certification [Sec.
issuance of the order for conduct of a                   1]
certification election
                                                          Who: Any legitimate labor organization
Exception: Dismissal was declared valid in a
final judgment at the time of the conduct of the          File where: Regional Office which issued
certification election.                                   its certificate of registration or certificate of
                                                          creation of chartered local
Disagreement over voters’ list over
eligibility of voters                                 2. Indicate in the request [Sec. 2]:
All contested voters shall be allowed to vote            a. Name and address of the requesting
[but] their votes shall be segregated and sealed             legitimate labor organization;
in individual envelopes. [Sec. 6, Rule IX, Book          b. Name and address of the company
V, IRR]                                                      where it operates;
                                                         c. Bargaining      unit   sought to be
Voting List and Voters
                                                             represented;
The basis of determining voters may be agreed
                                                         d. Approximate number of employees in
upon by the parties (i.e. the use of payroll).
                                                             the bargaining unit; and
[Acoje Workers Union v. NAMAWU, G.R. No.                 e. Statement of the existence/non-
L-18848 (1963)]                                              existence       of      other  labor
                                                             organization/CBA.
                               REVIEW ER ON LABOR RELATIONS
     Certificate of        Duly Certified by           certification shall be referred to the election
                                                       officer for the conduct of election pursuant
 Registration             President of                 to Rule IX of this rules.
                          requesting union
                                                   Note: If there is more than one Legitimate
 Creation of chartered    President of the         Labor Organization, Art. 269 applies
 local                    local federation of
                          the local                If Organized Establishment [Sec. 6]
                                                   If the Regional Director finds the establishment
                                                   organized he/she shall refer it to the mediator-
Both certificates should be attached to the
                                                   arbitrator for determination and propriety of
request                                            conducting a certification election.
3. Regional Director shall act on the request
                                                   4. Regional Director shall         act   on    the
   [Sec. 3]
                                                      submission [Sec. 4.1]
   When: Within one (1) day from submission
   of request                                       Incomplete        The request shall be
                                                    requirements      referred to Election Officer
   Action:                                                            for the conduct of election
   a. Determine      whether    request     is                        pursuant to Rule IX.
       compliant with Sec. 2 and whether the
       bargaining unit sought to be                 Complete          Regional Director shall
       represented is organized or not; and         requirements      issue a certification as
   b. Request a copy of the payroll                                   SEBA
   If the Regional Director finds it deficient,    5. Regional Director shall post the SEBA
   he/she shall advise the requesting union or        Certification [Sec. 4.1]
   local to comply within ten (10) days from
   notice. Failure to comply within the                Period: Fifteen (15) consecutive days
   prescribed period shall be deemed
   withdrawal of the request.                          Where: At least two (2) conspicuous
                                                       places in the establishment or covered
If Unorganized Establishment [Sec. 4]                  bargaining unit.
a. Finding of only 1 legitimate labor
    organization – Regional Director shall call    EFFECT OF SEBA CERTIFICATION [Sec.
    a conference within five (5) working days      4.2]
    for the SUBMISSION of:                         Upon the issuance of the [SEBA Certification],
    1. Names of employees in the covered           the certified union or local shall enjoy all the
         bargaining unit who signify support for   rights and privileges of an exclusive bargaining
         certification; [and these] employees
                                                   agent of all the employees in the covered
         comprise at least majority of the
                                                   bargaining unit.
         number of employees in the covered
         bargaining unit; and                      The certification shall bar the filing of a [PCE]
    2. Certification under oath by the             by any labor organization for a period of one (1)
         president of the requesting union or      year from the date of its issuance.
         local that all documents submitted are
         true and correct based on personal        Upon expiration of this one-year period, any
         knowledge                                 legitimate labor organization may file a [PCE]
b. Failure to Complete Requirements for            in the same bargaining unit represented by the
    SEBA Certification - the request for SEBA      certified labor organization, unless a [CBA]
between the employer and the certified labor        organization. [Reyes v. Trajano, G.R. No.
organization was executed and registered with       84433 (1992)]
the Regional Office in accordance with Rule
XVII.                                               BARS TO A CERTIFICATE ELECTION
                                                    Petition for certification may be filed:
        b. Consent Election                         General Rule: Anytime
                                                    Exceptions:
Consent Election means the election                 1. One-year bar rule
voluntarily agreed upon by the parties with or      2. Negotiation bar rule
without the intervention by DOLE [Sec. 1(i),        3. Deadlock bar rule
Rule I, Book V, IRR]                                4. Contract bar rule
Procedure [Sec. 11, Rule VIII, Book V, IRR]         See Grounds for denying a Petition for
1. The parties may agree to hold a consent          Certification Election
   election
   a. Where no petition for certification           (1) One-Year Bar Rule
       election was filed; or
   b. Where a petition for certification            No certification election may be held within 1
       election had been filed, and upon the        year from the time a valid certification, consent
       intercession of Med-Arbiter [Sec. 25,        or run-off election has been conducted within
       Rule VIII, Book V, IRR]                      the bargaining unit.
2. Mediator-Arbiter shall call for the consent
   election, reflecting the parties’ agreement      [If the order of the Med-Arbiter certifying the
   and the call in the minutes of the               results of the election has been appealed], the
   conference.       Regional     Director  or      running of the one-year period shall be
   authorized representative shall determine        suspended until the decision on the appeal
                                                    becomes final and executory. [Sec. 3(a), Rule
   the Election Officer by raffle in the
   presence of representatives of the               VIII, Book V]
   contending unions if they so desire
3. First pre-election conference is scheduled       Note: This bar also applies to a SEBA
   within ten (10) days from the date of the        Certification under Rule VII. “The certification
   agreement. Subsequent conferences may            shall bar the filing of a petition for certification
   be called to expedite and facilitate the         election by any labor organization for a period
   holding of the consent election.                 of one (1) year from the date of its issuance.”
                                                    [Sec. 4.2, Rule VII, Book V, IRR]
        c. Certification Election
                                                    (2) Negotiation Bar Rule
Certification Election is the process of
determining, through secret ballot, the sole and    No certification of election may be filed when:
exclusive representative of the employees in        1. Within 1 year after the valid certification
an appropriate bargaining unit for purposes of         election
collective bargaining or negotiation. [Sec. 1(i),   2. The DULY CERTIFIED union has
Rule I, Book V, IRR]                                   COMMENCED               AND      SUSTAINED
                                                       negotiations in good faith with the employer
PURPOSE                                             3. In accordance with Art. 261 of the Labor
The purpose of a certification election is             Code Sec. 3(b), Rule VIII, Book V
precisely the ascertainment of the wishes of
the majority of the employees in the
appropriate bargaining unit: to be or not to be
represented by a labor organization, and in the
affirmative case, by which particular labor
                                 REVIEW ER ON LABOR RELATIONS
(3) Deadlock Bar Rule                                 The five-year representation status acquired by
                                                      an incumbent bargaining agent either through
No certification of election may be filed when:       single enterprise collective bargaining or multi-
1. The incumbent or certified bargaining              employer bargaining shall not be affected by a
   agent is a party;                                  subsequent [CBA] executed between the same
2. A bargaining deadlock had been:                    bargaining agent and the employer during the
   a. Submitted to conciliation or arbitration        same five-year period. [Sec. 7, Rule XVII, Book
        or;                                           V, IRR]
   b. Had become the subject of a valid
        notice of strike or lockout [Sec. 3(c),       Despite an agreement for a CBA with a life of
        Rule VIII, Book V, IRR]                       more than five years, either as an original
                                                      provision or by amendment, the bargaining
A “deadlock” is defined as the “counteraction of      union’s exclusive bargaining status is effective
things producing entire stoppage;                     only for five years and can be challenged within
• a state of inaction or of neutralization            sixty (60) days prior to the expiration of the
    caused by the opposition of persons or of         CBA’s first five years. [FVC Labor Union-
    factions (as in government or voting body):       PTGWO v. SANAMA-FVC-SIGLO, G.R. No.
    standstill.” [...]                                176249 (2009)]
• The word is synonymous with the word
    impasse         which  [...]  “presupposes        The rule is that despite the lapse of the formal
    reasonable effort at good faith bargaining        effectivity of the CBA the law still considers the
    which, despite noble intentions, does not         same as continuing in force and effect until a
    conclude in agreement between the                 new CBA shall have been validly executed.
    parties” [Divine World University v. SOLE,        Hence, the contract bar rule still applies.
    G.R. No. 91915 (1992)]                            [Colegio de San Juan de Letran v. Association
                                                      of Employees, G.R. No. 141471 (2000)]
(4) Contract Bar Rule
                                                      Petition      for     cancellation      of union
BLR shall not entertain any petition for              registration DOES NOT suspend or prevent
certification election or any other action which      filing of certification election
may disturb the administration of DULY                A petition for cancellation of union registration
REGISTERED existing collective bargaining             shall not:
agreements affecting the parties, except under        1. suspend the proceedings for certification
Arts. 264, 265, and 268 [(60-day freedom                   election; nor
period)]. [Art. 238]                                  2. prevent the filing of a petition for
                                                           certification election. [Art. 246]
No petition for certification election may be filed
when a [CBA] between the employer and a               A certification election can be conducted
SEBA has been registered in accordance with           despite pendency of a petition to cancel the
Art. 237.                                             union registration certificate. For the fact is that
                                                      at the time the [union], whose registration
Where such [CBA] is registered, the petition          certificate is sought to be cancelled, filed its
may be filed only within sixty (60) days prior to     petition for certification, it still had the legal
its expiry. [Sec. 3(d), Rule VIII, Book V, IRR].      personality to perform such act absent an order
                                                      directing its cancellation. [Association of Court
The Contract-Bar Rule shall apply in any of the       of Appeals Employees v. Calleja, G.R. No.
following: (1) when there exists an unexpired         94716, (1991)]
registered CBA; or (2) when there is no
challenge on the representation status of the
incumbent union during the freedom period.
[D.O. No. 40-1-15]
                                REVIEW ER ON LABOR RELATIONS
 Allegation of company union a prejudicial
 question to a petition for certification
 election
 A complaint for unfair labor practice may be             Certification           Union Election
 considered a prejudicial question in a                    Election
 proceeding for certification election when it is
 charged therein that one or more labor unions        To determine the          To elect union
 participating in the election are being aided, or    Exclusive Bargaining      officers
 are controlled, by the company or employer           Agent
 [company union] [United CMC Textile Worker’s
 Union v. BLR, G.R. No. 51337(1984)].                 All members of the        Only union members
                                                      appropriate               may vote
 Rationale: The certification election may lead       bargaining unit
 to the selection of an employer-dominated or
 company union as the employees’ bargaining
                                                     WHO MAY VOTE [Sec. 6, Rule IX, Book V,
 representative, and when the court finds that
                                                     IRR]
 said union is employer-dominated in the unfair
                                                     All employees who are members of the
 labor practice case, the union selected would
                                                     appropriate bargaining unit three (3) months
 be decertified and the whole election
                                                     prior to the filing of the petition/request shall be
 proceedings would be rendered useless and
                                                     eligible to vote.
 nugatory. [B.F. Goodrich Phils. Marikina v. B.F.
 Goodrich Confidential and Salaried Employees
                                                     An employee who has been dismissed from
 Union, G.R. No. L-34069-70 (1973)]
                                                     work but has contested the legality of the
                                                     dismissal in a forum of appropriate jurisdiction
 NATURE OF PROCEEDING
                                                     at the time of the issuance of the order for the
 Certification election is the most effective and
                                                     conduct of a certification election shall be
 the most democratic way of determining which
                                                     considered a qualified voter, unless his/her
 labor organization can truly represent the
                                                     dismissal was declared valid in a final judgment
 working force in the appropriate bargaining unit
                                                     at the time of the conduct of the certification
 of a company [Samangang Manggagawa sa
                                                     election.
 PERMEX v SOLE, G.R. No. 107792 (1998)].
                                                     In case of disagreement over the voters’ list or
 The determination of the proceeding does not        over the eligibility of voters, all contested voters
 entail the entry of remedial orders or redress of   shall be allowed to vote. But their votes shall be
 rights, but culminates solely in an official        segregated and sealed in individual envelopes.
 designation of bargaining units and an
 affirmation of the employees’ expressed choice      WHO MAY FILE [Sec. 1, Rule VIII, Book V,
 of bargaining agent. [Angat River Irrigation        IRR]
 System v. Angat River Worker’s Union                1. Legitimate labor organization [Art. 219
 (PLUM), G.R. Nos. L-10943 and L-10944                  (h)]
 (1957)]                                             2. Local/chapter that has been issued a
                                                        charter certificate
                                                        The chapter shall acquire legal personality
 Technical rules and objections should not              only for purposes of filing a petition for
 hamper the correct ascertainment of the labor          certification election from the date it was
 union that has the support or confidence of the        issued a charter certificate. [Art. 241]
 majority of the workers and is thus entitled to     3. National union or federation that has
 represent them in their dealings with                  issued a charter certificate to its
management. [Port Workers Union v.                      local/chapter [in behalf of the latter]
Laguesma, G.R. Nos. 94929-30, (1992)]
                               REVIEW ER ON LABOR RELATIONS
4. A group of legitimate labor unions in a
   private establishment organized for
   collective bargaining or for dealing with
   employers        concerning      terms     and
   conditions of employment for their member
   unions or for participating in the formulation
   of social and employment policies,               The employer is not a party to a certification
   standards and programs, registered with          election, which is the sole or exclusive concern
   the BLR in accordance with Rule III Sec. 2-      of the workers. [...]
   B. [Sec. 1 (ll), Rule I, Book V, IRR]
5. Employer (when requested to bargain              The only instance when the employer may be
   collectively and no existing CBA)                involved in that process is when it is obliged to
   Requisites:                                      file a petition for certification election on its
   a. Employer is requested to bargain              workers’ request to bargain collectively
       collectively; AND                            pursuant to Art. 258 [now Art. 270]. [Hercules
   b. No existing registered CBA in the unit        Industries, Inc. v. Sec. of Labor, G.R. No.
       [Art. 270]                                   96255 (1992)]
BYSTANDER RULE                                      [The employer] did not possess the legal
In all cases, whether the petition for              personality to file a motion to dismiss the
certification election is filed by an employer or   petition for certification election even if based
a legitimate labor organization, the employer       on the ground that its supervisory employees
shall not be considered a party thereto with a      are in reality managerial employees.
concomitant right to oppose a petition for
certification election. [Art. 271]                  It is well-settled that an employer has no
                                                    standing to question a certification election
The employer’s participation shall be               since this is the sole concern of the workers.
limited to:                                         The only exception to this rule is Art. 258 [now
a. Being notified or informed of petitions of       Art. 270]. [PT&T v. Laguesma, G.R. No.
    such nature                                     101730 (1993)]
b. Submitting the list of employees during the
    pre-election conference, should the Med-        [A] company’s interference in the certification
    Arbiter act favorably on the petition [Art.     election below by actively opposing the same
    271]                                            [...] unduly creates a suspicion that it intends to
                                                    establish a company union. [Oriental Tin Can
The principle of the employer as by-stander         Labor Union v. Secretary of Labor, G.R. No.
shall be strictly observed throughout the           116751 (1998)]
conduct of certification election.
The employer shall not harass, intimidate,
threat[en], or coerce employees before, during
and after elections. [Sec. 1, Rule IX, Book V,
IRR]
However, manifestation of facts that would aid
the [Med-Arbiter] in expeditiously resolving the
petition such as existence of a contract-bar,
one year bar or deadlock bar may be
considered. [Sec. 1, Rule VIII, Book V, IRR]
                                 REVIEW ER ON LABOR RELATIONS
 Procedure: CERTIFICATION ELECTION IN
 AN UNORGANIZED ESTABLISHMENT                        WHEN PETITION MUST BE FILED
                                                     Freedom Period
Unorganized Establishment                            Within the sixty (60)-day period before the
[It is an] establishment where there is no           expiration of the collective bargaining
certified bargaining agent. [Art. 269]               agreement. [Art. 271]
 Procedure [Art. 269]                                Rationale of Prohibition of Filing Outside
 1. File a petition for certification election.      the Freedom Period
 2. Upon filing of the petition, the Med-Arbiter     To ensure industrial peace between the
    shall automatically conduct a certification      employer and its employees during the
    election.                                        existence of the CBA. [Republic Planters Bank
                                                     Union v. Laguesma, G.R. No. 119675 (1996)]
Filing of petition is by a legitimate labor
organization                                                d. Run-Off Election
It cannot be filed by an unregistered labor
organization. Art. 251 enumerates the rights         Run-Off Election refers to an election
granted to a legitimate labor organization and       between the labor unions receiving the two (2)
one of those rights is the right to be chosen as     highest number of votes in a certification or
the exclusive bargaining representative. This is     consent election when the following requisites
one way the law encourages union registration.       have been complied with:
Note: Art. 269 should be related to SEBA             1. Valid election;
Certification. If there are multiple LLOs in an      2. The certification or consent election
unorganized establishment, Art. 269 applies. If         provides for three (3) or more choices
there is only one LLO in an unorganized                 (Note: “No Union” is considered one choice
establishment, Rule VII on SEBA Certification           – Prof. Battad);
applies. Under this rule, when there is failure to   3. None of the contending UNIONS received
complete requirements, the Regional Director            a majority of the VALID VOTES cast;
will refer it to the Election Officer.               4. No objections or challenges which if
                                                        sustained, can materially alter the results;
Procedure: CERTIFICATION ELECTION IN                    and
AN ORGANIZED ESTABLISHMENT                           5. The total number of votes for all contending
                                                        UNIONS is at least fifty (50%) of the
Organized Establishment                                 number of VOTES cast [Art. 268; Sec.
Refers to an enterprise where there exists a            1(uu), Rule I, Book V, IRR; Sec. 1, Rule X,
recognized or certified sole and exclusive              Book V, IRR]
bargaining agent. [Sec. 1(ll), Rule I, Book V,
IRR]                                                 Illustration
                                                     The CBU has 100 members and 80 of which
                                                     voted. Union “A”= 30; Union “B”= 15; Union
Procedure [Art. 268]
                                                     “C”=15 and No Union= 20. There were no
1. File a verified petition questioning the
                                                     invalid votes. Since none got the majority of the
   majority.
                                                     80 valid votes (40) and the contending unions
2. It must be filed within the 60-day period         obtained 60 votes (which is at least 50% of the
   before expiration of CBA (freedom period).        VOTES cast), a run-off election is proper. The
3. Supported by written consent of at least          run-off will be between the labor unions
   25% of ALL employees in the bargaining            receiving “the two highest number of votes.”
   unit (substantial support).
4. Med-Arbiter shall automatically order an
   election.
                                  REVIEW ER ON LABOR RELATIONS
Pursuant to Art. 268, when an election which       Situations Contemplated
provides for three or more choices results in no   1. A tie between two (2) choices.
choice receiving a majority of the valid votes     2. Failure of Elections [see Definition]
cast, a run-off election shall be conducted
between the labor unions receiving the two
                                                   Duty of Election Officer
highest number of votes. Thus, the run-off will
                                                   1. Notify parties of a re-run election
be among Union “A”, “B”, and “C.” [Azucena]
                                                   2. Cause posting of notice within five (5) days
Procedure for Run-Off Election                        from said election.
Election Officer shall motu proprio conduct a
run-off election within ten (10) days from the     When will re-run be conducted
close of the election proceedings between the      Within ten (10) days after the posting of the
labor unions receiving the two highest number      notice of the union declared as winner and
of votes.                                          certified choice receiving the HIGHEST
                                                   VOTES CAST.
“No Union” shall not be a choice in the run-off
election [Sec. 1, Rule X, Book V, IRR].
Same voters’ list used in the certification
election shall be used in the run-off election.
The labor union receiving the GREATER
number of VALID VOTES cast shall be certified
as the winner [Sec. 2, Rule X, Book V, IRR].
Note: Please note the difference between valid
votes cast versus votes cast – valid votes
excludes spoiled votes.
e. Re-Run Election
Re-run Election refers to an election
conducted to break a tie between contending
unions, including between "no union" and one
of the unions. It shall likewise refer to an
election conducted after a failure of election
has been declared by the election officer
and/or affirmed by the mediator-arbiter. [Sec.
1(tt), Rule 1, Book V, as amended by DO 40-I-
15]