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Labor Law

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BASIC CONCEPTS

Philippine Constitution, Art. III, Sec. 8; Art. XIII, Sec. 3


Labor Code, Arts. 218, 219, 290

Section 8. The right of the people, including those employed in the public and private sectors, to form unions,
associations, or societies for purposes not contrary to law shall not be abridged.

Section 3. The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote
full employment and equality of employment opportunities for all.

It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful
concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure,
humane conditions of work, and a living wage. They shall also participate in policy and decision-making processes
affecting their rights and benefits as may be provided by law.

The State shall promote the principle of shared responsibility between workers and employers and the preferential
use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance
therewith to foster industrial peace.

The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share
in the fruits of production and the right of enterprises to reasonable returns to investments, and to expansion and
growth.

RIGHT TO SELF-ORGANIZATION

Concept & Scope

Labor Code: Arts. 253, 257, 292 (c), 219 (e, f)


Omnibus Rules, Book V, Rule I-Rule II, as amended by D.O. 40, series of 2003

ARTICLE 253. [243] Coverage and Employees' Right to Self-Organization. 194 — All persons employed in
commercial, industrial and agricultural enterprises and in religious, charitable, medical, or educational institutions,
whether operating for profit or not, shall have the right to self-organization and to form, join, or assist labor
organizations of their own choosing for purposes of collective bargaining. Ambulant, intermittent and itinerant
workers, self-employed people, rural workers and those without any definite employers may form labor organizations
for their mutual aid and protection.

ARTICLE 257. [246] Non-Abridgment of Right to Self-Organization. 198 — It shall be unlawful for any person to
restrain, coerce, discriminate against or unduly interfere with employees and workers in their exercise of the right to
self-organization. Such right shall include the right to form, join, or assist labor organizations for the purpose of
collective bargaining through representatives of their own choosing and to engage in lawful concerted activities for
the same purpose for their mutual aid and protection, subject to the provisions of Article 264 199 of this Code.

ARTICLE 292. (c) Any employee, whether employed for a definite period or not, shall, beginning on his first day of
service, be considered as an employee for purposes of membership in any labor union.

ARTICLE 219. [212] Definitions. (e) "Employer" includes any person acting in the interest of an employer, directly
or indirectly. The term shall not include any labor organization or any of its officers or agents except when acting as
employer.

(f) "Employee" includes any person in the employ of an employer. The term shall not be limited to the employees of
a particular employer, unless the Code so explicitly states. It shall include any individual whose work has ceased as a
result of or in connection with any current labor dispute or because of any unfair labor practice if he has not obtained
any other substantially equivalent and regular employment..

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RULE I DEFINITION OF TERMS
Section 1. Definition of Terms.
(a) “Affiliate” refers to an independent union affiliated with a federation, national union or a chartered local which
was subsequently granted independent registration but did not disaffiliate from its federation, reported to the Regional
Office and the Bureau in accordance with Rule III, Sections 6 and 7 of these Rules.
(b) “Appeal” refers to the elevation by an aggrieved party to an agency vested with appellate authority of any decision,
resolution or order disposing the principal issues of a case rendered by an agency vested with original jurisdiction,
undertaken by filing a memorandum of appeal.
(c) “Audit Examiner” refers to an officer of the Bureau or Labor Relations Division of the Regional Office authorized
to conduct an audit or examination of the books of accounts, including all funds, assets and other accountabilities of
a legitimate labor organization and workers’ association.
(d) “Bargaining Unit” refers to a group of employees sharing mutual interests within a given employer unit, comprised
of all or less than all of the entire body of employees in the employer unit or any specific occupational or geographical
grouping within such employer unit.
(e) “Board” refers to the National Conciliation and Mediation Board established under Executive Order No. 126. (f)
“Bureau” refers to the Bureau of Labor Relations.
(g) “Cancellation Proceedings” refer to the legal process leading to the revocation of the legitimate status of a union
or workers’ association.
(h) “Certification Election” or “Consent Election” refers to the process of determining through secret ballot the sole
and exclusive representative of the employees in an appropriate bargaining unit for purposes of collective bargaining
or negotiation. A certification election is ordered by the Department, while a consent election is voluntarily agreed
upon by the parties, with or without the intervention by the Department.
(i) “Chartered Local” refers to a labor organization in the private sector operating at the enterprise level that acquired
legal personality through the issuance of a charter certificate by a duly registered federation or national union, and
reported to the Regional Office in accordance with Rule III, Section 2-E of these Rules.
(j) “Collective Bargaining Agreement” or “CBA” refers to the contract between a legitimate labor union and the
employer concerning wages, hours of work, and all other terms and conditions of employment in a bargaining unit.
(k) “Conciliator Mediator” refers to an officer of the Board whose principal function is to assist in the settlement and
disposition of labor-management disputes through conciliation and preventive mediation, including the promotion
and encouragement of voluntary approaches to labor disputes prevention and settlement.
(l) “Consolidation” refers to the creation or formation of a new union arising from the unification of two or more
unions.
(m) “Deregistration of Agreement” refers to the legal process leading to the revocation of CBA registration.
(n) “Department” refers to the Department of Labor and Employment.
(o) “Election Officer” refers to an officer of the Bureau or Labor Relations Division in the Regional Office authorized
to conduct certification elections, election of union officers and other forms of elections and referenda in accordance
with Rule XII, Sections 2-5 of these Rules.
(p) “Election Proceedings” refer to the period during a certification election, consent or run-off election and election
of union officers, starting from the opening to the closing of the polls, including the counting, tabulation and
consolidation of votes, but excluding the period for the final determination of the challenged votes and the canvass
thereof.
(q) “Eligible Voter” refers to a voter belonging to the appropriate bargaining unit that is the subject of a petition for
certification election.
(r) “Employee” refers to any person working for an employer. It includes one whose work has ceased in connection
with any current labor dispute or because of any unfair labor practice and one who has been dismissed from work but
the legality of the dismissal is being contested in a forum of appropriate jurisdiction.
(s) “Employer” refers to any person or entity who employs the services of others, one for whom employees work and
who pays their wages or salaries. An employer includes any person directly or indirectly acting in the interest of an
employer. It shall also refer to the enterprise where a labor organization operates or seeks to operate.
(t) “Exclusive Bargaining Representative” refers to a legitimate labor union duly recognized or certified as the sole
and exclusive bargaining representative or agent of all the employees in a bargaining unit.
(u) “Grievance” refers to any question by either the employer or the union regarding the interpretation or
implementation of any provision of the collective bargaining agreement or interpretation or enforcement of company
personnel policies.
(v) “Improved Offer Balloting” refers to a referendum by secret ballot involving union members on the improved
offer of the employer on or before the 30th day of a strike.

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(w) “Independent Union” refers to a labor organization operating at the enterprise level that acquired legal personality
through independent registration under Article 234 of the Labor Code and Rule III, Section 2-A of these Rules.
(x) “Inter-Union Dispute” refers to any conflict between and among legitimate labor unions involving representation
questions for purposes of collective bargaining or to any other conflict or dispute between legitimate labor unions.
(y) “Interlocutory Order” refers to any order that does not ultimately resolve the main issue/s in a dispute.
(z) “Interpleader” refers to a proceeding brought by a party against two or more parties with conflicting claims,
compelling the claimants to litigate between and among themselves their respective rights to the claim, thereby
relieving the party so filing from suits they may otherwise bring against it.
(aa) “Intervention” refers to a proceeding whereby a person, labor organization or entity not a party to a case but may
be affected by a decision therein, formally moves to make himself/herself/itself a party thereto.
(bb) “Intra-Union Dispute” refers to any conflict between and among union members, including grievances arising
from any violation of the rights and conditions of membership, violation of or disagreement over any provision of the
union’s constitution and by-laws, or disputes arising from chartering or affiliation of union.
(cc) “Labor Organization” refers to any union or association of employees in the private sector which exists in whole
or in part for the purpose of collective bargaining, mutual aid, interest, cooperation, protection, or other lawful
purposes.
(dd) “Labor Relations Division” refers to the (1) Labor Organization and CBA Registration Unit and (2)
MedArbitration Unit in the Regional Office. The Labor Organization and CBA Registration Unit is in charge of
processing the applications for registration of independent unions, chartered locals, workers associations and
collective bargaining agreements, maintaining said records and all other reports and incidents pertaining to labor
organizations and workers’ associations. The Med-Arbitration Unit conducts hearings and decides certification
election or representation cases, inter/intra-union and other related labor relations disputes.
(ee) “Legitimate Labor Organization” refers to any labor organization in the private sector registered or reported with
the Department in accordance with Rules III and IV of these Rules.
(ff) “Legitimate Workers’ Association” refers to an association of workers organized for mutual aid and protection of
its members or for any legitimate purpose other than collective bargaining registered with the Department in
accordance with Rule III, Sections 2-C and 2-D of these Rules.
(gg) “Lockout” refers to the temporary refusal of an employer to furnish work as a result of a labor or industrial
dispute.
(hh) “Managerial Employee” refers to an employee who is vested with powers or prerogatives to lay down and execute
management policies or to hire, transfer, suspend, layoff, recall, discharge, assign or discipline employees.
(ii) “Med-Arbiter” refers to an officer in the Regional Office or in the Bureau authorized to hear and decide
representation cases, inter/intra-union disputes and other related labor relations disputes, except cancellation of union
registration cases.
(jj) “Merger” refers to a process where a labor organization absorbs another resulting in the cessation of the absorbed
labor organization’s existence, and the continued existence of the absorbing labor organization.
(kk) “National Union” or “Federation” refers to 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, standards and programs,
registered with the Bureau in accordance with Rule III, Section 2-B of these Rules.
(ll) “Organized Establishment” refers to an enterprise where there exists a recognized or certified sole and exclusive
bargaining agent.
(mm) “Preventive Mediation Cases” refer to labor disputes which are the subject of a formal or informal request for
conciliation and mediation assistance sought by either or both parties or upon the initiative of the Board.
(nn) “Rank-and-File Employee” refers to an employee whose functions are neither managerial nor supervisory in
nature.
(oo) “Regional Director” refers to the Head of the Regional Office.
(pp) “Regional Office” refers to the office of the Department of Labor and Employment at the administrative regional
level.
(qq) “Registration” refers to the process of determining whether the application for registration of a union or workers’
association and collective bargaining agreement complies with the documentary requirements for registration
prescribed in Rules III, IV, and XVII of these Rules.
(rr) “Related Labor Relations Dispute” refers to any conflict between a labor union and the employer or any individual,
entity or group that is not a labor union or workers’ association.
(ss) “Run-off Election” refers to an election between the labor unions receiving the two (2) highest number of votes
in a certification or consent election with three (3) or more choices, where such a certified or consent results in none

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of the three (3) or more choices receiving the majority of the valid votes cast; provided that the total number of votes
for all contending unions is at least fifty percent (50%) of the number of votes cast.
(tt) “Secretary” refers to the Head of the Department.
(uu) “Strike” refers to any temporary stoppage of work by the concerted action of employees as a result of a labor or
industrial dispute.
(vv) “Strike Area” refers to the establishment, warehouses, depots, plants or offices, including the sites or premises
used as run-away shops of the employer, as well as the immediate vicinity actually used by picketing strikers in
moving to and fro before all points of entrance.
(ww) “Strike Vote Balloting” refers to the secret balloting undertaken by the members of the union in the bargaining
unit concerned to determine whether or not to declare a strike in meetings or referenda called for that purpose.
(xx) “Supervisory Employee” refers to an employee who, in the interest of the employer, effectively recommends
managerial actions and the exercise of such authority is not merely routinary or clerical but requires the use of
independent judgment.
(yy) “Term of Office” refers to the fixed period of five (5) years during which the duly elected officers of a labor
organization discharge the functions of their office, unless a shorter period is stipulated in the organization’s
constitution and by-laws.
(zz) “Union” refers to any labor organization in the private sector organized for collective bargaining and for other
legitimate purposes.
(aaa) “Voluntary Arbitrator” refers to any person accredited by the Board as such, or any person named or designated
in the collective bargaining agreement by the parties to act as their voluntary arbitrator, or one chosen by the parties,
with or without the assistance of the Board, pursuant to a selection procedure agreed upon in the collective bargaining
agreement.
(bbb) “Voluntary Recognition” refers to the process by which a legitimate labor union is recognized by the employer
as the exclusive bargaining representative or agent in a bargaining unit, reported with the Regional Office in
accordance with Rule VII, Section 2 of these Rules.
(ccc) “Workers’ Association” refers to an association of workers organized for the mutual aid and protection of its
members or for any legitimate purpose other than collective bargaining.

RULE II COVERAGE OF THE RIGHT TO SELF-ORGANIZATION


Section 1. Policy. - It is the policy of the State to promote the free and responsible exercise of the right to self-
organization through the establishment of a simplified mechanism for the speedy registration of labor unions and
workers associations, determination of representation status and resolution of inter/intra-union and other related labor
relations disputes. Only legitimate or registered labor unions shall have the right to represent their members for
collective bargaining and other purposes. Workers’ associations shall have the right to represent their members for
purposes other than collective bargaining.

Section 2. Who may join labor unions and workers’ associations. - All persons employed in commercial, industrial
and agricultural enterprises, including employees of government owned or controlled corporations without original
charters established under the Corporation Code, as well as employees of religious, charitable, medical or educational
institutions whether operating for profit or not, shall have the right to self-organization and to form, join or assist labor
unions for purposes of collective bargaining: provided, however, that supervisory employees shall not be eligible for
membership in a labor union of the rank-and-file employees but may form, join or assist separate labor unions of their
own. Managerial employees shall not be eligible to form, join or assist any labor unions for purposes of collective
bargaining. Alien employees with valid working permits issued by the Department may exercise the right to self-
organization and join or assist labor unions for purposes of collective bargaining if they are nationals of a country
which grants the same or similar rights to Filipino workers, as certified by the Department of Foreign Affairs. For
purposes of this section, any employee, whether employed for a definite period or not, shall beginning on the first day
of his/her service, be eligible for membership in any labor organization. All other workers, including ambulant,
intermittent and other workers, the self-employed, rural workers and those without any definite employers may form
labor organizations for their mutual aid and protection and other legitimate purposes except collective bargaining.

Cases:
S.S. Ventures Ventures is a PEZA-registered export Should the registration of the Union be
International firm with its principal place of business cancelled on the ground of
v. S.S. in Mariveles, Bataan. misrepresentation? No.
Ventures
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Labor Union, The Union filed a petition for The double entries are no more than
July 23, 2008 certification election which was “normal human error,” effected without
supported by 542 signatures of the rank- malice. Even the labor arbiter who found
and-file employees of Ventures. for Ventures sided with the Union in its
explanation on the absence of malice.
Ventures filed a petition for cancellation
of the certificate of registration of the The cancellation of a union’s registration
labor union, invoking the grounds set doubtless has an impairing dimension on
forth in Art. 239(a) of the Labor Code the right of labor to self-organization.
(misrepresentation, false statement or Accordingly, we can accord concurrence
fraud in the adoption/ratification of the to the following apt observation of the
constitution/by-laws/minutes of BLR: “[F]or fraud and misrepresentation
ratification/list of members). Ventures [to be grounds for] cancellation of union
alleged for arguments: registration under Article 239 [of the
(1) The Union maliciously included Labor Code], the nature of the fraud and
the names and forged the misrepresentation must be grave and
signatures of 82 former compelling enough to vitiate the consent
employees no longer connected of a majority of union members.”
with Ventures;
(2) The Union maliciously twice Determination of Union Membership is
entered the names of three an Internal Matter flowing from the
persons; Right to Self-Organization
(3) No organizational meetings and [T]he procedure for acquiring or losing
ratification actually took place; union membership and the
and determination of who are qualified or
(4) The Union’s application was not disqualified to be members are matters
supported by at least 20% of the internal to the union and flow from its
2,197 rank-and-file employees of right to self-organization.
Ventures, which is 418.
[T]he relevancy of the 82 individuals’
The Union filed an Answer with Motion active participation in the Union’s
to Dismiss. organizational meeting and the signing
ceremonies thereafter comes in only for
Seven months after its petition for purposes of determining whether or not
cancellation, Ventures filed a the Union, even without the 82, would
Supplemental Reply Memorandum. still meet what Art. 234(c) of the Labor
Ventures included 82 hand-written Code. Even subtracting the 82
statements of 82 employees who alleged employees from 542 leaves 460 union
that they were unwilling or harassed members, still within 440 or 20% of the
signatories to the attendance sheet of the maximum total of 2,202 rank-and-file
organizational meeting. employees.

The DOLE Region III Regional Withdrawal from Union Membership


Director resolved to cancel the certificate We have in precedent cases said that the
of registration of the Union. employees’ withdrawal from a labor
union made before the filing of the
The Union filed a motion for petition for certification election is
reconsideration that was forwarded to presumed voluntary, while withdrawal
the Bureau of Labor Relations (BLR), after the filing of such petition is
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which treated the belated motion as an considered to be involuntary and does
Appeal. Ventures filed a Motion to not affect the same. Now then, if a
Expunge. withdrawal from union membership
done after a petition for certification
The BLR reversed and ordered that the election has been filed does not vitiate
Union “shall remain in the roster of such petition, is it not but logical to
legitimate labor organizations.” The BLR assume that such withdrawal cannot
denied the motion for reconsideration of work to nullify the registration of the
Ventures. union?

Ventures filed a petition for certiorari Another factor which militates against
under Rule 65 before the Court of the veracity of the allegations in the
Appeals. The CA denied the petition for Sinumpaang Petisyon is the lack of
certiorari and the subsequent motion for particularities on how, when and where
reconsideration. Hence, this petition for respondent union perpetrated the alleged
review under Rule 45. fraud on each member. Such details are
crucial for in the proceedings for
cancellation of union registration on the
ground of fraud or misrepresentation,
what needs to be established is that the
specific act or omission of the union
deprived the complaining employees-
members of their right to choose.

Registration of Labor Unions is not a


ministerial duty of the BLR
It cannot be over-emphasized that the
registration or the recognition of a labor
union after it has submitted the
corresponding papers is not ministerial
on the part of the BLR. Prescinding from
these considerations, the issuance to the
Union of Certificate of Registration [ ]
necessarily implies that its application for
registration and the supporting
documents thereof are prima facie free
from any vitiating irregularities.

Bystander Rule
A certification election is exclusively the
concern of employees and the employer
lacks the legal personality to challenge it.
In fact, jurisprudence frowns on the
employer’s interference in a certification
election for such interference unduly
creates the impression that it intends to
establish a company union.

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Technical Rules of Procedure May Be
Relaxed
Ventures’ allegations on forum shopping
and the procedural lapse supposedly
committed by the BLR in allowing a
belatedly filed motion for
reconsideration need not detain us long.
Suffice it to state that this Court has
consistently ruled that the application of
technical rules of procedure in labor
cases may be relaxed to serve the
demands of substantial justice. So it must
be in this case.
The 353 rank-and-file employees of A certification election is the process of
Holiday Inn conducted a certification determining the sole and exclusive
election where NUWHRAIN-MPHC bargaining agent of the employees in an
won 151 votes and HIMPHLU won 169 appropriate bargaining unit for purposes
votes. In view of the significant number of collective bargaining.
of 22 segregated votes, the Unions
referred the case to the Med-Arbiter to To be sure, the conduct of a certification
decide which among the votes would be election has a two-fold objective: to
opened and tallied. determine the appropriate bargaining
unit and to ascertain the majority
On March 10, 2006, the Med-Arbiter representation of the bargaining
ruled for the opening of 17 out of the 22 representative, if the employees desire to
segregated votes, consisting of 11 be represented at all by anyone. It is not
dismissed employees and six supposed simply the determination of who
supervisory employees of the hotel. between two or more contending unions
NUWHRAIN- won, but whether it effectively ascertains
Manila NUWHRAIN filed an appeal and on the will of the members of the bargaining
Pavilion Hotel August 9, 2005, the Secretary of Labor unit as to whether they want to be
Chapter v. and Employment (SOLE) affirmed the represented and which union they want
Secretary, July Med-Arbiter’s Order. The SOLE to represent them.
31, 2009 concluded that the certification of
HIMPHLU as the exclusive bargaining Collective bargaining, refers to the
agent was proper. The SOLE denied the negotiated contract between a legitimate
motion for reconsideration. labor organization and the employer
concerning wages, hours of work and all
The CA denied NUWHRAIN’s appeal other terms and conditions of
and motion for reconsideration and employment in a bargaining unit.
affirmed the ruling of the SOLE. Hence, Collective bargaining covers all aspects
this petition for review on certiorari. of the employment relation and the
resultant CBA negotiated by the certified
Court’s Issues: union binds all employees in the
(1) whether employees on bargaining unit. Hence, all rank and file
probationary status at the time of employees, probationary or permanent,
the certification elections should have a substantial interest in the selection
be allowed to vote, and (YES) of the bargaining representative. (Airtime
Specialists, Inc. v. Ferrer-Calleja)
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(2) whether HIMPHLU was able to
obtain the required majority for The significance of an employee’s right
it to be certified as the exclusive to vote in a certification election cannot
bargaining agent. (NO) thus be overemphasized. For he has
considerable interest in the
Issues Actually Discussed: determination of who shall represent
1. Are the Probationary Employees him in negotiating the terms and
eligible to vote? Yes. conditions of his employment.
The provision in the CBA disqualifying
probationary employees from voting Issue 1: Are Probationary Employees
cannot override the Constitutionally- eligible to vote? Yes.
protected right of workers to self- 1. The Code makes no distinction as to
organization, as well as the provisions of their employment status as basis for
the Labor Code and its Implementing eligibility in supporting the petition
Rules on certification elections and for certification election. The law
jurisprudence thereon. A law is read into, refers to “all” the employees in the
and forms part of, a contract. Provisions bargaining unit. All they need to be
in a contract are valid only if they are not eligible to support the petition is to
contrary to law, morals, good customs, belong to the “bargaining unit.”
public order or public policy. 2. Rule II, Sec. 2 of Department Order
No. 40-03, series of 2003, which
2. What is the reckoning date to amended Rule XI of the Omnibus
determine eligible voters in cases Rules Implementing the Labor Code,
when the order of the Med- provides that “any employee,
Arbiter is under review? The date whether employed for a definite
of finality of the SOLE’s order. period or not, shall beginning on the
In cases where a timely appeal has been first day of his/her service, be eligible
filed from the Order of the Med-Arbiter, for membership in any labor
the date when the Order of the Secretary organization.”
of Labor and Employment, whether
affirming or denying the appeal, Issue 2: What is the reckoning date to
becomes final and executory. [March 10, determine eligible voters in cases when
2006, not August 9, 2005] the order of the Med-Arbiter is under
review? The date of finality of the
3. Are the Supervisory Employees SOLE’s order.
eligible to vote? No. Rule XI, Sec. 5 of D.O. 40-03, on which
At the time the certification elections was the SOLE and the appellate court rely to
conducted, they had ceased to be part of support their position that probationary
the rank and file. employees hired after the issuance of the
Order granting the petition for the
4. Did HIMPHLU attain a majority conduct of certification election must be
vote? No. excluded, should not be read in isolation and
It is well-settled that under the so-called must be harmonized with the other
“double majority rule,” for there to be a provisions of D.O. Rule XI, Sec. 5 of
valid certification election, majority of D.O. 40-03.
the bargaining unit must have voted
AND the winning union must have In light of the provisions in Rule XI, and
garnered majority of the valid votes cast. prescinding from the principle that all
employees are, from the first day of their
Page 9 of 64 | 021022
5. Is a run-off election proper? Yes. employment, eligible for membership in
Having declared that no choice in the a labor organization, it is evident that the
certification election conducted obtained period of reckoning in determining who
the required majority, it follows that a shall be included in the list of eligible
run-off election must be held to voters is, in cases where a timely appeal
determine which between HIMPHLU has been filed from the Order of the
and petitioner should represent the rank- Med-Arbiter, the date when the Order of
and-file employees. the Secretary of Labor and Employment,
whether affirming or denying the appeal,
becomes final and executory.

During the pendency of the appeal, the


employer may hire additional employees.
To exclude the employees hired after the
issuance of the Med-Arbiter’s Order but
before the appeal has been resolved
would violate the guarantee that every
employee has the right to be part of a
labor organization from the first day of
their service.

To rule then that only those employees


hired as of the date of the issuance of the
Med-Arbiter’s Order are qualified to vote
would effectively disenfranchise
employees hired during the pendency of
the appeal. More importantly, reckoning
the date of the issuance of the Med-
Arbiter’s Order as the cut-off date would
render inutile the remedy of appeal to the
SOLE.

Issue 3: Are the Supervisory Employees


eligible to vote? No.
[T]he votes of the six supervisory
employees must be excluded because at
the time the certification elections was
conducted, they had ceased to be part of
the rank and file, their promotion having
taken effect two months before the
election.

Issue 4: Did HIMPHLU attain a majority


vote? No.
Prescinding from the Court’s ruling that
all the probationary employees’ votes
should be deemed valid votes while that
of the supervisory employees should be
excluded, it follows that the number of
Page 10 of 64 | Yong | Labor 2
valid votes cast would increase—from
321 to 337.

Under Art. 256 of the Labor Code, the


union obtaining the majority of the valid
votes cast by the eligible voters shall be
certified as the sole and exclusive
bargaining agent of all the workers in the
appropriate bargaining unit. This
majority is 50% + 1. Hence, 50% of 337
is 168.5 + 1 or at least 170.

HIMPHLU obtained 169 while


petitioner received 151 votes. Clearly,
HIMPHLU was not able to obtain a
majority vote.

It bears reiteration that the true


importance of ascertaining the number
of valid votes cast is for it to serve as
basis for computing the required
majority, and not just to determine which
union won the elections.

Issue 5: Is a run-off election proper? Yes.


A run-off election refers to an election
between the labor unions receiving the
two (2) highest number of votes in a
certification or consent election with
three (3) or more choices, where such a
certified or consent election results in
none of the three (3) or more choices
receiving the majority of the valid votes
cast; provided that the total number of
votes for all contending unions is at least
fifty percent (50%) of the number of
votes cast.

With 346 votes cast, 337 of which are


now deemed valid and HIMPHLU
having only garnered 169 and petitioner
having obtained 151 and the choice “NO
UNION” receiving 1 vote, then the
holding of a run-off election between
HIMPHLU and petitioner is in order.
Samahan ng The Samahan has a total of 120 members Can the Samahan lawfully form a
Manggagawa who, in the Preamble of its founding worker’s association despite its members
sa Hanjin documents, identified themselves as not being ambulant, intermittent, and
Shipyard v. “mga manggagawa sa Hanjin Shipyard.” itinerant workers? Yes.
Page 11 of 64 | 021022
BLR, October It filed an application for registration of
14, 2015 its name with the DOLE. A common element between unionism
and the formation of LMCs is the
The DOLE Regional Office issued a existence of an employer-employee
certificate of registration. relationship. Where neither party is an
employer nor an employee of the other,
Hanjin filed a petition for the no duty to bargain collectively would
cancellation of registration of Samahan exist.
on the ground that its members did not
fall under any of the types of workers In contrast, the existence of employer-
enumerated in the second sentence of employee relationship is not mandatory
Article 243 (ambulant, intermittent, and in the formation of workers’ association.
itinerant workers). What the law simply requires is that the
members of the workers’ association, at
The DOLE Regional Director granted the very least, share the same interest.
the petition and cancelled the registration The very definition of a workers’
of the Samahan. It held that “Having a association speaks of “mutual aid and
definite employer, these 57 members protection.
should have formed a labor union for
collective bargaining.” Article 243 should be read together with
Rule 2 of Department Order (D.O.) No.
On September 6, 2010, the BLR granted 40-03, Series of 2003, which provides:
Samahan’s appeal and reversed the ruling All other workers, including ambulant,
of the Regional Director. intermittent and other workers, the self-
employed, rural workers and those
Hanjin filed a motion for reconsideration without any definite employers may form
with the BLR. The BLR affirmed its labor organizations for their mutual aid
decision but directed Samahan to and protection and other legitimate
remove the words “Hanjin Shipyard” purposes except collective bargaining.
from its name.
[M]isrepresentation, to be a ground for
Samahan filed a petition for certiorari the cancellation of the certificate of
under Rule 65 before the CA. Initially, registration, must be done maliciously
the CA dismissed the petition because of and deliberately. Further, the mistakes
Samahan’s failure to file a motion for appearing in the application or
reconsideration. However, the CA attachments must be grave or refer to
granted Samahan’s motion for significant matters. The details as to how
reconsideration. the alleged fraud was committed must
also be indubitably shown.
The CA held that the registration of
Samahan as a legitimate workers’ Should the Samahan’s registration be
association was contrary to Article cancelled on the ground of
243[247] of the Labor Code. Hence, this misrepresentation? No.
petition for review on certiorari.
Misrepresentation is a devious charge
that cannot simply be entertained by
mere surmises and conjectures.

Page 12 of 64 | Yong | Labor 2


Even granting arguendo that Samahan’s
members misrepresented themselves as
employees or workers of Hanjin, said
misrepresentation does not relate to the
adoption or ratification of its
constitution and bylaws or to the election
of its officers.

Is removal of the word “Hanjin


Shipyard” from the association’s name
an infringement of the right to self-
organization? No.

As there is no provision under our labor


laws which speak of the use of name by
a workers’ association, the Court refers
to the Corporation Code, which governs
the names of juridical persons.

The policy underlying the prohibition in


Section 18 against the registration of a
corporate name which is “identical or
deceptively or confusingly similar” to
that of any existing corporation or which
is “patently deceptive” or “patently
confusing” or “contrary to existing
laws,” is the avoidance of fraud upon the
public which would have occasion to
deal with the entity concerned, the
evasion of legal obligations and duties,
and the reduction of difficulties of
administration and supervision over
corporations.

For the same reason, it would be


misleading for the members of Samahan
to use “Hanjin Shipyard” in its name as
it could give the wrong impression that
all of its members are employed by
Hanjin.
PIGLAS filed a petition for certification What is the applicable law? DO No. 9 &
election, representing the teaching and R.A. No. 6715
Holy Child
non-teaching personnel of the Holy R.A. No. 9481 took effect only on June
Catholic
Child Catholic School. 14, 2007; hence, its applicability is limited
School v.
to labor representation cases filed on or
HCCS-TELU-
The Med-Arbiter denied PIGLAS’ after said date. Instead, the law and rules
PIGLAS, July
petition for certification election. in force at the time private respondent
23, 2013
filed its petition for certification election
on May 31, 2002 are R.A. No. 6715,
Page 13 of 64 | 021022
The SOLE set aside the decision of the which amended Book V of Presidential
Med-Arbiter and directed the conduct of Decree (P.D.) No. 442 (the Labor Code),
two separate certification elections for as amended, and the Rules and
the teaching and non-teaching personnel. Regulations Implementing R.A. No.
The School filed a motion for 6715, as amended by D.O. No. 9, which
reconsideration which was denied. was dated May 1, 1997 but took effect on
June 21, 1997. However, note must be
The School filed a petition for certiorari taken that even without the express
with TRO and PI before the CA. provision of Section 12 of RA No. 9481,
Initially, the CA issued the TRO and the the “Bystander Rule” is already well
PI. However, the CA eventually denied entrenched in this jurisdiction.
the petition and affirmed the SOLE
Resolution. Does the School have standing to oppose the
petition for certification election? No.
The School filed a motion for It has been consistently held in a number
reconsideration which was denied. of cases that a certification election is the
Hence, this petition for review on sole concern of the workers, except
certiorari under Rule 45. when the employer itself has to file the
petition pursuant to Article 259 of the
Legislative History Labor Code, as amended, but even after
1. R.A. No. 615 & D.O. No. 9 such filing its role in the certification
Silent whether mingling results in loss of process ceases and becomes merely a
legitimacy of a labor organization. bystander. The employer clearly lacks the
personality to dispute the election and
2. R.A. No. 875, §3 has no right to interfere at all therein.
“[Supervisory employees] shall not be
eligible for membership in a labor
This is so since any uncalled-for concern
organization of employees under their on the part of the employer may give rise
supervision but may form separate to the suspicion that it is batting for a
organizations of their own.” company union. Indeed, the demand of
However, it is silent whether mingling results the law and policy for an employer to
in loss of legitimacy of a labor organization. take a strict, hands-off stance in
certification elections is based on the
3. Labor Code (1974) & Omnibus Rules rationale that the employees’ bargaining
It did not reproduce R.A. No. 875, §3. Silent
representative should be chosen free
on the prohibition against supervisory
employees mingling with rank-and-file from any extraneous influence of the
employees in one labor organization. management; that, to be effective, the
Bulletin v. Sanchez — supervisory bargaining representative must owe its
employees who do not fall under the loyalty to the employees alone and to no
category of managerial employees other.
may join or assist in the formation of
a labor organization for rank-and-file Except when it is requested to bargain
employees, but they may not form
collectively, an employer is a mere
their own labor organization.
bystander to any petition for certification
4. R.A. No. 6715 (1989), art. 245 & 1989 election; such proceeding is non-
Amended Omnibus Rules adversarial and merely investigative, for
Supervisory employees shall not be the purpose thereof is to determine
eligible for membership in a labor which organization will represent the
organization of the rank- and-file employees in their collective bargaining
employees but may join, assist or form
with the employer. The choice of their
Page 14 of 64 | Yong | Labor 2
separate labor organizations of their representative is the exclusive concern of
own. the employees; the employer cannot have
Supervisory employees and security
guards shall not be eligible for
any partisan interest therein; it cannot
membership in a labor organization of interfere with, much less oppose, the
the rank-and-file employees but may process by filing a motion to dismiss or
join, assist or form separate labor an appeal from it; not even a mere
organizations of their own; allegation that some employees
Toyota & Dunlop — [A]n organization
which carries a mixture of rank-and-file
participating in a petition for certification
and supervisory employees cannot election are actually managerial
possess any of the rights of a legitimate employees will lend an employer legal
labor organization, including the right personality to block the certification
to file a petition for certification election. The employer’s only right in the
election for the purpose of collective
bargaining.
proceeding is to be notified or informed
thereof. (Kawashima and SMCC- Super)
5. Department Order No. 9, series of 1997
The requirement under Sec. 2(c) of the 1989 Further, the determination of whether
Amended Omnibus Rules that the petition union membership comprises
for certification election indicate that the managerial and/or supervisory
bargaining unit of rank-and-file employees employees is a factual issue that is best
has not been mingled with supervisory left for resolution in the inclusion-
employees was removed. Instead, what the exclusion proceedings, which has not yet
1997 Amended Omnibus Rules requires is a happened in this case so still premature
plain description of the bargaining unit. to pass upon.
Tagaytay Highlands & San Miguel — Any
mingling between supervisory and rank-
and-file employees in its membership Should the petition for certification election be
cannot affect its legitimacy for that is dismissed in view of the mixture of teaching and
not among the grounds for cancellation non-teaching personnel and the absence of
of its registration, unless such mingling
mutuality of interest among its members? No.
was brought about by
misrepresentation, false statement or The SOLE correctly ordered the conduct of two
fraud under Article 239 of the Labor separate certification elections — one for the
Code. Toyota and Dunlop no longer teaching personnel, the other for the non-teaching
hold sway in the present altered state of personnel.
the law and the rules
The following factors are considered in
determining the proper collective
bargaining unit:
(1) will of employees (Globe Doctrine);
(2) affinity and unity of employees’ interest,
such as substantial similarity of work
and duties, or similarity of
compensation and working conditions;
(3) prior collective bargaining history; and
(4) employment status, such as temporary,
seasonal and probationary employees.

We stressed, however, that the test of the


grouping is community or mutuality of
interest, because “the basic test of an
asserted bargaining unit’s acceptability is
whether or not it is fundamentally the
combination which will best assure to all

Page 15 of 64 | 021022
employees the exercise of their collective
bargaining rights.”

We stressed, however, that the test of the


grouping is community or mutuality of
interest, because “the basic test of an
asserted bargaining unit’s acceptability is
whether or not it is fundamentally the
combination which will best assure to all
employees the exercise of their collective
bargaining rights.”

The SOLE held —


We agree with the Med-Arbiter that
there are differences in the nature of
work, hours and conditions of work
and salary determination between the
teaching and non-teaching personnel of
[petitioner]. These differences were
pointed out by [petitioner] in its
position paper. We do not, however,
agree with the Med-Arbiter that these
differences are substantial enough to
warrant the dismissal of the petition.

Since the decision of the Supreme Court


in the U.P. case prohibits us from
commingling teaching and non-teaching
personnel in one bargaining unit, they
have to be separated into two separate
bargaining units with two separate
certification elections to determine
whether the employees in the respective
bargaining units desired to be
represented by PIGLAS.

Labor Organizations and Registration of Unions


Labor Code: Arts. 219 (g, h), 237, 240-251, 292 (a)
Omnibus Rules, Book V, Rule I, Sec. 1 (a, h-p, w, cc, ee, ff, jj, kk, zz, ccc), Rule III-V, XIV-XV, as
amended by D.O. 40-03, as further amended by D.O. 40-B
Labor Code: Arts. 240, 241, 245, 246, 247, 248, 252
Department Order No. 40-F-03, series of 2008 (Implementing Rules for R.A. 9481 amendments)

ARTICLE 219. [212] Definitions.


(g) "Labor organization" means any union or association of employees which exists in whole or in part for the purpose
of collective bargaining or of dealing with employers concerning terms and conditions of employment.
(h) "Legitimate labor organization" means any labor organization duly registered with the Department of Labor and
Employment, and includes any branch or local thereof.

ARTICLE 237. [231] Registry of Unions and File of Collective Bargaining Agreements. 179 — The Bureau shall
keep a registry of legitimate labor organizations.

Page 16 of 64 | Yong | Labor 2


The Bureau shall also maintain a file of all collective bargaining agreements and other related agreements and records
of settlement of labor disputes and copies of orders and decisions of voluntary arbitrators or panel of voluntary
arbitrators. The file shall be open and accessible to interested parties under conditions prescribed by the Secretary of
Labor and Employment, provided that no specific information submitted in confidence shall be disclosed unless
authorized by the Secretary, or when it is at issue in any judicial litigation, or when public interest or national security
so requires.

Within thirty (30) days from the execution of a Collective Bargaining Agreement, the parties shall submit copies of
the same directly to the Bureau or the Regional Offices of the Department of Labor and Employment for registration
accompanied with verified proofs of its posting in two conspicuous places in the place of work and ratification by the
majority of all the workers in the bargaining unit. The Bureau or Regional Offices shall act upon the application for
registration of such Collective Bargaining Agreement within five (5) calendar days from receipt thereof. The Regional
Offices shall furnish the Bureau with a copy of the Collective Bargaining Agreement within five (5) days from its
submission.

The Bureau or Regional Office shall assess the employer for every Collective Bargaining Agreement a registration
fee of not less than one thousand pesos (P1,000.00) or in any other amount as may be deemed appropriate and
necessary by the Secretary of Labor and Employment for the effective and efficient administration of the Voluntary
Arbitration Program. Any amount collected under this provision shall accrue to the Special Voluntary Arbitration
Fund.

The Bureau shall also maintain a file, and shall undertake or assist in the publication of all final decisions, orders and
awards of the Secretary of Labor and Employment, Regional Directors and the Commission.

TITLE IV
Labor Organizations
CHAPTER I
Registration and Cancellation
ARTICLE 240. [234] Requirements of Registration. 182 — A federation, national union or industry or trade union
center or an independent union shall acquire legal personality and shall be entitled to the rights and privileges granted
by law to legitimate labor organizations upon issuance of the certificate of registration based on the following
requirements:
(a) Fifty pesos (P50.00) registration fee;
(b) The names of its officers, their addresses, the principal address of the labor organization, the minutes of the
organizational meetings and the list of the workers who participated in such meetings;
(c) In case the applicant is an independent union, the names of all its members comprising at least twenty percent
(20%) of all the employees in the bargaining unit where it seeks to operate;
(d) If the applicant union has been in existence for one or more years, copies of its annual financial reports; and
(e) Four copies of the constitution and by-laws of the applicant union, minutes of its adoption or ratification,
and the list of the members who participated in it.

ARTICLE 241. [234-A] Chartering and Creation of a Local Chapter. 183 — A duly registered federation or national
union may directly create a local chapter by issuing a charter certificate indicating the establishment of the local
chapter. The chapter shall acquire legal personality only for purposes of filing a petition for certification election from
the date it was issued a charter certificate.

The chapter shall be entitled to all other rights and privileges of a legitimate labor organization only upon the
submission of the following documents in addition to its charter certificate:
(a) The names of the chapter's officers, their addresses, and the principal office of the chapter; and
(b) The chapter's constitution and by-laws: Provided, That where the chapter's constitution and by-laws are the same
as that of the federation or the national union, this fact shall be indicated accordingly.
The additional supporting requirements shall be certified under oath by the secretary or treasurer of the chapter and
attested by its president.

ARTICLE 242. [235] Action on Application. — The Bureau shall act on all applications for registration within thirty
(30) days from filing.

Page 17 of 64 | 021022
All requisite documents and papers shall be certified under oath by the secretary or the treasurer of the organization,
as the case may be, and attested to by its president.

ARTICLE 243. [236] Denial of Registration; Appeal. — The decision of the Labor Relations Division in the regional
office denying registration may be appealed by the applicant union to the Bureau within ten (10) days from receipt of
notice thereof.

ARTICLE 244. [237] Additional Requirements for Federations or National Unions. — Subject to Article 238, 184 if
the applicant for registration is a federation or a national union, it shall, in addition to the requirements of the preceding
Articles, submit the following:

Proof of the affiliation of at least ten (10) locals or chapters, each of which must be a duly recognized collective
bargaining agent in the establishment or industry in which it operates, supporting the registration of such applicant
federation or national union; and

The names and addresses of the companies where the locals or chapters operate and the list of all the members in each
company involved.

ARTICLE 245. [238] Cancellation of Registration. 185 — The certificate of registration of any legitimate labor
organization, whether national or local, may be cancelled by the Bureau, after due hearing, only on the grounds
specified in Article 239 hereof. 186

ARTICLE 246. [238-A] Effect of a Petition for Cancellation of Registration. 187 — A petition for cancellation of
union registration shall not suspend the proceedings for certification election nor shall it prevent the filing of a petition
for certification election.

In case of cancellation, nothing herein shall restrict the right of the union to seek just and equitable remedies in the
appropriate courts.

ARTICLE 247. [239] Grounds for Cancellation of Union Registration. 188 — The following may constitute grounds
for cancellation of union registration:
(a) Misrepresentation, false statement or fraud in connection with the adoption or ratification of the constitution
and by-laws or amendments thereto, the minutes of ratification, and the list of members who took part in the
ratification;
(b) Misrepresentation, false statements or fraud in connection with the election of officers, minutes of the
election of officers, and the list of voters;
(c) Voluntary dissolution by the members.

ARTICLE 248. [239-A] Voluntary Cancellation of Registration. 189 — The registration of a legitimate labor
organization may be cancelled by the organization itself: Provided, That at least two-thirds of its general membership
votes, in a meeting duly called for that purpose to dissolve the organization: Provided, further, That an application to
cancel registration is thereafter submitted by the board of the organization, attested to by the president thereof.

ARTICLE 249. [240] Equity of the Incumbent. 190 — All existing federations and national unions which meet the
qualifications of a legitimate labor organization and none of the grounds for cancellation shall continue to maintain
their existing affiliates regardless of the nature of the industry and the location of the affiliates.

CHAPTER II
Rights and Conditions of Membership
ARTICLE 250. [241] Rights and Conditions of Membership in a Labor Organization. 191 — The following are the
rights and conditions of membership in a labor organization:
(a) No arbitrary or excessive initiation fees shall be required of the members of a legitimate labor organization
nor shall arbitrary, excessive or oppressive fine and forfeiture be imposed;
(b) The members shall be entitled to full and detailed reports from their officers and representatives of all
financial transactions as provided for in the constitution and by-laws of the organization;
(c) The members shall directly elect their officers in the local union, as well as their national officers in the
national union or federation to which they or their local union is affiliated, by secret ballot at intervals of five

Page 18 of 64 | Yong | Labor 2


(5) years. No qualification requirement for candidacy to any position shall be imposed other than
membership in good standing in subject labor organization. The secretary or any other responsible union
officer shall furnish the Secretary of Labor and Employment with a list of the newly-elected officers, together
with the appointive officers or agents who are entrusted with the handling of funds within thirty (30) calendar
days after the election of officers or from the occurrence of any change in the list of officers of the labor
organization;
(d) The members shall determine by secret ballot, after due deliberation, any question of major policy affecting
the entire membership of the organization, unless the nature of the organization or force majeure renders
such secret ballot impractical, in which case, the board of directors of the organization may make the decision
in behalf of the general membership;
(e) No labor organization shall knowingly admit as members or continue in membership any individual who
belongs to a subversive organization or who is engaged directly or indirectly in any subversive activity;
(f) No person who has been convicted of a crime involving moral turpitude shall be eligible for election as a
union officer or for appointment to any position in the union;
(g) No officer, agent or member of a labor organization shall collect any fees, dues, or other contributions in its
behalf or make any disbursement of its money or funds unless he is duly authorized pursuant to its
constitution and by-laws;
(h) Every payment of fees, dues or other contributions by a member shall be evidenced by a receipt signed by
the officer or agent making the collection and entered into the record of the organization to be kept and
maintained for the purpose;
(i) The funds of the organization shall not be applied for any purpose or object other than those expressly
provided by its constitution and by-laws or those expressly authorized by written resolution adopted by the
majority of the members at a general meeting duly called for the purpose;
(j) Every income or revenue of the organization shall be evidenced by a record showing its source, and every
expenditure of its funds shall be evidenced by a receipt from the person to whom the payment is made, which
shall state the date, place and purpose of such payment. Such record or receipt shall form part of the financial
records of the organization.
Any action involving the funds of the organization shall prescribe after three (3) years from the date of
submission of the annual financial report to the Department of Labor and Employment or from the date the
same should have been submitted as required by law, whichever comes earlier: Provided, That this provision
shall apply only to a legitimate labor organization which has submitted the financial report requirements
under this Code: Provided, further, That failure of any labor organization to comply with the periodic
financial reports required by law and such rules and regulations promulgated thereunder six (6) months after
the effectivity of this Act shall automatically result in the cancellation of union registration of such labor
organization;
(k) The officers of any labor organization shall not be paid any compensation other than the salaries and expenses
due to their positions as specifically provided for in its constitution and by-laws, or in a written resolution
duly authorized by a majority of all the members at a general membership meeting duly called for the
purpose. The minutes of the meeting and the list of participants and ballots cast shall be subject to inspection
by the Secretary of Labor or his duly authorized representatives. Any irregularities in the approval of the
resolutions shall be a ground for impeachment or expulsion from the organization;
(l) The treasurer of any labor organization and every officer thereof who is responsible for the account of such
organization or for the collection, management, disbursement, custody or control of the funds, moneys and
other properties of the organization, shall render to the organization and to its members a true and correct
account of all moneys received and paid by him since he assumed office or since the last day on which he
rendered such account, and of all bonds, securities and other properties of the organization entrusted to his
custody or under his control. The rendering of such account shall be made:
(1) At least once a year within thirty (30) days after the close of its fiscal year;
(2) At such other times as may be required by a resolution of the majority of the members of the
organization; and
(3) Upon vacating his office.
The account shall be duly audited and verified by affidavit and a copy thereof shall be furnished the Secretary
of Labor.
(m) The books of accounts and other records of the financial activities of any labor organization shall be open to
inspection by any officer or member thereof during office hours;
(n) No special assessment or other extraordinary fees may be levied upon the members of a labor organization
unless authorized by a written resolution of a majority of all the members in a general membership meeting

Page 19 of 64 | 021022
duly called for the purpose. The secretary of the organization shall record the minutes of the meeting
including the list of all members present, the votes cast, the purpose of the special assessment or fees and the
recipient of such assessment or fees. The record shall be attested to by the president.
(o) Other than for mandatory activities under the Code, no special assessments, attorney's fees, negotiation fees
or any other extraordinary fees may be checked off from any amount due to an employee without an
individual written authorization duly signed by the employee. The authorization should specifically state the
amount, purpose and beneficiary of the deduction; and
(p) It shall be the duty of any labor organization and its officers to inform its members on the provisions of its
constitution and by-laws, collective bargaining agreement, the prevailing labor relations system and all their
rights and obligations under existing labor laws.
For this purpose, registered labor organizations may assess reasonable dues to finance labor relations
seminars and other labor education activities.
Any violation of the above rights and conditions of membership shall be a ground for cancellation of union
registration or expulsion of officers from office, whichever is appropriate. At least thirty percent (30%) of
the members of a union or any member or members specially concerned may report such violation to the
Bureau. The Bureau shall have the power to hear and decide any reported violation to mete the appropriate
penalty.
Criminal and civil liabilities arising from violations of above rights and conditions of membership shall
continue to be under the jurisdiction of ordinary courts.

CHAPTER III
Rights of Legitimate Labor Organizations
ARTICLE 251. [242] Rights of Legitimate Labor Organizations. 192 — A legitimate labor organization shall have
the right:
(a) To act as the representative of its members for the purpose of collective bargaining;
(b) To be certified as the exclusive representative of all the employees in an appropriate bargaining unit for
purposes of collective bargaining;
(c) To be furnished by the employer, upon written request, with its annual audited financial statements, including
the balance sheet and the profit and loss statement, within thirty (30) calendar days from the date of receipt
of the request, after the union has been duly recognized by the employer or certified as the sole and exclusive
bargaining representative of the employees in the bargaining unit, or within sixty (60) calendar days before
the expiration of the existing collective bargaining agreement, or during the collective bargaining
negotiation;
(d) To own property, real or personal, for the use and benefit of the labor organization and its members;
(e) To sue and be sued in its registered name; and
(f) To undertake all other activities designed to benefit the organization and its members, including cooperative,
housing, welfare and other projects not contrary to law.
Notwithstanding any provision of a general or special law to the contrary, the income and the properties of legitimate
labor organizations, including grants, endowments, gifts, donations and contributions they may receive from
fraternal and similar organizations, local or foreign, which are actually, directly and exclusively used for their lawful
purposes, shall be free from taxes, duties and other assessments. The exemptions provided herein may be withdrawn
only by a special law expressly repealing this provision.

ARTICLE 292. [277] Miscellaneous Provisions. 226 — (a) All unions are authorized to collect reasonable
membership fees, union dues, assessments and fines and other contributions for labor education and research, mutual
death and hospitalization benefits, welfare fund, strike fund and credit and cooperative undertakings.

~o~

RULE I DEFINITION OF TERMS


Section 1. Definition of Terms.
(a) “Affiliate” refers to an independent union affiliated with a federation, national union or a chartered local which
was subsequently granted independent registration but did not disaffiliate from its federation, reported to the Regional
Office and the Bureau in accordance with Rule III, Sections 6 and 7 of these Rules.
(h) “Certification Election” or “Consent Election” refers to the process of determining through secret ballot the sole
and exclusive representative of the employees in an appropriate bargaining unit for purposes of collective bargaining

Page 20 of 64 | Yong | Labor 2


or negotiation. A certification election is ordered by the Department, while a consent election is voluntarily agreed
upon by the parties, with or without the intervention by the Department.
“(i) Chartered Local” refers to a labor organization in the private sector operating at the enterprise level that
acquired legal personality through registration with the Regional Office in accordance with Rule III, Section 2-E of
these Rules.” (As amended by DO No. 40-B-03, s. 2003)
(j) “Collective Bargaining Agreement” or “CBA” refers to the contract between a legitimate labor union and the
employer concerning wages, hours of work, and all other terms and conditions of employment in a bargaining unit.
(k) “Conciliator Mediator” refers to an officer of the Board whose principal function is to assist in the settlement and
disposition of labor-management disputes through conciliation and preventive mediation, including the promotion
and encouragement of voluntary approaches to labor disputes prevention and settlement.
(l) “Consolidation” refers to the creation or formation of a new union arising from the unification of two or more
unions.
(m) “Deregistration of Agreement” refers to the legal process leading to the revocation of CBA registration.
(n) “Department” refers to the Department of Labor and Employment.
(o) “Election Officer” refers to an officer of the Bureau or Labor Relations Division in the Regional Office authorized
to conduct certification elections, election of union officers and other forms of elections and referenda in accordance
with Rule XII, Sections 2-5 of these Rules.
(p) “Election Proceedings” refer to the period during a certification election, consent or run-off election and election
of union officers, starting from the opening to the closing of the polls, including the counting, tabulation and
consolidation of votes, but excluding the period for the final determination of the challenged votes and the canvass
thereof.
(w) “Independent Union” refers to a labor organization operating at the enterprise level that acquired legal personality
through independent registration under Article 234 of the Labor Code and Rule III, Section 2-A of these Rules.
(cc) “Labor Organization” refers to any union or association of employees in the private sector which exists in whole
or in part for the purpose of collective bargaining, mutual aid, interest, cooperation, protection, or other lawful
purposes.
(ee) “Legitimate Labor Organization” refers to any labor organization in the private sector registered or reported with
the Department in accordance with Rules III and IV of these Rules.
(ff) “Legitimate Workers’ Association” refers to an association of workers organized for mutual aid and protection of
its members or for any legitimate purpose other than collective bargaining registered with the Department in
accordance with Rule III, Sections 2-C and 2-D of these Rules.
(jj) “Merger” refers to a process where a labor organization absorbs another resulting in the cessation of the absorbed
labor organization’s existence, and the continued existence of the absorbing labor organization.
(kk) “National Union” or “Federation” refers to 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, standards and programs,
registered with the Bureau in accordance with Rule III, Section 2-B of these Rules.
(zz) “Union” refers to any labor organization in the private sector organized for collective bargaining and for other
legitimate purposes.
(ccc) “Workers’ Association” refers to an association of workers organized for the mutual aid and protection of its
members or for any legitimate purpose other than collective bargaining.

RULE III
REGISTRATION OF LABOR ORGANIZATIONS
Section 1. Where to file. - Applications for registration of independent labor unions, chartered locals, workers’
associations shall be filed with the Regional Office where the applicant principally operates. It shall be processed by
the Labor Relations Division at the Regional Office in accordance with Sections 2-A, 2-C, and 2-E of this Rule.
Applications for registration of federations, national unions or workers’ associations operating in more than one region
shall be filed with the Bureau or the Regional Offices, but shall be processed by the Bureau in accordance with
Sections 2-B and 2-D of this Rule.

Section 2. Requirements for application. - A. The application for registration of an independent labor union shall be
accompanied by the following documents: 1) the name of the applicant labor union, its principal address, the name of
its officers and their respective addresses, approximate number of employees in the bargaining unit where it seeks to
operate, with a statement that it is not reported as a chartered local of any federation or national union;
2) the minutes of the organizational meeting(s) and the list of employees who participated in the said meeting(s);
3) the name of all its members comprising at least 20% of the employees in the bargaining unit;

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4) the annual financial reports if the applicant has been in existence for one or more years, unless it has not collected
any amount from the members, in which case a statement to this effect shall be included in the application;
5) the applicant’s constitution and by-laws, minutes of its adoption or ratification, and the list of the members who
participated in it. The list of ratifying members shall be dispensed with where the constitution and by-laws was ratified
or adopted during the organizational meeting. In such a case, the factual circumstances of the ratification shall be
recorded in the minutes of the organizational meeting(s).

B. The application for registration of federations and national unions shall be accompanied by the following
documents:
1) a statement indicating the name of the applicant labor union, its principal address, the name of its officers and their
respective addresses;
2) the minutes of the organizational meeting(s) and the list of employees who participated in the said meeting(s);
3) the annual financial reports if the applicant union has been in existence for one or more years, unless it has not
collected any amount from the members, in which case a statement to this effect shall be included in the application;
4) the applicant union’s constitution and by-laws, minutes of its adoption or ratification, and the list of the members
who participated in it. The list of ratifying members shall be dispensed with where the constitution and by-laws was
ratified or adopted during the organizational meeting(s). In such a case, the factual circumstances of the ratification
shall be recorded in the minutes of the organizational meeting(s);
5) the resolution of affiliation of at least ten (10) legitimate labor organizations, whether independent unions or
chartered locals, each of which must be a duly certified or recognized bargaining agent in the establishment where it
seeks to operate; and
6) the name and addresses of the companies where the affiliates operate and the list of all the members in each
company involved.

Labor organizations operating within an identified industry may also apply for registration as a federation or national
union within the specified industry by submitting to the Bureau the same set of documents.

C. The application for registration of a workers’ association shall be accompanied by the following documents:
1) the name of the applicant association, its principal address, the name of its officers and their respective addresses;
2) the minutes of the organizational meeting(s) and the list of members who participated therein;
3) the financial reports of the applicant association if it has been in existence for one or more years, unless it has not
collected any amount from the members, in which case a statement to this effect shall be included in the application;
4) the applicant’s constitution and by-laws to which must be attached the names of ratifying members, the minutes of
adoption or ratification of the constitution and by-laws and the date when ratification was made, unless ratification
was done in the organizational meeting(s), in which case such fact shall be reflected in the minutes of the
organizational meeting(s).

D. Application for registration of a workers’ association operating in more than one region shall be accompanied, in
addition to the requirements in the preceding subsection, by a resolution of membership of each member association,
duly approved by its board of directors.

E. The report of creation of a chartered local shall be accompanied by a charter certificate issued by the federation or
national union indicating the creation or establishment of the chartered local.

Amended by DO No. 40-B-03, s. 2003:


A duly-registered federation or national union may directly create a chartered local by submitting to the
Regional Office two (2) copies of the following: (a) A charter certificate issued by the federation or national
union indicating the creation or establishment of the local/chapter; (b) The names of the local/chapter’s
officers, their addresses, and the principal office of the local/chapter; and

(c) The local/chapter’s constitution and by-laws, provided that where the local/chapter’s constitution and
by-laws is the same as that of the federation or national union, this fact shall be indicated accordingly. All
of the foregoing supporting requirements shall be certified under oath by the Secretary or the Treasurer of
the local/chapter and attested by its President.

All chartered locals duly-registered prior to the effectivity of this amendatory issuance shall maintain their
legitimate status, with all rights and obligations appurtenant thereto.

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Amended by DO No. 40-F-03, s. 2008:
E. "A Duly-Registered Federation or National Union May Directly Create A Local/Chapter By Issuing A
Charter Certificate Indicating The Establishment Of The Local/Chapter The Local/Chapter Shall Acquire
Legal Personality Only For Purposes Of Filing A Petition For Certification Election From Ti-Ie Date It Was
Issued A Charter Certificate. "The Local/Chapter Shall Be Entitled To All Other Rights And Privileges Of A
Legitimate Labor Organization Only Upon The Submission Of The Following Documents In Addition To Its
Charter Certificate: (A) The Names Of The Local/Chapter's Officers, Their Addresses, And The Principal
Office Of The Local/Chapter, And (B) The Chapter's Constitution And By-Laws Provided, That Where The
Chapter's Constitution And By-Laws Are The Same As That Of The Federation Or The National Union, This
Fact Shall Be Indicated Accordingly. The Genuiness And Due Execution Of The Supporting Requirements
Shall Be Certified Under Oath By The Secretary Or Treasurer Of The Local/Chapter And Attested To By Its
President

Section 3. Notice of change of name of labor organizations; Where to file. - The notice for change of name of a
registered labor organization shall be filed with the Bureau or the Regional Office where the concerned labor
organization’s certificate of registration or certificate of creation of a chartered local was issued.

Section 4. Requirements for notice of change of name. - The notice for change of name of a labor organization shall
be accompanied by the following documents: (a) proof of approval or ratification of change of name; and (b) the
amended constitution and by-laws. Section 5. Certificate of Registration/Certificate of Creation of Chartered Local
for change of name. - The certificate of registration and the certificate of creation of a chartered local issued to the
labor organization for change of name shall bear the same registration number as the original certificate issued in its
favor and shall indicate the following: (a) the new name of the labor organization; (b) its former name; (c) its office
or business address; and (d) the date when the labor organization acquired legitimate personality as stated in its
original certificate of registration/certificate of creation of chartered local.

Section 6. Report of Affiliation with federations or national unions; Where to file. - The report of affiliation of an
independently registered labor union with a federation or national union shall be filed with the Regional Office that
issued its certificate of registration.

Section 7. Requirements of affiliation. - The report of affiliation of independently registered labor unions with a
federation or national union shall be accompanied by the following documents:
(a) resolution of the labor union’s board of directors approving the affiliation;
(b) minutes of the general membership meeting approving the affiliation;
(c) the total number of members comprising the labor union and the names of members who approved the affiliation;
(d) the certificate of affiliation issued by the federation in favor of the independently registered labor union; and
(e) written notice to the employer concerned if the affiliating union is the incumbent bargaining agent.

Section 8. Notice of Merger/Consolidation of labor organizations; Where to file. - Notice of merger or consolidation
of independent labor unions, chartered locals and workers’ associations shall be filed with and recorded by the
Regional Office that issued the certificate of registration/certificate of creation of chartered local of either the merging
or consolidating labor organization. Notice of merger or consolidation of federations or national unions shall be filed
with and recorded by the Bureau.

Section 9. Requirements of notice of merger. - The notice of merger of labor organizations shall be accompanied by
the following documents: (a) the minutes of merger convention or general membership meeting(s) of all the merging
labor organizations, with the list of their respective members who approved the same; and (b) the amended
constitution and by-laws and minutes of its ratification, unless ratification transpired in the merger convention, which
fact shall be indicated accordingly.

Section 10. Certificate of Registration. - The certificate of registration issued to merged labor organizations shall bear
the registration number of one of the merging labor organizations as agreed upon by the parties to the merger.

The certificate of registration shall indicate the following: (a) the new name of the merged labor organization; (b) the
fact that it is a merger of two or more labor organizations; (c) the name of the labor organizations that were merged;

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(d) its office or business address; and (e) the date when each of the merging labor organizations acquired legitimate
personality as stated in their respective original certificate of registration.

Section 11. Requirements of notice of consolidation. - The notice of consolidation of labor organizations shall be
accompanied by the following documents:
(a) the minutes of consolidation convention of all the consolidating labor organizations, with the list of their respective
members who approved the same; and
(b) the amended constitution and by-laws, minutes of its ratification transpired in the consolidation convention or in
the same general membership meeting(s), which fact shall be indicated accordingly.

Section 12. Certificate of Registration. - The certificate of registration issued to a consolidated labor organization
shall bear the registration number of one of the consolidating labor organizations as agreed upon by the parties to the
consolidation. The certificate of registration shall indicate the following:
(a) the new name of the consolidated labor organization;
(b) the fact that it is a consolidation of two or more labor organizations;
(c) the name of the labor organizations that were consolidated;
(d) its office or business address; and
(e) the date when each of the consolidating labor organizations acquired legitimate personality as stated in their
respective original certificates of registration.

RULE IV
PROVISIONS COMMON TO THE REGISTRATION OF LABOR ORGANIZATIONS AND WORKERS
ASSOCIATION
Section 1. Attestation requirements. - The application for registration of labor unions and workers’ associations, notice
for change of name, merger, consolidation and affiliation including all the accompanying documents, shall be certified
under oath by its Secretary or Treasurer, as the case may be, and attested to by its President.

Section 2. Payment of registration fee. - A labor union and workers’ association shall be issued a certificate of
registration upon payment of the prescribed registration fee.

Section 3. Accompanying documents. - One (1) original copy and two (2) duplicate copies of all documents
accompanying the application or notice shall be submitted to the Regional Office or the Bureau.

Section 4. Action on the application/notice. - The Regional Office or the Bureau, as the case may be, shall act on all
applications for registration or notice of change of name, affiliation, merger and consolidation within ten (10) days
from receipt either by: (a) approving the application and issuing the certificate of registration/acknowledging the
notice/report; or (b) denying the application/notice for failure of the applicant to comply with the requirements for
registration/notice.

Section 5. Denial of Application/Return of Notice. - Where the documents supporting the application for
registration/notice of change of name, affiliation, merger and consolidation are incomplete or do not contain the
required certification and attestation, the Regional Office or the Bureau shall, within five (5) days from receipt of the
application/notice, notify the applicant/labor organization concerned in writing of the necessary requirements and
complete the same within thirty (30) days from receipt of notice. Where the applicant/labor organization concerned
fails to complete the requirements within the time prescribed, the application for registration shall be denied, or the
notice of change of name, affiliation, merger and consolidation returned, without prejudice to filing a new application
or notice.

Section 6. Form of Denial of Application/Return of Notice; Appeal. - The notice of the Regional Office or the Bureau
denying the application for registration/returning the notice of change of name, affiliation, merger or consolidation
shall be in writing stating in clear terms the reasons for the denial or return. The denial may be appealed to the Bureau
if denial is made by the Regional Office or to the Secretary if denial is made by the Bureau, within ten (10) days from
receipt of such notice, on the ground of grave abuse of discretion or violation of these Rules.

Section 7. Procedure on appeal. - The memorandum of appeal shall be filed with the Regional Office or the Bureau
that issued the denial/return of notice. The memorandum of appeal together with the complete records of the
application for registration/notice of change of name, affiliation, merger or consolidation, shall be transmitted by the

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Regional Office to the Bureau or by the Bureau to the Office of the Secretary, within twenty-four (24) hours from
receipt of the memorandum of appeal. The Bureau or the Office of the Secretary shall decide the appeal within twenty
(20) days from receipt of the records of the case.

Section 8. Effect of registration. - The labor union or workers’ association shall be deemed registered and vested with
legal personality on the date of issuance of its certificate of registration or certificate of creation of chartered local.
Such legal personality may be questioned only through an independent petition for cancellation of union registration
in accordance with Rule XIV of these Rules, and not by way of collateral attack in petition for certification election
proceedings under Rule VIII.

Section 9. Effect of change of name. - The change of name of a labor organization shall not affect its legal personality.
All the rights and obligations of a labor organization under its old name shall continue to be exercised by the labor
organization under its new name.

Section 10. Effect of merger or consolidation. - Where there is a merger of labor organizations, the legal existence of
the absorbed labor organization(s) ceases, while the legal existence of the absorbing labor organization subsists. All
the rights, interests and obligations of the absorbed labor organizations are transferred to the absorbing organization.
Where there is consolidation, the legal existence of the consolidating labor organizations shall cease and a new labor
organization is created. The newly created labor organization shall acquire all the rights, interests and obligations of
the consolidating labor organizations.

RULE V
REPORTING REQUIREMENTS OF LABOR UNIONS AND WORKERS ASSOCIATIONS
Section 1. Reporting requirements. - It shall be the duty of every legitimate labor unions and workers associations to
submit to the Regional Office or the Bureau which issued its certificate of registration or certificate of creation of
chartered local, as the case may be, two (2) copies of each of the following documents: (a) any amendment to its
constitution and by-laws and the minutes of adoption or ratification of such amendments, within thirty (30) days from
its adoption or ratification;
(b) annual financial reports within thirty (30) days after the close of each fiscal year or calendar year;
(c) updated list of newly-elected officers, together with the appointive officers or agents who are entrusted with the
handling of funds, within thirty (30) days after each regular or special election of officers, or from the occurrence of
any change in the officers of agents of the labor organization or workers association;
(d) updated list of individual members of chartered locals, independent unions and workers’ associations within thirty
(30) days after the close of each fiscal year; and
(e) updated list of its chartered locals and affiliates or member organizations, collective bargaining agreements
executed and their effectivity period, in the case of federations or national unions, within thirty (30) days after the
close of each fiscal year, as well as the updated list of their authorized representatives, agents or signatories in the
different regions of the country.

As understood in these Rules, the fiscal year of a labor organization shall coincide with the calendar year, unless a
different period is prescribed in the constitution and by-laws.

Amended by DO No. 40-F-03, s. 2008:


Section 1. Reporting requirements. - It shall be the duty of every legitimate labor union and workers'
association to submit to the Regional Office or the Bureau which issued its certificate of registration or
certificate of creation of local/chapter, as the case may be, two (2) copies of each office following
documents:
(a) its constitution and by-laws or amendments thereto, the minutes of adoption or ratification and the list
of members who took part therein, within thirty (30) days from its adoption or ratification;
(b) its list of elected and appointed officers and agents entrusted with the handling of union funds, the minutes
of election of officers, and the list of voters, within thirty (30) days from the date of election or appointment;
(c) its annual financial report within thirty (30) days after the close of every fiscal year; and
(d) its list of its members at least once a year or whenever required by the bureau.

The fiscal year of a labor organization shall coincide with the calendar year unless a different period is
provided in its constitution and by-laws.

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RULE XIV
CANCELLATION OF REGISTRATION OF LABOR ORGANIZATIONS
Section 1. Where to file. - Subject to the requirements of notice and due process, the registration of any legitimate
independent labor union, chartered local and workers’ association may be cancelled by the Regional Director, or in
the case of federations, national or industry unions and trade union centers, by the Bureau Director, upon the filing of
an independent complaint or petition for cancellation.

Amended by DO No. 40-F-03, s. 2008:


Section 1. CANCELLATION OF REGISTRATION; WHERE TO FILE. - Subject to the requirements of notice
and due process, the registration of any legitimate independent labor union, local/CHAPTER and workers'
association may be cancelled by the Regional Director upon the filing of a petition for cancellation of union
registration, or application by the organization itself for voluntary dissolution.

THE PETITION FOR CANCELLATION OR APPLICATION FOR VOLUNTARY DISSOLUTION SHALL


BE FILED IN THE REGIONAL OFFICE WHICH ISSUED ITS CERTIFICATE OF REGISTRATION OR
CREATION.

In the case of federations, national or industry unions and trade union centers, the Bureau Director may
cancel the registration upon the filing of a petition for cancellation or application for voluntary dissolution
lN THE BUREAU OF LABOR RELATIONS.

Section 2. Who may file. - Any party-in-interest may commence a petition for cancellation of registration, except in
actions involving violations of Article 241, which can only be commenced by members of the labor organization
concerned.

Section 3. Grounds for cancellation. - The following shall constitute grounds for cancellation of registration of labor
organizations:
(a) misrepresentation, false statement or fraud in connection with the adoption or ratification of the constitution and
bylaws or amendments thereto, the minutes of ratification, the list of members who took part in the ratification of the
constitution and by-laws or amendments thereto, the minutes of ratification, the list of members who took part in the
ratification;
(b) failure to submit the documents mentioned in the preceding paragraph within thirty (30) days from adoption or
ratification of the constitution and by-laws or amendments thereto;
(c) misrepresentation, false statements or fraud in connection with the election of officers, minutes of the election of
officers, the list of voters, failure to submit these documents together with the list of the newly elected or appointed
officers and their postal address within thirty (30) days from election;
(d) failure to submit the annual financial report to the Bureau within thirty (30) days after the close of every fiscal
year and misrepresentation, false entries or fraud in the preparation of the financial report;
(e) acting as a labor contractor or engaging in the “cabo” system, or otherwise engaging in any activity prohibited by
law;
(f) entering into collective bargaining agreements which provide for terms and conditions of employment below
minimum standards established by law;
(g) commission of any of the acts enumerated under Article 241 of the Labor Code; provided that no petition for
cancellation based on this ground may be granted unless supported by at least thirty (30%) percent of all the members
of the respondent labor organization;
(h) asking for or accepting attorney’s fees or negotiation fees from the employer;
(i) other than for mandatory activities under the Labor Code, checking off special assessments or any other fees
without duly signed individual written authorizations of the members;
(j) failure to submit list of individual members to the Bureau once a year or whenever required by the Bureau;
(k) failure to comply with the requirements of registration prescribed under Rules III and IV.

Amended by DO No. 40-F-03, s. 2008:


Section 3. Grounds for cancellation. - ANY OF the following MAY constitute AS ground/s for cancellation
of registration of labor organizations:
(a) MISREPRESENTATION, FALSE STATEMENT OR FRAUD IN CONNECTION WITII THE
ADOPTION OR RATIFICATION OF THE CONSTITUTION AND BY-LAWS OR AMENDMENTS

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THERETO, THE MINUTES OF RATIFICATION, THE LIST OF MEMBERS WHO TOOK PART IN
THE RATIFICATION;
(b) MISREPRESENTATION, FALSE STATEMENTS OR FRAUD IN CONNECTION WITH THE
ELECTION OF OFFICERS, MINUTES OF THE ELECTION OF OFFICERS, AND TI-IE LIST OF
VOTERS; OR
(c) VOLUNTARY DISSOLUTION BY THE MEMBERS.

Section 4. Action on the petition. - The petition shall be resolved by the Regional Director in accordance with Rule
XI, unless the petition is based on paragraphs (d) and (j) of the foregoing section or non-compliance with the labor
organization’s reportorial obligations, in which case the petition shall be acted upon pursuant to the following Rule.
(Renumbered by DO No. 40-F-03, s. 2008)

A new provision is hereby added as Section 4 under Rule XIV, to read as:
SECTION 4. VOLUNTARY CANCELLATION OF REGISTRATION: HOW MADE. - A LEGITIMATE LABOR
ORGANIZATION MAY CANCEL ITS REGISTRATION PROVIDED AT LEAST TWO THIRDS (2/3) OF ITS
GENERAL MEMBERSHIP VOTES TO DISSOLVE THE ORGANIZATION IN A MEETING DULY CALLED
FOR THAT PURPOSE AND AN APPLICATION TO CANCEL ITS REGISTRADON IS THEREAFTER
SUBMITTED BY THE BOARD OF THE ORGANIZATION TO THE REGIONAL/BUREAU DIRECTOR~ AS
THE CASE MAY BE. THE APPLICATION SHALL BE ATTESTED TO BY THE PRESIDENT OF THE
ORGANIZATION.

Section 4, Rule XIV, is hereby re-numbered as Section 5.


Section 5. Action on the petition/application. - The petition/application shall be acted upon by the Regional/Bureau
Director, as the case may be. In case of a petition for cancellation of registration, the formal requirements, processes
and periods of disposition stated in Rule XI shall be followed in the determination of the merits of the petition.

A new provision is hereby added as Section 6 under Rule XIV, to read as:
SECTION 6. PROHIBITED GROUNDS FOR CANCELLATION OF REGISTRATION. - THE JNCLUSION AS
UNION MEMBERS OF EMPLOYEES WHO ARE OUTSIDE THE BARGAINING UNIT SHALL NOT BE A
GROUND TO CANCEL THE UNION REGISTRATION. THE INELIGIBLE EMPLOYEES ARE
AUTOMATICALLY DEEMED REMOVED FROM THE LIST OF MEMBERSHIP OF THE UNION. THE
AFFILIATION OF THE RANK-AND-FILE AND SUPERVISORY UNIONS OPERATING WITHIN THE SAME
ESTABLISHMENT TO THE SAME FEDERATION OR NATIONAL UNION SHALL NOT BE A GROUND TO
CANCEL THE REGISTRATION OF EITHER UNION."

RULE XV
CANCELLATION OF REGISTRATION OF LABOR ORGANIZATIONS DUE TO NON-COMPLIANCE WITH
THE REPORTORIAL REQUIREMENTS (Re-titled by DO No. 40-F-03, s. 2008)

Section 1. When proper. - Where a registered labor organization in the private sector failed to submit the reports
required under Rule V for five (5) consecutive years despite notices for compliance sent by the Labor Relations
Division or the Bureau, the latter may cause the institution of the administrative process for cancellation of its
registration, upon its own initiative or upon complaint filed by any party-in-interest.

Section 2. Procedure. - The Labor Relations Division of the Regional Office shall make a report of the labor
organization’s noncompliance and submit the same to the Bureau for verification with its records. The Bureau shall
send by registered mail with return card to the labor organization concerned, a notice for compliance indicating the
documents it failed to submit and the corresponding period in which they were required, with notice to comply with
the said reportorial requirements and to submit proof thereof to the Bureau within ten (10) days from receipt thereof.

Where no response is received by the Bureau within thirty (30) days from the release of the first notice, another notice
for compliance shall be made by the Bureau, with warning that failure on its part to comply with the reportorial
requirements within the time specified shall cause the continuation of the proceedings for the administrative
cancellation of its registration.

Section 3. Publication of notice of cancellation of registration. - Where no response is again received by the Bureau
within thirty (30) days from release of the second notice, the Bureau shall cause the publication of the notice of

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cancellation of registration of the labor organization in two (2) newspapers of general circulation. The Bureau may
conduct an investigation within the employer’s premises and at the labor organization’s last known address to verify
the latter’s existence.

Section 4. Cancellation of registration. - Where no response is received by the Bureau within thirty (30) days from
date of publication, or where the Bureau has verified the dissolution of the labor organization, it shall order the
cancellation of registration of the labor organization and cause its de-listing from the roster of legitimate labor
organizations.

Section 5. Conditions for administrative cancellation of certificate of registration. No registration of labor organization
shall be cancelled administratively by the Bureau due to noncompliance with the reportorial requirements unless:
(a) non-compliance is for a continuous period of five (5) years;
(b) the procedures laid down in this Rule were complied with; and (c) the labor organization concerned has not
responded to any of the notices sent by the Bureau, or its notices were returned unclaimed.

REGISTRY OF LABOR ORGANIZATIONS AND COLLECTIVE BARGAINING AGREEMENTS

SECTION 1. NATIONAL REGISTRY. - THE BUREAU SHALL BE THE NATIONAL REGISTRY OF LABOR
ORGANIZATIONS AND COLLECTIVE BARGAINING AGREEMENTS. AS SUCH IT SHALL:
(a) MAINTAIN A NATIONAL REGISTRY;
(b)   WITIIIN THE MONTH OF MARCH FOLLOWING THE END OF THE CALENDAR YEAR,
PUBLISH IN TI-IE DEPARTMENT OF LABOR AND EMPLOYMENT WEBSITE TI-IE LISTS OF
LABOR ORGANIZATIONSA ND FEDERATIONS WHICH HAV E COMPLIED WITH THE
REPORTORIAL REQUIREMENTS OF RULE V AND DELINQUENT LABOR ORGANIZATIONS;
(c) PUBLISH A LIST OF OFFICERS OF LABOR ORGANIZATIONS WITII CRIMINAL CONVICTION
BY FINAL JUDGMENT; AND
(d) VERIFY THE EXISTENCE OF A REGISTERED LABOR ORGANIZATION WITH NO
REGISTERED COLLECTIVE BARGAINING AGREEMENT AND WHICH HAS NOT BEEN
COMPLYING WITH THE REPORTORIAL REQUIREMENTS FOR AT LEAST FIVE YEARS. THE
VERIFICATION SHALL OBSERVE THE FOLLOWING PROCESS:
1) The Regional Office shall make a report of the labor organization's non-compliance and submit the same to the
Bureau for verification. The Bureau shall send by registered mail with return card to the labor organization concerned,
a notice for compliance indicating the documents it failed to submit and the corresponding period in which they were
required, with notice to comply with the said reportorial requirements and to submit proof thereof to the Bureau within
ten (10) days from receipt thereof. • Where no response is received by the Bureau within thirty (30) days from the
SERVICE of the first notice, IT SHALL SEND another notice for compliance, with warning that failure on its part to
comply with the reportorial requirements within the time specified shall cause ITS PUBLICATION AS A
NON~EXISTING LABOR ORGANIZATION IN THE DOLE WEBSITE.
2) Where no response is received by the Bureau within thirty (30) days from SERVICE of the second notice, the
Bureau shall PUBLISH the notice of NON-EXISTENCE OF THE LABOR ORGANIZATION/S IN THE DOLE
WEBSITE.
3) Where no response is received by the Bureau within thirty (30) days from date of publication, or where the Bureau
has verified the dissolution of the labor organization, it shall DELIST the labor organization from the roster of
legitimate labor organizations.

~o~

ARTICLE 240. [234] Requirements of Registration. 182 — A federation, national union or industry or trade union
center or an independent union shall acquire legal personality and shall be entitled to the rights and privileges granted
by law to legitimate labor organizations upon issuance of the certificate of registration based on the following
requirements:
(a) Fifty pesos (P50.00) registration fee;
(b) The names of its officers, their addresses, the principal address of the labor organization, the minutes of the
organizational meetings and the list of the workers who participated in such meetings;
(c) In case the applicant is an independent union, the names of all its members comprising at least twenty percent
(20%) of all the employees in the bargaining unit where it seeks to operate;
(d) If the applicant union has been in existence for one or more years, copies of its annual financial reports; and

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(e) Four copies of the constitution and by-laws of the applicant union, minutes of its adoption or ratification,
and the list of the members who participated in it.

ARTICLE 241. [234-A] Chartering and Creation of a Local Chapter. 183 — A duly registered federation or national
union may directly create a local chapter by issuing a charter certificate indicating the establishment of the local
chapter. The chapter shall acquire legal personality only for purposes of filing a petition for certification election from
the date it was issued a charter certificate.
The chapter shall be entitled to all other rights and privileges of a legitimate labor organization only upon the
submission of the following documents in addition to its charter certificate:
(a) The names of the chapter's officers, their addresses, and the principal office of the chapter; and
(b) The chapter's constitution and by-laws: Provided, That where the chapter's constitution and by-laws are the same
as that of the federation or the national union, this fact shall be indicated accordingly.
The additional supporting requirements shall be certified under oath by the secretary or treasurer of the chapter and
attested by its president.

ARTICLE 245. [238] Cancellation of Registration. 185 — The certificate of registration of any legitimate labor
organization, whether national or local, may be cancelled by the Bureau, after due hearing, only on the grounds
specified in Article 239 hereof. 186
ARTICLE 246. [238-A] Effect of a Petition for Cancellation of Registration. 187 — A petition for cancellation of
union registration shall not suspend the proceedings for certification election nor shall it prevent the filing of a petition
for certification election.
In case of cancellation, nothing herein shall restrict the right of the union to seek just and equitable remedies in the
appropriate courts.
ARTICLE 247. [239] Grounds for Cancellation of Union Registration. 188 — The following may constitute grounds
for cancellation of union registration:
(a) Misrepresentation, false statement or fraud in connection with the adoption or ratification of the constitution
and by-laws or amendments thereto, the minutes of ratification, and the list of members who took part in the
ratification;
(b) Misrepresentation, false statements or fraud in connection with the election of officers, minutes of the
election of officers, and the list of voters;
(c) Voluntary dissolution by the members.

ARTICLE 248. [239-A] Voluntary Cancellation of Registration. 189 — The registration of a legitimate labor
organization may be cancelled by the organization itself: Provided, That at least two-thirds of its general membership
votes, in a meeting duly called for that purpose to dissolve the organization: Provided, further, That an application to
cancel registration is thereafter submitted by the board of the organization, attested to by the president thereof.

ARTICLE 252. [242-A] Reportorial Requirements. 193 — The following are documents required to be submitted to
the Bureau by the legitimate labor organization concerned:
(a) Its constitution and by-laws, or amendments thereto, the minutes of ratification, and the list of members who took
part in the ratification of the constitution and by-laws within thirty (30) days from adoption or ratification of the
constitution and by-laws or amendments thereto;
(b) Its list of officers, minutes of the election of officers, and list of voters within thirty (30) days from election;
(c) Its annual financial report within thirty (30) days after the close of every fiscal year; and (d) Its list of members at
least once a year or whenever required by the Bureau.

Failure to comply with the above requirements shall not be a ground for cancellation of union registration but shall
subject the erring officers or members to suspension, expulsion from membership, or any appropriate penalty.

Cases:
San Miguel SMCEU-PTGWO is the incumbent Registration requirements are intended
Corporation bargaining agent of the regular monthly- to afford a measure of protection to
Employees paid rank and file employees of the three unsuspecting employees who may be
Union- divisions of SMC (SMCSU, SMBP, and lured into joining unscrupulous or fly-
Philippine SMPP). It had been the certified by-night unions whose sole purpose is to
Transport and bargaining agent from 1987 to 1997.
Page 29 of 64 | 021022
General control union funds or use the labor
Workers SMPPEU–PDMP is registered as a organization for illegitimate ends.
Organization chapter of Pambansang Diwa ng
(SMCEU- Manggagawang Pilipino (PDMP). It filed What is the governing law? D.O. No. 9.
PTGWO) v. with the Med-Arbiter three separate The procedure for registration of a local
San Miguel petitions for certification election to or chapter of a labor organization is
Packaging represent SMPP, SMCSU, and SMBP. provided in Book V of the Implementing
Products The three petitions were dismissed on Rules of the Labor Code, as amended by
Employees the ground that the separate petitions Department Order No. 9 which took
Union- fragmented a single bargaining unit.
Pambansang effect on 21 June 1997, and again by
Diwa Ng Department Order No. 40 dated 17
Manggagawang SMCEU-PTGWO filed with the February 2003. The Implementing Rules
Pilipino DOLE-NCR a petition seeking the as amended by D.O. No. 9 should
(SMPPEU- cancellation of SMPPEU–PDMP’s govern the resolution of the petition at
PDMP), registration, accusing it of committing bar since respondent’s petition for
September 12, fraud and falsification and non- certification election was filed with the
2007 compliance with registration BLR in 1999; and that of petitioner on
requirements in obtaining its certificate 17 August 1999.
of registration. SMCEU-PTGWO also
claimed that PDMP is not a legitimate The applicable Implementing Rules
labor organization but a trade union enunciates a two-fold procedure for the
center, hence, it cannot directly create a creation of a chapter or a local. The first
local or chapter. involves the affiliation of an independent
union with a federation or national union
The DOLE-NCR Regional Director or industry union. The second, finding
dismissed the allegations but found that application in the instant petition,
SMPPEU–PDMP did not comply with involves the direct creation of a local or
the 20% membership requirement and, a chapter through the process of
thus, ordered the cancellation of its chartering.
certificate of registration.
When is a local/chapter given legal personality?
On appeal, the BLR reversed the The filing of the complete documentary
Regional Director’s ruling that the 20% requirements is the operative act that vests legal
membership is a requirement for personality upon a local/chapter.
respondent to attain legal personality as The Implementing Rules stipulate that a
a labor organization. Thereafter, local or chapter may be directly created
SMCEU-PTGWO filed a motion for by a federation or national union. A duly
reconsideration which was denied. constituted local or chapter created in
accordance with the foregoing shall
Thus, SMCEU-PTGWO filed a petition acquire legal personality from the date of
for certiorari under Rule 65 which was filing of the complete documents with
dismissed by the CA. The CA also the BLR. The issuance of the certificate
denied the motion for reconsideration. of registration by the BLR or the DOLE
Hence, this petition for review on Regional Office is not the operative act
certiorari under Rule 45. that vests legal personality upon a local
or a chapter under Department Order
No. 9. Such legal personality is acquired
SMCEU-PTGWO maintains that from the filing of the complete
SMPPEU–PDMP failed to meet this
20% membership requirement since it
Page 30 of 64 | Yong | Labor 2
based its membership on the number of documentary requirements enumerated
employees of a single division only, in Section 1, Rule VI.
namely, the SMPP. (a) charter certificate issued by the
federation or national union indicating
the creation or establishment of the
local/chapter;
(b) names of the local/chapter’s
officers, their addresses, and the
principal office of the local/chapter;
and
(c) local/chapter’s constitution and by-
laws)

Is the 20% membership requirement applicable


to branches, locals, and chapters? No.
The intent of the law in imposing less
requirements in the case of a branch or
local of a registered federation or
national union is to encourage the
affiliation of a local union with a
federation or national union in order to
increase the local union’s bargaining
powers respecting terms and conditions
of labor.

Is PDMP a legitimate labor organization? Yes.


The Implementing Rules stipulate that a
labor organization shall be deemed
registered and vested with legal
personality on the date of issuance of its
certificate of registration. Once a
certificate of registration is issued to a
union, its legal personality cannot be
subject to collateral attack. It may be
questioned only in an independent
petition for cancellation in accordance
with Section 5 of Rule V, Book V of the
Implementing Rules.

PDMP was registered as a trade union


center and issued Registration Certificate
No. FED-11558-LC by the BLR on 14
February 1991. Until the certificate of
registration of PDMP is cancelled, its
legal personality as a legitimate labor
organization subsists. Once a union
acquires legitimate status as a labor
organization, it continues to be
recognized as such until its certificate of

Page 31 of 64 | 021022
registration is cancelled or revoked in an
independent action for cancellation.

It bears to emphasize that what is being


directly challenged is the personality of
respondent as a legitimate labor
organization and not that of PDMP.
This being a collateral attack, this Court
is without jurisdiction to entertain
questions indirectly impugning the
legitimacy of PDMP.

Can PDMP, a trade union center, validly create


a local/chapter? No. The law only grants
authority to federation/national unions, not
trade union centers.
The term trade union center was first
adopted in the Implementing Rules,
under Department Order No. 9.

Culling from its definition as provided by


Department Order No. 9, a trade union
center is any group of registered national
unions or federations organized for the
mutual aid and protection of its
members; for assisting such members in
collective bargaining; or for participating
in the formulation of social and
employment policies, standards, and
programs, and is duly registered with the
DOLE in accordance with Rule III,
Section 2 of the Implementing Rules.

Department Order No. 9 mentions two


labor organizations either of which is
allowed to directly create a local or
chapter through chartering—a duly
registered federation or a national union.

Also worth emphasizing is that even in


the most recent amendment of the
implementing rules, there was no
mention of a trade union center as being
among the labor organizations allowed
to charter.

This Court deems it proper to apply the


Latin maxim expressio unius est exclusio
alterius. Under this maxim of statutory
Page 32 of 64 | Yong | Labor 2
interpretation, the expression of one
thing is the exclusion of another. The
rule is restrictive in the sense that it
proceeds from the premise that the
legislating body would not have made
specific enumerations in a statute if it
had the intention not to restrict its
meaning and confine its terms to those
expressly mentioned. Expressium facit
cessare tacitum. What is expressed puts an
end to what is implied. Casus omissus pro
omisso habendus est.

Therefore, since under the pertinent


status and applicable implementing rules,
the power granted to labor organizations
to directly create a chapter or local
through chartering is given to a
federation or national union, then a trade
union center is without authority to
charter directly.

It has been observed that the formation


of a local or chapter becomes a handy
tool for the circumvention of union
registration requirements. Absent the
institution of safeguards, it becomes a
convenient device for a small group of
employees to foist a not-so-desirable
federation or union on unsuspecting co-
workers and pare the need for
wholehearted voluntariness, which is
basic to free unionism.
The DOLE-NCR issued a certificate of Did PIGLAS make fatal misrepresentation in
The Heritage registration for the Heritage Hotel its application for union registration? No.
Hotel Manila Employees Union, representing the rank The charge that a labor organization
(Owned and and file employees of Heritage Hotel committed fraud and misrepresentation
Operated by Manila. in securing its registration is a serious
Grand Plaza
charge and deserves close scrutiny. It is
Hotel
In 2000, the HHE Union filed a petition serious because once such charge is
Corporation)
for certification election that the Hotel proved, the labor union acquires none of
v. Pinag-Isang
opposed. The Hotel also filed a petition the rights accorded to registered
Galing At
for the cancellation of the union’s organizations. Consequently, charges of
Lakas Ng Mga
registration certificate. The Med-Arbiter this nature should be clearly established
Manggagawa
granted the petition for certification by evidence and the surrounding
Sa Heritage
election. The SOLE denied both appeal circumstances.
Manila (Piglas-
Heritage), and motion for reconsideration.
October 30, Thereafter, the Hotel filed a petition for Here, the discrepancies in the number of
2009 certiorari with the CA. union members or employees stated in
the various supporting documents that
Page 33 of 64 | 021022
respondent PIGLAS union submitted to
The CA issued a writ of injunction labor authorities can be explained.
against the holding of the HHE Union’s 1. While it appears in the minutes of the
certification election which became final December 10, 2003 organizational meeting
that only 90 employees responded to the roll
when the HHE Union withdrew its call at the beginning, it cannot be assumed
petition for review. that such number could not grow to 128 as
reflected on the signature sheet for
attendance. The meeting lasted 12 hours
In December 2003, certain rank and file from 11:00 a.m. to 11:00 p.m. There is no
employees of the Hotel formed another evidence that the meeting hall was locked up
union, PIGLAS, and applied for to exclude late attendees.
registration with the DOLE-NCR. In 2. There is also nothing essentially mysterious
or irregular about the fact that only 127
February 2004, PIGLAS received its
members ratified the union's constitution
registration certificate. Thereafter, the and by-laws when 128 signed the attendance
HHE Union filed a petition for sheet. It cannot be assumed that all those
cancellation of its union registration. who attended approved of the constitution
and by-laws. Any member had the right to
hold out and refrain from ratifying those
PIGLAS filed a petition for certification documents or to simply ignore the process.
election which was opposed by the 3. The list PIGLAS submitted named only 100
Hotel, which alleged that PIGLAS was members notwithstanding that the signature
and attendance sheets reflected a
formed to circumvent the CA’s membership of 127 or 128 employees. But,
injunction. as the labor authorities held, this discrepancy
is immaterial. A comparison of the
documents shows that, except for six
The Med-Arbiter granted the petition for members, the names found in the subject list
certification election. are also in the attendance and signature
sheets.

The Hotel filed a petition to cancel the


union registration of the PIGLAS Labor laws are liberally construed in
Union, alleging violation of the policy favor of labor especially if doing so
against dual unionism. would affirm its constitutionally
guaranteed right to self-organization.
Here, the PIGLAS union’s supporting
The DOLE-NCR did not find material
documents reveal the unmistakable
discrepancies nor misrepresentations
yearning of petitioner company's rank
and denied the petition for cancellation.
and file employees to organize. This
On appeal, the BLR affirmed the ruling
yearning should not be frustrated by
of the DOLE-NCR.
inconsequential technicalities.

The CA denied the petition for certiorari


Is dual unionism a ground for cancelling a
(because the petition was not
union’s registration? No.
accompanied by material documents and
portions of the record) and motion for The fact that some of respondent
reconsideration. Hence, this petition for PIGLAS union's members were also
review under Rule 45. members of the old rank and file union,
the HHE union, is not a ground for
canceling the new union's registration.
The right of any person to join an
organization also includes the right to
leave that organization and join another
one. Besides, HHE union is dead. It had
ceased to exist and its certificate of
Page 34 of 64 | Yong | Labor 2
registration had already been cancelled.
Thus, petitioner's arguments on this
point may also be now regarded as moot
and academic.

Did the CA err in dismissing the petition for


certiorari for the Hotel’s failure to attach
material portions of the Record? Yes.
The Court of Appeals has three courses
of action when the annexes to the
petition are insufficient. It may dismiss
the petition, require the submission of
the relevant documents, or order the
filing of an amended petition with the
required pleadings or documents. A
petition lacking in essential pleadings or
portions of the record may still be given
due course, or reinstated if earlier
dismissed, upon subsequent submission
of the necessary documents or to serve
the higher interest of justice.

Since a remand of the case to the Court


of Appeals for a determination of the
substantive issues will only result in more
delays and since these issues have been
amply argued by the opposing sides in
the various pleadings and documents
they submitted to this Court, the case
may now be resolved on the merits.
Eagle Ridge is a corporation engaged in Did the Union commit misrepresentation, false
the business of maintaining golf courses. statement, or fraud that merits cancellation of its
At the end of 2005, it had around 112 registration? No.
rank-and-file employees. A scrutiny of the records fails to show
any misrepresentation, false statement,
With 30 members, the Union applied for or fraud committed by EREU to merit
registration before the DOLE. The cancellation of its registration.
Eagle Ridge DOLE RO granted the application and 1. The Union submitted the required
Golf and issued a registration certificate. documents attesting to the facts of the
organizational meeting on December 6,
Country Club Thereafter, the Union filed a petition for 2005, the election of its officers, and the
v. CA, March certification election which Eagle Ridge adoption of the Union’s constitution and
18, 2010 opposed, ascribing misrepresentation, by-laws.
false statement, or fraud in connection 2. The members of the EREU totaled 30
with the adoption of its founding employees when it applied on December 19,
2005 for registration. The Union thereby
documents, numerical composition, and complied with the mandatory minimum
election of tis officers. 20% membership requirement under Art.
234(c).
3. The Union has sufficiently explained the
discrepancy between the number of those
who attended the organizational meeting

Page 35 of 64 | 021022
The DOLE Regional Director ordered showing 26 employees and the list of union
the cancellation of the registration of the members showing 30. The difference is due
to the additional four members admitted
Union. two days after the organizational meeting as
attested to by their duly accomplished
Union Membership forms.
On appeal, the OIC of the BLR affirmed
4. It is enough to establish the fact of
the DOLE Regional Director. admission of the four that they had duly
signified such desire by accomplishing the
membership form.
In the motion for reconsideration, the 5. The difference between the number of 26
BLR Director set aside the order of the members, who ratified the Union’s
OIC, ordered that the Union shall constitution and by-laws, and the 25
remain in the roster of legitimate members shown in the certification of the
organizations, and denied the motion for Union secretary as having ratified it, is, as
shown by the factual antecedents, a
reconsideration of Eagle Ridge. typographical error.
6. The probative value of the affidavits of
retraction issued by six union members
The CA denied the petition for certiorari cannot overcome those of the supporting
and motion for reconsideration. Hence, affidavits of 12 union members and their
this petition for certiorari under Rule 65. counsel as to the proceedings and the
conduct of the organizational meeting on
December 6, 2005. The six affiants of the
affidavits of retraction were not presented in
a hearing before the Hearing Officer
(DOLE Regional Director), as required
under the Rules Implementing Book V of
the Labor Code covering Labor Relations.
Sec. 11, Rule XI of DO 40-03 specifically
requires: Any affidavit submitted without
the re-affirmation of the affiant during a
scheduled hearing shall not be admitted in
evidence[.]

Does the withdrawal of six union members affect


the registration of the Union? No.
1. Twenty percent (20%) of 112 rank-and-file
employees in Eagle Ridge would require a
union membership of at least 22 employees
(112 x 205 = 22.4). When the EREU filed its
application for registration on December 19,
2005, there were clearly 30 union members.
Thus, when the certificate of registration
was granted, there is no dispute that the
Union complied with the mandatory 20%
membership requirement.
2. With the withdrawal of six union members,
there is still compliance with the mandatory
membership requirement under Art. 234(c),
for the remaining 24 union members
constitute more than the 20% membership
requirement of 22 employees.
3. S.S. Ventures — We have in precedent cases
said that the employees’ withdrawal from a
labor union made before the filing of the
petition for certification election is
presumed voluntary, while withdrawal after
the filing of such petition is considered to be
involuntary and does not affect the same.

Page 36 of 64 | Yong | Labor 2


Now then, if a withdrawal from union
membership done after a petition for
certification election has been filed does not
vitiate such petition, is it not but logical to
assume that such withdrawal cannot work to
nullify the registration of the union?
The Union filed a petition for What law governs? R.A. No. 6715, as
certification election among the regular amended by D.O. No. 9.
rank-and-file employees of the Company Since the operative facts in this case
with the Mediation Arbitration Unit of occurred in 1999, we shall decide the
DOLE NCR. The Company opposed. issues under the pertinent legal
provisions then in force (R.A. No. 6715,
The Med-Arbiter dismissed the petition as amended by D.O. No. 9).
because the founding documents of the
Union were not executed under oath and The then prevailing Section 1, Rule VI of
certified by the union secretary and the Implementing Rules of Book V, as
attested by the union president. amended by D.O. No. 9, series of 1997,
provides:
On appeal, the DOLE found that the Section 1. Chartering and creation of a local
Union complied with the documentation chapter—A duly registered federation or national
union may directly create a local/chapter by
requirements of the Labor Code. submitting to the Regional Office or to the
However, it denied the appeal because it Bureau two (2) copies of the following:
took judicial notice that another union (a) A charter certificate issued by the federation
Samahang filed an earlier petition for certification or national union indicating the creation or
Manggagawa election. On motion for reconsideration, establishment of the local/chapter;
Sa Charter the DOLE reversed itself and allowed (b) The names of the local/chapter’s officers,
Chemical the certification election of the Union their addresses, and the principal office of the
(SMCC- when it found that the other union was local/chapter; and
SUPER) v. not able to conduct a certification (c) The local/chapter’s constitution and by-laws
Charter provided that where the local/chapter’s
election. constitution and by-laws [are] the same as [those]
Chemical and of the federation or national union, this fact shall
Coating Corp., be indicated accordingly.
March 16, The CA set aside the decision of the
All the foregoing supporting requirements shall
2011 DOLE. Hence, this petition for review
be certified under oath by the Secretary or the
on certiorari. Treasurer of the local/chapter and attested to by
its President.

Is the Union a legitimate labor organization?


Yes.
As readily seen, the Sama-samang Pahayag
ng Pagsapi at Authorization and Listahan ng
mga Dumalo sa Pangkalahatang Pulong at
mga Sumang-ayon at Nagratipika sa Saligang
Batas are not among the documents that
need to be submitted to the Regional
Office or Bureau of Labor Relations in
order to register a labor organization.

As to the charter certificate, the above-


quoted rule indicates that it should be
executed under oath. Petitioner union
Page 37 of 64 | 021022
concedes and the records confirm that
its charter certificate was not executed
under oath.

However, in San Miguel Corporation


(Mandaue Packaging Products Plants) which
was decided under the auspices of D.O.
No. 9, Series of 1997, we ruled — it does
not make sense to have the
local/chapter’s officers [ ] certify or
attest to a document which they had no
hand in the preparation of.

In accordance with this ruling, petitioner


union’s charter certificate need not be
executed under oath. Consequently, it
validly acquired the status of a legitimate
labor organization upon submission of
(1) its charter certificate, (2) the names of
its officers, their addresses, and its
principal office, and (3) its constitution
and by-laws —the last two requirements
having been executed under oath by the
proper union officials as borne out by
the records.

Does the inclusion of supervisory employees in


the Union divest it of its status as a legitimate
labor organization? Is commingling a ground for
cancellation of registration? No.
It should be emphasized that the
petitions for certification election
involved in Toyota and Dunlop applied the
1989 Rules. However, this was amended
by D.O. No. 9, s. 1997. Specifically, the
requirement under Sec. 2(c) of the 1989
Amended Omnibus Rules—that the
petition for certification election indicate
that the bargaining unit of rank-and-file
employees has not been mingled with
supervisory employees—was removed.
Instead, what the 1997 Amended
Omnibus Rules requires is a plain
description of the bargaining unit.

Thus, the Union was not divested of its


status as a legitimate labor organization
even if some of its members were
supervisory employees; it had the right to

Page 38 of 64 | Yong | Labor 2


file the subject petition for certification
election.

Can the legal personality of the Union be


collaterally attacked by the Company in the
certification election proceedings? No.
[Bystander Rule]
Except when it is requested to bargain
collectively, an employer is a mere
bystander to any petition for certification
election; such proceeding is non-
adversarial and merely investigative, for
the purpose thereof is to determine
which organization will represent the
employees in their collective bargaining
with the employer. The choice of their
representative is the exclusive concern of
the employees; the employer cannot
have any partisan interest therein; it
cannot interfere with, much less oppose,
the process by filing a motion to dismiss
or an appeal from it; not even a mere
allegation that some employees
participating in a petition for
certification election are actually
managerial employees will lend an
employer legal personality to block the
certification election. The employer’s
only right in the proceeding is to be
notified or informed thereof.
The Union is a registered legitimate labor Did the Union commit
union of the rank-and-file employees of fraud/misrepresentation?
Yokohama Tires. It filed with the DOLE Whether YEU committed fraud and
Regional Office (RO) a petition for misrepresentation in failing to remove
certification of election. Pineda’s signature from the list of
employees who supported YEU’s
Yokohama filed a petition for revocation application for registration and whether
Yokohama of the Union’s registration, alleging YEU conducted an election of its
Tire Phils. v. fraud. The DOLE RO held that the officers are questions of fact. They are
Yokohama Union committed misrepresentation. not reviewable.
Employees
Union, March
10, 2010 On appeal, the BLR reversed the DOLE Factual findings of the Court of Appeals
RO. The BLR denied the motion for are binding on the Court. Absent grave
reconsideration. abuse of discretion, the Court will not
disturb the Court of Appeals’ factual
findings. Yokohama failed to show that
The CA denied the petition for certiorari the Court of Appeals gravely abused its
under Rule 65 and subsequent motion discretion.
for reconsideration. Hence, this petition
for review on certiorari under Rule 45.
Page 39 of 64 | 021022
The charge that a labor organization
committed fraud and misrepresentation
in securing its registration is a serious
charge and deserves close scrutiny.
Consequently, charges of this nature
should be clearly established by evidence
and the surrounding circumstances.

Yokohama, being the one which filed the


petition for the revocation of the
Union’s registration, had the burden of
proving that the union committed fraud
and misrepresentation.
The Company filed a petition for Did the Union commit misrepresentation, false
cancellation of the certificate of statement, or fraud that merits cancellation of its
registration of SALAMAT on the registration? No.
ground that it is guilty of For fraud and misrepresentation to be
misrepresentation, false statement, and grounds for cancellation of union
fraud. registration under Article 239 of the
Labor Code, the nature of the fraud and
The DOLE Regional Director granted misrepresentation must be grave and
the petition for cancellation because the compelling enough to vitiate the consent
employees who attended the of a majority of union members.
organizational meeting was short of the
union registration requirement. The Company’s allegation of
misrepresentation and fraud is based on
On appeal, the BLR reversed the DOLE its claim that during the organizational
Regional Director and held that the meeting on May 1, 2009, only 68
Takata Company failed to prove that the Union employees attended, while respondent
Philippines v. deliberately and maliciously claimed that it has 119 members as
BLR and misrepresented the number of rank-and- shown in the document denominated as
SALAMAT, file employee and the list of employees “Pangalan ng mga Kasapi ng Unyon.”
June 4, 2014 who participated in the meeting was
separate and distinct from the list of It does not appear in Article 234(b) of
names of members comprising at least the Labor Code that the attendees in the
20% of the bargaining unit. The BLR organizational meeting must comprise
denied the motion for reconsideration. 20% of the employees in the bargaining
unit. In fact, even the mplementing Rules
The CA denied the petition for certiorari and Regulations of the Labor Code does
under Rule 65 and motion for not so provide. It is only under Article
reconsideration. Hence, this petition for 234(c) that requires the names of all its
review on certiorari. members comprising at least twenty
percent (20%) of all the employees in the
bargaining unit where it seeks to operate.
Clearly, the 20% minimum requirement
pertains to the employees’ membership
in the union and not to the list of
workers who participated in the
organizational meeting.

Page 40 of 64 | Yong | Labor 2


Considering that there are 119 union
members which are more than 20% of all
the employees of the bargaining unit, and
since the law does not provide for the
required number of members to attend
the organizational meeting, the 68
attendees which comprised at least the
majority of the 119 union members
would already constitute a quorum for
the meeting to proceed and to validly
ratify the Constitution and By-laws of
the union.

Even if the total number of rank-and-file


employees of petitioner is 528, while
respondent declared that it should only
be 455, it still cannot be denied that the
latter would have more than complied
with the registration requirement.
Asian Institute Management (AIM) is a What is the appropriate remedy under the
duly registered nonstock, nonprofit circumstances? A petition for cancellation of
educational institution. registration, [not inclusion/exclusion
proceedings].
AIM Faculty Association (AFA) is a duly In Holy Child Catholic School v. Hon. Sto.
registered labor organization composed Tomas, this Court declared that “[i]n case
of members of the AIM faculty. of alleged inclusion of disqualified
employees in a union, the proper
procedure for an employer like petitioner
AFA filed a petition for certification is to directly file a petition for
election seeking to represent a bargaining cancellation of the union’s certificate of
unit in AIM consisting of 40 faculty registration due to misrepresentation,
members. AIM opposed the petition, false statement or fraud under the
AIM v. AIM claiming that its members are managerial circumstances enumerated in Article 239
Faculty employees. The Med-Arbiter denied the of the Labor Code, as amended.”
Association, petition for certification election.
January 23,
2017 However, the issue of whether
On February 20, 2009, the SOLE respondent’s members are managerial
reversed the Med-Arbiter and ordered employees is still pending resolution by
the certification election. way of petition for review on certiorari
in G.R. No. 197089, which is the
AIM had also filed a petition for culmination of all proceedings in DOLE
cancellation of registration of AFA. On Case No. NCR-OD-M- 0705-007 —
February 16, 2009, the DOLE-NCR-RD where the issue relative to the nature of
ordered the cancellation of AFA’s respondent’s membership was first
certificate of registration. This decision raised by petitioner itself and is there
was reversed by the BLR on December fiercely contested. The resolution of this
29, 2009. The motion for issue cannot be preempted; until it is
reconsideration was denied. determined with finality in G.R. No.
197089, the petition for cancellation of
Page 41 of 64 | 021022
respondent’s certificate of registration
The CA granted the petition for review on the grounds alleged by petitioner
on certiorari over the petition for cannot be resolved. As a matter of
cancellation of registration of AFA. It courtesy and in order to avoid conflicting
held that AIM’s tenure-track faculty are decisions, We must await the resolution
managerial employees. The motion for of the petition in G.R. No. 197089.
reconsideration was denied. Thereafter,
AIM filed a petition for review on WHEREFORE, considering that the
certiorari docketed as G.R. No. 197089. outcome of this case depends on the
resolution of the issue relative to the
On the other hand, AIM filed a petition nature of respondent’s membership
for review on certiorari over the pending in G.R. No. 197089, this case is
certification election. The CA denied and ordered CONSOLIDATED with G.R.
held that the remedy available for AIM is No. 197089.
“to question the status of the individual
union members of the AFA in the
inclusion/exclusion proceedings
pursuant to Article 245-A of the Labor
Code.” Hence, this petition for review
on certiorari.

Page 42 of 64 | Yong | Labor 2

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