IM-For-Labor-Relation PDF

B. LEGITIMATE LABOR ORGANIZATIONS 3. The names of all its members comprising at least 20% of all the employees in the...

B. LEGITIMATE LABOR ORGANIZATIONS 3. The names of all its members comprising at least 20% of all the employees in the bargaining unit where it seeks to operate; Definition of Terms 4. If the applicant union has been in existence for one or more years, copies of its annual financial reports; and Labor Organization means any union or association of employees which exists in whole or 5. Four (4) copies of the constitution and by-laws of the applicant union, minutes of in part for the purpose of collective bargaining or of dealing with employers concerning terms its adoption or ratification, and the list of the members who participated in it. and conditions of employment. Where to Register It is created for mutual aid, interest, cooperation, protection, or other lawful purposes. (Sec. 1. Independent labor unions, chartered locals, and workers’ associations – it shall be 1, Rule I, Book V, IRR as amended by D.O. No. 40-04) filed with and acted upon by the Regional Office where the applicant principally operates. Legitimate labor organization means any labor organization duly registered with the 2. Federations, national unions, or workers’ associations operating in more than one DOLE, and includes any branch or local thereof. (Art. 219 (h),LC) region – it shall be filed with the Bureau or the Regional Offices, but shall be processed and acted upon by the Bureau which has national jurisdiction unlike a Bargaining representative means a legitimate labor organization or any officer or agent of regional office. such organization, whether or not employed by the employer. Classification of Labor Organizations Company Union refers to any labor organization whose formation, function or At the National Level administration has been assisted by any act defined as unfair labor practice by the Labor 1. National Union/Federation; Code. 2. Industry Union; 3. Trade Union Center; and Two (2) Basic Purposes of a Labor Organization 4. Company Union. 1. For collective bargaining; and 2. For dealing with the employer. At the Enterprise Level 1. Independent Union; and Two (2) Modes of Creating a Labor Organization 2. Chapter. 1. Independent registration (Art. 240, LC) 2. Chartering of local chapter/chartered local (Art. 241, LC) CANCELLATION OF REGISTRATION 1. REGISTRATION WITH THE DOLE Grounds for Cancellation of Registration (R-E-V) 1. Misrepresentation, false statement, or fraud in connection with the adoption or Ratification A labor organization may be registered or not. If registered, it is considered a “legitimate of the constitution and by-laws or amendments thereto, the minutes of ratification, and the labor organization” (LLO). However, a labor organization is not “illegitimate” just list of members who took part in the ratification; because it is unregistered. It is still a lawful organization but it has no legal personality 2. Misrepresentation, false statements, or fraud in connection with the Election of officers, to demand collective bargaining with the employer. minutes of the election of officers, the list of voters; and 3. Voluntary dissolution. (D.O. 40-F-03) NOTE: Registration with the DOLE makes a labor organization legitimate in the sense that it is clothed with legal personality to claim the representational and bargaining Note: rights enumerated in Art. 251 and Art. 267 or to strike and picket under Art. 278. If there are supervisors that are joined with the rank-and-file employees union, would that be a ground (Azucena, 2013) for cancellation of registration? Answer: NO. Those who do not properly belong to the union are deemed automatically removed from It is the fact of being registered with DOLE that makes a labor organization legitimate. the union by operation of law. (Art. 256, LC) Registration under the corporation law before the Securities and Exchange Commission (SEC) only has the effect of giving it juridical personality to represent itself in regular 3. AFFILIATION/DISAFFILIATION FROM NATIONAL UNION OR FEDERATION courts but it does not grant the rights and privileges of a legitimate labor organization. A local union may affiliate with or disaffiliate from a federation. This is an exercise of the right of Requirements for Registration association recognized by the Constitution. Any applicant labor organization, association, or group of unions or workers shall Between the chapter and the federation, affiliation or disaffiliation is a contractual relation. Hence, even acquire legal personality and shall be entitled to the rights and privileges granted by law if disaffiliation is a matter of right, the local must comply with the obligations under the CBL such as to legitimate labor organizations upon issuance of the certificate of registration based manner and period of notice. on the following requirements: 1. registration fee Affiliate 2. The names of its officers, their addresses, the principal address of the labor An affiliate refers to: organization, the minutes of the organizational meetings, and the list of the workers 1. An independently registered union that enters into an agreement of affiliation with a federation or who participated in such meetings; national union; or 2. A chartered local which applies for and is granted an independent registration but does not disaffiliate Disaffiliation must be by majority decision from its mother federation or national union. Disaffiliation must be decided by the entire membership through secret balloting in accordance with Art. 250 (d). An individual member or any number of members may disaffiliate from the union during How local chapter is created the “freedom period” but disaffiliating the union itself from the mother union must be supported by the majority of the members. If done by a minority, even during the freedom period, the act may constitute A duly registered federation or national union may directly create a local/chapter by issuing a charter disloyalty. They may be expelled from the union or may be removed from their employment because of certificate indicating the establishment of a local/chapter. the union security clause. 1. The chapter shall acquire legal personality only for purposes of filing a PCE from the date it Limitation to Disaffiliation was issued a charter certificate. Effect of Disaffiliation 2. The chapter shall be entitled to all other rights and privileges of a LLO only upon the 1. Union Dues – the obligation of an employee to remit union dues to the mother is coterminous with submission of the following documents in addition to its charter certificate: the affiliation or membership of its local. The dues must now be remitted to the local. 2. Existing CBA – the CBA continues to bind the members of the new or disaffiliated and independent a) Names of the chapter’s officers, their addresses, and the principal office of the union up to the CBA’s expiration date based on the ‘Substitutionary Doctrine.’ chapter; b) Chapter’s constitution and by-laws; and Revocation of Charter c) Where the chapter’s constitution and by-laws are the same as that of the federation A federation may revoke the charter issued to a local/chapter by serving a verified notice of revocation, or the national union, this fact shall be indicated accordingly. copy furnished to the Bureau, on the ground of disloyalty or such other grounds as may be specified in 3. The genuineness and due execution of the supporting requirements shall be: the constitution and by-laws of the federation. (Sec. 5, Rule VIII, Book V, IRR). a. Certified under oath by the secretary or treasurer of the local/chapter; and b. Attested to by its president. Effect of Revocation: Independently Registered vs. Unregistered Chartered Local Union Reportorial Requirements in Affiliation INDEPENDENTLY REGISTERED UNREGISTERED The report of affiliation of independently registered labor unions with a federation or national union Effect of Disaffiliation to the Union (local) shall be accompanied by the following documents: Would not affect its being an LLO and therefore, Would cease to be an LLO and would no longer it would continue to have legal personality and to have the legal personality and the rights and 1. Resolution of the labor union's board of directors approving the affiliation; possess all rights and privileges of LLO. privileges granted by law to LLO, unless the 2. Minutes of the general membership meeting approving the affiliation; local chapter is covered by its duly registered 3. The total number of members comprising the labor union and the names of members who CBA. approved the affiliation; 4. The certificate of affiliation issued by the federation in favor of the independently registered Effect of Disaffiliation to the CBA labor union; and written notice to the Er concerned if the affiliating union is the incumbent An existing CBA would continue to be valid as The CBA would continue to be valid up to its bargaining agent the labor organization can continue expiration date. administering the CBA. Reasons for Affiliation 1. Secure support or assistance especially during the formative stage of unionization; Entitlement to Union Dues after Disaffiliation 2. Utilize expertise in preparing and pursuing bargaining proposals; and Labor organization entitled to the union dues and Union dues may no longer be collected as there 3. To marshal mind and manpower in the course of a group action such as a strike. not the would no longer be any labor union that is federation from which the labor org allowed to collect such union dues from the Ees. Independently registered union is required to report affiliation with the Regional Office A union affiliating with a federation or national union is required to report such affiliation to the Effect of Revocation Regional Office that issued its certificate of registration. \ GR: The revocation shall divest the local/chapter of its legal personality upon receipt of the notice by the Bureau. Disaffiliation of local union from the federation XPN: If the local/chapter has acquired independent registration. GR: A labor union may disaffiliate from the mother union to form an independent union only during the 60-day freedom period immediately preceding the expiration of the CBA. Effect of Cancellation of Registration of Federation or National Union on locals/chapters XPN: Even before the onset of the freedom period, disaffiliation may still be carried out, but such must GR: The cancellation shall operate to divest its locals/chapters of their status as legitimate labor be effected by the majority of the union members in the bargaining unit. organizations. XPN: Locals/chapters are covered by a duly registered CBA. Disaffiliation must be decided by the entire membership through secret balloting in accordance with NOTE: In the latter case, locals/chapters shall be allowed to register as independent unions. If they fail Art. 250(d). This happens when there is a substantial shift in allegiance on the part of the majority of to register, they shall lose their legitimate status upon the expiration of the CBA. the members of the union. In such a case, however, the CBA continues to bind the members of the new or disaffiliated and independent union to determine the union which shall administer the CBA. Q: PSEA is a local union in Skylander Company which is affiliated with PAFLU. PSEA won the certification election among the rank-and-file employees of the Skylander Company but its rival union PSEA-WATU protested the results. Pending the resolution of such controversy, PSEA disaffiliated with PAFLU and hence affiliated with 4) Of access to financial records; NCW which was supported by its members. May a local union disaffiliate with its mother federation 5) Vote on officer’s compensation; and pending the settlement of the status as the sole and exclusive bargaining agent? 6) Vote on proposed special assessment and be deducted a special A: YES. The pendency of an election protest does not bar the valid disaffiliation of the local union assessment only with the member’s written authorization. which was supported by the majority of its members. The right of a local union to disaffiliate with the c. Right to information- The member’s right to be informed about the: federation in the absence of any stipulation in the Constitution and by-laws of the federation prohibiting 1. Organization’s constitution and by-laws; disaffiliation is well settled. Local unions remain as the basic unit of association, free to serve their own 2. Collective bargaining agreement; and interest subject to the restraints imposed by the Constitution and by-laws of national federation and are 3. Labor laws. free to renounce such affiliation upon the terms and conditions laid down in the agreement which d. Deliberative and decision-making right- The member’s right to participate in deliberations brought such affiliation to existence on major policy questions and decide them by secret ballot. Substitutionary Doctrine Q: When, how, and under what conditions does an employee become a union member? This doctrine holds that the employees cannot revoke the validly executed collective bargaining contract A: The answer depends on the union’s constitution and by-laws. The Labor Code gives a labor with their employer by the simple expedient of changing their bargaining agent. The new agent must organization the right to prescribe its own rules for acquisition or retention of membership. Nonetheless, respect the contract. The employees, through their new bargaining agent, cannot renege on the collective an employee is already qualified for union membership starting on his first day of service. (Azucena, bargaining contract, except to negotiate with the management for the shortening thereof. 2016) The Substitutionary Doctrine, however, cannot be invoked to support the contention that a newly Expulsion of a Union Member certified collective bargaining agent automatically assumes all the personal undertakings—like the no- A member of a union may be expelled but only for a valid cause and by following the procedure outlined strike stipulation here—in the collective bargaining agreement made by the deposed union. When EBR in the constitution and by-laws. A member is entitled to due process. Expulsion of a member for arbitrary bound itself and its officers not to strike, it could not have validly bound all the other rival unions or impetuous reasons may amount to ULP by the union. existing in the bargaining units in question. Election of Union Officers Q: What positions should be filled up, when, and how should the election be done? 4. RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS A: It depends on the union’s constitution and by- laws or the agreement among the members. In the A legitimate labor organization shall have the right: absence thereof, the Implementing Rules of Book V shall apply. a) To act as the representative of its members for the purpose of collective bargaining; (Right of Representation) Officers are elected by the members through secret ballot voting. b) To be certified as the exclusive representative of all the employees in an appropriate bargaining unit for purposes of collective bargaining; Eligibility of Voters c) To be furnished by the employer with annual audited financial statements, including the Only union members can take part in the election of union officers. The election takes place at intervals balance sheet and the profit and loss statement; (Right to Information) of five (5) years, which is the term of office of the union officers. d) To own property, real or personal; (Property Rights) e) To sue and be sued in its registered name; (Property Rights) Election under the Implementing Rules f) To undertake all other activities designed to benefit the organization and its members; and The incumbent president should create an election committee within 60 days before expiration of the (Art. 251, LC) (Property Rights) term of incumbent officers. The Rules specify the composition of the election committee as well as its g) To collect reasonable membership fees, union dues, assessments, fines, and other powers and duties. If the officers with expired term do not call an election, the remedy is for at least contributions. (Art. 292(a), LC) (Right to Collect Union Dues) 30% of the members to file a petition with the DOLE Regional Office. 5. RIGHTS AND CONDITIONS OF MEMBERSHIP IN LEGITIMATE LABOR Union Officer must be an Employee ORGANIZATIONS No person who is not an employee or worker of the company or establishment where a union operates shall be elected or appointed as an officer of such union. Only an employee may be a union officer. The rights of union members may be summarized as follows: (Pol-M-I-D) a) Political right; Disqualification of Union Officers b) Right over Money matters; The following are disqualified to become union officers: c) Right to Information; and d) Deliberative and decision-making right. 1. Those convicted of a crime involving moral turpitude; 2. Those who belong to a subversive organization; or a. Political right- The member’s right to vote and be voted for, subject to lawful provisions on 3. Those engaged directly or indirectly in any subversive activity. qualification and disqualifications. b. Right over money matters The member’s right: 1) Against excessive fees; 2) Against unauthorized collection of contributions or disbursements; 3) To require adequate records of income and expenses; Frustration over incumbent officers of the union does not justify disregard of union’s constitution CHECK OFF, ASSESSMENTS, UNION DUES, AND AGENCY FEES and by-laws Check Off Frustration over the performance of the incumbent officers, as well as their fears of a fraudulent election A check-off is a method of deducting from the employee’s pay at prescribed periods, any amount due to be held under the latter’s supervision, could not justify the imposition of their own will on the union. for fees, fines, or assessments. It is a process or device whereby the employer, on agreement with the The organizations shall have the right to draw up their own constitution and rules and to elect their union recognized as the proper bargaining representative, or on prior authorization from its employees, representatives in full freedom, free from any interference from public authorities. The union members deducts union dues and assessments from the latter’s wages and remits them directly to the union. should respect the constitution and rules they themselves draw up equally so. The CBL is the fundamental law that governs the relationship between and among the members of the union. Requirements for a Valid Check-Off 1. Authorization by a written resolution of the majority of all the members at a general Due Process in Impeachment of Union Officers membership meeting duly called for the purpose; Despite practical difficulties in complying with the procedure laid down in the constitution and by-laws, 2. Secretary’s record of the minutes of said meeting; and the impeachment procedure contained therein must be substantially complied with. 3. Individual written authorizations for check-off duly signed by the employees concerned. Q: Can a labor organization prescribe rules and regulation with respect to voting? NOTE: Under Art. 113, one of the lawful deductions from employee’s wage is for “union dues, in cases A: YES. It may require reasonable period of prior membership (such as six months or a year). It may where the right of the worker or his union to check- off has been recognized by the employer or also condition the exercise of right to vote on the payment of dues since paying dues is a basic obligation authorized in writing by the individual worker concerned. of membership. However, this is subject to two (2) qualifications: (a) it must be applied uniformly; and (b) members must be afforded a reasonable opportunity to pay dues, including a grace period during Jurisdiction over Check-Off Disputes which dues may be paid without any loss of rights. It should be noted however, that it cannot create Being an intra-union dispute, the Regional Director of DOLE has jurisdiction over check off disputes. special classes of non-voting members. Obtaining Relief with the Union (Art. 250(p), LC) Assessments GR (General Rule): First, redress must be sought with the union itself in accordance with the constitution and by-laws. When the intra-union remedy fails, a case can be filed with the Bureau of Payments used for a special purpose. Especially if required only for a limited time Labor Relations. Requisites to Collect Special Assessment XPN (Exception): When the exhaustion of remedies with the union would practically amount to a denial of justice. Then, it cannot be insisted upon as a condition to the right to invoke the aid of the GR: No special assessments, attorney’s fees, negotiation fees, or any other extraordinary fees may be court. checked off from any amount due to an employee unless there is: 1. Authorization by a written resolution of the majority of all members at the general 30% Requirement membership meeting duly called for that purpose; GR: At least 30% of the members are required to report a violation of labor organization procedures. 2. Secretary’s record of the minutes of the meeting; and 3. Individual written authorization for check-off duly signed by the employee concerned. XPN: When such violation affects only one or two members, then only one or two members would be enough to report such violation. The authorization should specify the: 1. Amount; Visitorial power of SOLE to inquire into the financial activities of labor organizations 2. Purpose; and SOLE is authorized to inquire into the financial activities of any labor organization to determine 3. Beneficiary of the deduction. compliance or non-compliance with the laws and to aid in the prosecution of any violation thereof. Exceptions It is initiated on the basis of: a. For mandatory activities under the LC; 1. A Complaint under oath; and b. For Agency Fees; 2. Supported by 20% of the membership. c. When non-members of the union avail of the benefits of the CBA: 1. Non-members may be assessed union dues equivalent to that paid by union members; and Dues and assessments which the union may collect 2. Only by board resolution approved by majority of the members in general meeting called for Legitimate labor organizations are authorized to collect reasonable amounts of the following: the purpose. 1. Membership fees 2. Union dues Effect of failure to strictly comply with the requirements set by law 3. Assessments 4. Fines It shall invalidate the questioned special assessments. Substantial compliance with the requirements is 5. Contribution for labor education and research mutual death and hospitalization benefits, not enough in view of the fact that the special assessment will diminish the compensation of union welfare fund, strike fund, and credit and cooperative undertakings (Art. 292(a), LC) members. 6. Agency fees (Art. 259(e), LC) Union Dues These are regular monthly contributions paid by the members to the union in exchange for the benefits given to them by the CBA and to finance the activities of the union in representing the union. Nature and purpose of union dues Union dues are the lifeblood of the union. All unions are authorized to collect reasonable membership fees, union dues, assessments, fines, and other contributions for labor education and research, mutual death and hospitalization benefits, welfare fund, strike fund, and credit and cooperative undertakings. Agency Fees It is an amount equivalent to union dues, which a non-union member pays to the union because he benefits from the CBA negotiated by the union. NOTE: Payment by non-union members of agency fees does not amount to unjust enrichment because the purpose of such dues is to avoid discrimination between union and non-union members. The source of Agency Fee is not contractual but is based from quasi-contract. Requisites for Assessment of Agency Fees 1. The Ee is part of the bargaining unit; 2. He is not a member of the union; and 3. He partook of the benefits of the CBA. NOTE: The individual authorization required under Art. 250(n) shall not apply to non-members of the recognized CB agent with regard to assessment of agency fees. The employee's acceptance of benefits resulting from a collective bargaining agreement justifies the deduction of agency fees from his pay and the union's entitlement thereto. In this aspect, the legal basis of the union's right to agency fees is neither contractual nor statutory, but quasi-contractual deriving from the established principle that non-union employees may not unjustly enrich themselves by benefiting from employment conditions negotiated by the bargaining union. (Holy Cross of Davao College v. Hon. Joaquin, G.R. No. 110007, 18 Oct. 1996) Limitation on the Amount of Agency Fee The bargaining union cannot capriciously fix the amount of agency fees it may collect from its non- members. Article 248(e) of the Labor Code expressly sets forth the limitation in fixing the amount of the agency fees, thus: 1. It should be reasonable in amount; and 2. It should be equivalent to the dues and other fees paid by members of the recognized collective bargaining agent. Q: A is employed by XYZ Company where XYZ Employees Union (XYZ-EU) is the recognized exclusive bargaining agent. Although A is a member of rival union XYR-MU, he receives the benefits under the CBA that XYZ-EU had negotiated with the company. XYZ-EU assessed A, a fee equivalent to the dues and other fees paid by its members but A insists that he has no obligation to pay said dues and fees because he is not a member of XYZ–EU and he has not issued an authorization to allow the collection. Explain whether his claim is meritorious. (2010 BAR) A: NO. The fee exacted from A takes the form of an agency fee which is sanctioned by Art. 248 (now 259) (e) of the Labor Code. The collection of agency fees in an amount equivalent to union dues and fees from Ees who are not union members is recognized under the LC. The union may collect such fees even without any written authorization from the non- union member Ees, if said Ees accept the benefits resulting from the CBA. The legal basis of agency fees is quasi-contractual. (Del Pilar Academy v. Del Pilar Academy Employees Union, G.R. No. 170112, 30 Apr. 2008)