Requisites of Special Assessment Agency Fees are dues equivalent to union dues,

Must be complied with in order that special charged from the non-union members who or
assessment for Union's incidental expenses. benefited by or under the CBA.
attorney's foes and representation expenses, may be
valid, namely: Requisites: (PNBU)
1. The employee is part of the bargaining unit;
1. Authorization by a written resolution of the 2. He is Not a member of the union;
majority of all the members at the general 3. He partook of the Benefits of the CBA; and
membership meeting duly called for the purpose; 4. Not a member of another Union (LABOR
CODE, Art. 259(e)).
2. Secretary's record of the minutes of the meeting;
and Note: Individual written authorization is not
necessary for the collection of agency fees (LABOR
3. Individual written authorization for check-off CODE, Art. 259(e): Holy Cross of Davao College.
duly signed by the employee concerned. Inc. v. Holy Cross of Davao College Union
KAMAPI, G.R. No. 110007, October 18, 1996).
Special Assessment v. Check-Off
Special Assessment Check-ON Union Dues v. Agency Fee
How Approved Union Dues Agency Fee
Written resolution By obtaining the Deducted From
approved by majority of individual written Members of a union for Non-members of the
all the members a authorization duly the payment ofunion bargaining agent (union)
meeting duly called for signed by employee dues for the enjoyment of the
that purpose which must specify the benefits under the CBA
amount, purpose, and Consent
beneficiary May not be deducted May be deducted from
Exception to Such Requirement from the salaries of the the salary of employees
No exception; written (Agency Fees) union members without without their written of
resolution is mandatory Not necessary: the written consent the consent
at all instances. 1. For mandatory workers affected
activities provided under
the Code; and Note: Agency fee cannot be imposed on employees
2. When non-members already in the service and are members of another
of the union avail of the union. If a closed shop agreement cannot be applied
benefits of the CBA. to them, neither may an agency fee, as a lesser form
Said non-members may of union security, be imposed to them. Payment by
be assessed agency fees non-union members of agency lees does not amount
equivalent to that paid to an unjust enrichment basically because the
by members only by a purpose of such dues is to avoid discrimination
Board Resolution between union and non-union members (National
approved by a majority Brewery and Allied Industries Labor Union of the
of the members in a Phils. v. San Miguel Brewery, Inc., G.R. No. L-
general meeting called 18170, August 31, 1953).
for the purpose
Employee Members of Another Union
Union Dues are the regular monthly contributions Considered Free Riders
paid by the members to the union in exchange for When the union bids to be the bargaining agent it
the benefits given to them by the CBA and to voluntarily assumes the responsibility of
finance the activities of the union in representing representing all employees in the appropriate
them. bargaining unit (National Brewery and Allied
Industries Labor Union of the Phils. V. San Miguel
Brewery Worker's Association, GR No. L-18170. Extent of the Right to Self-Organization
August 31, 1963) 1. To form, join' and assist labor organizations for
the purpose of collective bargaining through
CHAPTER III. RIGHTS OF LEGITIMATE representatives of their own choosing; and
LABOR ORGANIZATIONS 2. To engage in lawful concerted activities for the
same purpose or for their mutual aid and protection
ARTICLE 251: RIGHTS OF LEGITIMATE (LABOR CODE, Art. 257).
LABOR ORGANIZATIONS OR CODE, AM. 257)

Rights of a Legitimate Labor Organization: Right to Organize Cannot be Bargained Away

(USER-FOE) The right to self-organization must be upheld in the
1. Undertake activities for the benefit of the absence of express provision of law to the contrary.
organization and its members: It cannot be curtailed by a CBA (Southern Phils.
2. Sue and be sued; Federation of Labor v. Ferrer-Calleja, G.R. No.
3. Exclusive representative of all employees; 80882, April 24, 1989)
4. Represent union members;
5. Furnished by employers of audited financial Right to Join Starts from the of First Day
statements; Employment
6. Own properties; and Any employee, whether employed for a defin period
7. Exemption from taxes. of not, shall, beginning on the first of his/her
service, be eligible for membership in any later
ARTICLE 252: REPORTORIAL organization (LABOR CODE, Art. 292(e)).
REQUIREMENTS
Persons/Employees Eligible to Join a Laber
Reportorial requirements to be submitted by the Organization for Purposes of Collective
legitimate labor organization: (COMA) Bargaining (CIA-RCME-GOCC)
1. Constitution and by-laws, or amendments thereto,
minutes of ratification, and the list of members who 1. All persons employed in Commercial,
took part in the ratification of the constitution and Industrial and Agricultural (CIA) enterprises,
by-laws within thirty (30) days from adoption or including employees of Government-owned or
ratification of the constitution and by-laws or controlled corporation without original charters
amendments thereto; established under the Corporation Code;
2. List of Officers, minutes of the election of
officers, and list of voters within thirty (30) days 2. In Religious, Charitable. Medical or
from election: Educational (RCME) institutions whether
3. List of Members at least once a year or whenever operating for profit or not; and
required by the Bureau; and
4. Annual financial report within thirty (30) days 3. Employees of Government-owned or controlled
after the close of every fiscal year. corporations without original charters.

Note: Failure to comply with the above-mentioned Persons/Employees Eligible to Join a Labor
requirements shall not be a ground for cancellation Organization for Mutual Aid and Protection
of union registration but shall subject the erring (AIR-SIW)
officers or members to suspension, expulsion from 1. Ambulant (Walking or Mobile Workers);
membership, or any appropriate penalty (RA 9481, 2. Intermittent (Irregular workers);
Sec. 7) 3. Rural;
4. Self-employed people:
TITLE FIVE COVERAGE 5. Itinerant workers (Working for a short time in
various places); and
ARTICLE 253: COVERAGE AND 6. Workers without any definite employers.
EMPLOYEES RIGHT TO SELF-
ORGANIZATION
Persons/Employees who are not Granted the of a country which grants the same or similar rights
Right to Self-Organization (I-AM-CHANGES) to Filipino workers (LABOR CODE, Art 284).
1. Employees of International organizations
immunities such as UN, IRRI and International Religious Objectors
Catholic Migration Commission (International The rights of the members of the Iglesia ni Kristo
Catholic Immigration Commission v. Calleja, G.R. sect not to join a labor union for being contrary to
No. 85750, September 28, 1990), their religious beliefs does not bar members of that
2. Members of the Armed Forces of the Philippines, sect from forming their own union. The recognition
including police officers, policemen, firemen, and of the tenets of that sect should not infringe on the
jail guards (E.O. 180, Sec. 4). basic right to self-organization granted by the
3. Managerial employees Constitution to workers regardless of religious
a Whose functions are normally considered as affiliation (Kapatiran sa Meal and Canning Div
policy-making or managerial; Tupas Local Chapter No. 10271 v. Ferrer-Celleja.
b. Whose duties are of a highly confidential highly GR. No. 02914, June 20, 1908),
technical in nature (LABOR CODE, Art. 219);
4. Confidential employees (Metrolab Industries. Inc. In fact, they can vote for No-Union in certification
v. Roldan-Confesor, G.R. No. 106665 February 28, election in the exercise of their right to self-
1996); organization (Reyes v. Trajano, G.R. No 84433,
June 2, 1992).
5. High-level or managerial government employees
(E.O. 180, Sec. 3); ARTICLE 254: RIGHT OF EMPLOYEES IN
THE PUBLIC SERVICE
6. Aliens without valid working permits, Aliens
with valid working permits but are nationals cla GOCC with original. GOCC without
country which do not grant Filipinos to exercise the Charter original charter
right of self-organization and to join or assist labor As to right to strike
organizations. (LABOR CODE Art. 283. D.O. 9, Employees cannot stage The GOCC which is
Rule II, Sec. 2 (1997) strikes since they are created under the
7. Non Employees (Rosario Bros., Inc. v. Ople, governed by Civil Corporation Code, their
G.R. No. L-53590, July 31, 1984): Service Law. They are employees are covered
8. Government Employees, including Government enjoined by Civil by the Labor Code.
owned and controlled corporations with original Service Memorandum Therefore, the
charter (Arizala v. CA, G.R. Nos. 47633-34, Circular No. 6, under employees have the
September 14, 1990); pain of administrative same rights as those
9. Employees of cooperatives who are at the same sanctions from staging employees of private
time ils members (Benguet Electric Coop, Inc. v. strikes, demonstrations, corporations, one of
Ferrer-Calleja, G.R. No. 79025, December 29, mass leaves, walkouts which is the right to
1989). However, they may form a worker's and other concerted strike.
association (Nueva Ecija/Electric Coop, Inc., activities.
Employees' Assoc. v. NLRC, G.R. No. 116066, As to bargaining rights
January 24, 2000); and Corporations with The GOCC created
10. Subversives or those engaged in subversive original charters cannot under the Corporation
activities. bargain with the Code being governed by
government concerning the Labor Code can
Eligibility of Foreigners to Form Organization the conditions of their bargain with the
(Principle of Reciprocity) employment. However, government concerning
Aliens working in the country with valid permits they can negotiate the terms and conditions
issued by DOLE may exercise the right to self- (through collective of employment. Thus,
organization and join or assist labor organizations negotiation agreements they have unlimited
of their own choosing for purposes of collective or MOA) with the bargaining rights.
bargaining; provided, that said aliens are nationals government on those
terms and conditions of recognized employees organizations and
employment which are appropriate government authorities (E.D. 180, Sec.
not fixed by law. Thus, 13)
they have limited
bargaining rights. Exception: Those terms and conditions of
As to purpose of organization employment that are fixed by law (EO 180 Sec. 13)
Can only form, join or Can form, join, or assist
assist labor organization labor organization for Negotiable Terms Conditions of Employment in
for purposes not purposes of CBA, etc. GOCC's with Original Charter: (LP G-
contrary to law CHARM)
1. Schedule of vacation and other Leaves
Forming, Joining, or Assisting Employee's 2 Work assignment of Pregnant women
Organization 3. Provision for Protection and safety.
General Rule: All government employees can 4. Personnel Growth and development.
form, join or assist employees' organizations of 5. Communication system: unilatera and vertical
their own choosing for the furtherance and 6. Provision for facilities for Handicapped
protection of their interests. They can also form personnel.
labor-management committees, work councils and 7. Annual medical/physical examination,
other forms of workers' participation schemes to 8. Recreational social athletic and cultural activities
achieve the same objectives (E.O. 180, Sec 1). and facilities; and
9. Provision for first-aid Medical services for
Exceptions: married women (IRR of E.O 180)

1. High level employees whose functions are The Following are Considered not Negotiable:
normally considered as policy-making or 1. Those which require appropriation of funds such
managerial or whose duties are of a highly as (FIT-CRISP)
confidential nature (EO 180, Sec 3); and a. Facilities requiring capital outlays
2. Members of the Armed Forces of the Philippines, b. Increase in salary emoluments and other
including police officers, policemen, firemen and allowance not presenty provided for by law.
jail guards (EO 180. Sec 4) c. Travel expenses.
d. Car plan
Protection of the Right to Organize: (CID) e. Rice/sugar other subsidies
1. Their employment shall not be subject to the f. Increase in retirement benefits g Special
Condition that they shall not join or shall relinquish hospitalization, medical and dental services; and
their membership in the employees' organizations h. Provident fund
(E.O. 180, Sec. 5). 2. Those that involve the exercise of management
2 Government authorities shall not interfere in the prerogatives such as:
establishment, functioning, or administration of a. Distinction of work load, and
government employees organizations through acts b. External communication linkages
designed to place such organizations under the c. Appointments
control of government authority (EO 180. Sec 61 d. Reclassification/upgrading of position,
e. Promotion
3. Government employees shall not be
discriminated against by reason of their membership f. Penalties imposed as a result of disciplinary
to employees organizations or participation in the actions
normal actives of their organization (EC 180 Sec. 5 g. Assignments details
h. Revision of compensation structure; and
Terms and Conditions of Employment in i. Selection of personnel to attend seminar,
Government Services trainings, and study grants
General Rule: The terms and conditions of
employment or improvements government services In sum government employees covered by E.O. No.
may be the subject of negotiations between duly 180 may organize even uncrage in negotiate
employment conditions not faxed by a but they Run-off Election in cases where there are at least
cannot strike (2 AZUCENA, SUT & 254 three (3) contending organizations and none
received a majority of the valid votes cast. Only the
Registration of Employees Organization two (2) registered employees organizations
receiving the largest and second largest number of
Where to Register votes in the first voting shall be voted on (CHAN,
Government employees’ organizations shall register Bar Reviewer on Labor Law. 2nd Ed., (2014), p.
with the Civil Service Commission and DOLE. 591) Thereinafter, 1 CHAN, Bar Reviewer).

The application shall be filed with the BLR who Jurisdiction

shall process the same in accordance with the Any dispute which remains unresolved after
provisions of Labor Code. exhausting all available remedies under existing
laws and procedures may be jointly referred by the
Applications may also be filed with the Regional parties to the Public Sector Labor-Management
Offices of DOLE which shall immediately transmit Council for appropriate action.
the said applications to the BLR within 3 days from
the receipt thereof (E.O. 180 Sec. 7) Likewise, the PSLMC has jurisdiction to hear
charges, of Unfair Labor Practices (ULP) filed by
Issuance of Registration Certificate government employees against their employer: It is
Upon approval of the application, a registration composed of the following:
certificate shall be issued to the organization 1. Chairman: Civil Service Commissioner;
recognizing it as a legitimate employees 2 Vice-Chairman: Secretary of Labor; and
organization with the right to represents its 3. Members:
members and undertake activities to further and a. Secretary of Finance:
defend its interest. b. Secretary of Justice; and
c. Secretary of Budget (EO 180. Sec. 15)
The certificates of registration shall be approved by
the Chairman of the Civil Service Commission and ARTICLE 255: INELIGIBILITY OF
Secretary of Labor (E.O. 182, Sec. 8) MANAGERIAL EMPLOYEES ΤΟ JOIN ANY
LABOR ORGANIZATION, RIGHT OF
Voluntary Recognition SUPERVISORY EMPLOYEES
A duly registered employees’ organization shall be
accorded voluntary recognition: 1. Managerial Employees are those who are vested
1. Upon a showing that no other employees with powers or prerogatives to lay down and
organization is registered or is seeking registration, execute management policies and/or to hire, transfer
based on records of the Bureau of Labor Relations; suspend, lay-off, recall, discharge, assign or
and discipline employees.

2. The said organization has the majority support of Managerial Managerial Employees
the rank-and-file employees organizational unit Employees Under, Under Labor Relations
(E.O. 180, Sec. 11) Labor Standards
As to powers/duties
Certification Election Primary duty consists of Lay down and execute
Where there are two or more duly registered the the management of the management policies
appropriate employees organizations organizational establishment in which and/or to hire, transfer,
unit, the BLR, upon petition shall: they are employed or of lay-off, recall, discharge,
1. Order the conduct of a certification election; and a department or assign, or discipline
2. Certify the winner as the exclusive representative subdivision employees.
of the rank-and-file employees in said organization As to Extent
unit (E.O. 180. Sec.12) Includes the officers and Does not include the
members of the managerial staff since
managerial staff they are classified as authority is not merely routinary or clerical in
Supervisory employees nature but requires the use of independent
Às to purpose judgment.
To determine whether or To determine an
not certain employees employee’s eligibility in Supervisory Employees May Form, Assist, Join a
are covered by Book III joining/forming a labor Labor Organization
of the Labor Code on union Supervisory Employees May Form, Assist, Join a
Conditions of Labor Organization on their own and not with the
Employment. rank-and-file employees (R.A. 6715, as amended by
R.A. 9481, Sec. 8)
Reason for ineligibility
Managerial employees are the alter ego of the If their responsibilities do not inherently require the
employers and thus they are supposed to be on the exercise of discretion and independent judgment (or
side of the employer to act as its representatives, merely routinary/clerical in nature), then they may
and to see to it that its interests are well protected. join the union composed of the rank-and-file
The employer is not assured of such protection if employees.
these employees are union members.
Note: It is the nature of the employee's functions,
In the same manner, the labor union might not be and not the nomenclature or title given to his job
assured of their loyalty to the union in view of the which determines whether he has a rank and file or
evident conflict of interest. The union can also managerial status (Engineering Equipment, Inc. v.
become company dominated with the presence of NLRC, G.R. No, L-59221, December 26, 1984).
managerial employees in union membership
(Bulletin Publishing Co. Inc. v. Hon Sanchez GR The rank-and-file Union and the supervisors union
No. 74425 October 7 1986) operating within the same establishment may join
the same federation or national union.
Note: Art 255 does not absolutely disqualify
managerial employees from exercising their right of Separation of Unions Doctrine
association. What it prohibits is merely the right to The ruling that supervisory employees unions,
join labor organizations. provided the grounds are present, are prohibited
from being affiliated with a federation consisting of
Types of Managerial Employees: rank-and-tile employees unions (Atlas Lithographic
a. First-Line Managers (often called supervisors) - Services, Inc. v Laguesma, G.R. No. 96566, January
direct the operation of employees only and do 6, 1992), no longer holds true due to the passing of
not supervise other managers (e.g. foreman, R.A. 9481 (also known as An act strengthening the
production Supervisor in a manufacturing plant). workers' constitutional right to seif-organization,
amending for the purpose PD No. 442 as amended,
b. Middle Managers -direct the activities of other otherwise known as the Labor Code of the
managers and also operating employees (e.g. plant Philippines) which amended Sec. 246 of P.D. No.
manager in an electronic firm). 442.

c. Top Managers - Responsible for the over-all 1. Confidential Employees assist and act in a
management of the organization (e.g. CEO. confidential capacity, or have access to confidential
President, SVP). matters of, persons who exercise, managerial
functions in the field of labor relations. As such, the
Among the three types, only the first-line managers rationale behind the ineligibility of managerial
or supervisors can join, assist or form union (2 employees to form, assist or join a labor union
AZUCENA. supra at 258). equally applies to them (Philips Industrial
Development, Inc. v. NLRC, G.R. No. 88957, June
1. Supervisory Employees are those who, in the 25, 1992).
interest of the employer, effectively recommend
such managerial actions if the exercise of such
Confidential employees are those who by reason of ARTICLE 256: EFFECT OF INCLUSION AS
their positions or nature of work are required to MEMBERS OF EMPLOYEES OUTSIDE THE
assist or act in a fiduciary manner to managerial BARGAINING UNIT
employees and hence, are likewise privy to sensitive
and highly confidential records (Metrolab The inclusion as union members of employees
Industries, Inc. v. Roldan-Confesor, G.R. No. outside the bargaining unit shall not be a ground for
108855, February 28, 1996). the cancellation of the registration of the union.
Said employees are removed from the list of
By the very nature of their functions, they (1) assist membership of said union automatically deemed
and act in a confidential capacity; (2) to persons
who formulate, determine, and effective Reason: After a certificate of registration is issued
management policies in the field of labor relations. to a union, its legal, personality cannot be subject to
a collateral attack it may be questioned only via a
The two criteria are cumulative, and both must be petition for cancellation, under the grounds
met if an employee is to be considered a provided for in Art. 246 (Tagaytay Highlands
confidential employee - e.g., the confidential International Golf Club Inc. v. Tagaytay Highlands
relationship must exist between the employee and Employees Union. G.R. No. 142000, Jan. 22, 2003).
his supervisor, and the supervisor m handle the
prescribed responsibilities relating to labor ARTICLE 257: NON-ABRIDGEMENT OF
relations. As such, the rationale behind the THE RIGHT TO SELF-ORGANIZATION
ineligibility of managerial employees to form,
assist, or join a labor union equally applies to them It shall be unlawful for any person to: (RCDI)
(Philips Industrial Development, Inc. v. NLRC, 1. Restrain:
G.R. No. 88957, June 25, 1992). 2 Coerce;
3. Discriminate against; or
Under the Doctrine of Necessary Implication 4. Unduly Interfere with employees and workers in
confidential employees are similarly disqualified their exercise of the right to self-organization.
(National Association of Trade Unions-Republic
Planters Bank Supervisors Chapter v. Tomes, G.R. Note: Any act intended to weaken or defeat the
No. 93468, December 29, 1994). right is regarded by law as an offense, which is
technically called "unfair labor practice."
Note: The phrase "in the field of labor relations” is
important. It stresses labor nexus i.e. confidentiality TITLE SIX. UNFAIR LABOR PRACTICES
of the position is related or linked to labor relations
matters. CHAPTER I. CONCEPT
Access to information which is regarded by the
employer to be confidential from the business ARTICLE 258: CONCEPT OF UNFAIR
standpoint, such as financial information or LABOR PRACTICE AND PROCEDURE FOR
technical trade secrets, will not render an employee THE PROSECUTION THEREOF
a confidential employee (San Miguel Corp.
Supervisors and Exempt Union v. Laguesme, G.R. Nature of Unfair Labor Practices: (1²C³U)
No. 110399, August 15, 1997) 1. Are Inimical to the legitimate interests of both
labor and management, including their right to
Every managerial position is confidential because bargain collectively and otherwise deal with each
one does not become a manager without having other in an atmosphere of freedom and mutual
gained the confidence of the appointing authority. respect:
But not every confidential employee is managerial, 2. Disrupt Industrial peace;
he may be a supervisory or even a rank-and-file 3. Criminal offenses against the State (ULP as
employee. crime prescribes in one year);
4. Violation of Civil rights of both labor and
management;
5. Violate the Constitutional right of workers and
Employees to self-organization; and 7. However, in another decision. the Supreme Court
6. Creates Unstable labor-management relations. approved a compromise agreement finally settling
an illegal strike case. It said that while the Court
Elements of Unfair Labor Practice: does not abandon the rule that unfair labor practice
1. Employer-employee relationship between the acts are beyond and outside the sphere of
offender and the offended; and compromises, the agreement herein was voluntarily
2. Act done is expressly defined in the code an an entered into and represents a reasonable settlement,
act of unfair labor practice. (2 AZUCENA, supra at thus it binds the parties (Reformist Union of R.B.
290). Liner, Inc. v. NLRC, GR No. 120482. January 27,
Note: Prohibited acts are all related to the workers' 1997).
self-organizational right and the observance of a
CBA, except Art. 259(f) of the Labor Code, Civil Case of ULP v. Criminal Case of ULP
dismissing or prejudicing an employee for giving Civil Case of ULP Criminal Case of ULP
testimony under the Code.
As to Persons Liable
st
1. 1 element of ULP does not apply to yellow dog 1. Officers and agents 1. Agents and officers
condition. employer; or who participated or
2. ULP has a technical meaning. Labor organization, authorized or ratified the
3. It is a practice unfair to labor, although the officers and agents. act, and
offender may either be an employer or a labor 2. Agents,
organization. representatives,
members of the
1. It refers to acts opposed to workers' right to government including
organize (Anti-unionism acts). board, ordinary
2. The prohibited acts are related to the worker's members (Art. 304. &
right to self-organization and to the observance of Art. 260)
the CBA. Without that element, the acts, even if As to Jurisdiction
unfair, are not unfair labor practices (General Labor Arbiters of the MTC/RTC, as the case
Santos Coca-Cola Plant Free Workers Union-Tupas NLRC may be (Art. 303)
v. Coca-Cola Bottlers Phils., Inc. (General Santos As to Quantum of Proof
City), G.R. No. 178647, February 13, 2009). Substantial evidence Beyond reasonable
doubt (subject to
3. It commonly connotes anti-unionism. prosecution and
punishment)
4. It also refers to gross violation of CBA As to Prescriptive Period
provisions. Gross means the act is malicious and One year from the One year from the
flagrant. accrual of the ULP act accrual of the ULP act
accrual of the ULP act (Art. 304), however, it
5. ULP cases are not, in view of the public interest (Art. 305) will be suspended once
involved, subject to compromise (CLLC. E.G. the administrative case
Gochangco Workers Union v. NLRC. G.R. No. L- has been filed and would
67158, May 30, 1988; AFP Mutual Benefit Assoc, only continue running
Inc. v. AFP-Mutual Benefit Assoc., Inc. Employees once the administrative
Union, GR. No. L39140 May 17. 1980). case has attained
finality.
6. A ULP charge allegedly committed during a
given period of time, should include all acts of ULP Final judgment in the
committed against any and all members of the union administrative
during that period-no splitting of causes of action proceeding finding that
(Dionela v. CIR. G.R. No. L 18334. August 31, ULP has been admitted
1963).
 is a prerequisite in filing circumstances (The Insular Life Assurance Co Ltd,
a criminal case for ULP. Employees Assoc.-NATU V: The Insular Life
Assurance Co., Ltd., supra).
Note: Final judgment in
the administrative Examples:
proceedings shall not be a. There is an outright and unconcealed intimidation
binding in the criminal by the employer.
case nor shall be b. The employer subjects the employee to
considered as an questioning regarding his/her participation in the
evidence of guilt but union. In order that interrogation would not be
merely as a proof of deemed coercive:
compliance of the i. The employer must communicate to the employee
requirements prescribed the purpose of questioning.
by the Code. ii. Assure him that no reprisal would take place; and

CHAPTER II. UNFAIR LABOR PRACTICES iii. Obtain employee participation voluntarily. The
(ULP) OF EMPLOYERS employer shows hostility to union organization.
c. The employer shows hostility to union
ARTICLE 259: ULP THAT MAY BE organization
COMMITTED OF EMPLOYERS: (IY- d. The employer expresses his/her opinion in an
C²D¹VPV) intimidating manner.
1. Interference;
2. Yellow Dog Condition; The Court held that from the employer's refusal to
3. Contracting Out; bargain to its acts of economic inducements
4. Company Domination of Union; resulting in the promotion of those who withdraw
5. Discrimination; from the union, the use of armed guards to prevent
6. Discrimination Because of Testimony; the organizers to come in, and the dismissal of
7. Violation of Duty to Bargain; union officials and members, one cannot but
8. Paid Negotiation; or conclude that the employer did not want a union in
9. Violation of CBA. its hacienda - a clear interference in the right of the
workers to self-organization (Hacienda Fatima v.
1. Interference means to interfere with, restrain or National Federation of Sugarcane Workers-Food
coerce employees in the exercise of their right to and General Trade. G.R. No. 149440, January 28,
self-organization. 2003).

Test: Whether the employer has engaged in conduct Note: An employer who interfered with the right to
which, it may reasonably be said, lends to interfere self-organization before a union is registerad. can be
with the free exercise of the employees right and it held guilty of ULP (Samahan ng Manggagawa sa
is not necessary that there be direct evidence that Bandolino-LMLC v. NLRC, G.R. No. 125195, July
any employee was in fact intimidated or coerced by 17, 1997).
the statements of threats or the employer if there is a
reasonable interference that the anti-union conduct It is the prerogative of the company to promote,
of the employer does have an adverse effect of self- transfer, or even demote its employees to other
organization and collective bargaining (The Insular positions when the interests of the company
Life Assurance Co., Ltd. Employees Assoc.-NATU reasonably demand it. Unless there are
v. The Insular Life Assurance Co. Ltd., G.R. No. L- circumstances which directly point la interference
25291, January 30, 1971). by the company with the employees' right to self-
organization, the transfer of an employee should be
Totality of Conduct Doctrine the culpability of considered as within the bounds allowed by law
employer's remarks is to be evaluated not only on (e.g. despite transfer to a lower position, his original
the basis of their implications, but against the rank and salary remained undiminished)
background of and in conjunction with collateral
(Rubberworld (Phils.), Inc. v. NLRC, G.R. No. beholden to the employers and they will not look
75704, July 19, 1989). after the interest of whom they represent.

2. Yellow Dog Condition requires as a condition Forms:

for employment that person or an employee shall a. Initiation of the company union idea by:
not join a labor organization or shall withdraw from 1. Outright formation by employer or his
one to which he belongs. representatives;
ii. Employee formation on outright demand or
Yellow Dog Contract is a promise exacted from influence by employer; and
workers as a condition of employment that they are iii. Managerially motivated formation by
not to belong to, or attempts to foster, a union employees.
during their period of employment. It is null and b. Financial support to the union by:
void because: (CWD) i. Employer defrays union expenses;
a. It is Contrary to public policy for it is, tantamount ii. Pays attorney's fees to the attorney who drafted
to involuntary servitude: the Constitution or by laws of the union;
b. It is entered into Without consideration for c. Employer encouragement and assistance -
employees in waiving their right to self- Immediately granting of exclusive recognition as
organization, and bargaining agent without determining whether the
c. Employees are coerced to sign contracts union represents majority of the employees.
Disadvantageous to their family. d. Supervisory Assistance Soliciting membership,
permitting union activities during work time or
Note: A yellow dog condition may be considered coercing employees to join the union by threats of
ULP even in the absence of an Er-Ee relationship. dismissal or demotion.

3. Contracting Out means 10 contract out services 5. Discrimination with regard to wages, hours of
or functions being performed by union members work, and other terms and conditions of
when such will nterfere with, restrain or coerce employment in order to encourage or discourage
employees in the exercise of their right to self- membership in any labor organization.
organization.
Test: Whenever benefits or privileges given to one
Outsourcing is not per se ULP is not given to the other under similar or identical
Conditions for valid outsourcing: conditions when directed to encourage or
a. Motivated by good faith; and discourage union membership.
b. Must not have been resorted to circumvent the
law or must not have been the result of malicious or Three Components of Discrimination
arbitrary action (Manila Electric Company v. a. It prohibits discrimination in terms and conditions
Quisumbing, G.R. No. 127598, Jan. 27,1999). of employment in order to encourage or discourage
membership in the union;
However, when the "contracting out" is being done b. It gives validity to union security agreements;
for business reasons such as decline in business, and
inadequacy of equipment or to reduce cost, then it is c. It allows an agency shop arrangement whereby
a valid exercise of management prerogative (48 agency fees may be collected from non-union
Am. Jur. 2d 1101.) members.

4. Company-Domination of Union means to Discrimination Distinguished from Classification

initiate, dominate, assist or otherwise interfere with While discrimination is considered an unfair labor
the formation or administration of any labor practice, classification is not because it merely
organization, including the giving of financial or differentiates the employees in accordance with
other support to it or its organizers or officers. their respective jobs and accords them the
appropriate levels of pay or benefits due them by
Company Unionism/Captive Unionism is reason thereof (2 AZUCENA, supra at 322).
considered as a ULP because the officers will be
6. Discrimination because of Testimony to Employees Union v. Confesor, G.R. No. 114974,
dismiss, discharge, or otherwise prejudice or June 16, 2004).
discriminate an employee who is about to give or f. Refusal to make a counter-proposal to the union's
has given a testimony under this code. proposal for CBA negotiation (General Milling
Corp v. CA, G.R. No. 146728, February 11, 2004);
Subject matter of testimony: It can be anything
under the Code. NOT ULP: An employer's steadfast insistenc to
exclude a particular substantive provision from the
What is considered as ULP is the employer's union's proposal is no different from a bargaining
retaliatory act regardless of the subject of representative's perseverance to include one that
employee's complaint or testimony. In effect, if a they deem of absolute necessity (Union Filipino
retaliatory act is done under Art. 118, the Employees v. Nestle Philippines, Inc., G.R. Nos.
consequence is ULP under Art. 254(f) (Mabeza v. 158930-31, March 3, 2008).
NLRC, G.R. No. 118506, April 18, 1997).
There is no ULP on the part of the employee
Note: This is the only ULP not required to be because its adamant insistence on a bargaining
related to employee's exercise of the right to self- position to the point where the negotiations reach an
organization and collective bargaining (Philcom impasse does not establish bad faith. It is but natural
Employees Union v. Philippine Global that at negotiations, management and labor adopt
Communications, G.R. No. 144315, July 17, 2006). positions or make demands and offer proposals and
counterproposals (General Milling Corp. v Union of
7. Violation of Duty to Bargain is to violate the Filipro Employees, G.R. No. 79255 January 20,
duty to bargain collectively as prescribed by this 1992).
Code.
However, there is ULP when the employer did not
The following acts are held to constitute refusal to even submit an answer to the bargaining proposals
bargain. of the union (General Milling Corporation v. CA.
a. Alleging that the union is irresponsible: G.R. No. 146728. February 11, 2004).
b. Transferring operation to elude the union (Run
Away Shop), g. Closure of the business and subsequent opening
of the same in bad faith for the purpose of
Run-away shop is an unfair labor practice of circumventing the Union's right to collective
management which usually takes place by effecting bargaining:
the transfer of ownership, the plant itself, or its
equipment, or by temporarily closing its business Factors to be considered:
purposely to bust the union or to evade the payment i, Timing of the closure and reason of the closure;
of legitimate obligations (Complex Electronics and
Employees Association v. NLRC, G.R. No. 121315, ii. Timing of the sunsequent opening and reasons
July 19, 1999). for the subsequent opening. (St. John Colleges Inc.
v. St. John Academy Faculty and Employees Union,
c. Delaying negotiations by discussing unrelated GR No. 167892, Oct. 27, 2006)
matters;
d. Rejecting a union's offer to prove majority claim; h. Employer proceeds to negotiate with a Splinter
e. Engaging in surface bargaining; union despite the existence of s valid CBA with the
duly certified and exclusive bargaining agent
Surface Bargaining means going through the (Employees Union of Bayer Phils., FFW v Bayer
motions of negotiating without any legal intent to Phis. Inc., G.R. No. 162943, December 6, 2010).
reach an agreement. It involves the question of
whether or not the employer's conduct demonstrates 8. Pald Negotiation
an unwillingness to bargain in good faith or is To pày negotiation or attorney's fees to the union or
merely hard bargaining (Standard Chartered Bank its officers or agents as part of the settlement of any
issue in collective bargaining or any other disputes.
9. Violation of CBA 2. Benefits - an additional membership will insure
The violation must be gross, flagrant and/or additional source of income to the union in the form
malicious refusal to comply with the economic of union dues and special assessment.
provision of the CBA. 3. Self-preservation - it strengthens the union
through selective acceptance of new members on
The grossly violate phrase is an amendment by RA the basis of commitment and loyalty.
6715. Hence, if the violation is not gross, it is not
ULP but only a grievance under the CBA. Note: In terminating the employment of an
employee by enforcing the union security clause,
Note: All the aforementioned acts (Nos. 1-9) must the employer needs only to determine and prove
have a relation to the employees' exercise of their that:
night to self-organization. Anti-union or anti 1. The union security clause is applicable;
organization motive must be proved because it is a 2. The union is requesting for the enforcement of
definitional element of ULP. the union security provision of the CBA;
3. There is sufficient evidence to support the union's
The burden of proof falls on the shoulders of decision to expel the employee from the union; and
petitioner to establish or substantiate claim of ULP 4. Employer must comply with due process;
by substantial evidence or such relevant evidence as a. Notify the employees that their dismissal is being
a reasonable mind might accept as sufficient to requested by the union
support a conclusion is required (UST Faculty b. The employees' explanations are heard (Alabang
Union v. University of Sto. Tomas, G.R. No. Country Club, Inc. v. NLRC, G.R. No. 170287,
180992, April 7, 2009). February 14, 2008):

The enumeration of unfair, labor practices is not Notwithstanding the fact that the dismissal was at
exclusive because Art. 273 considers gross the instance of the federation and that it undertook
violations of the CBA as a ULP. At the same time, to hold the company free from any liability resulting
Art. 277(c) considers union busting as a ULP. from such dismissal, the company may still be held
liable if it was remiss in its duty to accord the
Discrimination for or against Union Membership would-be dismissed employees their right to be
Test of Discrimination: When the discharge of an heard on the matter (Malayang Samanahan ng mga
employee was motivated by his involvement with Manggagawa sa M.Greenfield, v. Ramos et.. al., Gr
the union. Such inferênce must be based on No. 113907, February 28, 2000).
evidence, direct or circumstantial, not upon mere
suspicion (2 AZUCENA, supra at 326-328).. Different kinds of Union Security Arrangements
(Exceptions to ULP on interference on the
Constructive Discharge - ULP where employer Employees' Right to Self-Organization) (CUP-A
prohibits employees from exercising their rights BEM')
under the Code, on pain of discharge, and the 1. Closed-Shop Agreement
employee quits as a result of the prohibition. Only union members can be hired by the company
and they must remain as union members to retain
Security Arrangements - stipulations in the CBA employment in the company (2 AZUCENA. supra
requiring membership in the contracting union as a at 321).
condition for employment or retention of
employment in the company.

Principles of Union Security Clauses/

Arrangements
1. Protection - to shield union members from
whimsical and abusive exercise of management
prerogatives.