CHAPTER 10:

Labor Management
Relations
 FORMS OF UNION
SECURITY
 Closed Shop – The employer agrees to hire only
union members.
 Union Shop – The employer may hire anyone
regardless of union membership status, but the
employee must join the union within a set time period
(such as 30 days) if the employee wants to retain
his/her job in the organizations.
 Agency Shop – The employer may hire anyone regardless of their
union membership status, and the employees must pay a fee
(known as the easy “agency fee”) to the union to cover the costs of
collective bargaining.
 Open Shop – The employer may hire anyone regardless of their
union membership status, and the employee need not join the
union. Membership is voluntary.
 Dues checkoff – A contract between the employer and union
where the employer agrees to collect the dues, fees, assessments,
and other monies from union members and/or nonmembers
directly from each worker’s paycheck and transmit those funds to
the union on a regular basis.
REQUIREMENTS IN THE
REGISTRATION OF A LABOR
ORGANIZATION

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) 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 (as amended by Executive Order
No. 111, December 24, 1986);
d) If the applicant union has been in existence for one or more
years, copies of its annual financial reports; and
e) Four (4) 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.
 RIGHTS OF A LEGITIMATE
LABOR ORGANIZATION

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 (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.
UNFAIR LABOR PRACTICES OF
EMPLOYERS (PRACTICES
PROHIBITED BY LAW

a) To interfere with, restrain, or coerce employees in

the exercise of their right to self-organization;
b) To require as a condition of employment that a
person or an employee shall not join a labor
organization or shall withdraw from one to which
he/she belongs;
c) To contract out services or functions being performed by
union members when such will interfere with, restrain, or
coerce employees in the exercise of their rights to self-
organization;
d) To initiate, dominate, assist, or otherwise interfere with the
formation or administration of any labor organization,
including the giving of financial or other support to it or its
organizers or supporters;
e) To discriminate in regard to wages, hours of work, and other
terms and conditions of employment in order to encourage or
discourage membership in any labor organization.
f) To dismiss, discharge, or otherwise prejudice or discriminate
against an employee for having given or being about to give
testimony under this Code;
g) To violate the duty to bargain collectively as prescribed by
this Code;
h) To pay negotiation or attorney’s fees to the union or its
officers or agents as part of the settlement of any issue in
collective bargaining or any other dispute; or
i) To violate to a collective bargaining agreement.
CONTENTS OF THE CONTRACT
AGREEMENT

6. Compensation and Benefits

1. Recognition and Union Provisions
Security
7. Hours of Work
2. Management Rights
8. Layoff Procedure
3. Grievance Procedure
9. Health and Safety Provision
4. Arbitration of Grievance
10.Employee Security
5. Disciplinary Procedure Provision
11. Contract Expiration Date
COLLECTIVE BARGAINING
PROCESS

a) When a party desires to negotiate an agreement, it

shall serve a written notice upon the other party
with a statement of its proposals. The other party
with a statement of its proposals. The other party
shall make a reply thereto not later than ten (10)
calendar days from receipt of such notice;
b) Should differences arise on the basis of such notice and
reply, either party may request for a conference which shall
begin no later than ten (10) calendar days from the date of
request.
c) If the dispute is not settled, the Board shall intervene upon
request of either or both parties or at its own initiative and
immediately call the parties to conciliation meetings. The
Board shall have the power to issue subpoenas requiring the
attendance of the parties to participate fully and promptly in
the conciliation meetings that the Board may call;
d) During the conciliation proceedings in the Board, the
parties are prohibited from doing any act which may
disrupt or impede the early settlement of the disputes;
and
e) The Board shall exert all efforts to settle disputes
amicably and encourage the parties to submit their
case to a voluntary arbitrator.
BARGAINING
IMPASSES/DEADLOCK

This takes place when neither side is willing to give

in. It refers to the failure of both the employer and the
employees to arrive at the terms and a condition of the
latter’s employment despite previous efforts to arrive
at a compromise. When there is an impasse, any of the
following might take place:
1. Strikes – occur when employees refuse to work to make
greater concessions at the bargaining table.
2. Injunction - the employer obtaining a court order or
restraining order to prevent the workers from engaging in
strikes in specified situations.
3. Lockout – the employer refuses to furnish work to their
workers by getting non-union members as substitutes for the
plant’s continuous operation.
4. Picketing – when a union calls a strike, it usually establishes
picket lines to advertise the strike and discourage the employer
from continuous operations. It is the act of strikers where they
patrol back and forth, carry placards or banners with
statements relating to the dispute, and distribute literatures at
the entrance of the company’s gate.
5. Third party intervention – both parties have to agree to use
any of the third party interventions:
a) Mediation and conciliation
b)Fact-finding
c) Arbitration
GRIEVANCE MACHINERY AND
VOLUNTARY ARBITRATION

The parties to a collective bargaining agreement shall

establish machinery for the adjustment and resolution
of grievances arising from the interpretation or
implementation of their collective bargaining
agreement and those arising from the interpretation or
enforcement of company personnel policies.
All grievances submitted to the grievances submitted to
the grievance machinery which are not settled within
seven (7) calendar days from the date of its submission
shall automatically be referred to voluntary arbitration
prescribed in the collective bargaining agreement.
PROCEDURAL BUT MANDATORY REQUISITES
OF A LAWFUL STRIKE OR LOCKOUT

There are seven (7) mandatory requisites, namely:

 Valid and factual ground
a. Valid grounds:
1. CBA deadlock
2. Unfair labor practice (ULP)
b. No other grounds are allowed except the two mentioned
above.
The following grounds, therefore, may not be properly cited as valid grounds for
a strike or lockout in view of the pertinent provisions of the Labor Code,
authoritative labor issuances and jurisprudence:
1. Violation of collective bargaining agreements, except those which are gross in
character. Under Article 261, simple violation of the CBA is no longer treated as unfair
labor practice but as mere grievance which should be processed through the grievance
machinery in the CBA. It becomes an unfair labor practice only when it is gross in nature
which means that there is flagrant and/or malicious refusal to comply with the economic
provisions of such agreement by either the employer or the union.
2. Inter-union or intra-union disputes. The reason is that these issues are resolved
following the mediation-arbitration procedures prescribed by law and not through the
staging of a strike/lockout.
3. Issues already assumed by the DOLE Secretary or certified by him to the NLRC for
compulsory arbitration. Once the Secretary of Labor and Employment assumes
jurisdiction over a labor dispute affecting national interest or certifies the same to the
NLRC for compulsory arbitration, the issues involved in said labor dispute can no longer
be invoked by the union in staging a strike or by management in conducting a lockout.
4. Issues already brought before grievance machinery or voluntary arbitration.
5. Issues already brought before compulsory arbitration.
6. Issues involving labor standards.
7. Issues involving legislated wage orders. Under Republic Act No. 6727, otherwise
known as the Wage Rationalization Act, a strike is illegal if based on alleged salary
distortion. Solution to the problem of wage distortions shall be sought by voluntary
negotiation or arbitration, and not by strikers, lockouts, or other concerted activities of the
employees or management.
 Second requisite: Notice of strike or notice of lockout.
a) When to file notice:
1. In case of ULP: 15 days from intended date of strike/lockout.
2. In case of CBA deadlock: 30 days from intended date thereof.

b) Parties who may file notice:

1. Certified union, in case of strike.
2. Employer in case of lockout.

c) Where to file notice: National Conciliation and Mediation Board or NCMB

 Third requisite: A notice must be served to the NCMB-DOLE at least twenty-four
(24) hours prior to the taking of the strike/lockout vote by secret balloting, informing
said office of the decision to conduct a strike vote/lockout vote, and the date, place, and
time thereof.
This requisite is designed to:
a) inform the NCMB of the intent of the union to conduct a strike vote;
b) give the NCMB ample time to decide on whether or not there is a need to supervise
the conduct of the strike vote to prevent any acts of violence and/or irregularities
attendant thereto; and
c) should be the NCMB decide on its own initiative or upon the request of an interested
party including the employer, to supervise the strike vote, to give it ample time to
prepare for the deployment of the requisite personnel, including peace officers if need
be.
 Fourth requisite: Strike vote or lockout vote
a) Majority approval of strike or lockout is required.
b) Strike vote still necessary even in case of union-busting.

 Fifth requisite: Strike vote report or lockout vote report

a) When to submit strike or lockout vote report: at least 7 days prior to strike or lockout, as
the case may be.
b) Effect of non-submission of strike vote to NCMB, DOLE: strike or lockout is illegal.

 Sixth requisite: Cooling-off period

General rule:
1. In case of CBA deadlock:30 days
2. In case of ULP: 15 days
 Seventh requisite: 7-day waiting period or strike ban
a) Cooling-off period and waiting period, distinguished: Waiting period is
counted from the time of submission of strike vote report to NCMB;
Cooling-off period is counted from the filing of the Notice of Strike/Lockout
with NCMB.
b) Purpose of the 7-day waiting period: To ensure that the strike vote was
indeed taken and that the majority of the members approved of it.
c) Deficiency of even one day of the 7-day strike ban (or cooling-off period)
makes the strike illegal.
THANK YOU!

Discussant:
Kath Tan