Labor Organizations: Registration and Cancellation

By: Atty. John Richard A. Delos Reyes

Nature and Origin
The driving force behind the birth and growth of unionism was the desire of workers to improve
the conditions of their work and their lives. They knew that if they banded together for that
common cause, they would be able to command a higher price for their labor and thus enhance
the terms and conditions of their employment.
In the Philippines, unionism enjoys constitutional protection and the State is mandated to
promote it as a matter of policy. The right to form unions is guaranteed by the 1987 Philippine
Constitution. The freedom of association clause of the Bill of Rights of the 1935 Constitution,
protecting the right to form associations and societies for purposes not contrary to law in
general, has been expanded in the present basic law to include specifically the right of
employees in both the public and private sectors “to form unions.”
“Labor Organization”
A union or association of employees is referred to in the Labor Code as a “labor organization,”
which is defined as “ 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.
This definition, however, does not imply that employees have to organize a union for the
purpose of dealing with their employer, short of bargaining collectively, concerning the terms
and conditions of their employment.
Under Article 267, an individual employee or group of employees may at any time present
grievances to their employer, and, as well, have the right to participate in policy and decision-
making processes of the employer insofar as they directly affect their right, benefits and
welfare.
Kinds of Labor Organization
a. An “independent union” is one that operates at the enterprise level where legal
personality is derived through an independent registration, that is to say not dependent
on the registration of a mother organization. It may or may not be affiliated with a
federation, or national union. If it is so affiliated, it may also be referred to as an
“affiliate.”
b. A “chartered local” is a labor organization in the private sector that operates at the
enterprise level whose legal personality is derived through the issuance, of a charter
certificate by a duly registered federation or national union, instead of through
independent registration.
 c. A “national union” or “federation” is a group of legitimate labor unions in 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 in the Bureau in accordance with the Rules.
Requirements of registration
Any applicant labor organization, association or group of unions or workers 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. 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 (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.
Registration
It is the fact of registration that gives a labor organization the status of legitimacy. A “legitimate
labor organization” is any labor organization duly registered with the Department of Labor and
Employment, and includes any branch or local thereof. Thus registered, the labor organization
requires the legal personality and becomes entitled to the rights and privileges granted by law
to legitimate labor organizations.
Registration is not a limitation on the constitutional right of assembly or association, which may
be exercised with our without registration. The latter is merely a condition sine qua non for the
acquisition of legal personality by labor organizations and the possession of the rights and
privileges granted by law to legitimate labor organizations.
The requirements of registration is a valid exercise of the police power, because the activities in
which labor organizations are engaged affect the public interest, which should be protected.
Action on application
The Bureau shall act on all applications for registration within thirty (30) days from filing.
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.
Note: The certification and authentication requirements are preventive measures against the
commission of fraud. They likewise afford a measure of protection to unsuspecting employees
who may be lured into joining unscrupulous or fly-by-night unions whose sole purpose is to
control the funds or use the union for dubious end.
Affiliation and Disaffiliation
The affiliation of a local union, with a federation or national union is encouraged to improve the
local’s collective bargaining position. Affiliation does not make the local union lose its legal
personality. It remains to be the basic unit of the association, free to serve the common interest
of all its members. In fact, their relation is one of agency, the local being the principal and the
federation or mother union the agent, subject to the restraints imposed by the constitution and
by-laws of the association.
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.
Additional requirements for federations or national unions
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:
a. 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
b. The names and addresses of the companies where the locals or chapters operate and
the list of all the members in each company involved.
Conditions for registration of federations or national unions
 No federation or national union shall be registered to engage in any organization activity
in more than one industry in any area or region, and no federation or national union
shall be registered to engage in any organizational activity in more than one industry all
over the country.
 The federation or national union which meets the requirements and conditions herein
prescribed may organize and affiliate locals and chapters without registering such locals
or chapters with the Bureau.
  Locals or chapters shall have the same rights and privileges as if they were registered in
the Bureau, provided that such federation or national union organizes such locals or
chapters within its assigned organizational field of activity as may be prescribed by the
Secretary of Labor.
 The Bureau shall see to it that federations and national unions shall only organize locals
and chapters within a specific industry or union.
Cancellation of registration; appeal
The certificate of registration of any legitimate labor organization, whether national or local,
shall be cancelled by the Bureau if it has reason to believe, after due hearing, that the said labor
organization no longer meets one or more of the requirements herein prescribed.
Grounds for cancellation of union registration
The following shall constitute grounds for cancellation of union registration:
● 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;
● 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;
● Misrepresentation, false statements or fraud in connection with the election of officers,
minutes of the election of officers, the list of voters, or failure to submit these
documents together with the list of the newly elected/appointed officers and their
postal addresses within thirty (30) days from election;
● Failure to submit the annual financial report to the Bureau within thirty (30) days after
the closing of every fiscal year and misrepresentation, false entries or fraud in the
preparation of the financial report itself;
The following shall constitute grounds for cancellation of union registration:
● Acting as a labor contractor or engaging in the “cabo” system, or otherwise engaging in
any activity prohibited by law;
● Entering into collective bargaining agreements which provide terms and conditions of
employment below minimum standards established by law;
● Asking for or accepting attorney’s fees or negotiation fees from employers;
● Other than for mandatory activities under this Code, checking off special assessments or
any other fees without duly signed individual written authorizations of the members;
● Failure to submit list of individual members to the Bureau once a year or whenever
required by the Bureau; and
● Failure to comply with requirements under Articles 237 and 238.