U.P.
LAW BOC LABOR 2 LABOR LAW
American Employees Association, G.R.
V. LABOR RELATIONS No. L-25094 (1969)]
6. Recognition of the tenets of the sect should
not infringe on the basic right of self-
A. RIGHT TO SELF- organization granted by the [C]onstitution
ORGANIZATION to workers, regardless of religious
affiliation. [Kapatiran sa Meat and Canning
Division v. Calleja, G.R. No. 82914 (1988)]
Right to Self-Organization: A Fundamental
Right 1. Who May or May Not Exercise the
Self-organization is a fundamental right
guaranteed by the Philippine Constitution and
Right
the Labor Code. Employees have the right to
a. All employees
form, join or assist labor organizations for the
b. Government employees of corporations
purpose of collective bargaining or for their
created under the Corporation Code
mutual aid and protection. [UST Faculty Union
c. Supervisory Employees
v. Bitonio, G.R. No. 131235 (1999)]
d. Aliens with valid working permits
e. Security personnel
Infringement of the right to self-
organization
(a) All Employees
It shall be unlawful for any person to restrain,
coerce, discriminate against or unduly interfere
All persons employed in commercial, industrial
with employees and workers in their exercise
and agricultural enterprises and in religious,
of the right to self-organization [Art. 257]
charitable, medical or educational institutions,
whether operating for profit or not, shall have
Scope of right to self-organization
the right to self-organization and to form, join or
1. Right to form, join or assist labor
assist labor organizations of their own
organizations of their own choosing for the
choosing for purposes of collective bargaining.
purpose of collective bargaining through
(Presumes an employer-employee
representatives of their own choosing [Art.
relationship)
257];
2. Right to engage in lawful concerted
Ambulant, intermittent and itinerant workers,
activities for the same purpose (collective
self-employed people, rural workers and those
bargaining) or for their mutual aid and
without any definite employers may form labor
protection [Art. 257]
organizations for their mutual aid and
3. The right of any person to join an
protection. [Art. 253]
organization also includes the right to leave
that organization and join another one.
Any employee, whether employed for a definite
[Heritage Hotel Manila v. PIGLAS-
period or not, shall, beginning on his first day of
Heritage, G.R. No. 177024 (2009)]
service, be considered an employee for
4. The right to form or join a labor organization
purposes of membership in any labor union.
necessarily includes the right to refuse or
[Art. 292(c)]
refrain from exercising said right. [Reyes v.
Trajano, G.R. No. 84433 (1992)]
Employee […] shall include any individual
5. The freedom to form organizations would
whose work has ceased as a result of or in
be rendered nugatory if they could not
connection with any current labor dispute or
choose their own leaders to speak on their
because of any unfair labor practice if he has
behalf and to bargain for them. [Pan-
not obtained any other substantially equivalent
American World Airways, Inc v. Pan-
and regular employment. [Art. 219(f)]
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Employees of non-profit organizations are now (d) Aliens with valid working permits
permitted to form, organize or join labor unions
of their choice for purposes of collective General Rule: All aliens, natural or juridical,
bargaining [FEU-Dr. Nicanor Reyes Medical […] are strictly prohibited from engaging
Foundation Inc. v. Trajano, G.R. No. 76273 directly or indirectly in all forms of trade union
(1987)] activities. [Art. 284]
(b) Government employees of corporations Exception: Aliens may exercise the right to
created under the Corporation Code self-organization and join or assist labor unions
for purposes of collective bargaining, provided
The right to self-organization shall not be the following requisites are fulfilled:
denied to government employees. [Sec. 2(5), 1. With valid working permits issued by the
Art. IX-B, Constitution] DOLE; and
2. They are nationals of a country which
Employees of government corporations grants the same or similar rights to Filipino
established under the Corporation Code shall workers [Art. 284]
have the right to organize and to bargain a. As certified by DFA; OR
collectively with their respective employers b. Has ratified either ILO Conventions No.
87 and 98 [Sec. 2, Rule II, Book V, IRR]
All other employees in the civil service shall
have the right to form associations for (e) Security personnel
purposes not contrary to law. [Art. 254]
The security guards and other personnel
All government employees can form, join or employed by the security service contractor
assist employees’ organizations of their own shall have the right:
choosing for the furtherance and protection of 1. To form, join, or assist in the formation of a
their interests. They can also form, in labor organization of their own choosing for
conjunction with appropriate government purposes of collective bargaining and
authorities, labor-management committees, 2. To engage in concerted activities which are
work councils and other forms of workers’ not contrary to law including the right to
participation schemes to achieve the same strike. [D.O. No. 14 Series of 2001
objectives. [E.O. 180, Sec. 2 (1987)] (Guidelines Governing the Employment
and Working Conditions of Security Guards
(c) Supervisory Employees and Similar Personnel in the Private
Security Industry)]
Supervisory employees are those who, in the
interest of the employer, effectively On Dec. 24, 1986, President C. Aquino issued
recommend such managerial actions if the EO No. 111 which eliminated the provision
exercise of such authority is not merely which made security guards ineligible to join
routinary or clerical in nature but requires the any labor organization. In 1989, Congress
use of independent judgment. [Art. 219(m)] passed RA 6715 which also did not impose
limitations on the ability of security guards to
What is essential is the nature of the join labor organizations. Thus, security guards
employee’s function and not the nomenclature “may now freely join a labor organization of the
or title given to the job which determines rank-and-file or that of the supervisory union,
whether the employee has rank-and-file or depending on their rank.” [Manila Electric Co.
managerial status or whether he is a v. SOLE, G.R. No. 91902 (1991)]
supervisory employee. [Tagaytay Highlands
International Golf Club, Inc. v. Tagaytay
Highlands Employees Union-PTGWO, G.R.
142000 (2003)]
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Ineligibility of Managerial Employees; a. Doctrine of Necessary
Rights of Supervisory Employees Implication
Managerial employees are not eligible to join, While Art. 245 [now 255] of the Labor Code
assist or form any labor organization. [Art. 255] singles out managerial employees as ineligible
to join, assist or form any labor organization,
Supervisory employees shall not be eligible for under the doctrine of necessary implication,
membership in the collective bargaining unit of confidential employees are similarly
the rank-and-file employees but may join, disqualified. This doctrine states that what is
assist or form separate collective bargaining implied in a statute is as much a part thereof as
units and/or legitimate labor organizations of that which is expressed. [Metrolab Industries
their own. The rank and file union and the Inc. v. Roldan-Confessor, G.R. No. 108855
supervisors' union operating within the same (1996)]
establishment may join the same federation or
national union. Nature of Access Test
Confidential employees, by the nature of their
Rationale: Supervisory employees, while in functions, assist and act in a confidential
the performance of supervisory functions, capacity to, or have access to confidential
become the alter ego of the management in the matters of, persons who exercise managerial
making and the implementing of key decisions functions in the field of labor relations.
at the sub-managerial level. Certainly, it would
be difficult to find unity or mutuality of interests Requisites
in a bargaining unit consisting of a mixture of 1. The confidential relationship must exist
rank-and-file and supervisory employees. between the employees and his
[Toyota Motor Phil. Corp. v. Toyota Motor Phil. supervisor, and
Corp. Labor Union, G.R. No. 121084 (1997)] 2. The supervisor must handle the prescribed
responsibilities relating to labor relations.
Supervisor and Rank and File Union [San Miguel Supervisors and Exempt
Affiliation Union v. Laguesma, G.R. No. 110399
The rank and file union and the supervisors’ (1997)]
union operating within the same establishment
may join the same federation or national union. Function Test: Nomenclature is not
[Art. 255] controlling
The mere fact that an employee is designated
Note also: Prior to the enactment of RA 9481, “manager” does not ipso facto make him one.
which inserted a new provision [Art. 245-A, Designation should be reconciled with the
now Art. 256], the Court held in De La Salle actual job description of the employee. [Paper
University v. Laguesma that a local Industries Corp. of the Philippines. v.
supervisors’ union is not allowed to affiliate with Laguesma, G. R. No.101738 (2000)]
a national federation of unions of rank and file
employees only where two conditions concur: Confidential information: Must relate to
1. The rank-and-file employees are directly labor relations and not from a business
under the authority of supervisory standpoint
employees An employee must assist or act in a confidential
2. The national federation is actively involved capacity and obtain confidential information
in union activities in the company. [De La relating to labor relations policies. Exposure to
Salle University Medical Center and internal business operations of the company is
College of Medicine v. Laguesma, G.R. No. not per se a ground for the exclusion in the
102084 (1998)] bargaining unit. [Coca-Cola Bottlers v. IPTEU,
G.R. No. 193798 (2015)]
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Rationale of Exclusion of Confidential Irrespective of the degree of their participation
Employees in the actual management of the cooperative,
If confidential employees could unionize in all members thereof cannot form, assist or join
order to bargain for advantages for a labor organization for the purpose of
themselves, then they could be governed by collective bargaining. [Benguet Electric
their own motives rather than the interest of the Cooperative v. Ferrer-Calleja, G.R. No. 79025
employers. (1989)]
Moreover, unionization of confidential Exception: Employees who withdrew their
employees for the purpose of collective membership from the cooperative are entitled
bargaining would mean the extension of the to form or join a labor union for the negotiations
law to persons or individuals who are supposed of a Collective Bargaining Agreement. [Central
to act in the interest of the employers. It is not Negros Electric Cooperative, Inc. v. DOLE,
far-fetched that in the course of collective G.R. No. 94045 (1991)]
bargaining, they might jeopardize that interest
which they are duty bound to protect. [Metrolab (c) Employees of International
Industries Inc. v. Roldan-Confessor, G.R. No. Organizations
108855 (1996)]
International organizations are endowed with
Other People Who Cannot Form, Join or some degree of international legal personality.
Assist Labor Organizations They are granted jurisdictional immunity, as
provided in their organization’s constitutions, to
(a) New Employees safeguard them from the disruption of their
functions.
[Persons who] are not employees of [a
company] are not entitled to the constitutional Immunity […] is granted to avoid interference
right to join or form a labor organization for by the host country in their internal workings.
purposes of collective bargaining. […] The The determination [by the executive branch]
question of whether employer-employee has been held to be a political question
relationship exists is a primordial consideration conclusive upon the Courts in order not to
before extending labor benefits under the embarrass a political department of
workmen's compensation, social security, Government. [Hence], a certification election
Medicare, termination pay and labor relations cannot be conducted in an international
law. [Singer Sewing Machine Co. v. Drilon, organization to which the Philippine
G.R. No. 91307, 1991] Government has granted immunity from local
jurisdiction. [International Catholic Migration
But employees of the contractor can still form a Commission v. Calleja, G.R. No. 85750 (1990)]
labor union; the labor union can be established
to bargain with the contractor but not with the (d) Members of the AFP, Policemen, Police
principal employer. [Prof. Battad] Officers, Firemen, and Jail Guards
(b) Employee-member of a Cooperative Members of the AFP, Policemen, Police
Officers, Firemen and Jail Guards are
General Rule: An employee of a cooperative expressly excluded by EO 180, Sec. 4 from the
who is a member and co-owner thereof cannot coverage of the EO 180 which provides
invoke the right to collective bargaining for guidelines for the exercise of the right to
certainly an owner cannot bargain with himself organize of government employees.
or his co-owners. [Batangas-I Electric
Cooperative Labor Union v. Romeo A. Young, SUMMARY - Who Cannot Form, Join or
G.R. No. 62386 (1988)] Assist Labor Organizations
a. Managerial employees
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b. Confidential employees oppressive fine and forfeiture be imposed. [Art.
c. Non-employees 250(e)]
d. Member-employee of a cooperative
e. Employees of international organizations Prohibition on subversive activities or
f. High-level government employees membership
g. Members of the AFP, police officers, No labor organization shall knowingly admit as
policemen, firemen and jail guards members or continue in membership any
individual who:
2. Commingling or Mixture of 1. Belongs to a subversive organization; or
Membership 2. Who is engaged directly or indirectly in any
subversive activity;
Effect of Inclusion of Employees Outside
the Bargaining Unit or Commingling Unions cannot arbitrarily exclude qualified
General Rule: It shall not be a ground for the applicants
cancellation of the registration of the union. Unions are not entitled to arbitrarily exclude
Said employees are automatically deemed qualified applicants for membership, and a
removed from the list of membership of said closedshop provision would not justify the
union. [Art. 256] employer in discharging, or a union in insisting
upon the discharge of, an employee whom the
Exception: Unless such mingling was brought union thus refuses to admit to membership,
about by misrepresentation, false statement or without any reasonable ground therefor.
fraud under Art. 247 (Grounds for cancellation Needless to say, if said unions may be
of Union Registration) of the Labor Code. compelled to admit new members, who have
[SMCC-Super v. Charter Chemical and the requisite qualifications, with more reason
Coating Corporation, G.R. No. 169717 (2011)] may the law and the courts exercise the
coercive power when the employee involved is
a long-standing union member, who, owing to
3. Rights and Conditions of provocations of union officers, was impelled to
tender his resignation which he forthwith
Membership withdrew or revoked. [Salunga v. CIR, G.R.
No. L-22456 (1967)]
a. Nature of Relationship
Members who seek destruction of union
i. Member-Labor Union lose right to remain as members
Inherent in every labor union, or any
The nature of the relationship between the organization for that matter, is the right of self-
union and its members is fiduciary in nature,
preservation. When members of a labor union,
which arises from the dependence of the
therefore, sow the seeds of dissension and
employee on the union, and from the
strife within the union; when they seek the
comprehensive power vested in the union with
disintegration and destruction of the very union
respect to the individual. The union may be
to which they belong, they thereby forfeit their
considered but the agent of its members for the rights to remain as members of the union which
purpose of securing for them fair and just
they seek to destroy. [Villar v. Inciong, G.R. No.
wages and good working conditions. [Heirs of L-50283-84 (1983)]
Cruz v. CIR, G.R. No. L-23331-32 (1969)]
ii. Labor Union-Federation
Admission and Discipline of Members
No arbitrary or excessive initiation fees or fines.
Local unions do not owe their creation and
No arbitrary or excessive initiation fees shall be existence to the national federation to which
required of the members of a legitimate labor
they are affiliated but, instead, to the will of their
organization nor shall arbitrary, excessive or
members, […] The local unions remain the
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basic units of association, free to serve their
own interests subject to the restraints imposed The chapter shall be entitled to all other rights
by the constitution and by-laws of the national and privileges of a legitimate labor organization
federation, and free also to renounce the only upon the submission of the following
affiliation upon the terms laid down in the documents in addition to its charter certificate:
agreement which brought such affiliation into 1. The names of the chapter's officers, their
existence. [Philippine Skylanders, Inc. v. addresses, and the principal office of the
NLRC, G.R. No. 127374 (2002)] chapter; and
2. The chapter's constitution and by-laws:
Union Chartering Provided, That where the chapter's
Affiliate constitution and by-laws are the same as
An independent union affiliated with a that of the federation or the national union,
federated, national union or a chartered local this fact shall be indicated accordingly.
which was subsequently granted independent
registration but did not disaffiliate from its The additional supporting requirements shall
federation, reported to the Regional Office and be:
the Bureau in accordance with Rule III, Secs. 6 1. Certified under oath by:
and 7 [Sec. 1(b), Rule I, Book V, IRR] a. Secretary; or
b. Treasurer
Independent Union 2. Attested by: Its president [Art. 241]
A labor organization operating at the enterprise
level that acquired legal personality through Lesser requirements for Chartered locals
independent registration under Art. 234 of the The intent of the law in imposing less
Labor Code and Rule III, Sec. 2-A [Sec. 1(x), requirements in the case of a branch or local of
Rule I, Book V] a registered federation or national union is to
encourage the affiliation of a local union with a
National Union or Federation federation or national union in order to increase
A group of legitimate labor unions in a private the local unions’ bargaining powers respecting
establishment organized for collective terms and conditions of labor. [SMCEU-
bargaining or for dealing with employers PTGWO v. SMPEU-PDMP, G.R. No. 171153
concerning terms and conditions of (2007)]
employment for their member union or for
participating in the formulation of social and Trade Union Centers cannot create locals
employment policies, standards and programs, or chapters
registered with the BLR in accordance with Art. 241 mentions only “a duly registered
Rule III Sec. 2-B [Sec. 1(ll), Rule I, Book V, federation or national union.”
IRR]
The solemn power and duty of the Court to
Chartered Local (Local Chapter) interpret and apply the law does not include the
A labor organization in the private sector power to correct by reading into the law what is
operating at the enterprise level that acquired not written therein. [SMCEU-PTGWO v.
legal personality through registration with SMPEU-PDMP, G.R. No. 171153 (2007)]
Regional Office [Sec. 1(j), Rule I, Book V, IRR]
National Union or Federation v. Trade
A duly registered federation or national union Unions
may directly create a local chapter by issuing a National Union or
Trade Unions
charter certificate indicating the establishment Federation
of the local chapter. The chapter shall acquire With at least ten Composed of a
legal personality only for purposes of filing a (10) locals or group of registered
petition for certification election from the date it chapters (or national unions or
was issued a charter certificate. independent unions federations
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[Sec. 2-B(5), Rule Mere affiliation does not divest the local union
III, Book V, IRR], of its own personality, neither does it give the
each of which must mother federation the license to act
be a duly independently of the local union. It only gives
recognized rise to a contract of agency, where the former
collective bargaining acts in representation of the latter. Hence, local
agent [Art. 244] unions are considered principals while the
Can directly create Cannot directly federation is deemed to be merely their agent.
local chapter [Art. create local chapter [Insular Hotel Employees Union NFL v.
241] [SMCEU-PTGWO v. Waterfront Insular Hotel, G.R. No. 174040-41
SMPEU-PDMP, (2010)]
G.R. No. 171153
(2007)]
(a) Disaffiliation
Purpose of Affiliation
To foster the free and voluntary organization of In the absence of specific provisions in the
a strong and united labor movement [Art. 218- federation’s constitution prohibiting
A(c)] disaffiliation or the declaration of autonomy of
a local union, a local may dissociate with its
The sole essence of affiliation is to increase, by parent union. [Malayang Manggagawa sa M.
collective action, the common bargaining Greenfield v. Ramos, G.R. No. 113907 (2000)]
power of local unions for the effective
enhancement and protection of their interests. Local unions have the right to separate from
Admittedly, there are times when without their mother federation on the ground that as
succor and support local unions may find it separate and voluntary associations, local
hard, unaided by other support groups, to unions do not owe their creation and existence
secure justice for themselves. [Philippine to the national federation to which they are
Skylanders, Inc. v. NLRC, G.R. No. 127374 affiliated but, instead, to the will of their
(2002)] members. [Philippine Skylanders, Inc. v.
NLRC, G.R. No. 127374 (2002)]
Nature of Relationship: Agency
The mother union, acting for and on behalf of A local union is free to serve the interests of all
its affiliate, had the status of an agent while the its members, including the freedom to
local union remained the basic unit of the disaffiliate or declare its autonomy from the
association, free to serve the common interest federation to which it belongs when
of all its members subject only to the restraints circumstances warrant, in accordance with the
imposed by the constitution and by-laws of the constitutional guarantee of freedom of
association. [...] The same is true even if the association. [Malayang Samahan ng mga
local is not a legitimate labor organization. Manggagawa sa M. Greenfield, Inc. v. Ramos,
[Filipino Pipe and Foundry Corp v. NLRC, G.R. G.R. No. 113907 (2000)]
No. 115180 (1998)]
Period of Disaffiliation
Effect of Affiliation Generally, a labor union may disaffiliate from
Inclusion of [the federation’s initials] in the the mother union to form a local or independent
registration is merely to stress that they are its union only during the 60-day freedom period
affiliates at the time of registration. It does not immediately preceding the expiration of the
mean that said local unions cannot stand on CBA. However, even before the onset of the
their own. [Adamson v. CIR, G.R. No. L-35120 freedom period, disaffiliation may be carried
(1984)] out when there is a shift of allegiance on the
part of the majority of the members of the
union. [Alliance of Nationalist and Genuine
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