REPUBLIC ACT No.

9481
AN ACT STRENGTHENING THE WORKERS CONSTITUTIONAL
RIGHT TO SELF-ORGANIZATION, AMENDING FOR THE
PURPOSE PRESIDENTIAL DECREE NO. 442, AS AMENDED,
OTHERWISE KNOWN AS THE LABOR CODE OF THE
PHILIPPINES

ISSUES AND IMPLICATIONS

RENE Y. SORIANO

10/18/2010

What R. A. 9481 Is All About

Amended pertinent provisions of the Labor Code
as well as introduced new ones governing:
1. Registration of labor organizations
2. Chartering and creation of local chapters
3. Effect of petition for cancellation of union
registration on petition for certification election
and certification election proceedings
4. Cancellation of union registration
5. Reportorial requirements of labor organizations
6. Commingling of supervisors and rank-and-file
unions with the same federation or national
union operating in the same establishment
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What R. A. 9481 Is All About. . .

6. Petition for certification election in organized
and unorganized establishments filed by a
national union or federation or local chapter
with a charter certificate
7. Role of employers in certification elections

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Specific Amendments

Art. 234. Requirements of Registration

ART.234-A. (new) CHARTERING AND
CREATION OF A LOCAL CHAPTER

Art. 238. Cancellation of Registration [;Appeal]

ART. 238-A. (new) EFFECT OF A PETITION
FOR CANCELLATION OR REGISTRATION

Art. 239. Grounds for Cancellation of Union
Registration

ART. 239-A. (new) VOLUNTARY CANCELLATION OF REGISTRATION

ART. 242-A. (new) REPORTORIAL REQUIREMENTS
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Specific Amendments. . .

Art. 245. Ineligibility of Managerial Employees
to Join any Labor Organization

ART. 245-A. (new) EFFECT OF INCLUSION
AS MEMBERS OF EMPLOYEES OUTSIDE
THE BARGAINING UNIT

Art. 256. Representation Issue in Organized
Establishments

Art. 257. Petitions in Unorganized Establishments

ART. 258-A. (new) EMPLOYER AS BYSTANDER
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CRITICAL ISSUES

Mass deletion of grounds for cancellation of
registration of labor unions

Non-disclosure of membership of chartered
locals/chapters in representation issues

Commingling of supervisors and rank-and-fileunions in the same establishment affiliated with
the same national union/federation
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Non-controversial amendments. . .

Art. 258-A. (new) provides that in a petition for
certification election, the employer is
considered not a party thereto with concomitant
right to oppose. Its participation is limited to:
1. Being notified of the petition and
2. Submitting the list of employees during the
pre-election conference
This provision is a reiteration of case law
Upon filing of the petition for certification election, the
role of the employer in the certification process
ceases. It becomes merely a bystander (Furusawa Rubber
Philippines vs. Secretary of Labor, G. R. No. 121241, 10 December
1997)
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7

REGISTRATION OF
LABOR ORGANIZATIONS

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Nature of Registration
1. Registration is a condition sine qua non for the
acquisition of legal personality and rights and
privileges granted by law to legitimate labor
organizations
2. Regulation of registration and cancellation of
union registration constitute valid exercise of
police power (Progressive Development Corporation-Pizza Hut
vs. Laguesma, 271 SCRA 603) because activities in which
unions are engaged directly affect public
interest and should be protected (Philippine
Association of Free Labor Unions vs. Secretary of Labor, 27 SCRA
41).
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Labor Organizations Qualified to Register

1. Independent unions: membership of at least
20% of all the employees of the collective
bargaining unit where it seeks to operate
2. Federations/national unions: affiliation of at
least 10 locals or chapters each of which is
a recognized collective bargaining agent
Exclusive power to create local chapter and
to act as its agent for purposes of collective
bargaining
3. Chartered local chapter: considered as the
principal for purposes of collective bargaining
but loses personality upon disaffiliation
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Labor Organizations Qualified to Register. . .

4. Industry union
5. Trade union center

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11

Requirements of Registration: Changes

BEFORE AMENDMENT
R. A. 9481
Art. 234
Labor organization, association,
group of unions or workers. D. O.
No. 40-03 already provides for the
registration of independent unions,
federations, national unions as well
as locals or chapters
Names of all members comprising
at least 20% of all employees in
collective bargaining unit
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FEDERATION, NATIONAL
UNION, INDUSTRY OR
TRADE UNION CENTER,
INDEPENDENT UNION

Applies only to
INDEPENDENT UNION

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BEFORE AMENDMENT
No provision
But D.O. No. 3-B-04 provides that
a registered federation or national
union may directly create
chartered local by submitting under
oath the ff. documents certified by
the locals Secretary or Treasurer
and attested by its President:
1. Charter certificate
2. Names & addresses of
chapters officers
3. Constitution and by-laws
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R. A. 9481
Art. 234-A (Chartering)
Adopted provisions of D.O. 3B-04 with the additional
provision: The chapter shall
acquire legal personality
only for the purpose of filing
a petition for certification
lection from the date it was
issued a charter certificate.

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CANCELLATON OF
UNION REGISTRATION

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Grounds for Cancellation

BEFORE AMENDMENT
Art. 239
1. Misrepresentation, false statement or fraud re
adoption/ratification of Constitution, By-Laws,
amendments, minutes of ratification, list of
members who took part in ratification
2. Failure to submit above documents within 30
days from adoption or ratification of constitution
and by-laws or amendments thereto

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R. A. 9481
Art. 239
1. Same

2. Deleted

15

Grounds for Cancellation. . .

BEFORE AMENDMENT

R. A. 9481

Art. 239
Art. 239
3. Misrepresentation/false
3. Misrepresentation/false
statements/fraud re election of
statements/fraud re election of
officers, minutes of election of
officers, minutes of election of
officers/list of voters, failure to
officers AND list of voters. [,or
submit these documents
failure to submit these
together with list of newly
documents together with list of
elected/appointed officers,
newly elected/appointed
their postal addresses within
officers, their postal addresses
30 days from election
within 30 days from election];
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16

Grounds for Cancellation. . .

BEFORE AMENDMENT
R. A. 9481
4. Failure to submit the annual financial report to
the Bureau within 30 days after closing of
every fiscal year and misrepresentation, false
entries or fraud in preparation of financial report
5. Acting as labor contractor or engaging in cabo
system or in any activity prohibited by law
6. Entering into CBAs which provide terms and
conditions of employment below minimum
standards established by law
7. Asking for/accepting attorneys fees/negotiation
fees from employers (constitutes ULP under Art.
249)
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4. Deleted

5. Deleted
6. Deleted

7. Deleted
17

Grounds for Cancellation. . .

BEFORE AMENDMENT
R. A. 9481
Art. 239
8. Checking off special assessments or
any other fees without duly signed
individual written authorization of the
members
9. Failure to submit list of individual
members to Bureau once a year or
whenever required by the Bureau
10. Failure to comply with the
requirements under Article 237
(maintenance of not less 10 affiliates
by federation/national union)
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Art. 239
8. Deleted

9. Deleted

10. Deleted

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Grounds for Cancellation. . .

BEFORE AMENDMENT R. A. 9481
Art. 239
VOLUNTARY DISSOLUTION BY
THE MEMBERS (new)
Outside the power of Bureau
to act which is expressly
limited to 3 grounds under
amended Art. 239

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ART. 239-A (new)

VOLUNTARY CANCELLATION BY
2/3 VOTES OF GENERAL
MEMBERSHIP OF LABOR
ORGANIZATION PROVIDED THAT
APPLICATION TO CANCEL
REGISTRATION IS SUBMITTED BY
ITS BOARD ATTESTED BY ITS
19
PRESIDENT

Other Grounds for Cancellation

BEFORE AMENDMENT
R. A. 9481
Art. 238
Bureau shall cancel registration after due
hearing if labor organization no longer meets
one or more of prescribed requirements
Art. 237
Registration of federation/national union
valid only if it has affiliation of at least 10
locals or chapter duly recognized as
collective bargaining agents in respective
establishments
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Art. 238
Bureau can cancel
only on 3 grounds
specified in Art. 239

No longer
enforceable

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Other Grounds for Cancellation

BEFORE AMENDMENT
R. A. 9481
Art. 241 (rights & conditions of membership) No longer
Any violation of rights and conditions shall be enforceable
a ground for cancellation of union registration
or expulsion of officer from office whichever is
appropriate

10/18/2010

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Reportorial Requirements: Art. 232-A (new)

Documents required to be submitted to the
Bureau by a legitimate labor organization:
1. Constitution and by-laws, amendments thereto, minutes
of ratification and list of members who took part within 30
days from adoption or ratification
2. List of officers, minutes of election and list of voters within
30 days from election
3. Annual financial report within 30 days after close of every
fiscal year
4. List of members at least once a year or as required by
the Bureau
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22

Reportorial Requirements: Art. 232-A. . .

Failure to comply not a ground for cancellation
but subjects erring officers or members to
suspension, expulsion from membership or any
appropriate penalty

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Commingling: Supervisors & Rank-and-File Unions

Art. 245. Ineligibility of Managerial Employees to Join Any
Labor Organization; Right of Supervisory Employees.
Managerial employees are not eligible to join, assist or form
any labor organization. Supervisory employees shall not be
eligible for membership in [a labor organization] THE
COLLECTIVE BARGAINING UNIT of the rank-and-file
employees but may join, assist or form separate
COLLECTIVE BARGAINING UNITS AND/OR LEGITIMATE
labor organizations of their own. THE RANK AND FILE
UNION AND THE SUPERVISORS UNION OPERATING
WITHIN THE SAME ESTABLISHMENT MAY JOIN THE
SAME FEDERATION OR NATIONAL UNION
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Commingling. . .
1. As supported by jurisprudence, commingling is
contrary to public policy, undermines industrial
stability and destructive to employers
2. The peculiar role of supervisors is such that
while they are not managers, when they
recommend action implementing policy or ask
for the discipline or dismissal of subordinates,
they identify with the interests of the employer
and may act contrary to the interests of the
rank-and-file (Atlas Lithographic Services, Inc. vs. Laguesma,
et al., 205 SCRA 12)
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Commingling. . .
3. Conflict of interest may arise in the areas of
discipline, collective bargaining and strike
a) Members of the supervisors union might
refuse to carry out disciplinary measures
against their co-affiliate rank-and-file
employees
b) In the area of bargaining, their interest can
not be considered identical. The needs of
one are different from those of the other
c) In the event of a strike, the federation might
influence the supervisors union to conduct
a sympathy strike on the sole basis of
affiliation (Atlas Lithographic Services, Inc. supra)
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Mixture in Union Membership

1. Art. 245-A. (new): provides that inclusion as
members of employees outside the bargaining
unit not a ground for cancellation
2. This new provision reiterates what is already
provided by case law
a) Art. 245 merely prescribes a rule of membership
eligibility, and should not be a ground for cancellation
of union registration (SPI Technologies vs. Baldoz, G.R. No.
137422, 8 March 1999)

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27

Art. 245-A. . . .
a) In cases of mixture in union membership, the
procedure provided in purging the ranks of a rank-andfile union with ineligible members may be through the
following:
1) mechanisms under the union constitution and
by-laws;
2) inclusion-exclusion proceedings during the preelection conference pursuant to Section 2, Rule XII.
(Philippine Telegraph and Telephone Corp. Vs. Laguesma, G. R.
No. 101730, 17 June 1993, 223 SCRA 452)

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Art. 245-A. . . .
3. The inclusion-exclusion proceedings are
primarily conducted to determine the eligibility
of voters during certification elections
4. But this process is vitiated in the case of
federations with chartered locals participating
in certification elections inasmuch as
they are not required to disclose their membership and officers

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NON-DISCLOSURE ISSUES
INVOLVING REPRESENTATION IN
ESTABLISHMENTS,
ORGANIZED AND UNORGANIZED

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30

Majority Representation, How Acquired

1. Voluntary recognition (Sec. 1[bbb], Rule I; Rule VII,
D.O. No. 40-03

In unorganized establishments with only one

legitimate labor organization, employer may
voluntarily recognize representation status
2. Certification election (Sec. 1[h], Rule 1; Rule VIII, D.O.
No. 40-03)

a) Art. 256: Representation issue in organized

establishment
b) Petitions in unorganized establishments
c) Art. 258: When employer may file petition
d) Art. 259: Appeal from certification election
orders
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Majority Representation, How Acquired. . .

3. Run-off election
When an election for 3 or more choices results
in no choice receiving a majority of the valid
votes cast, run-off election is conducted
between the 2 labor unions receiving the
highest number of votes (Art. 256)
4. Consent election (Sec. 1[h], Rule 1; Sec. 10, Rule VIII,
D.O. No. 40-03)

An election voluntarily agreed upon by 2 or

more contending unions with or without the
intervention of DOLE to determine majority
representation of the workers in the appropriate
collective bargaining unit
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Representation Issue in Organized

Establishments (Art. 256, as amended)
1. A verified petition questioning majority status of
incumbent bargaining agent is filed before
DOLE by a legitimate labor organization
including national union/federation which
has issued charter certificate to its local
chapter participating in the certification
election or local chapter which has been
issued a charter certificate by the national
union or federation
2. Petition filed within the last 60 days of the 5th
year of the CBA (contract-bar rule)
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Representation Issue in Organized

Establishments. . .
3. Med-Arbiter shall automatically order election
when petition is supported by written consent
of at least 25% of all employees in the
collective bargaining unit
4. If petition is filed by a national union or
federation, it shall not be required to
disclose the names of the local chapters
members and officers

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Representation Issue in Organized

Establishments. . .
5. Implications:
a) Federation is exempted from submitting the
25% written consent of all employees
b) Exemption grossly iniquitous and unfair for
incumbent bargaining agent as well as
employer who have no way of knowing
whether chartered local members include
non-eligible employees such as confidential
employees and supervisors
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Petitions in Unorganized
Establishments (Art. 257)
1. Establishment has no certified collective
bargaining agent
2. The Med-Arbiter shall automatically conduct
a certification election upon filing of a petition
3. By legitimate labor organization, including a
national union/federation which has issued
a charter certificate to its local chapter
participating in the certification election or
local chapter which has been issued a
charter certificate by the national union or
federation
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36

Petitions in Unorganized
Establishments. . .
4. If petition is filed by a national union or
federation, it shall not be required to
disclose the names of the local chapters
members and officers

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10/18/2010

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