LABOR RELATIONS LAW OUTLINE (2017 Edition) (Suggested Reference: CHAN, Joselito G., Labor Code Annotated Vol. II Labor Relations and Termination of Employment) NOTE: The provisions of the Labor Code (Presidential Decree No. 442, as amended) has been renumbered pursunt to Department of Labor and Employment (DOLE) Department Advisory No. 1, series of 2015. LABOR RELATIONS LAW ~ PRIVATE SECTOR PART ONE — INTRODUCTORY MATERIALS LABOR RELATIONS POLICY: FORMULATION AND HISTORICAL DEVELOPMENT 1987 Constitution Art. Il, Sec. 2, 10, and 18 Art. Ill, Sec. 8 Art. IX B, Sec. 2B Art. XII, Sec. 12 Art XIll, Sec. 3 and 14 LABOR CODE Art. 3 Art. [Old # 211] 218 (Declaration of Policy) Art. [275] 290 (Tripartism and Tripartite Conferences) (as amended by RA 10395) e Association de Agricultores v. Talisay — Silay Milling Co., 88 SCRA 294 [G.R. No. L-19937, February 19, 1979] PAL v. PALEA, 57 SCRA 489 [G.R. No. L-24626, June 28, 1974] © National Service Corp. v. NLRC, 168 SCRA 122 [G.R. No. L-69870, November 29, 1988] PLDT v. NLRC, 164 SCRA 671 [G.R. No. L-80609, Aug. 23, 1988]A. STATUTORY SOURCE AND INTERPRETATION e BF Goodrich Confidential and Sala Phils. Inc., 49 SCRA 532 [G.R. No. L-34069-70, February 28, 1973] ¢ Caltex Filipino Manager and Supervisors Associati 350 ied Employees Union v. BF Goodrich, ion v. CIR, 44 SCRA [G.R. No. L-30632-33, April 11, 1972] B. DEFINITIONS Labor Code, Art. [212] 219 (Definitions) BVRIS1, [Book V, Rule 1, Sec. 1 of the Omnibus Rules Implementing the Labor Code] 1. Employer and Employee Art. [212] 219 (e), (f) e Feati University v. Bautista, 18 SCRA 1191 [G.R. No. L-21278, December 27, 1966] 2. Labor Organization — Legitimate Labor Organization Art. [212] 219 (g), (h) © Airline Pilots Association, et al., v. CIR, 76 SCRA 274 [G.R. No. L-33705, April 15, 1977] Lopez Sugar Corporation v. Secretary of Labor, 247 SCRA 1 IG.R. No. L-93117, August 1, 1995] 3. Labor Dispute Art. [212] 219 (I) Definition * San Miguel Corporation Employees Union v. Bersamira, 186 SCRA 496 [G.R. No. L-87700, June 13, 1990] © Gold City Integrated Port Service Inc. v. NLRC, 245 SCRA 627, [G.R. No. L-103560, July 6, 1995] Test for Determining Labor Dispute RCPI v. Philippine Communications Electronics and Electricity Workers Federation, 65 SCRA 82, [G.R. No. L-37662, July 15, 1975]p08 RELATIONS POLICY 1. a 2 Dispute Settlement Methodolo Art. [211] 218 (a) . Collective Bargaining @ Kiok Loy v. NLRC, 141 SCRA 179 [G.R. No. L-54334, January 22, 1986] . Trade Unionism Art. [211] 218 (b), (c) Art. [212] 219 (g) - Worker Enlightenment Art. [214] 218 (d) Att. [241] 250 (p) Rights and Conditions of Membership in a Labor Organization Art. [277] 292 (a) Miscellaneous Provisions BVRXXS1-3 © Davao Integrated Port v. Olvida, 210 SCRA 553 [G.R. No. L-93983, June 29, 1992] * Victoria v. Inciong, 157 SCRA 339 [G.R. No. L-49046, January 26, 1988] . Machinery Dispute Settlement Art. [211] 218 (e) . Industrial Peace Art. [211] 218 (f) Art. [273] 288 (a) ~ (i) Study of Labor Management Relations - Worker Participation in Decision-Making Art. [211] 218 (g) Art. [277] 292 (g) Miscellaneous Provisions . Wage Fixing Art. [211] 218 (by Art. [263] 278 (g) Strikes, Picketing, & Lockouts . Labor Injunction Art. [254] 266 Injunction ProhibitedArt. [218] 225(e) Powers of the Commission Art. [266] 281 Requirement for Arrest & Detention Rationale for Policy on Injunction © Caltex Filipino Managers and Supervisors Association v. CIR, 44 SCRA 350 [G.R. No. L-30632-33, April 11, 1972] 10. Tripartism Art. [275] 290 (a), (b) PART TWO — RIGHT TO SELF ORGANIZATION A. BASIS OF RIGHT Art. Ill, Sec. 8, 1987 Constitution Art. XIll, Sec. 3, 1987 Constitution Art. Ill, Sec. 6, 1935 Constitution Art. IV, Sec. 7, 1973 Constitution 1. Constitution Art. Ill, Sec. 8, 1987 Constitution Art. XIll, Sec. 3, 1987 Constitution Art. Ill, Sec. 6, 1935 Constitution Art. IV, Sec. 7, 1973 Constitution 2. Statutory Art. [243] 253 Coverage & Employee's Right to Self-Organization Art. [244] 254 Right of Employees in Public Service Art. [245] 255 Managerial & Supervisory Employees e Vasaar Industries Employees Union v. Estrella, 82 SCRA 280 [G.R. No. L-46562, August 23, 1978] Singer Sewing Machine Company v. Drilon, 193 SCRA 182 [G.R. No. L-91307, January 24, 1991] Metrolab Industries v. Confessor, 254 SCRA 182 [G.R. No. 108855, February 28, 1996] B. EXTENT AND SCOPE OF RIGH' Art, [246] 257 Non-Abridgement of Right to Self-Organizationos . Reyes v. Trajano, 209 SCRA 484 [G.R. No. L-84433, June 2, 1992] General Rubber and Footwear Corporation v. BLR, 155 SCRA 283 [G.R. No. L-74262, October 29, 1987] Knitjoy v. Calleja, 214 SCRA 174 [G.R. No. L-81883. September 23, 1992] Katipunan ng mga Manggagawa sa Daungan v. Ferrer-Calleja, 278 SCRA 531 [G.R. No. L-104692, September 5, 1997] e Pan-American World Airways, Inc. v. Pan-American Employees Association, 27 SCRA 1202 [G.R. No. L-25094, April 29, 1969] ¢ Union of Supervisors (RB NATU) v. Secretary of Labor, 109 SCRA 139 [G.R. No. L-39889, November 12, 1981] C. WORKERS WITH THE RIGHT TO SELF-ORGANIZATION 1, All Employees Art. [243] 253 ¢ Alliance of Nationalist, et al. v. Samahan ng mga Manggagawang Nagkakaisa sa Manila Bay Spinning Mills at J.P. Coats (SAMANA BAY), 258 SCRA 371 [G.R. No. 118562, July 5, 1996] e Bautista v. Inciong, 158 SCRA 655 [G.R. No. L-52824, March 16, 1988] © Kapatiran Sa Meat and Canning Division v. Calleja, 162 SCRA 367 [G.R. No. L-82914, June 20, 1988] 2. Employees of Non-Profit Organizations ¢ FEU — Dr. Nicanor Reyes Medical Foundation, Inc. v. Trajano, 152 SCRA 725 [G.R. No. L-76273, July 31, 1987] © Kapatiran, et al. v. Calleja, 162 SCRA 367 [G.R. No. L-82914, June 20, 1988] 3. Employees of Government Corporations Art. [244] 254 4. Supervisors Art. [245] 255 Art. [212] 219 (m)Test to Determine Supervisory Status * Filoil Refinery Corporation v. Filoil Supervisory and Confidential Employees Association, 46 SCRA 512 [G.R. No. L-26736, August 18, 1972] * Toyota Motors Philippines Corporation v. Toyota Motors Philippines Corporation Labor Union, 268 SCRA 573 [G.R. No. L-121084, February 19, 1997] © Dunlop Slazenger (Phils ), Ine. v. Secretary of Labor, 300 SCRA 120 [G.R. No. 131248, December 11, 1998] © Philippine Phosphate Fertilizer Corp. v. Torres, 231 SCRA 335 [G.R. No. 98050, March 17, 1994] * Pagkakaisa ng Manggagawa sa Triumph v. Calleja, 181 SCRA 119 [G.R. No. 85915, January 17, 1990] © Paper Industries Corp. v. Laguesma, 330 SCRA 295 [G.R. No. 101738, April 12, 2000] Aliens Art. [269] 284 . Security Guards Organic to Establishment United Pepsi Cola Supervisors Union v. Laguesma, 288 SCRA 15 [G.R. No. 122226, March 25, 1998] . WORKERS WITH NO RIGHT OF SELF-ORGANIZATION . Managerial and Confidential Employees Art. [245] 255 Art. 82 * Southern Philippine Federation of Labor v. Calleja, 172 SCRA 676 [G.R. No. 80882, April 24, 1989] © Philtranco Service Enterprises v. BLR, 174 SCRA 388 [G.R. No, 85343, June 28, 1989] © Golden Farms, Inc. v. Calleja, 175 SCRA 471 [G.R. No. 78755, July 19, 1989] © Pier 8 Arrastre, et al. v. Roldan-Confessor, 241 SCRA 204 [G.R. No. 110854, February 13, 1995] * San Miguel Corporation Supervisors v. Laguesma, 277 SCRA 370 [G.R. No. 110399, August 15, 1997] United Pepsi Cola Supervisors Union v. Laguesma, 288 SCRA 15 [G.R. No. 122226, March 25, 1998]e Pepsi Cola v. Secretary of Labor, 312 SCRA 104 [G.R. No 96663, August 10, 1999] 2. Workers/Members of Cooperatives Coop. Rural Bank of Davao v. Ferrer-Calleja, 165 SCRA 725 [G.R. No. L-77951, September 26, 1988] e CENECO v. DOLE, 201 SCRA 584 [G.R. No. 94045, September 13, 1991] 3. Non-Employees Art. [243] 253 e Singer Sewing Machine Company v. Drilon, 193 SCRA 182 [G.R. No. L-91307, January 24, 1991] 4. Fiduciary Employees e Metrolab Industries v. Confessor, 254 SCRA 182 [G.R. No. 108855, February 28, 1996] E. PARTY PROTECTED BY RIGHT * Mactan Workers Union v. Aboitiz, 45 SCRA 577 [G.R. No, L-30241, June 30, 1972] F. SANCTIONS FOR VIOLATIONS OF RIGHT. Art. [246] 257 Art. [248] 259 Unfair Labor Practices of Employees Art. [249] 260 Unfair Labor Practices of Labor Organizations Art. [288] 303 Penalties Art. [289] 304 (Who are liable when committed by other than natural persons PART THREE — LABOR ORGANIZATIONS, A. POLICY Art. [211] 218 (b), (c) RA 10911 (Anti-Age Discrimination in Employment Act), Sec. 5 (c) B. LABOR ORGANIZATIONS — UNIONS Art. {211} 218 (g)- General Definition © Airline Pilots Assn. of the Phil. V. CIR, 76 SCRA 274 [G.R. No. L-33705, April 15, 1977] . Labor Union BVR (i) . National Union / Federation BVR (kk) . Legitimate Labor Organization Att. [212] 219 (h) DOLE Registration as Basis * Cebu Seaman's Assn., Inc. v. Ferrer-Calleja, 212 SCRA 50 IG.R. No. 83190, Aug. 4, 1992] © Progressive Development Corp. v. Sec. of DOLE, 205 SCRA 802 IG.R. No. 96425, Feb. 4, 1992] . Mixed Membership Toyota Motor Phils, Corp. v. Toyota Motor Phils. Corp. Labor Union, 268 SCRA 573 [G.R. No. 121084, Feb. 19, 1997] Company Union Art. [212] 219 (i) . UNION RATIONALE Mactan Workers Union v. Aboitiz, 45 SCRA 577 [G.R. No. L-30241, June 30, 1972] GUIJARNO V. CIR, 52 SCRA 307 [G.R. No. L-28791-93, Aug. 27, 1973] © Heirs of Cruz v. CIR, 30 SCRA 917 [G.R. No. L-23331-32, Dec. 27, 1969] United Seaman's Union of the Phil. V. Davao Shipowners Assn., 20 SCRA 1226 [G.R. No. L-18779, Aug. 31, 1967]D. LABOR UNION AND GOVERNMENT REGULATION 1. Union Registration and Procedure a. Requirements Art. [234] 240 Requirements of Registration Art. [235] 242 Action and Application Art. [237] 244 Additional Requirements for Federations BVRIIIS2 b. Registration Proceeding BVRISI (qq) c. Requirements and Rationale © Progressive Development Corp. v. Sec. of Labor, 205 SCRA 802 [G.R. No. 96425, Feb. 4, 1992] © Phoenix Iron and Steel Corp. v. Sec. of Labor, 244 SCRA 173 IG.R. No. 112141, May 16, 1995] * Protection Technology Inc. v. Sec of Labor, 242 SCRA 173 IG.R. No. 117211, March 1, 1995] e San Miguel Foods Inc. v. Laguesma, 263 SCRA 68 [G.R. No. 116172, Oct. 10, 1996] d. Action or Denial of Application and Remedy Art. [236] 243 Denial of Registration; Appeal BVRIVS 5&5 e Vassar Industries Employees Union v. Estrella, 82 SCRA 280 [G.R. No. L-47848, Aug. 23, 1978] e. Effect of Freedom of Association e Villar v. Inciong, 121 SCRA 444 [G.R. No. L-50283-84, April 20, 1983] f. Rights of Legitimate Labor Organization Art. [242] 251 Rights of Legitimate Labor Organizations 9. Effect of Registration Pambansang Kapatiran, et al. v. Sec. of Labor, 253 SCRA 96 [G.R. No. 111836, Feb. 1, 1996] Furusawa Rubber Phil. V. Sec. of Labor, 282 SCRA 635J [G.R. No. 12124, Dec. 10, 1997] h. Effect of Non-Registration Villar v. Inciong, 121 SCRA 444 [G.R. No. L-50283-84, April 20, 1983] * Tropical Hut Employee Union v. Tropical Hut Food Market, Inc., 181 SCRA 173 IG.R. Nos. 43495-99, Jan. 20, 1990] © Progressive Development Corp. v. Sec. of DOLE, 205 SCRA 802 [G.R. No. 96425, Feb. 4, 1992] ¢ Lakas ng Manggagawa v. Marcelo Enterprises, 118 SCRA 422 [G.R. No. L-38258, Nov. 19, 1982] i. Cancellation of Union Certificate Registration Art. [238] 245 Cancellation of Registration; Appeal Art. [239] 247 Grounds for Cancellation of Union Registration Art. [241] 250 (j) Rights and Conditions of Membership in a Labor Organization BVRISI (g) BVRXIVS 1-3 BVRXVS 1&5 © Alliance of Labor Organization v. Laguesma, 254 SCRA 565 [G.R. No. 108625, March 11, 1996] e NUBE v. Minister of Labor Organization, 110 SCRA 274 [G.R. No. L-53406, Dec. 14, 1981] © Tablante v. Noriel, 84 SCRA 738 [G.R. No. L-47848, Aug. 23, 1978] E. INTERNATIONAL ACTIVITIES OF UNION — PROHIBITION AND REGULATION Art. [269] 284 Art. [270] 285 Regulation of Foreign Assistance Art. [271] 286 Applicability to Far, Tenant and Rural Workers F. UNION-MEMBER RELATIONS Art. [241] 250 Art. [249] 260 (a) 101. Union Constitution e UST Faculty Union v. Bitonio, 318 SCRA 185 [G.R. No. 131235, Nov. 6, 1999] 2. Nature of Relationship e Heirs of Teodore Cruz v. CIR, 30 SCRA 917 [G.R. No. L-23331-32, Dec. 27, 1969] 3. Issues on Admission and Discipline a. Admission Salunga v. CIR, 21 SCRA 216 IG.R. No. L-22456, Sept. 27, 1967] b. Right to Discipline Villar v. Inciong, 121 SCRA 444 [G.R. No. L-50283-84, April 20, 1983] c. Due Process Rule ¢ Kapisanan ng mga Manggagawa sa MRR v. Bugay, 4 SCRA 487 [G.R. No. L-13093, Feb. 28, 1962] 4. Issues on Election of Officers — Qualification, Manner of Election, Tenure and Compensation Art. [241] 250 (c), (f), (k) BVRXIIS1-5 a. Voter's List Tancinco v. Calleja, 157 SCRA 203 [G.R. No. L-781313, Jan. 20, 1988] b. Disqualification of Candidate Manalad v. Trajano, 174 SCRA [G.R. Nos. 72772-73, June 28, 1989] c. Expulsion Remed) © Kapisanan ng Manggagawang Pinagyakap (KMP) v. Trajano, 134 SCRA 236 [G.R. No. L-62306, Jan. 21, 1985]d. Invalid Election e Rodriguez v. Dir., BLR, 165 SCRA 239 [G.R. Nos. 76579-82, Aug. 31, 1985] 5. Major Policy Matters Art. [241] 250 (c) a. Legal Counsel © Halili v. CIR, 136 SCRA 112 [G.R. No. L-24864, April 30,1985] b. Union Funds Art. [241] 250 (b), (g), (h), (), @), (D), (m), (n), (0) Art. [274] 289 c. Source of Payment of Attorney's Fees Art. [241] 250 (0), (n) Art. [222] 228 (b) Pacific Banking Corp. v. Clave, 128 SCRA 112 [G.R. No. L-56965, March 7, 1984] d. Examination of Books Art. [241] 250 (g), (h), (n), (0) ‘e Duyag v. Inciong, 98 SCRA 522 [G.R. No. L-47775, July 5, 1980] e. Deposit Funds BVRXI BVRXII © Consolidated Workers Union v. CIR, 27 SCRA 438 [G.R. No. L-25333, March 28, 1969] {. Union Dues BVRXII ‘© Rodriguez v. Dir., BLR, 165 SCRA 239 IG.R. Nos. L-76579-82, Aug. 31, 1988] g. Source of Payment of Special Assessments ‘Gabriel v. Sec. of Labor, 328 SCRA 247 [G.R. No. 115949, Mar. 16, 2000]h. Mandatory Activity Art. [241]250(0) e Vengco v. Trajano, 173 SCRA 155 [G.R. No. 74453, May 5, 1989] i. CBA Negotiation e Galvadores v. Trajano, 144 SCRA 138 [G.R. No. L-70067, Sept. 15, 1986] j. Union Information Art. [241] 250 (p) k. Union Officer - Obligation Continental Cement Corp. Labor Union v. Continental Cement Corp., 189 SCRA 134 IG.R. No. 51544, Aug. 30, 1998] 6. Employee Individual Rights Aldovino v. NLRC, 298 SCRA 526 [G. R. 121189, Nov. 16, 1998] a. Enforcement and Remedies - Procedures and Sanctions Art. [241] 250 Last Par. BVRXI BVRIV b. Test for Existence of Rights e Villar v. Inciong, 121 SCRA 444 [G.R. Nos. L-50283-84, April 20, 1983] c, Jurisdiction - Exhaustion of Internal Remedies ¢ Villar v. Inciong, 121 SCRA 444 [G.R. Nos. L-50283-84, April 20, 1983] d. Remedies Kapisanan ng Manggagawang Pinagyakap (KMP) v. Trajano, 134 SCRA 236 [G.R. No. L-62306 Jan. 21, 1985]e. Invalidity e Rodriguez v. Dir., BLR, 165 SCRA 239 [G.R. Nos. L-76579-82, Aug. 31, 1988] G. UNION AFFILIATION: LOCAL AND PARENT RELATIONS BVRIIIS7 4. Affiliation: Purpose of; Nature of Relations Nature of Relationship Sugbuanon Rural Bank v. Laguesma, 324 SCRA 425 IG.R. No. 116194, Feb. 2, 2000] Effect on Legal Personality © St. Luke's Medical Center Inc. v. Torres, 223 SCRA 779 [G.R. No. 99395, June 29, 1993] Pambansang Kapatiran, et. al. v. Sec. of Labor, 253 SCRA 96 [G.R. No. 111836, Feb. 1, 1996] Malayang Samahan v. Ramos, 326 SCRA 428 [G.R. No. 113907, Feb. 28, 2000] 2. Supervisor - Rank and File Union Affiliation a) Rule on Affiliation ® Atlas Lithographic Services, Inc., v. Laguesma, 205 SCRA 12 [G.R. No. 96566, Jan. 6, 1992] © Adamson v. CIR, 127 SCRA 268 [G.R. No. L-35120, Jan. 31, 1984] b) Local Union Disaffiliation Nature of Right of Disaffiliation © Volkschel Labor Union v. BLR, 137 SCRA 42 [G.R. No. L-45824, June 19, 1985] ¢) Rules on Legality of Act of Disaffiliation © Alex Ferrer v. NLRC, 224 SCRA 410 [G.R. No. 100898, July 5, 1993] Villar v. Inciong, 121 SCRA 444 IG.R. Nos. L-50283-84, April 20, 1983]Liberty Cotton Mills Workers Union v. Liberty Cotton Mills, 66 SCRA 512 [G.R. L-33987, Sept. 4, 1975] © Philippine Skylanders Inc. v. NLRC, 375 SCRA 369 [G.R. No. 127374, Jan. 31, 2002] d) Minority Disaffiliation @ Phil. Labor Alliance Council v. BLR, 75 SCRA 162 [G.R. No. 41288, Jan. 31, 1977] e) Period ¢ Alliance of Nationalist Union v. SAMANA BAY, et al., 258 SCRA 371 IG.R. No. 118562, July 5, 1996] PART FOUR - THE APPROPRIATE BARGAINING UNIT A. LAW AND DEFINITION Art. [255] 267 Exclusive Bargaining Representation & Workers Participation in Policy and Decision-Making BVRIS1(d) * Belyca Corp. v. Calleja, 168 SCRA 184 [G.R. No. L-77395, Nov. 29, 1988] e International School Alliance of Educators v. Quisumbing 333 SCRA 13 [G.R. No. 128845, June 1, 2000] e Sta. Lucia East Commercial Corp. v. Sec. of Labor, 596 SCRA 92 [G.R. No. 162355, Aug. 14, 2009] B. DETERMINATION OF APPROPRIATE BARGAINING UNIT DETERMINATION OF APPROPRIATE BARGAINING UNIT 4. Factors - Unit Determination a) In General © UP vy. Ferrer-Calleja, 211 SCRA 451 [G.R. No. 96189, July 14, 1992] b) History San Miguel Corp. v. Laguesma, 236 SCRA 595 [G.R. No. 100485, Sept. 21, 1994]