TITLE VI
To take part in its formation
UNFAIR LABOR PRACTICES
CHAPTER 1
Art. 258
Article 247. Concept of unfair labor practice and procedure
for prosecution thereof. Unfair labor practices violate the
constitutional right of workers and employees to self-
organization, are inimical to the legitimate interests of both
labor and management, including their right to bargain
collectively and otherwise deal with each other in an
atmosphere of freedom and mutual respect, disrupt
industrial peace and hinder the promotion of healthy and
stable labor-management relations.
Consequently, unfair labor practices are not only violations
of the civil rights of both labor and management but are
also criminal offenses against the State which shall be
subject to prosecution and punishment as herein provided.
Subject to the exercise by the President or by the Secretary
of Labor and Employment of the powers vested in them by
Articles 263 and 264 of this Code, the civil aspects of all
cases involving unfair labor practices, which may include
claims for actual, moral, exemplary and other forms of
damages, attorney’s fees and other affirmative relief, shall
be under the jurisdiction of the Labor Arbiters. The Labor
Arbiters shall give utmost priority to the hearing and
resolution of all cases involving unfair labor practices. They
shall resolve such cases within thirty (30) calendar days
from the time they are submitted for decision.
Recovery of civil liability in the administrative proceedings
shall bar recovery under the Civil Code.
No criminal prosecution under this Title may be instituted
without a final judgment finding that an unfair labor
practice was committed, having been first obtained in the
preceding paragraph. During the pendency of such
administrative proceeding, the running of the period of
prescription of the criminal offense herein penalized shall
be considered interrupted: Provided, however, that the
final judgment in the administrative proceedings shall not
be binding in the criminal case nor be considered as
evidence of guilt but merely as proof of compliance of the
requirements therein set forth.
1. Concept of an unfair labor practice
Is an act of an employer or union or their agents, which
violates the violates the right of workers to self-
organization, which includes the right:
a. To form a union
b.
c. To join or assist a union of their own choosing for
purposes of;
d. Collective bargaining and negotiations
e. To engage in concerted activities for mutual help
and protection
With enactment of B.P. 386 on 1 May 1989, unfair labor
practices are deemed criminal offenses.
2 Kinds of labor practice:
a. Employer unfair labor practice
b. Union unfair labor practice
2. Civil aspects of ULP; jurisdiction
Jurisdiction: Labor Arbiters
Resolution: they shall resolve such cases within 30 calendar
days from the time they are submitted for decision.
Note: recovery of civil liability in the administrative
proceedings shall bar recovery under the Civil Code.
3. Criminal aspects of ULP
No criminal prosecution for ULP may be instituted without
a final judgment finding that ULP was committed, having
been first obtained in the administrative proceedings
before the Labor Arbiters.
The running of the period of prescription of the criminal
offense, i.e., w/in 1 year from accrual of such ULP shall be
considered interrupted.
The final judgment in the admin proceedings shall not be
binding in the criminal case nor be considered as evidence
of guilt but merely as a proof of compliance of the
requirements therein set forth.
4. Scope of ULP; burden of proof in ULP
General Rule: unfair labor practice can be committed only if
there exists employer-employee relationship.
Exception: yellow-dog contract
An unfair labor practice act cannot be committed by or
against managerial employees unless they are acting as
agents of the employer in the commission of an ULP.
An unfair labor practice can be committed only against an
employee who exercises or has exercised his right to self-
organization.
It is the union who has the burden of proof to present
substantial evidence to support its allegations of an unfair
labor practices committed by the employer.
 5. Penalties for unfair labor practices
A fine not less than 1,000 nor more than 10,000 or
more imprisonment of not less than 3 months nor
more than 3 years or both such fine and imprisonment
at the discretion of the court.
Any provision of law to the contrary notwithstanding,
any criminal offense punished in ULP shall be under the
concurrent jurisdiction of the regular courts.
6. Criminal liability of officers
- They can be held criminally liable.
7. Substantial evidence required to prove ULP
Quantum or measure of evidence required in proceeding in
cases of unfair labor practices:
It requires only substantial evidence with respect to findings
of facts; such relevant evidence as a reasonable mind might
accept as adequate to support a conclusion.
In prosecution of the criminal aspects of ULP, the same
should be equated with offenses punishable under RPC
where proof beyond reasonable doubt is a requirement.
8. Prescriptive period for ULP
An action for unfair labor practice should be filed within 1
year from accrual of such unfair labor practice, otherwise, it
shall be forever barred.
CHAPTER II
UNFAIR LABOR PRACTICE
Article 248. Unfair labor practices of employers. It shall be
unlawful for an employer to commit any of the following
unfair labor practice:
To interfere with, restrain or coerce employees in the
exercise of their right to self-organization;
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 belongs;
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;
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;
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. Nothing in this Code or in any other law shall
stop the parties from requiring membership in a
recognized collective bargaining agent as a condition for
employment, except those employees who are already
members of another union at the time of the signing of the
collective bargaining agreement. Employees of an
appropriate bargaining unit who are not members of the
recognized collective bargaining agent may be assessed a
reasonable fee equivalent to the dues and other fees paid
by members of the recognized collective bargaining agent,
if such non-union members accept the benefits under the
collective bargaining agreement: Provided, that the
individual authorization required under Article 242,
paragraph (o) of this Code shall not apply to the non-
members of the recognized collective bargaining agent;
To dismiss, discharge or otherwise prejudice or
discriminate against an employee for having given or being
about to give testimony under this Code;
To violate the duty to bargain collectively as prescribed by
this Code;
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
To violate a collective bargaining agreement.
The provisions of the preceding paragraph
notwithstanding, only the officers and agents of
corporations, associations or partnerships who have
actually participated in, authorized or ratified unfair labor
practices shall be held criminally liable.
1. Employer’s interference
Interference – used to embrace both restraint and coercion.
Direct – as when an employer requires an employee to sign
a contract not to join a union (yellow-dog contract).
Managerial employees are representatives of management,
thus, an employer is liable for the conduct and statements
of managerial or supervisory employees which might
constitute interference.
2. Totality of conduct test
The test of whether or not an employer has interfered with
and coerced employees within the meaning of Art. 258 (a)
of the Labor Code is whether the employer has engaged in
conduct that would reasonably tend to interfere with the
free exercise of the employee’s right to self-organization.
Many little acts when totalized or put together will place the
conduct in an unfair labor practice category.
The right to self-organization necessarily includes the right
to collective bargaining.
3. Restraint and coercion
a. Economic coercion – exerted through wage
increase, particularly prior election; granting of
bonuses to strikers who return to work while
withholding it from those continuing to strike;
promising permanent employment rather than
lay-offs, promotions and vacations with pay;
evictions from company houses.
b. Physical
c. Psychological
4. Prohibition against yellow-dog contract
One of the ULP committed by an employer against an
application to the job is to require a condition of
employment that:
a. He is not a member of a union;
b. If a member, he will resign
c. He agrees, as a condition of employment, not to
join a union during the course of his employment.
Yellow-dog contract implies that any person who signed
such contract was a cowardly dog because he had
abandoned his guaranteed rights to self-organization under
the Constitution. He becomes subservient like a dog.
This is a case of ULP that may be committed in the absence
of employer-employee relationship.
5. Company or captive unionism
Forms of company domination:
a. Initiation of the company unions ideas.
1. Outright formation by the employers or his
representatives;
2. Employee formation on outright demand or
influence by employer;
3. Managerially motivated formation by
employees.
b. Financial support to the union
c. Employer encouragement and assistance
d. Supervisory assistance
e. Passivity of union
Captive unionism – employer captures the union in a more
subtle and sophisticated way than by controlling the union
mechanism. He captures the union by kindness, by
maintaining a close personal relationship with union
officers, by dampening its militancy through concessions.
6. Contracting out of services being performed by
union members
Contracting out of service is not per se illegal unless it is
designed to frustrate the right of workers to self-
organization.
7. Acts of discrimination
a. Dismissal or lay-off – not per se an ULP unless it is
committed because of union activities.
b. Closure or shutdown
c. Rehiring – delayed reinstatement is a form of
discrimination in rehiring/ conditional
reinstatement
d. Transfer – if the new job is considered less
desirable and the purpose is discouragement of
union activity is held to be discriminatory. The
employee can quit his job and file a case of
constructive dismissal.
e. Retrenchment
Other instances that constitute discrimination p. 223
8. Refusal to Bargain
It is unfair labor practice for an employer to violate the duty
to bargain collectively.
Duty to bargain collectively – the performance of a mutual
obligation to meet and convene promptly and expeditiously
in good faith for the purpose of negotiating an agreement
with respect to wages, hours of work and all other terms
and conditions of employment including proposals for
adjusting any grievances or questions arising under such
agreement and executing a contract incorporating such
agreements if requested by either party but such duty does
not compel any party to agree to a proposal or to make any
concession.
Following acts are held to constitute refusal to bargain:
a. Alleging that the union is irresponsible.
b. Transferring operation to elude the union.
Run-away shop – ULP which usually takes place by effecting
the transfer of ownership, the plant itself, or its equipment
and machines or by temporarily closing its business
purposely to bust the union or to evade payment of its
legitimate obligations.
- Relocation motivated by anti-union animus rather
than for business reasons.
The strikers could validly stage a strike in the new location
for the law provides that strike are includes run-away shop.
 c. Declining to deal with a certified bargaining union
on the ground that the unit was not appropriate.
d. Delaying bargaining negotiations by discussion of
unrelated (off-tangent) matters;
e. Questioning a union’s majority status after having
conceded that the union represented a majority
of employees in a unit demonstrating
unwillingness to bargain in good faith;
f. Refusal to accept requests to bargain.
In cases like refusal to bargain, the union’s draft CBA
proposal can be unilaterally imposed upon the employer to
govern their relationship.
Moreover, SOLE may, in the exercise of his powers under Art.
278 (i) of the Labor Code to decide and resolve labor
disputes, properly grant wage increases.
g. Rejecting a union’s claim to prove its majority
status
h. Closure of business or shutdown to avoid
bargaining
i. Sending bargaining representatives who are not
authorized to make any kind of agreement.
j. Payment of 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. (Sweetheart contract)
k. Engaging in surface bargaining
Surface bargaining – going through the motions of
negotiating without any legal intent to reach an agreement.
- The employer appears to negotiate but avoids to
reach an agreement.
9. Gross violations of CBA
Violations of a collective bargaining agreement, except
those which are gross in character, shall no longer be
treated as unfair labor practice and shall be resolved as
grievances under the CBA.
Gross violations of a collective bargaining agreement –
flagrant and/or malicious refusal to comply with the
economic provisions of such agreement.
CBAs are not merely contractual but are impressed with
public interest and the failure to comply in good faith to the
economic terms of CBA constitutes unfair labor practice.
10. Dismissal for giving testimony; an ULP
11. Union security clause in the CBA
Art. 259 provides that “Nothing in this Code or in any
other law shall prevent the parties from requiring
membership in a recognized CB agent as a condition
for employment.
EXPN:
Those employees who are already members of
another union at the time of the signing of the CBA.
Forms of union security are;
a. Closed shop agreement – only union members
can be hired and workers must remain union
members as a condition of continued
employment.
b. Union shop – workers are not required to be
union members when hired; but to maintain
continued employment, they must continue to
pay union dues and must join the CB agent in the
bargaining unit.
c. Maintenance of membership – employees who
are union members/became union members
must maintain union membership as a condition
for continued employment until they are
promoted or transferred out of the bargaining
unit or the agreement is terminated.
d. Agency shop – employees who do not join the
union must pay agency fees as a condition of
employment to help defray the union expenses as
a bargaining agent for the group or all employees.
Anti-free rider or anti-hitchhiker
e. Preferential hiring agreement – an agreement
between the employer and the union whereby
the former is obliged to give preference to the
members of the latter who are qualified.
f. Hiring agreement – the employer is obliged to
hire only those union members without further
agreement of requiring union members to
maintain their membership as a condition sine
qua non for employment.
g. Modified union shop – contract which requires all
new employees to become union members for
sometime after the employment but does not
require present employees to join the union.
Those who have become union members shall
maintain their membership as a condition of
continuous employment. Modified union shop
cannot bind the minority union and the so-called
‘conscientious objectors”.
 h. Closed-shop with a closed union – union
membership is limited and entry of new members
is restricted.
i. Closed shop with an open union – union
membership is limited and entry of new members
is unlimited.
j. Percentage union shop – the employer agrees
that a certain percentage of his employees shall
become union members in good standing.
k. Union recognition clause or exclusive bargaining
rights – employer recognized the majority union
as the exclusive bargaining agent in the premises
for all employees – members and non-union
members in the appropriate bargaining unit.
Exclusive rights rule or doctrine of union
monopoly.
l. Check-off agreement – it allows the employer to
withhold/deduct union dues from a member’s
pay and transmit the money directly to the union
for its continuous existence.
12. Principle of union security clause
a. Protection
b. Benefits
c. Self-preservation
13. Closed-shop clause applies to future employees,
non-union members
If an employee or laborer is already a member of a labor
union different from the union that entered into a CBA with
the employer providing for a closed shop, said employee or
worker cannot be obliged to become a member of that
union which had entered into a CBA with employer as a
condition for his continued employment.
14. Closed-shop requires members of the
contracting union “must continue to remain as
union members in good standing to keep their
jobs”
Closed shop – an arrangement between an employer
and a contracting union whereby the employer binds
himself to hire only members of the contracting union
who must continue to remain members in good
standing to keep their jobs.
15. Non-union member compelled to join the
contracting union (bargaining agent)
If said employee or worker is a non-member of any labor
union, he can be compelled to join the contracting labor
union, and said refusal to do so would constitute a
justifiable basis for his dismissal.
16. Doubts resolved against the existence of a
closed-shop; its legal effect – hiring agreement
The CBA does not establish a closed-shop if there is nothing
in the agreement that requires employees “must continue
to remain as union members in good standing to keep their
employment.”
17. Followers of Iglesia ni Kristo cannot be
compelled to join a union under a closed-shop
agreement.
R.A. 3350 excludes ipso jure from the application and
coverage of the closed-shop agreement the employees
belonging to any religious sect which prohibits affiliation of
their members with any labor organization.
In spite of any closed-shop agreement, members of said
religious sects cannot be refused employment or dismissed
from their jobs on the sole ground that they are not
members of the CB union.
Religious or conscientious objectors cannot be compelled to
join a union.
The free exercise of religious profession or belief is superior
to contract rights.
18. Expelled union member dismissed pursuant to
union security clause
The CBA imposes dismissal only in case an employee is
expelled from the union for joining another federation or
forming another union or who fails or refuses to maintain
membership.
19. Due process to expelled union member prior
dismissal; requisites for valid dismissal pursuant
to union security clause.
if the employer acts with undue haste in dismissing the
employee pursuant to a union security agreement, he may
be held liable for backwages.
Defense: good faith (belief in good faith that such dismissal
was required by the closed-shop provisions in the CBA with
the union)
In terminating the employment of an employee by pursuant
to the union security clause, the employer should prove the
ff:
a. The union security clause is applicable;
b. The union demands for the enforcement of the
union security clause in the CBA;
c. There is sufficient evidence to support the union’s
decision to expel the union member.
 20. Agency shop agreement (Anti-hitchhiker or free-
rider clause); maintenance of treasury shop,
already provided under the law.
Under Art. 259 of LC, an agency fee may be collected from
employees who are non-union members; provided:
a. The agency fee is a reasonable fee equivalent to
the dues and other fees paid by members of the
recognized bargaining agent;
b. Such non-union members accept the benefits
under the CBA;
c. The individual authorization required under Art.
250 shall not apply to such non-union members.
Maintenance of Treasury Shop
-applies to non-union members, who during the existence
of the CBA, may be required to pay the union treasury, a
sum equivalent of the dues and other fees paid by members
of the recognized bargaining agent.
- anchored on the ground that no one should be able to
obtain benefits of collective bargaining without supporting
the union that makes the benefits possible.
21. Agency-fee (fair share) provision not mandatory
Art. 259 provides that “employees of an appropriate
collective bargaining unit who are not members of the
recognized CBA may be assessed a reasonable fee
equivalent to the dues paid by members of the recognized
CB agent, if such non-union members accept the benefits
under the CBA
22. Agency-fee (fair share) clause; its moral and legal
anchor
All non-union employees must pay a fair share fee to the
union that made the collective bargaining benefits possible.
23. Principle of agency not the basis of collection of
agency fees
The union acts as the bargaining agent, it assumes the
responsibility imposed upon it by law to represent not only
its members but all employees in the appropriate
bargaining unit of which it is the agent.
24. Holy Cross ruling
Under this rule, the legal basis of the union’s right to agency
fees is quasi-contractual, deriving from the established
principle that non-union employees may not unjustly enrich
themselves by benefiting from employment conditions
negotiated by the bargaining union.
CHAPTER III
UNFAIR LABOR PRACTICES OF LABOR ORGANIZATIONS
Article 249. Unfair labor practices of labor organizations. It
shall be unfair labor practice for a labor organization, its
officers, agents or representatives:
a. To restrain or coerce employees in the exercise of
their right to self-organization. However, a labor
organization shall have the right to prescribe its
own rules with respect to the acquisition or
retention of membership;
b. To cause or attempt to cause an employer to
discriminate against an employee, including
discrimination against an employee with respect
to whom membership in such organization has
been denied or to terminate an employee on any
ground other than the usual terms and conditions
under which membership or continuation of
membership is made available to other members;
c. To violate the duty, or refuse to bargain
collectively with the employer, provided it is the
representative of the employees;
d. To cause or attempt to cause an employer to pay
or deliver or agree to pay or deliver any money or
other things of value, in the nature of an exaction,
for services which are not performed or not to be
performed, including the demand for fee for
union negotiations;
e. To ask for or accept negotiation or attorney’s fees
from employers as part of the settlement of any
issue in collective bargaining or any other dispute;
or
f. To violate a collective bargaining agreement.
g. The provisions of the preceding paragraph
notwithstanding, only the officers, members of
governing boards, representatives or agents or
members of labor associations or organizations
who have actually participated in, authorized or
ratified unfair labor practices shall be held
criminally liable.
1. Restraint or coercion
It is ULP for a union to restrain or coerce employees in the
exercise of their right to self-organization.
2. Featherbedding activities (make-work activities)
It is a ULP of a union through coercive practices such as
strikes or boycotts, or extortion for exacting or attempting
to exact from an employer, compensation for service not
rendered or not intended to be rendered.
3. Discrimination against employees
It is a ULP for a labor org to cause or attempt to cause an
employer to discriminate against an employee, including
discrimination against an employee with respect to whom
membership in such organization has been denied or to
terminate an employee on any ground other than the usual
terms and conditions under which the membership or
continuation of membership is made available to other
members.
A union is guilty of an ULP for expelling a member who filed
charges against the union officers. The employer is equally
liable with the contracting union if the former acceded to
the request of the latter for the dismissal of some
employees of a competing union.
4. Violation of duty to bargain collectively
It is an ULP for a labor org to violate the duty, or refuse to
bargain collectively with the employer, provided it is the
representative of the employees.
i.e., labor org declares a strike to compel an employer to
negotiate a CBA during the pendency of a petition for cert.
elec.
5. Payment of negotiation or attorney’s fees
It is a ULP for an employer to pay negotiation fees
for a labor org to ask for or accept negotiation or
attorney’s fees from employers as part of the
settlement of any issue in collective bargaining or
any other dispute.
Sweetheart contract – an agreement negotiated between
the employer and the union granting concession to the
management or the union, whose purpose is to promote
the welfare of union officers and not the rank-and-file
employees represented by them. The union leaders settle
for less, receiving a kickback in return from the employer.
Top-down contract – an agreement concluded between the
management and the union officers without regard to the
welfare of the employees they represent.
For this, the notorious and unscrupulous union officers may
be expelled.
6. Violation of CBA
The CBA is not a mere contract but the law between the
parties which must be complied with in good faith.
Thus, there is ULP in:
- A strike in violation of “No strike, no lockout
clause in the CBA”
- A strike staged in violation of the CBA providing
for conclusive arbitration clause also constitutes
an unfair labor practice.
- Disregard of grievance and voluntary procedures
in the CBA.
7. Engaging in blue-sky bargaining, ULP
Blue-sky bargaining – making exaggerated or unreasonable
proposals.
In order to be considered as ULP, there must be proof that
the demands made by the union were exaggerated or
unreasonable.
TITLE VII
COLLECTION BARGAINING AND ADMINISTRATION OF
AGREEMENTS
Article 250. Procedure in collective bargaining. The
following procedures shall be observed in collective
bargaining:
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 shall make a
reply thereto not later than ten (10) calendar days from
receipt of such notice;
Should differences arise on the basis of such notice and
reply, either party may request for a conference which shall
begin not later than ten (10) calendar days from the date of
request.
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 such meetings. It shall be
the duty of the parties to participate fully and promptly in
the conciliation meetings the Board may call;
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
The Board shall exert all efforts to settle disputes amicably
and encourage the parties to submit their case to a
voluntary arbitrator.
1. CBA
“to bargain collectively” – performance of mutual
obligation to meet and confer promptly and expeditiously
and in good faith for the purpose of negotiating an
agreement with respect to wages, hours of work and all
other terms and conditions of employment including
proposals for adjusting any grievances or questions arising
under such agreement and executing a contract
incorporating such agreement if requested by either party
but such duty does not compel any party to agree to a
proposal or to make any concession.
e. They must execute a contract incorporating the
agreement reached by the parties.
f. The duty to bargain does not compel any party to
agree to a proposal or to make any concession.

CBA – refers to a contract executed upon request of either
the employer or the exclusive bargaining representative
incorporating the agreement reached after negotiations
with respect to wages, hours of work, and all other terms
and conditions of employment, including mandatory
provisions for grievance and arbitration machineries.
2. Nature of collective bargaining
Collective bargaining denotes negotiations looking forward
to a collective agreement. However, it does not end with the
execution of an agreement. It is a continuous process.
3. Philosophy behind collective bargaining; labor is
perishable, a day’s labor lost is not regainable
6. Usual contents of CBA p. 243-246
No strike, no lockout clause – an agreement that the union
shall not stage a strike and the employer shall not declare a
lockout on the ground of bargaining deadlock during the
lifetime of the CBA. It does not apply to an unfair labor
practice strike.
Escalator clause – an agreement which provides that wages
shall gradually increase in the event of sudden increase of
consumer price or cost-of-living index.
Effectivity clause:
representation aspect – five (5) years
renegotiation aspect – three (3) years

7. Posting of the CBA; posting, mandatory

4. Characteristics of collective bargaining
Single-enterprise Multi-employer
a. Continuing legal relationship Required to be posted in Two (2) signed copies of
b. Process of adjustment two (2) conspicuous places the CBA should be posted
c. Contract of reasonable benefits in the work premises for a for at least five (5) days in
d. Contract of relative equality period of at least five (5) two (2) conspicuous in
e. Agency of participatory democracy days prior to its ratification each workplace of the
by the majority of the employer units concerned.
members of the
bargaining unit.
5. Standards followed in collective bargaining
a. The obligation to bargain collectively is mutual,
that is, the union and the employer are required CBA should only affect only those employees in the
to bargain without any intent of deception. bargaining units who have ratified it.
b. The parties are required to meet and confer
8. Ratification by the majority of the members of
promptly and expeditiously and in good faith.
the bargaining unit (required)
Surface bargaining – a form of ULP; delaying tactics to 9. Registration of the CBA
frustrate CB, indicate that employer appears to
The CBA is required to be registered with the Bureau of
negotiate but without any intention to reach an
Labor Relations of DOLE and non-compliance will not bar
agreement.
certification election.
c. The parties are required to bargain on reasonable
10. Procedures in CB
terms and conditions of employment.
a. Preliminary process
Blue sky bargaining – ULP; where union submits proposal - Serving a written notice to the other party of its
containing economic demands that are exaggerated, bargaining proposals. The other party (counter-
unreasonable or “sky high” which is beyond the capacity to bargaining proposals) not later than ten (10) days
give by the employer. upon receipt of such notice.
b. Negotiation
d. They are required in good faith to negotiate an - Conducted not later than ten (10) calendar days
agreement. from the date of request for conference.
c. Execution
 d. Publication
e. Ratification
f. Registration
g. Administration
h. Interpretation and enforcement
11. Written notice required in demand to bargain
A demand to bargain should be in writing. When a
party desires to negotiate an agreement, it should be
expressed through a written notice upon the other
party with a statement of its proposals.
12. Failure to submit reply within ten (10) calendar
days a ULP
13. Penalty imposed upon an employer delaying the
bargaining process
General rule:
When a CBA already exists, its provisions shall continue
to govern the relationship between the parties until a
new one is agreed upon.
When one of the parties abuses this grace period by
purposely delaying the bargaining process, a departure
from the general rule is warranted.
Article 251. Duty to bargain collectively in the absence
of collective bargaining agreements. In the absence of
an agreement or other voluntary arrangement
providing for a more expeditious manner of collective
bargaining, it shall be the duty of employer and the
representatives of the employees to bargain
collectively in accordance with the provisions of this
Code.
Article 252. Meaning of duty to bargain collectively.
The duty to bargain collectively means the
performance of a mutual obligation to meet and
convene promptly and expeditiously in good faith for
the purpose of negotiating an agreement with respect
to wages, hours of work and all other terms and
conditions of employment including proposals for
adjusting any grievances or questions arising under
such agreement and executing a contract
incorporating such agreements if requested by either
party but such duty does not compel any party to agree
to a proposal or to make any concession.
1. Employer-employee relationship, a must duty to
bargain
There must be an employer-employee relationship for the
duty to bargain collectively to arise. Where nether party is
an “employer” nor an “employee” of the other, no such
duty exists.
2. Jurisdictional pre-conditions for CB
The mechanics of collective bargaining is set in motion only
when the following jurisdictional preconditions are present,
namely:
a. Possession of the status of majority
representation of the employee’s representative
in accordance with any of the means of selection
or designation provided for by the Labor Code.
b. Proof of majority representation
c. Demand to bargain under Art. 281 par. (a) of the
New Labor Code.
The pre-conditions require that the legitimate labor
organization is the certified bargaining agent in the
bargaining unit.
3. Pendency of cancellation proceeding, not a bar
to set in motion the mechanics of CB
- A pending cancellation proceeding against the
respondent union is not a bar to set in motion the
mechanics of CB.
- If a certification election may still be ordered
despite the pendency of a petition to cancel the
unions registration certificate, more so the
collective bargaining process should continue
despite its pendency.
- The majority status of the union is not affected by
the pendency of the Petition for Cancellation
pending certified bargaining agent are revoked,
the employer is, by express provision of the law,
duty bound to collectively bargain with the Union.
4. Scope of collective bargaining
Matters that are subject of collective bargaining:
a. Wages
b. Hours of work
c. Other terms and conditions of employment
including proposals for adjusting any grievances
or questions arising under such agreement and
executing a contract incorporating such
agreements.
Minimum wages are compulsory in nature. Thus, non-
negotiable.
5. Wholesome working conditions bargainable
6. Retirement plan a bargaining issue
 7. Good faith or bad faith bargaining; no per se test,
a question of fact

The employer had a duty to negotiate in good faith with his

employees’ representatives, to match their proposals if
unacceptable, with counter-proposals; and to make every
reasonable effort to reach an agreement.

There is no per se test of good faith in bargaining. Good faith

or bad faith is an inference to be drawn from the facts of
the individual case. The effect of an employer’s or Union’s
actions individually is not the test of good faith bargaining,
but the impact of all such occasions or actions considered
as a whole.