TITLE VI The Collective Bargaining Process

COLLECTIVE BARGAINING
AND ADMINISTRATION OF AGREEMENTS 1. Organizing Union —
 The collective bargaining process technically starts when the
ART. 261. Procedure in Collective Bargaining. – The following employees organize themselves as a labor union or labor
procedures shall be observed in collective bargaining: organization.
(a) When a party desires to negotiate an agreement, it shall  Recall that a labor organization is intended for collective bargaining.
serve a written notice upon the other party with a statement Organizing a union entails organizational meetings, election of union
of its proposals. The other party shall make a reply thereto officers and adoption of constitution and by-laws.
not later than ten (10) calendar days from receipt of such
notice. 2. Registration of the Union —
(b) Should differences arise on the basis of such notice and Having been organized, the union should be registered with the DOLE
reply, either party may request for a conference which shall Regional Office (where it principally operates) by filing an application
begin not later than ten (10) calendar days from the date of for registration supported by the:
request.  minutes of the organizational meeting,
(c) If the dispute is not settled, the Board shall intervene upon  names and addresses of the union officers,
request of either or both parties or at its own initiative and  address of the union,
immediately call the parties to conciliation meetings. The  list of workers who participated in the meeting,
Board shall have the power to issue subpoenas requiring  list of members comprising at least 20% of the employees covered by
the attendance of the parties to such meetings. It shall be the bargaining unit,
the duty of the parties to participate fully and promptly in  constitution and by-laws
the conciliation meetings the Board may call.  together with the minutes of its adoption and ratification and
(d) During the conciliation proceedings in the Board, the  the list of members who Participated in it.
parties are prohibited from doing any act which may disrupt
or impede the early settlement of the disputes; and  If the union does not want to undergo the normal registration process,
(e) The Board shall exert all efforts to settle disputes amicably it can affiliate with a duly registered federation or national union
and encourage the parties to submit their case to a and it will become a legitimate labor organization upon submission to
voluntary arbitrator. the DOLE of its Charter Certificate, names and addresses of its
officers, principal office, and its constitution and by. laws.
Collective Bargaining
 The term collective bargaining denotes in common usage as well as in 3. Certification as Collective Bargaining Agent —
legal terminology, negotiations toward a collective bargaining  If there is no other union within the bargaining unit in the
agreement. establishment, the union should request the DOLE for SEBA5
 Collective bargaining is not equivalent to an adversarial litigation certification or it can file a petition for certification election. If the union
where rights and obligations are delineated, and remedies applied. is certified as the collective bargaining agent, the union can already
 It is simply a process of finding a reasonable solution to a negotiate a collective bargaining agreement with the employer.
conflict and harmonizing opposite positions into a fair and
reasonable compromise. 4. Submission of Proposals and Counterproposals —
 It is one of the democratic frameworks under the Labor Code  Having been certified as the collective bargaining agent, the union
designed to stabilize the relation between labor and management and serves its written proposals to the employer, after which the
create a sound and stable industrial peace. employer submits its written counterproposals. Article 261(a) of
the Labor Code provides that:
 ART. 261. Procedure in Collective Bargaining — xxx (a)
When a party desires to negotiate an agreement, it shall serve a 8. Ratification of Collective Bargaining Agreement —
written notice upon the other party with a statement of its proposals.  After the five-day posting period, the collective bargaining
The other party shall make a reply thereto not later than ten (10) agreement should be submitted to the employees covered by the
calendar days from receipt of such notice collective bargaining unit for ratification.
 This is mandatory and necessary because the agreement was entered
5. Collective Bargaining Negotiations — into by the union as the agent of the employees. The collective
After the exchange of proposals and counterproposals, collective bargaining agreement will be deemed ratified if majority of the
bargaining negotiations follow. As provided for in Article 261(b) of the employees covered by the bargaining unit approve it.
Labor Code:
9. Registration of Collective Bargaining Agreement —
ART. 261. Procedure in Collective Bargaining — xxx (b)  After ratification, the CBA should be submitted to the DOLE for
Should differences arise on the basis of such notice and reply, registration the Labor Code which provides that:
either party may request for a conference which shall begin not later
than ten (10) calendar days from the date of request." ART. 237. Registry of Unions and File of Collective Bargaining
Agreements — xxx Within thirty (30) days from the execution of a
Only matters which are not contrary to law, public order, public policy, Collective Bargaining Agreement, the parties shall submit copies of the
morals or good customs can be discussed during the negotiations. same directly to the Bureau or the Regional Offices of the Department of
 For instance, the statutory minimum wage cannot be the subject of Labor and Employment for registration accompanied with verified proofs
bargaining between the parties because compliance with the minimum of its posting in two conspicuous places in the place of work and
wage law is compulsory. The question of minimum wage is not ratification by the majority of all the workers in the bargaining unit. xxx
negotiable. Thus, a collective bargaining agreement condoning the
implementation of a wage increase mandated by law is null and void  Registration is necessary for its stable and undisturbed
because only the Regional Tripartite Wage and productivity Board administration, because a duly registered collective bargaining
can grant exemption from the coverage of a wage order. agreement will bar any union from filing a petition for certification
election prior to the freedom period. This could be gleaned from
6. Signing of Collective Bargaining Agreement — Article 238 of the Labor Code which provides as follows:
 If the parties come to an agreement, the union officers and the
representatives of the management will sign the collective ART. 238. Prohibition on Certification Election. — The Bureau shall
bargaining agreement. not entertain any other petition for certification election or any other
action which may disturb the administration of duly registered
7. Posting of Collective Bargaining Agreement — existing collective bargaining agreements affecting the parties
 After signing, the collective bargaining agreement should be except under Articles 253 (now Article 264), 253-A (now Article 265),
posted for five (5) days in at least two (2) conspicuous places in and 256 (now Article 268) of this Code.
the establishment.
 This is a mandatory requirement. An unregistered collective bargaining agreement is still valid and
 The purpose of this is to enable the employees to decide on whether binding between the parties.
to accept or reject the agreement.  The only effect is that an unregistered collective bargaining agreement
 Failure to post the collective bargaining agreement prior to its will not bar the filing of a petition for certification election by
ratification cannot be excused by the fact that there was an ongoing another union.
strike in the company.  If the collective bargaining agreement was not registered, and a new
 Neither can it be excused by the fact that the contracting union has union files a petition for certification election, and the incumbent
discussed the terms of the collective bargaining agreement with its collective bargaining agent is defeated during the election, what will
members during an assembly meeting.9 happen to the unregistered collective bargaining agreement?
  Even if the union is a legitimate labor organization composed of
 The unregistered collective bargaining agreement stands. employees of the employer, the duty to bargain collectively will not
 Under the SUBSTITUTIONARY DOCTRINE, the employees cannot exist if the union is not certified as the collective bargaining agent.
revoke a validly executed collective bargaining agreement by the
simple expedient of changing their bargaining agent. ART. 263. Meaning of the Duty to Bargain Collectively.
 The new collective bargaining agent is obliged to respect the" The duty to bargain collectively means the performance of a mutual
unregistered collective bargaining agreement, especially so when the obligation to meet and convene promptly and expeditiously in good
said agreement was ratified I the covered employees. faith for the purpose of negotiating an agreement with respect to
 The employees may change their bargaining agent, but the collective wages, hours of work and all other terms and conditions of
bargaining agreement (even if not registered continues to bind them employment, including proposals for adjusting any grievances or
until a new agreement is reached). questions arising under such agreements and executing a contract
 The new collective bargaining agent, however," is not obliged to incorporating such agreements if requested by either party, but
assume personal undertaking of the former collective bargaining such duty does not compel any party to agree to a proposal or to
agent, e.g: no-strike stipulation. make any concession.

Courses of Action in Case of Deadlock in Negotiations The Duty to Bargain Collectively Is a Mutual Obligation
 The duty to bargain collectively is a mutual obligation of both employer
Collective bargaining deadlock and employees — an obligation on the part of the employees to
 is a situation where the collective bargaining negotiations result in a collectively bargain with the employer through their bargaining agent
stalemate. and a corresponding obligation on the part of the employer to engage
 If the collective bargaining negotiations resulted in a deadlock, the in negotiations for the betterment of workers.
parties can take any of the following courses of action:  It must be emphasized though that while the duty to bargain
(1) Bring the matter to the NCMB for conciliation and mediation; collectively is a mutual obligation, the employer is not under obligation
(2) Submit the matter for arbitration; or to initiate the collective bargaining negotiations
(3) Declare a strike or lookout.
The Essence of the Duty to Bargain Collectively
ART. 262. Duty to Bargain Collectively in the Absence of Collective  The essence of the duty to bargain collectively is good faith
Bargaining Agreement. — In the absence of an agreement or other  It is the statutory duty of both labor and management to conduct
voluntary arrangement providing for a more expeditious manner of collective bargaining negotiations with utmost good faith.There is no
collective bargaining, it shall be the duty of the employer and the per se test of good faith bargaining. As to whether a party has
representative of the employees to bargain collectively in complied with his duty to bargain in good faith will depend upon the
accordance with the provisions of this Code. facts of each case.
 For instance, feigning negotiations through empty gestures is not
When the Duty to Bargain Collectively Will Arise bargaining in good faith.
 The duty to bargain collectively will arise only when the union which
seeks to bargain in behalf of the employees: Article 261 (a) of the Labor Code obliges an employer to make a reply
1. is a legitimate labor organization; or counterproposal not later than 10 calendar days from receipt of the
2. composed of employees of the employer; and proposals. Thus:
3. certified by the DOLE as the collective bargaining agent of the
employees. ART. 261. Procedure in Collective Bargaining — xxx (a)
When a party desires to negotiate an agreement, it shall serve a
 If the union which seeks to bargain in behalf of the employee is not a written notice upon the other party with a statement of its proposals.
legitimate organization, duty to bargain collectively does not exist even The other party shall make a reply thereto not later than ten (10)
if it is composed of employer. calendar days from receipt of such notice."
 terms of the collective bargaining agreement, the duty to bargain still
subsists. Such duty imposes upon the parties the obligation:
 The mere failure of an employer to reply or submit a 1. to meet and confer promptly and expeditiously to adjust any
counterproposal within the 10-day period is not indicative of bad grievance or question arising under such agreement;27 and
faith. 2. to refrain from terminating or modifying the agreement during its
 However, if the employer totally disregards the proposals without lifetime.
giving the union the benefit of a reply, it may indicate bad faith.
 Such an act may be construed as refusal to collectively bargain, Article 265 of the Labor Code sets the lifetime of collective bargaining
hence, a violation of the duty to bargain collectively. agreements at five (5) years.
 While refusal to reply to the proposals of the union may indicate bad
faith, it cannot be construed as an implied acceptance of the proposal. While Article 264 of the Labor Code forbids the parties from modifying the
collective bargaining agreement during its lifetime, it does not mean that the
 Once the collective bargaining agreement has been executed, bad parties cannot modify the terms of their collective bargaining agreement
faith can no longer be imputed upon any of the parties. within the five-year period.

The Import of the Duty to Bargain Collectively Article 265 allows the renegotiation of collective bargaining agreements
 it merely obliges the employer and the union to meet and confer later than three (3) years from its execution. Thus:
promptly, expeditiously and in good faith, to discuss the terms of the
collective bargaining agreement/ ART. 265. Terms of a Collective Bargaining Agreement — xxx Any
 all that is required is for the parties to meet with an open mind and Collective Bargaining Agreement that the parties may enter into
make reasonable effort to reach an agreement shall, insofar as the representation aspect is concerned be for a
 there must be common willingness to freely and fully discuss their term of five (5) years, xxx All other provisions of the Collective
respective demands to justify them on reason when the demands are Bargaining Agreement shall be renegotiated not later than three (3)
opposed. years after its execution.
 To offer a contract on a take or leave it basis is violative of the duty to
bargain collectively.  After the three-year period, the parties can negotiate for a new
agreement only during the freedom period, i.e., within the 60-day
ART. 264. Duty to Bargain Collectively When There Exists a period prior to the expiry of the five-year term of the collective
Collective Bargaining Agreement. — bargaining agreement.
When there exists a collective bargaining agreement, the duty to  However, if a new union files a petition for certification election within
bargain collectively shall also mean that neither party shall the 60-day freedom period, the incumbent bargaining agent and the
terminate nor modify such agreement during its lifetime. However, employer must suspend their negotiations.
either party can serve a written notice to terminate or modify the
agreement at least sixty (60) days prior to its expiration date. It shall  Suppose the petition for certification election was filed on the 60th
be the duty of both parties to keep the status quo and to continue in day, but the incumbent bargaining agent and the employer have in the
full force and effect the terms and conditions of the existing meantime already agreed on the terms of the new collective
agreement during the 60-day period and/or until a new agreement is bargaining agreement, what will happen?
reached by the parties.  Considering that the petition for certification election was timely
filed, a certification election should be ordered.

Collective Bargaining — a Continuous Process  Suppose the incumbent bargaining agent lost in the certification
 Collective bargaining does not end with the execution of the collective election, what will happen to the collective bargaining agreement
bargaining agreement — it is a continuous process. Hence, that it entered into with the employer?
notwithstanding the fact that the parties have already agreed on the  It will depend upon the following circumstances:
 (1) If the new collective bargaining agreement has not yet been  Due consideration must be given to the context in which it was
ratified, the new bargaining agent may either submit the negotiated and purpose which it was intended to serve
agreement for ratification or it can disregard the agreement and  Being a contract, rules embodied in the Civil Code on interpretation
negotiate for another one. applicable.
(2) If the new collective bargaining agreement Has already been
ratified, the new bargaining agent must respect the agreement Minutes of the Negotiations Does Not Form Part of the CBA
under the substitutionary doctrine.  The Minutes merely reflects the proceedings and discussions
undertaken in the process of bargaining for worker benefits.
ART. 265. Terms of a Collective Bargaining Agreement. —  Nothing is considered final until the parties have reached an
Any Collective Bargaining Agreement that the parties may enter into agreement. T
shall, insofar as the representation aspect is concerned, be for a  a promise by the employer during the negotiations to continue with the
term of five (5) years. No petition questioning the majority status of practice of granting government-mandated wage increases is not
the incumbent bargaining agent shall be entertained and no demandable, unless incorporated in the collective bargaining
certification election shall be conducted by the Department of Labor agreement
and Employment outside of the sixty-day period immediately before
the date of expiry of such five year term of the Collective Bargaining Term of Collective Bargaining Agreements
Agreement. All other provisions of the Collective Bargaining  insofar as the representation aspect is concerned, is five (5) years
Agreement shall be renegotiated not later than three (3) years after reckoned from the date of its effectivity.
its execution. Any agreement on such other provisions of the  This means that during the five-year period, no other union can file a
Collective Bargaining Agreement entered into within six (6) months petition for certification election, except during the last sixty (60)
from the date of expiry of the term of such other provisions as fixed days of the five-year period.
in such Collective Bargaining Agreement, shall retroact to the day  Article 265 of the Labor Code provides that:
immediately following such date. If any such agreement is entered
into beyond six months, the parties shall agree on the duration of
ART. 265. Terms of a Collective Bargaining Agreement — Any
effectivity thereof. In case of a deadlock in the renegotiation of the
Collective Bargaining Agreement that the parties may enter into
collective bargaining agreement, the parties may exercise their
shall, insofar as the representation aspect is concerned, be for a
rights under this Code.
term of five (5) years. No petition questioning the majority status of
the incumbent bargaining agent shall be entertained and no
Collective Bargaining Agreement
certification election shall be conducted by the Department of Labor
 is a contract by and between an employer and its employees and Employment outside of the sixty-day period immediately before
concerning wages, hours of work, and other terms and conditions the date of expiry of such five-year term of the Collective Bargaining
of employment. Agreement, xxx"
 It covers the whole employment relationship and prescribes the rights
and duties of the parties. Renegotiation Within the Five-Year Period
 It is the law of the plant.  Although the term of a collective bargaining agreement is set at five-
 It applies to and is binding upon all employees covered by the years, the parties can renegotiate the agreement not later than
collective bargaining unit, whether union members or not. three-years after its execution.
Construction of Collective Bargaining Agreements
 A collective bargaining agreement is not an ordinary contract but one  This is clear from the provisions of Article 265 of the Labor Code,
the pertinent portion of which reads as follows:
impressed with public interest.
 As such, it must be construed liberally rather than narrowly and ART. 265. Terms of a Collective Bargaining Agreement — xxx All
other provisions of the Collective Bargaining Agreement shall be
technically.
renegotiated not later than three (3) years after its execution, xxx
Effectivity of the Renegotiated Agreement The Hold-Over Principle
 The effectivity of the renegotiated agreement will depend upon the  A collective bargaining agreement does not cease to be effective at
following situations: end of its five-year term.
1. If the parties were able to come to an agreement within six (6)  The collective bargaining agreement continues to be in effect until a
months from expiry of the third year — the effectivity shall retroact to new agreement is reached.
the day immediately following the expiry of the third year.  Thus, if the negotiations for a new collective bargaining agreement
resulted in a deadlock, the old agreement continues to be effective
Article 265 of the Labor Code provides that: until the deadlock is resolved.
ART. 265. Terms of a Collective Bargaining Agreement — xxx Any  This is the mandate of Article 264 of the Labor Code, the pertinent
agreement on such other provisions of the Collective Bargaining portion of which reads as follows:
Agreement entered into within six (6) months from the date of expiry
of the term of such other provisions as fixed in such Collective
Bargaining Agreement, shall retroact to the day immediately ART. 264. Duty to Bargain Collectively When There Exists a
Collective Bargaining Agreement — xxx It shall be the duty of both
following such date. xxx
parties to keep the status quo and to continue in full force and effect
the terms and conditions of the existing agreement during the 60-
2. If the agreement was arrived at after six (6) months from expiry of
day period and/or until a new agreement is reached by the parties.
the third year — the parties, and no one else, are given the discretion
to fix the effectivity thereof. This is clear from the provisions of Article
265 of the Labor Code, the pertinent portion of which reads as follows: Suspension of Collective Bargaining Agreements
 The right to free collective bargaining includes the right to suspend
ART. 265. Terms of a Collective Bargaining Agreement — xxx If
it.40 In the case of Rivera v. Espiritu, the Supreme Court upheld the
any such agreement is entered into beyond six months, the
validity of the 10-year suspension of the collective bargaining
parties shall agree on the duration of effectivity thereof. xxx
agreement.

HELD: The 10-year suspension of the CBA is valid.

3. If six (6) months have elapsed and the negotiations resulted in a
The primary purpose of a CBA is the stabilization of labor-management
deadlock and the matter was submitted for arbitration — the
relations in order to create a climate of a sound and stable industrial peace.
effectivity shall be the date when the arbitrator rendered his final
The assailed agreement was the result of voluntary collective bargaining
decision
negotiations undertaken in the light of the severe financial situation faced by
the employer, with the peculiar and unique intention of not merely promoting
HELD: The Secretary of Labor and Employment was not correct in
industrial peace at PAL, but preventing the latter's closure. It was PALEA
retroacting the effectivity of the renegotiated collective bargaining
that voluntarily entered into the CBA with PAL. It was also PALEA that
agreement to December 1, 1995. There is no sufficient legal ground to
voluntarily opted for the 10-year suspension of the CBA. Either case was the
justify the retroactive application of the renegotiated agreement.
union's exercise of its right to collective bargaining. The right to free
Significantly, the law does not specifically cover the situation where six (6)
collective bargaining, after all, includes the right to suspend it.
months have elapsed but no agreement has been reached with respect to
The 10-year suspension of the CBA does not violate the representation limit
effectivity.
mandated by Article 257-A. Under the said article, the representation limit for
the exclusive bargaining agent applies only when there is an extant CBA in
Considering that an arbitrated collective bargaining agreement takes on the
full force and effect. In the instant case, the parties agreed to suspend the
nature of a judicial or quasi-judicial award, it operates and may be executed
CBA and put in abeyance the limit on the representation period.
only retrospectively, unless there are legal justifications for its retroactive
application. The effectivity of the remaining two (2)-year term of the collective
In sum, the PAL-PALEA agreement of September 27,1998 is a valid
bargaining agreement should, therefore, be reckoned from December 28,
exercise of the freedom of contract. Under the principle of inviolability of
1996 (the date when the Secretary of Labor and Employment denied the
contracts guaranteed by the Constitution, the agreement must be upheld.
motion for reconsideration) up to December 27, 1999.
  in labor disputes causing or likely to cause a strike or lookout in an
industry indispensable to the national interest;46 or
The Freedom Period
 The freedom period is the 60-day period prior to the expiration of the  National Labor Relations Commission (NLRC) —
collective bargaining agreement. It is called the freedom period  in ordinary labor disputes or in cases arising from any violation of
because it is the time when: Article 279 of the Labor Code.
1. a union member can validly resign from the union:
2. a local union can disaffiliate from its mother federation; The Injunctive Power of the Secretary of Labor
3. the majority status of the incumbent collective bargaining  can be exercised only in labor disputes causing or likely to cause a
agent can be challenged through a petition for certification strike or lockout in industries indispensable to national interest.
election;  As to what industries are indispensable to national interest is up for
4. the parties can ask for the termination or modification of the the Secretary of Labor and Employment to determine.
existing collective bargaining agreement.  Article 278(g) of the Labor Code, provides that:

ART. 266. Injunction Prohibited. — No temporary or permanent ART. 278. Strikes, Picketing, and Lockouts — xxx (g)
injunction or restraining order in any case involving or growing out When, in his opinion, there exists a labor dispute causing or likely to
of labor disputes shall be issued by any court or other entity, except cause a strike or lookout in an industry indispensable to the national
as otherwise provided in Articles 218 (now Art. 225) and 264 (now interest, the Secretary of Labor and Employment may assume
Art. 279) of this Code. jurisdiction over the dispute and decide it or certify the same to the
Commission for compulsory arbitration.
The No-lnjunction Policy
 Injunction in labor disputes is not favored, considering that it has not Such assumption or certification shall have the effect of
proved to be an effective means of settling labor disputes. The policy automatically enjoining the impending strike or lockout as specified
of the State is to encourage the parties to use non-judicial process of in the assumption or certification order. If one has already taken
negotiation, compromise, mediation, and arbitration. Injunctions in place at the time of assumption or certification, all striking or locked
labor disputes may be issued only in cases of extreme necessity out employees shall immediately return to work and the employer
based on legal grounds clearly established. shall immediately resume operations and readmit all workers under
the same terms and conditions prevailing before the strike or
When Injunction in Labor Disputes May Issue lookout. The Secretary of Labor and Employment or the Commission
Injunction in cases involving or growing out of labor disputes may be issued may seek the assistance of law enforcement agencies to ensure
only under the following circumstances: compliance with this provision as well as with such orders as he
1. In labor disputes causing or like to cause a strike or lockout in an may issue to enforce the same.
industry indispensable to the national interest
2. In case of actual or threatened commission of prohibited or unlawful  Actual strike or lookout is not a condition for the exercise of the
acts; or power.
3. When necessary to require the performance of an act, which if not  The Secretary of Labor and Employment need not wait for an actual
restrained or performed forthwith, may cause grave or irreparable strike or lookout before exercising his injunctive power.
damage to any party or render ineffectual any decision in favor of such  The existence of a labor dispute likely to cause a strike or
party. lookout, is enough basis for the Secretary of Labor and
Employment to exercise his injunctive power.
Who May Issue Injunction in Labor Disputes
Injunction in labor disputes can only be issued by the following: The Injunctive Power of the NLRC
 Secretary of Labor and Employment —  The authority of the National Labor Relations Commission to issue
injunction is conditioned upon the existence of a labor dispute.49
 Without a labor dispute, it cannot issue an injunction. This is clear does not confer on him the competence he did not have. Jurisdiction is
from the wordings of Article 225(e) of the Labor Code as amended, conferred by law and not by the demands of emergency.
which read as follows:
ART. 225. Powers of the Commission. — The Commission shall have
the power and authority: xxx (e) To enjoin or restrain any actual or The Innocent Bystander Doctrine
threatened commission of any or all prohibited or unlawful acts or to  An "innocent bystander" is one who is entirely different from and
require the performance of a particular act in any labor dispute without any connection whatsoever to either party to the dispute.
which if not restrained or performed forthwith, may cause grave or  Under the "innocent bystander doctrine/'the right to strike and picket
irreparable damage to any party xxx. may be regulated at the instance of third parties or innocent
bystanders" if the strike or picket:
1. creates an impression that a labor dispute to which they have
HELD: The NLRC cannot issue an injunction under the circumstances no connection or interest, exists between them and the striking
because there is no labor dispute involved. There is no labor dispute or picketing union; or
because no complaint for illegal dismissal was filed before the Labor Arbiter. 2. constitute an invasion of their rights.
Under the Labor Code, the ordinary and proper recourse of an illegally
dismissed employee is not injunction but a complaint for illegal dismissal  Under this situation, courts are empowered to confine or localize the
filed with the labor arbiter. Although captioned as a petition for injunction, the sphere of communication or the demonstration to the parties to the
petition which the flight attendants directly filed with the NLRC is in reality an labor dispute, including those with related interest, and to insulate
action for illegal dismissal. establishments or persons with no industrial connection or to the
context of the dispute.
This is clear from the allegations in the petition which prays for reinstatement
with back wages, moral and exemplary damages. As such, the petition HELD: MSF TIRE is not entitled to injunction under the innocent bystander
should have been filed with the labor arbiter who has the original and doctrine. The negotiation, contract of sale and post transaction between
exclusive jurisdiction to hear and decide termination disputes. The PHILTREAD, as vendor and MSF TIRE, as vendee, reveals a legal relation
jurisdiction of the NLRC in illegal dismissal cases is appellate in nature, between them. To be sure, the transaction was not a simple sale whereby
hence, it cannot entertain the petition for injunction which challenges the PHILTREAD ceased to have any proprietary rights over its sold assets. On
dismissal orders of their employer. the contrary, PHILTREAD remains as 20% owner of MSF TIRE and 60% of
SUCAT LAND CORPORATION. Given the close links with PHILTREAD,
Regular Courts Have No Jurisdiction over Labor Injunction MSF TIRE is not entitled to injunction. MISF TIRE is not an innocent
 Ordinary courts cannot issue injunction in cases involving or growing bystander.
out of a labor dispute. Article 266 of the Labor Code prohibits
courts from issuing injunctions or restraining orders in any case HELD: Liwayway Publications, Inc. is entitled to injunction under the
involving or growing out of a labor dispute. innocent bystander doctrine. There is no connection whatsoever between
 Thus ordinary courts cannot issue an injunction to restrain the the strikers and Liwayway Publications, Inc. Apart from being a sub-lessee of
execution of a final and executory judgment of the National Labor Permanent Concrete Products Inc., Liwayway Publications, Inc. has no other
Relations Commission. connection with Permanent Concrete Products, Inc.
 Neither can ordinary courts enjoin striking employees from obstructing
the free ingress or egress of an establishment. ART. 267. Exclusive Bargaining Representation and Workers
participation in Policy and Decision-Making. — The labor
HELD: The issuance of temporary restraining order is improper. Courts of organization designated or selected by the majority of the
law have no jurisdiction to act on labor cases or various incidents arising employees in an appropriate collective bargaining unit shall be the
therefrom. The fact that the poultry and piggery required close care and exclusive representative of the employees in such unit for the
attention does not warrant the RTC judge's assumption of jurisdiction. It purpose of collective bargaining. However, an individual employee
or group of employees shall have the right at any time to present
grievances to their employer.
 profusion. Rather than promote industrial peace, this could only lead to
Any provision of law to the contrary notwithstanding, workers shall confusion, discord and labor strikeIt would not be in the interest of sound
have the right, subject to such rules and regulations as the labor-management relations if each group of employees assigned to a
Secretary of Labor and Employment may promulgate, to participate specialized function or section would decide to break away from their fellow-
in policy and decision-making processes of the establishment where workers and form their own separate bargaining unit. In a bus company for
they are employed insofar as said processes will directly affect their example, formation of a bargaining unit for office workers and another for
rights, benefits and welfare. For this purpose, workers and field workers or drivers and conductors, is not warranted, there being no
employers may form labor-management councils: Provided, That, substantial differences in their functions
the representatives of the workers in such labor-management
councils shall be elected by at least the majority of all employees in HELD: the bargaining unit sought to be represented by PMPCLU is not an
said establishment. appropriate collective bargaining unit because it is a mixture of supervisors
and rank-and-file employees. There is no unity or mutuality of interests in a
Collective Bargaining Unit bargaining unit consisting of rank-and-file and supervisory employees.
 Refers to a group of employees who share mutual interests within a
given employer unit. It may be comprised of: HELD: The proposed bargaining unit is not an appropriate collective
1. all or less than all of the entire body of employees in the employer bargaining unit because there is no community of interests between the
unit, or supervisors and the professional/technical employees. The
2. any occupational grouping within such employer unit, or professional/technical employees are performing non-supervisory functions;
3. any geographical grouping within such employer unit hence, they are rank-and-file employees. Rank-and-file employees cannot
join the supervisory union. PMPI is supposed to be a union of supervisors. If
Appropriate Collective Bargaining Unit the 271 professional/technical employees will be included as members,
 Article 267 of the Labor Code speaks of "appropriate collective PMPI (which is supposed to be supervisory union), will turn out to be a rank-
bargaining unit" without giving a definition and-file union because they outnumber the 125 supervisors.
 To be considered “appropriate," a bargaining unit must comprise of
employees who have substantial, mutual interests in wages, HELD: The bargaining unit is not an appropriate bargaining unit because the
hours of work, working conditions and other subjects of work of the employees of the Livestock-Agro Division is entirely different
collective bargaining. from the work performed by employees in the Supermarkets and Cinemas.
Their working conditions, hours of work, rates of pay, categories of their
 A bargaining unit composed of a mixture of rank-and-file and positions and employment status are also different. To lump all the
supervisory employees is not an appropriate bargaining unit employees of the integrated business concerns cannot result in an
 The reason is because there is no mutuality of interest between rank efficacious bargaining unit comprised of constituents enjoying a community
and-file and supervisory employees, considering that supervisory or mutuality of interest.
employees are alter egos of management in the making and the
implementing of key decisions at sub-managerial level. Fixing the Appropriate Bargaining Unit
 Our labor laws do not provide for the criteria for fixing the appropriate
 But the mere fact that a certain group of employees perform functions collective bargaining unit.
different from the other employees does not warrant the formation of a  Apart from the single descriptive word "appropriate" as used in Article
separate bargaining unit. It is natural in almost all fairly sized 267 of the Labor Code, no specified guide for determining the proper
companies to have groups of workers discharging different functions. collective bargaining unit can be found in the law.
No company could possibly have all employees performing identical  The basic test of a bargaining unit's acceptability is whether it is
work. Variety of tasks is to be expected. fundamentally the combination which will best assure to all
employees the exercise of their collective bargaining rights.
Thus, there cannot be one bargaining unit for typists and clerks, one unit for  The fundamental factors that should be considered in fixing the
accountants, another unit for messengers and drivers, and so on in needless appropriate collective bargaining unit are:
1. Will of the employees; (Globe doctrine)
 2. Community of employees' interest; HELD: PLASLU is correct. The CIR should have excluded the 242
3. Similarity of employment status; and challenged votes because they were cast by nonregular workers, i.e.,
4. Prior collective bargaining history stevedores and piece-rate workers, and therefore, they could not properly be
included in the bargaining unit composed of regular employees. Considering
that the challenged voters were employed on a casual basis they cannot be
The Globe Doctrine considered to have such mutuality of interest as to justify their inclusion in a
 the main consideration in fixing the appropriate collective bargaining unit composed of regular employees.
bargaining unit is the express will or desire of the employees.
 The doctrine sanctions the holding of a series of elections, not for the Prior Collective Bargaining History
purpose of determining the collective bargaining agent but for the  also a determining factor in fixing the bargaining unit, but it is not a
specific purpose of permitting the employees in each of the several decisive factor.
categories to select the collective bargaining unit.  Prior collective bargaining history may be disregarded:
1. where the circumstances had been so altered or
HELD: The CIR is correct. The will or desire of the employees is one of the 2. where the reciprocal relationship of the employer and the
factors in determining the appropriate bargaining unit. And one way of particular bargaining agent has been so changed that the past
determining the will or desire of the employees is what the CIR had mutual experience can no longer be considered as a reliable
suggested — a plebiscite carried by secret ballot not for the purpose of guide to the present determination of the bargaining unit.
choosing their bargaining agent but for the purpose of determining whether 3. Under this situation, only the prevailing factors should control
they desire to form their own separate bargaining unit. the determination of the bargaining unit.

The Community of Interest Rule HELD: The Med-Arbiter is correct. While the existence of a bargaining
 also known as the "substantial mutual interest" rule history is a factor that may be reckoned in determining the appropriate
 the main consideration in fixing the appropriate collective bargaining bargaining unit, the same is not decisive or conclusive. Other factors may be
unit is the affinity and unity of the employees' interest, such as considered. In the case at bar, there is mutuality of interest among the
substantial similarity of work and duties or similarity of compensation employees of the Sawmill Division and the Logging Division. Their functions
and working conditions. mesh with one another. One group needs the other in the same way that the
company needs them both. There may be difference as to the nature of their
HELD: The employees in the administrative, sales, and dispensary individual assignment but the distinctions are not enough to warrant
departments is an appropriate collective bargaining unit, because their work formation of a separate bargaining unit. Significantly, out of 201 employees
is entirely different from the work performed by the workers in the raw leaf, of MALDECO, 175 consented and supported the petition for certification
cigar, cigarette, packing, and engineering departments. The workers in the election, thereby confirming their desire for one bargaining representative.
raw leaf, cigar, cigarette, packing, and engineering departments are
considered as production and maintenance employees because they are The One Company-One Union Policy
engaged directly in producing the manufactured products of the company  The Labor Code discourages the proliferation of unions in an
and in maintaining its machines, buildings, and vehicles. Hence, there is no establishment.
community of interest between the production and maintenance workers and  The general policy is "one company-one union, "unless circumstances
the workers of administrative, sales, and dispensary departments. otherwise require.
 This policy is anchored on the need to strengthen the bargaining
The Similarity of Employment Status Rule power of the employees by their unity and solidarity rather than
 the main consideration in fixing the appropriate collective bargaining diminish it by disunity, division, or dissension.
unit is the status of employment.
 The rule requires that non-regular employees (ie, temporary, The one company-one union policy, however, yields to certain
seasonal, or probationary employees) be grouped as one category exceptions, to wit:
and be treated separately from regular employees.
 1. When supervisory employees organize themselves into a Magnolia Division and the Feeds and Livestock Division were spun-off, they
bargaining unit separate and distinct from the bargaining became distinct entities with separate juridical personalities. Thus, they
unit of rank-and-file employees. cannot belong to a single bargaining unit.

The one company-one union policy cannot be applied here because Article The Collective Bargaining Representative
249 of the Labor Code expressly prohibits supervisory employees from  The collective bargaining representative (or agent) is the legitimate
joining the organization of rank-and-file employees. labor organization designated or selected by the employees within the
bargaining unit to negotiate a collective bargaining agreement with
2. Where the employer unit has to give way to other their employer. Article 267 of the Labor Code provides that:
bargaining units, like the craft unit, plant unit, or subdivision
thereof. ART. 267. Exclusive Bargaining Representation and Workers
For example, in an airline company, separate bargaining units may be Participation in Policy and Decision-Making -The labor organization
formed for ground personnel, cabin attendant and pilots. In an-educational designated or selected by the majority of the employees in an
institution, separate bargaining units may be formed for teaching personnel appropriate collective bargaining unit shall be the exclusive
and non-t personnel. representative of the employees in such unit for the purpose of
collective bargaining. xxx
3. When a certain class of employees are excluded from the
coverage of the existing bargaining unit.  However, the mere fact that the employees have designated a
legitimate labor organization to be their collective bargaining
This is a compelling reason for said employees to form a separate representative does not automatically make the said labor
bargaining unit so as not to unduly deprive them of the right to collective organization their collective bargaining agent.
bargaining. For example, the exclusion of monthly-paid rank-and-file
 The labor organization must be certified as collective
employees from the bargaining unit of daily-paid rank-and-file employees is
bargaining agent by undergoing the certification process
a justification for the formation of a separate bargaining unit for monthly-paid
through either of the following means:
rank-and-file employees.
1. Through SEBA Certification; or
2. Through certification election.
HELD: The monthly-paid rank-and-file employees of KNIT JOY can
constitute an appropriate bargaining unit. The bargaining history of KNIT
The SEBA Certification Process
JOY has been consistently limited to the regular rank-and-file daily-paid
 To obtain a SEBA Certification, the union should file a request for
employees. The regular rank-and-file monthly-paid employees were never
SEBA certification with the Regional Office of the Department of
included in the scope of the bargaining unit. KNIT JOY may find it unusual to
Labor and Employment that issued its Certificate of Registration or
deal with two (2) collective bargaining unions but there is no one to blame
Certificate of Creation of Chartered Local.
except itself for creating the situation it is in.
 The request should be certified under oath by the Union President
Separate Bargaining Units for Every Corporation
and accompanied by the following documents and information:
 Two corporations cannot be treated as a single bargaining unit even if
their businesses are related and even if some of the employees of one
1. Name and address of the labor organization and the company
corporation are the same persons manning and providing for auxiliary
where it operates;
services to the other corporation and that the physical plants, offices
2. Bargaining unit sought to be represented;
and facilities are situated in the same compound.
3. Approximate number of employees in the bargaining unit;
 The reason is because the two (2) companies are distinct entities with 4. List of the employees covered by the bargaining unit (comprising a
separate juridical personalities. majority) who supported the request for certification;
5. Certificate of Registration (for independent unions) or Certificate of
HELD: The bargaining unit at SMC should no longer include the employees Creation of the Local Chapter (for local chapters); and
of Magnolia Corporation and San Miguel Foods, Inc. because when the
 6. Statement as to existence or non-existence of another union within Where to File a Petition for Certification Election
the bargaining unit or a collective bargaining agreement.  The petition for certification election should be filed with the Regional
Office of the Department of Labor and Employment that issued the
certificate of registration or certificate of creation of chartered local.

When the SEBA Certification Will Be Issued When to File a Petition for Certification Election
 The SEBA certification will be issued only when the union that filed the  The time within which to file a petition for certification election will
request: depend on whether the establishment is organized or unorganized.
1. Is a legitimate labor organization; Thus:
2. Operating in an unorganized establishment; and  In unorganized establishments
3. No other legitimate labor organization exists within the bargaining - can be filed anytime
unit.
 In organized establishments
The SEBA Certification Should Be Posted - can be filed only during the freedom period
 If a SEBA Certification is issued, the union should post it in two
conspicuous places in the establishment. When Filing of a Petition for Certification Election is Barred a
 A petition for certification election cannot be filed under the following
Effect of SEBA Certification circumstances:
 Once the SEBA Certification is issued, the union becomes the certified 1. Within one (1) year:
collective bargaining agent of the employees covered by the a. SEBA CERTIFICATION YEAR BAR RULE - from issuance of
bargaining unit. SEBA Certification; or
 Filing of a petition for certification election by any union is barred b. ELECTION YEAR BAR RULE - from the holding of a valid
within one (1) year from the date of issuance of the SEBA certification election.
Certification. 2. CERTIFICATION BAR RULE - When the duly certified collective
bargaining agent has commenced the collective bargaining negotiations
The Certification Election Process within one (1) year from issuance of SEBA certification or from the
 Certification election is the process of determining through secret holding of a valid certification election
ballot the sole and exclusive collective bargaining agent of the 3. DEADLOCK BAR RULE - When a collective bargaining deadlock has
employees in an appropriate bargaining unit. been submitted to conciliation or arbitration or had become the subject
 The purpose of the certification election is to ascertain whether the of a valid notice of strike or lockout, and
majority of the employees within the bargaining unit desire to be 4. CONTRACT BAR RULE - When there is a duly registered collective
represented by a labor organization and which labor organization. bargaining agreement.

Who Can File a Petition for Certification Election Grounds for Dismissal of Petition
 A petition for certification election can be filed:  A party may move for the dismissal of the petition for
1. by a legitimate labor organization; certification election on the following grounds:
2. by a federation or national union, in behalf of its local chapter 1. Lack of employer-employee relationship between the company and
Whom it has issued a Charter Certificate; or the members of the petitioning union.
3. by an employer, when requested to bargain collectively. 2. Lack of legitimacy on the part of the petitioning union, because:
a. It is not listed in the Registry of Legitimate Labor Unions; or
 If the federation or national union files the petition for certification b. Its registration has been cancelled with finality.
election on behalf of its local chapter, it should attach to the petition 3. Lack of written consent of 25% of the employees within the
the charter certificate of the local chapter, but it is not required to bargaining unit (in organized establishments);
disclose the names of the officers and members of the local chapter. 4. The bargaining unit is not an appropriate bargaining unit, because:
 a. it is composed of managerial employees;  The interested party may move for the suspension of the certification
b. it is composed of members of a cooperative; proceedings if a complaint for unfair labor practice has been filed
c. it is a mixture of rank-and-file and supervisory employees; or against a participant union for being company-dominated.
d. it fragments the employer unit.  The complaint for unfair labor practice is a prejudicial question
5. The petition was filed within one (1) year: which must first be determined before acting on the petition for
a. from issuance of the SEBA Certification; or certification election.
b. from a valid certification election, consent election, or run-off  This means that the certification proceedings should be suspended.
election;  To proceed with the certification proceedings may lead to the selection
6. The petition is barred: of a company union as the collective bargaining agent, and when it is
found out that said union is indeed company dominated, the union
a. by the ongoing collective bargaining negotiations commenced would be disestablished and decertified and the whole certification
within one (1) year from certification as bargaining agent; proceeding would be rendered useless and nugatory.
b. by the bargaining deadlock which has been submitted to
conciliation or arbitration or had become t subject of a valid notice  The pendency of a petition for cancellation of registration filed against
of strike or lockout; or a participant union is not a ground for suspension of the certification
c. by the duly registered collective bargaining agreement; proceedings. Article 246 of the Labor Code expressly provides that:
7. Failure of a local chapter or federation to submit the charter certificate
upon filing of the petition;
ART. 246. Effect of a Petition for Cancellation of Registration -A
8. Failure of petitioner to appear for two (2) consecutive scheduled
petition for cancellation of union registration shall not suspend the
conferences before the Mediator-Arbiter despite notice.
proceedings for certification election nor shall it prevent the filing of
a petition for certification election.
Intervention
 Legitimate labor unions with substantial interest in the certification
election can intervene in the certification proceedings by filing a Preliminary Conference
motion for intervention.  If no motion to dismiss is filed or if the motion to dismiss is denied, a
preliminary conference will be conducted by the MedArbiter to
 The form and contents of a motion for intervention are the same as
determine the contending labor unions, the bargaining unit to be
that of a petition for certification election, however, it need not be
represented, the possibility of a consent election; and other relevant
supported by the written consent of 25% of the employees within the
matters.
bargaining unit.
Consent Election
When to File Motion for Intervention
 The contending unions may agree on the holding of a certification
 The time within which to file a motion for intervention will depend on
election.
whether the establishment is organized or unorganized. Thus:
1. In unorganized establishments can be filed any time prior to the  This is called “consent election.”
decision of the Med-Arbiter;  In a consent election, the Med-Arbiter no longer decides on the
2. In organized establishments can be filed only during the freedom merits of the petition.
period.  Instead, a pre-election conference will be scheduled to discuss
the mechanics of the election.
Forced Intervenor
 The incumbent collective bargaining agent is an automatic intervenor Issuance of Order or Decision
in a petition for certification election, hence, it is always one of the  If the parties cannot agree in a consent election, the Med-Arbiter will
choices in a certification election. issue a decision (order) which may either dismiss the petition or order
the holding of a certification election.
Suspension of Proceedings
Issues Which the Med-Arbiter Can Resolve
 In a certification proceeding the Med-Arbiter can resolve matters Notice of Election.
that pertain only to existence or non-existence of employer-employee
relationship or eligibility or mixture in union membership. Qualified Voters
 The Med-Arbiter cannot rule on the validity of the registration of the  All employees, whether union members or not, who are covered by
union the appropriate bargaining unit for at least three (3) months prior to the
- Except when the union is not registered in the Roster of Legitimate filing of the petition, are eligible to vote, regardless of their
Labor Organization. employment status.
 The Med-Arbiter cannot also rule on the validity of the registration
of the CBA,
 Therefore, the following employees can vote in a certification
- Except when the CBA is not registered in the Registry of Collective
election:
Bargaining Agreements.
1. Probationary employees
 These questions are matters cognizable by the Regional Director - because they also have a substantial interest in the selection of
in an independent petition for cancellation of registration. the bargaining representative
2. Striking employees
Pre-Election Conference - because they continue to enjoy employee status during the strike.
 If the order calling for a certification election becomes final and 3. Members of religious sects which prohibits membership in a
executory, a pre-election conference will be set to discuss the labor organization
mechanics of the election, e.g., date and time of election, qualified - because the law also accords them the right to self-organization.
voters, watchers, polling places, names of watchers, inclusion- 4. Dismissed employees whose complaints for illegal dismissal
exclusion of voters, etc. have not yet been decided with finality
- because they still enjoy employee status, but their ballots will be
 In case of disagreement over the eligibility of voters (including the segregated.
list), all contested voters will be allowed to vote but their ballots will be
segregated in individually sealed envelopes. Challenging of Votes
 Before the ballot is deposited in the ballot box, the authorized
Notice of Election representative of any of the contending unions can challenge a vote
 After the pre-election conference, a notice of certification election will on the ground that the voter:
be issued. 1. Is not an employee of the company,
2. Has already been dismissed from service, or
 The Notice of Certification Election should contain: 3. Is not a member of the bargaining unit
 the date and time of the election,
 names of all contending unions, Handling of Challenged Votes
 description of the bargaining unit, and  The challenged ballots shall be placed in an envelope.
 list of eligible and challenged voters.  The voter’s name, the party challenging the voter, and the ground
for the challenge shall be indicated in the envelope.
Posting of Notice of Election  The envelope shall be sealed in the presence of the voter, the
 The Notice of Certification Election should be posted in two (2) most employer, and the representative of the contending unions.
conspicuous places in the company premises at least ten (10) days  The sealed envelope shall be signed by Election Officer, the
before the actual date of the election. employer, and the representatives of all the contending unions.
 This is mandatory.  The challenges shall be recorded in the minutes of the election
 It cannot be waived by the parties. proceedings
 The Regional Director or his duly authorized representative
and the petitioner shall be responsible for the posting of the Opening of the Sealed Envelopes
 The sealed envelopes will be opened only when the number of Course of Action in Case of Failure of Election
segregated voters will materially alter the results of the election.  In case of failure of election, the union must file a motion for the
immediate holding of election within six (6) months from the
Election Protest declaration of failure of election
 Only a party-in-interest can file a protest.
 A labor organization who did not take part in the certification election Course of Action in Case of Tie
cannot protest.  If the certification election or consent election or run-off election
 The protest shall be recorded in the minutes of the election results in a tie between contending unions or between “no union” and
proceedings. one of the unions, a re-run election shall be conducted within ten (10)
 Protests not so raised are deemed waived. days from posting of the Notice of Re-Run Election.
 False statements or misrepresentations that interfere with the free
choice of the employees are a valid ground for protest. Valid Election
 The certification election is valid when at least a majority of all eligible
voters in the bargaining unit were able cast their votes.
 For instance, if the officers of the union, especially its president,
misrepresented to the voting employees that it as an independent Effect of a Valid Election (Election Year Bar Rule)
union, such misrepresentation constitutes a substantial  A valid election will bar any union from filing a petition for certification
misrepresentation of material facts of vital concern to those election within one (1) year from the holding of the certification
employees. election.
 Irregularities in the conduct of elections may also be raised as HELD: CLOP was not barred from filing the second petition for certification
grounds for protest. as when workers of the night shift and afternoon election. The one-year prohibition imposed by the election-year bar rule
shift were not able to vote, the election supervisors were remiss in does not apply because no certification election was ever conducted. The
their duties and were apparently intimidated by a union representative, first petition was merely dismissed because of certain defects. The election
the secrecy of ballots was not safeguarded, and the participating year bar rule will apply only when there is actual conduct of election.
unions were overzealous in wooing the employees to vote in their
favor by resorting to such tactics as giving free tricycle rides and T- Certification as Collective Bargaining Agent
shirts.  The labor organization that has gotten the majority of the valid votes
cast will be certified as the collective bargaining agent of all the
 However, a certification election conducted during a strike not a valid workers covered by the bargaining unit.
ground for protest.
 The Med-Arbiter will proclaim the election results and certify the union
Formalization of Protest which obtained majority of the valid votes as the collective bargaining
 The protesting party must formalize its protest with the Med-Arbiter agent if:
within five (5) days after the close of the election proceedings, 1. No protest has been filed within the five (5)-day period from the
 Otherwise, the protest shall be deemed dropped. close of the election proceedings; and
2. No challenge or eligibility issue was raised, or if one was raised,
 “After the close of election proceedings” refers to that period from the resolution of the same will not materially alter the election
closing of the polls to the counting and tabulation of votes. results.

Failure of Election  The certified collective bargaining agent will continue as such until
 There is failure of election where the votes cast are less than the replaced by another in a valid certification election.
majority of the number of eligible voters and there are no material  This could be gleaned from the provisions of Article 268 of the
challenged votes. Labor Code, the pertinent portion of which reads as follows:
 ART. 268. Representation Issue in Organized Establishments  A duly registered CBA will bar any union from filing a petition for
xxx At the expiration of the freedom period, the employer shall certification election, except during the 60-day period immediately
continue to recognize the majority status of the incumbent before the expiry of the five-year term of the CBA.
bargaining agent where no petition for certification election is  Articles 265 and 238 of the Labor Code expressly provide
filed.” that:
ART. 265. Terms of a Collective Bargaining Agreement xxx No
Effect of Certification as Collective Bargaining Agent (Certification petition questioning the majority status of the incumbent
Year Bar Rule) bargaining agent shall be entertained and no certification election
 Once the union is certified as the bargaining agent, it must start the shall be conducted by the Department of Labor and Employment
collective bargaining negotiations by sending its proposals to the outside of the sixty-day period immediately before the date of
management. If the certified bargaining agent starts the negotiations expiry of such five-year term of the Collective Bargaining
within one (1) year from the holding of the certification election filing of Agreement. xxx
a petition for certification election by any union is erred, even if the
negotiations go beyond one (1) year. ART. 238. Prohibition on Certification Election. The Bureau shall
not entertain any other petition for certification election or any
HELD: Yes, a petition for certification election can be filed by another union. other action which may disturb the administration of duly
The one-year period during which the certified union is required to negotiate registered existing collective bargaining agreements affecting the
with the employer has long expired. parties except under Articles 253 (now Article 264), 253-A (now
Article 265), and 256 (now Article 268) of this Code.
Effect of Collective Bargaining Deadlock (Deadlock Bar Rule)
 If the collective bargaining negotiations resulted in a deadlock and the HELD: The petition should be dismissed because at the time of the filing of
deadlock has been submitted to conciliation or arbitration or had the petition for certification election, there existed a duly registered CBA
become the subject of a valid notice of strike or lockout, tiling of a and the petition was filed after the 60-day freedom period. Right of
petition for certification election by any union is barred. Individual Employees to Present Their Grievances to the Employer The
existence of a certified collective bargaining agent does not preclude the
HELD: The petition should be dismissed because when FUR filed the employer from entertaining individual grievances. Individual employees or
petition for certification election, a bargaining deadlock was already group of employees can directly present their grievances to the employer
submitted for arbitration. Under the deadlock-bar principle, no petition for without the intervention of the bargaining agent. Article 267 of the Labor
certification election can be entertained if a bargaining deadlock to which an Code provides that:
incumbent bargaining agent is a party has been submitted to conciliation or
arbitration or had become the subject of a valid notice of strike or lockout. ART. 267. Exclusive Bargaining Representation and Workers
Participation in Policy and Decision-Making -xxx an individual
Effect if the Parties Have Agreed on the Terms of the CBA employee or group of employees shall have the right at any time to
 If the parties come to an agreement, on the terms of the collective present grievances to their employer. Xxx
bargaining agreement, they should sign and post it in at least two (2)
conspicuous places in the establishment for five (5) days, and  However, the right of individual employees or group of employees to
thereafter submit it to the employees covered by the collective present their grievances to the employer is subject to three (3)
bargaining unit for ratification. qualifications, to wit:
1. The grievance must be individual in nature; i.e., does not pertain
 After ratification, the parties must register the collective bargaining to collective concern;
agreement With the Regional Office of the Department of Labor and 2. The adjustment of the grievance does not contravene the terms of
Employment. the CBA; and
3. The bargaining agent must be given an opportunity to be present
Effect of Registration (Contract-Bar Rule) during the adjustment.
 Right of Employees to Participate in Policy and Decision-Making ART. 268. Representation Issue in Organized Establishment- In
 Article 267 of the Labor Code grants employees the right to organized establishments, when a verified petition questioning the
participate in policy and decision-making processes of the majority status of the incumbent bargaining agent is filed by any
establishment where they are employed. Thus: legitimate labor organization including a national union or federation
which has already issued a charter certificate to its local chapter
ART. 267. Exclusive Bargaining Representation and Workers participating in the certification election before the Department of
Participation in Policy and Decision-Making xxx Any provision of law Labor and Employment within the sixty (60) day period before the
to the contrary notwithstanding, workers shall have the right, expiration of the collective bargaining agreement, the Med-Arbiter
subject to such rules and regulations as the Secretary of Labor and shall automatically order an election by secret ballot when the
Employment may promulgate, to participate in policy and decision- verified petition is supported by the written consent of at least
making processes of the establishment where they are employed twenty-five (25%) percent of all the employees in the bargaining unit
insofar as said processes will directly affect their rights, benefits to ascertain the will of the employees in the appropriate bargaining
and welfare. unit. To have a valid election, at least a majority of all eligible voters
in the unit must have cast their votes. The labor union receiving the
 This right is confined to only to processes that directly affect majority of the valid votes cast shall be certified as the exclusive
their rights, benefits, and welfare. It does not extend to matters bargaining agent of all the workers in the unit. When an election
pertaining to: which provides for three or more choices results in no choice
1. Business operations or management of the business; receiving a majority of the valid votes cast, a run-off election shall
2. Provisions of the collective bargaining agreement; or be conducted between the labor unions receiving the two highest
3. Traditional areas of collective bargaining. number of votes: Provided, That the total number of votes for all
contending unions is at least fifty percent (50%) of the number of
 To carry out this right, workers and employers may form labor votes cast. In cases where the petition was filed by a national union
management councils. or federation, it shall not be required to disclose the names of the
 The representatives of the workers in such labor-management local chapter’s officers and members.
councils shall be elected by at least the majority of all employees
in said establishment. At the expiration of the freedom period, the employer shall continue
to recognize the majority status of the incumbent bargaining agent
HELD: A close scrutiny of the objectionable provisions of the Revised Code where no petition for certification is filed.
of Discipline reveals that they are not purely business-oriented nor do they
concern the management aspect of the business of the company. The Organized Establishments
provisions of the Revised Code of Discipline clearly have repercussions on  An organized establishment is an enterprise where there exists a
the employees’ right to security of tenure. The implementation of the recognized or certified sole and exclusive bargaining agent.
provision may result in the deprivation of an employees’ means of livelihood.
Which is a property right. Verily, a line must be drawn between management Requisites for Certification Election in Organized Establishments
prerogatives regarding business operations per se and those which affect  In organized establishments, a certification election can be
the rights of the employees. In treating the latter, management should see ordered if:
to it that its employees are at least properly informed of its decisions or 1. A verified petition has been filed,
modes of action. The fact that in the Collective Bargaining Agreement, the 2. By a legitimate labor organization,
Union has recognized the prerogative of PAL to discipline its employees may 3. Within the freedom period, and
not be interpreted as cession of employees’ right to participate in the 4. Supported by the written consent of at least 25% of all the
deliberation of matters Which may affect their rights and the formulation of employees in the bargaining unit.
policies relative thereto. And one such matter is the formulation of a code of
discipline. The 25% Consent Requirement
 The purpose of the 25% written consent requirement is to show that it can be presumed that the withdrawal was procured through
the petitioning union represents a group of employees who have duress, coercion or for valuable consideration, hence, the best
substantial interest in the election. forum to determine if there was indeed undue pressure exerted
 It is not necessary to establish the 25% consent requirement with upon the employees is the certification election itself wherein the
mathematical precision. employees can freely express their choice in a secret ballot.
 A prima facie showing of compliance will suffice.
 Although it is necessary to attach the 25% written consent to the Reason for the Distinction
petition for certification election, submission of such requirement  The reason for the distinction is that withdrawal or retraction made
within a reasonable period from the tiling of the petition for before the filing of the petition is presumed voluntary, because the
certification election will still be considered as substantial names of employees who supported the petition are supposed to be
compliance with the rule. unknown to the opposite party,
 Whereas withdrawal made after filing of the petition are deemed
The Significance of the 25% Consent Requirement involuntary, because the employees who supported the petition
 If the petition for certification election is supported by the written are already known to the opposite party since their names are
consent of 25% of the employees within the bargaining uhit, it is attached to the petition.
mandatory on the part of the Med-Arbiter to order a certification  Therefore, it would not be unexpected that the opposite party
election. would use foul means for the subject employees to withdraw their
 This could be gleaned from Article 268 of the Labor Code, the support.
pertinent portion of which reads as follows:
Applicability of the 25% Consent Requirement
ART. 268. Representation Issue in Organized Establishment -xxx  The 25% consent requirement applies only to petitions for certification
the Med-Arbiter shall automatically order an election by secret election in organized establishments.
ballot when the verified petition is supported by the written  It does not apply to:
consent of at least twenty-five (25%) percent of all the employees 1. Petition for certification election in unorganized establishments;
in the bargaining unit. 2. Petition for certification election filed by an employer; and
3. Motion for intervention.
 On the other hand, if the written consent falls short of the 25%
statutory requirement, it is no longer mandatory, but discretionary on Run-Off Election
the part of the Med-Arbiter to call a certification election, which means  an election conducted when in a certification election
that the Med-Arbiter may or may not order a certification election. But  with at least three (3) choices,
if the petition is totally unsupported by the 25% written consent, the  none of the choices obtained a majority of the valid votes cast, and
petition for certification election should be dismissed.  the total number of votes for all the contending unions is at least
50% of the total number of votes cast without challenged ballots
Effect of Withdrawal of Consent which can materially alter the results.
 If the withdrawal or retraction of consent was made before the  This could be gleaned from the provisions of Article 268 of the Labor
filing of the petition Code which provides that:
- the Med-Arbiter may not order the holding of a certification
election, because in effect, the petition lacks the required written ART. 268. Representation Issue in Organized Establishment -xxx
consent. When an election which provides for three or more choices results
in no choice receiving a majority of the valid votes cast, a run-off
 On the other hand, if the withdrawal or retraction of consent was election shall be conducted between the labor unions receiving the
made after the filing of the petition for certification election two highest number of votes: Provided, That the total number of
- the Med-Arbiter can still order the holding of a certification election votes for all contending unions is at least fifty per cent (50%) of the
because if the withdrawal was made after the filing of the petition, number of votes cast. xxx”
  The mere filing of a petition for certification election by a legitimate
Conditions for Run-Off Election labor organization is enough to order the holding of a certification
 A run-off election can be conducted if the following condition are election.
met:
1. The certification election had at least three (3) choices; 25% Consent Not Necessary
2. None of the choices obtained a majority of the valid votes cast;  Petitions for certification election in unorganized establishments need
3. The total votes for all contending unions is at least 50% of the not be supported by the written consent of 25% of the employees
number of votes cast; and within the bargaining unit.
4. There are no challenged ballots, which can materially alter the
results. ART. 270. When An Employer May File Petition. When requested to
bargain collectively, an employer may petition the Bureau for an
Who Can Partlclpate In a Run-Off Election election. If there is no existing certified collective bargaining
 Only the two (2) labor unions receiving the highest number 0f votes agreement in the unit, the Bureau shall, after hearing, order a
can participate in a run-off election. “No Union” shall not a choice in a certification election.
run-off election. The same voters’ list used in the Certiflcation election
shall be used in the run-off election.”3 If the second highest number of All certification cases shall he decided within (20) working days.
votes is a tie between two (2) Or more unions. the tie should first be
broken thru a re-run election. Whoeever emerges as the winner will The Bureau shall conduct a certification election within twenty (20)
participate in the run of election. days in accordance with the rules and regulations prescribed by the
Secretary of Labor.
ART. 269. Petitions in Unorganized Establishments. In any
establishment where there is no certified bargaining agent, a When an Employer Can File a Petition for Certification Election
certification election shall automatically be conducted by the Med-  An employer can file a petition for certification election only when it is
Arbiter upon the filing of a petition by any legitimate labor requested to bargain collectively.
organization, including a national union or federation which has  A demand for voluntary recognition as bargaining representative is
already issued a charter certificate to its local chapter participating in effect a request to bargain collectively.
in the certification election or by a local/chapter which has been
issued a charter certificate by the national union or federation. In HELD: The filing by SMC of the petition for certification election was proper.
cases where the petition was filed by a national union or federation, IBM’s request for voluntary recognition as bargaining representative was in
it shall not be required to disclose the names of the local chapter’s effect a request to bargain collectively. 25% Consent Not Necessary When
officers and members. an employer files a petition for certification election, it is not necessary to
support the petition with the consent of 25% of the employees within the
Unorganized Establishment bargaining unit.
 A firm or company where there is no certified or recognized collective
bargaining agent for a particular bargaining unit. ART. 271. Employer as By-Stander. -In all cases, whether the petition
 A company where there is a certified bargaining agent for the rank- for certification election is filed by an employer or a legitimate labor
and-file employees but none for the supervisors, would still be organization, the employer shall not be considered a party thereto
considered as “unorganized establishment” with respect to the with concomitant right to oppose a petition for certification election.
supervisory employees.
The employer’s participation in such proceedings shall be limited to:
Petition for Certification Election in Unorganized Establishment (1) being notified or informed of petitions of such nature; and
 In an unorganized establishment, a petition for certification election (2) submitting the list of employees during the pre-election
can be filed anytime. conference should the Med-Arbiter act favorably on the petition.
 The By-Stander Principle b. By the bargaining deadlock Which has been submitted to
 In a certification proceeding, the employer is a mere by-stander conciliation or arbitration or had become the subject of a valid
because certification election is the sole concern of workers. notice of strike or lockout; or
 As much as possible, the employer should strictly maintain a hands- c. By the duly registered CBA.
off policy in a certification proceeding, because if it does not, it may
lend itself to the legitimate suspicion that it is partial to one of the Reasons Why the Employer Should Be Allowed to Oppose a
contending unions. Certification Election
 The participation of the employer is limited to:  Re: Lack of Employer-Employee Relationship
1. Being notified about the filing of the petition; and  The employer should be allowed to oppose a petition for certification
2. Submitting the list of employees during the pre-election conference. election on the ground of lack of employer-employee relationship
because employer-employee relationship is the jurisdictional
Exceptions to the By-Stander Principle foundation of collective bargaining.
 Although Article 271 of the Labor Code provides that in a petition for - The absence of this juridical relationship means ineligibility to file a
certification election, “the employer shall not be considered a party petition for certification election
thereto with concomitant right to oppose a petition for - It must be realized that the duty to bargain collectively arises only
certification election” there are certain exceptional situations where between an “employer” and its “employees.”
an employer can be allowed to oppose a petition for certification - When neither party is an “employer” or an “employee” of the other,
election in order to aid the Med-Arbiter in expeditiously resolving the no such duty exists.\
petition. - And there being no such duty to bargain collectively, it would be
pointless to hold a certification election.
 These exceptional situations are:
1. When the relationship of employer-employee does not exist between  Re: Lack of Legal Personality on the Part of the Union
the company and the employees sought to be represented by the  The employer can validly oppose a petition for certifications election if
petitioning union; the petitioning union is not registered or if its registration has already
2. When the petitioning union is not a legitimate labor Organization been cancelled with finality.
because: - The reason is because an employer is legally obliged to
a. It is not listed in the Registry of Legitimate Labor Unions; or collectively bargain only with a legitimate labor organization.
b. Its registration has been cancelled with finality; - If the labor organization is not a legitimate labor organization, it
3. When the bargaining unit sought to be represented by the petitioning cannot be certified as collective bargaining agent.
union is not an appropriate bargaining unit because: - Hence, it would be pointless to hold a certification election.
a. it is composed of managerial employees;
b. it is composed of members of a cooperative;  Re: Inappropriate Bargaining Unit
c. it is a mixture of rank-and-file and supervisory employees; or  If the petitioning union does not represent an “appropriate collective
d. it fragments the employer unit. bargaining unit, ”it would be pointless to hold a certification election,
4. When the petition (in an organized establishment) is not supported considering that the employer is not legally obliged to bargain with a
by the written consent of 25% of the employees within the union which does not represent an appropriate bargaining unit, e.g.,
bargaining unit; when the bargaining unit is composed of managerial employees or if
5. When the petition was filed within one (1) year from: the membership of the union is a mixture of supervisory and rank-and-
a. issuance of the SEBA Certification; or file employees.
b. actual valid certification election, consent election, or run-off
election;  Re: Lack of 25% Consent
6. When the petition is barred:  In organized establishments, the law requires a petition for certification
a. By the ongoing CBA negotiations commenced within one (1) election to be supported by the consent of 25% of the employees
year from SEBA certification or valid certification election; within the bargaining unit.
 - The purpose of this is to show that the petitioning union represents from receipt thereof.
a group of employees who have substantial interest in the election.
If the petition for certification election is not supported by the  The decision of the Secretary of Labor and Employment will become
consent of 25% of the employees within the bargaining unit, it goes final and executory after ten (10) days from receipt thereof by the
to show that the petitioning union does not represent a group of parties.
employees who have substantial interest in the certification - No motion for reconsideration of the decision shall be entertained.
election.
- Hence, the employer can move for the dismissal of the petition for
certification election. “

 Re: Contract-Bar Principle

 Considering that the employer is a party to the collective bargaining
agreement, it has the right to oppose a petition for certification election
by invoking the obstacle imposed by the contract-bar principle in order
to preserve the sanctity of the collective bargaining agreement

 Re: SEBA Certification Year-Bar, Negotiation-Year Bar, Deadlock-

Bar and Election Year Bar Principles
 The employer should also be allowed to invoke the SEBA certification
year-bar, negotiation-year bar, deadlock-bar and election-year bar
principles to ensure the stability of labor management relations. One
could just imagine the effect it would have on industrial peace and
stability of labor-management relations if a petition for certification
election would be allowed to be filed every now and then.

ART. 272. Appeal from Certification Election Orders. Any party to an

election may appeal the order or results of the election as
determined by the Med-Arbiter directly to the Secretary of Labor and
Employment on the ground that the rules and regulations or parts
thereof established by the Secretary of Labor and Employment for
the conduct of election have been violated. Such appeal shall be
decided within fifteen (15) calendar days.

Appeal from Certification Election Orders

 In unorganized establishments:
1. Order granting the conduct of a certification election -not
appealable.
2. Order dismissing the petition appealable to the Office of the
Secretary of Labor and Employment within ten (10) days from
receipt thereof.
 In organized establishments:
- Order granting or dismissing the petition appealable to the Office
of the Secretary of Labor and Employment within ten (10) days