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Labor in the Philippines:

Right to Self Organization

What is the right to self-organization?

It is the right of the workers and employees in the public and private sectors to form, join or assist unions, organizations or associations for purposes of collective bargaining and negotiation and for mutual aid and protection. It also refers to the right to engage in peaceful concerted activities and to participate in policy and decision-making processes affecting their rights and benefits.


What are the constitutional bases for the right to self-organization?

The right of the people, including those employed in the public and private sectors, to form unions, associations, or societies for purposes not contrary to law shall not be abridged (Section 8, Article III, Bill of Rights).

The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities to all.

It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure, humane conditions of work, and a living wage. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law.

The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace.

The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns on investments, and to expansion and growth (Section 3, Article XIII, Social Justice and Human Rights).


What is a labor organization?

A labor organization means any union or association of employees of which exists in whole or in part for the purpose of collective bargaining or for dealing with employers concerning terms and conditions of employment.


What is a workers’ association?

A workers’ association means any group of workers organized for the mutual aid and protection of its members or for any legitimate purpose other than collective bargaining.


How do labor organizations and workers’ associations become legitimate?

Labor organizations and workers’ associations become legitimate upon registration with the Department of Labor and Employment (DOLE).


What are the rights of legitimate labor organizations?

A legitimate labor organization shall have the following rights:
  1. to act as representative of its members for collective bargaining;
  2. to be certified as the exclusive representative of all the employees in an appropriate collective bargaining unit for collective bargaining;
  3. to be furnished by the employer, upon written request, with annual audited financial statements within 30 calendar days from the date of receipt of the request, or within 60 calendar days before the expiration of the existing CBA, or during the collective bargaining negotiation;
  4. to own property, real or personal, for the use and benefit of the labor organization and its members;
  5. to sue and be sued in its registered name;
  6. to undertake all other activities to benefit the organization and its members, and other projects not contrary to la.

What are the different types of labor organizations?

Federation/National Union – any labor organization with locals/chapters or affiliates.

Industry Union – any group of legitimate labor organizations operating within a specific industry established for mutual aid and protection.

Trade Union Center – any group of registered national union or federations organized for mutual aid and protection of its members, for assisting such members in collective bargaining, or for participating in the formulation of social and employment policies, standards and programs.

Independent Union – any labor organization operating at the enterprise level whose legal personality is derived through an independent action for registration. An independent union may be affiliated with a federation or a national union, in which case it may also be referred to as an affiliate.

Local Union Chapter – any labor organization operating at the enterprise level whose legal personality is derived through the issuance of a charter certificate by a duly registered federation or national union.


Who can join a labor organization or workers association?

  1. All employees employed in commercial, industrial and agricultural enterprises and agricultural enterprises and in religious, charitable, medical or educational institutions whether operating for profit or not;
  2. Government employees in the civil service;
  3. Supervisory personnel;
  4. Security personnel;
  5. Aliens with valid working permit.
Who are prohibited from joining legitimate labor organization?
  1. Managerial employees
  2. Members of cooperatives
  3. Members of the Armed Forces of the Philippines, policemen and firemen

Are confidential employees prohibited from joining legitimate labor organizations?

Generally, an employee may join a legitimate labor organization even, if she/he has access to confidential information concerning the employer’s internal business operation. But an employee with access to confidential labor relations information may be excluded from the bargaining unit sought to be represented by a legitimate labor organization.


What are the requirements for registration of an independent labor organization?

The application for registration of an independent union shall be supported by the following:
  1. Names of its officers, their addresses, the principal address of the labor organization, the minutes of the organizational meetings and the list of workers who participated in such meetings.
  2. Number of employees and names of all its members comprising at least 20% of the employees in the bargaining unit where it seeks to operate;
  3. Two copies of its annual financial reports if the applicant union has been in existence for one or more years. If it has not collected any amount from the members, a statement to this effect shall be included in the application;
  4. Four copies of its constitution and by-laws, minutes of its adoption or ratification, and the list of the members who participated in it. However, the list of ratifying members shall be dispensed with where the constitution and by-laws was ratified or adopted during the organizational meeting. In such case, the factual circumstances of the ratification shall be recorded in the minutes of the organizational meeting.
The organization needs to fill out an Application for Registration (BLR Reg. Form No. 1-LO, s. 1998 – Annexes “A” and “A-I”).


What are the requirements for registration of a federation or national union?

The application for registration of a FEDERATION OR NATIONAL UNION shall, in addition to sub-paragraphs a, c and d of the immediately preceding paragraph, be supported by:
  1. List of member organizations and their respective presidents and, in the case of an industry, the industry where the union seeks to operate;
  2. Resolution of membership of each member organization approved by the Board of Directors of such union;
  3. Name and principal address of the applicant, the names of its officers and their addresses, the minutes of its organizational meetings, and the list of member organizations and their representatives who attended such meeting/s;
  4. Copy of its constitution and by-laws and minutes of its ratification by a majority of the presidents of the member organizations, provided that where the ratification was done simultaneously with the organizational meeting, it shall be sufficient that the fact of ratification be included in the minutes of the organizational meeting.
The organization needs to fill out an Application for Registration (BLR Reg. Form No. 4-FED, s. 1998 – Annexes “B” and “B-1”).


What are the requirements for registration of workers’ association?

The following shall support the application for registration of WORKERS’ ASSOCIATION:
  1. The names of its members, their addresses, the principal office of the applicant, the minutes of the organizational meeting/s, and the names of its individual members who attended such meeting/s;
  2. A copy of its constitution and by-laws, duly ratified by a majority of its individual members;
  3. In the case of any grouping of workers’ associations, the requirements for registration of an industry or trade union shall apply.
The association needs to fill out either of the following:

  1. For an association operating in one region (BLR Reg. Form No. 2-WA, s. 1998 – Annexes “C” and “C-I”).
  2. For an association operating in more than one region (BLR Reg. Form No. 3-WA, s. 1998 – Annexes “D” and “D-I”).

What are the provisions common to the registration of labor organizations and workers’ associations?
  • Attestation Requirements
    The application for registration of any labor organization or workers’ association, including all the accompanying documents, shall be verified under oath by its Secretary or Treasurer, as the case may be, and attested to by its President.
  • Payment of Registration Fee:
    A labor organization or workers’ association shall be issued a certificate of registration upon payment of the prescribed registration fee.

Where can the application for registration of labor organization and workers’ association be filed?

The application for registration of any federation, national or industry union or trade union center shall be filed with the Bureau of Labor Relations. If the application is filed with the Regional Office, it shall be immediately forwarded to the Bureau within 48 hours from filing, together with all the documents supporting the registration.

The application for registration of an independent union shall be filed with and acted upon by the Regional Office where the applicant’s principal office is located.

The application for registration of a workers’ association shall be filed directly and acted upon by the Regional Office where it operates. Where the applicant intents to operate in more than one regional jurisdiction, the application shall be filed with the Bureau.


What happen after an application for registration is filed with the Regional Office or the BLR?

The Regional Office or the Bureau, as the case may be, shall act on all applications for registration within 30 days from filing thereof, either by approving the application and issuing the certificate of registration, or denying the application for failure of the applicant to comply with the requirements for registration.


What happens if the supporting documents for registration are incomplete, or do not contain the attestation requirements?

Where the documents supporting the application are not complete or do not contain the attestation requirements, the Regional Office or the Bureau shall, within five days from receipt of the application, notify the applicant in writing of the requirements needed to complete the application. Where the applicant fails to complete the requirements within 30 days from receipt of notice, the application shall be denied.


What happens if the Regional Office or BLR verbally denies or refuses to act on an application for registration for a considerable amount of time?

Secure a notice of denial in order to avail of the remedy of appeal. There are notice of denial forms for application pertaining to independent unions (BLR Form No. 1-B-LO, s. 1998), workers’ association (BLR Form No. 2-B-WA, s. 1998 or BLR Form No. 3-B-WA, s. 1998), federation or national unions (BLR Form No. 4-A-Fed, s. 1998 – Annexes “E”, “F”, “G”, “H”, and “H-I”).

After all, the decision of the Regional Office or the Bureau denying the application for registration shall be in writing, stating in clear terms the reasons for such a denial. A copy of the notice of denial should be furnished to the applicant union.


How may a notice of denial for registration be appealed?

The decision may be appealed to the Bureau if the denial is by the Regional Director, or to the Secretary if the denial is by the Bureau, within 10 days from receipt of notice thereof, on the ground of grave abuse of discretion or violation of the Rules Implementing Book V of the Labor Code, as amended.

The appeal shall be filed in the Regional Office or in the Bureau, as the case may be, which shall cause the transmittal of the records to the Bureau or to the Secretary within five calendar days from receipt of the appeal.

The Bureau or the Secretary shall decide the appeal within 20 calendar days from receipt of the records of the case.


When shall a labor organization acquire legitimate personality?

The labor organization or workers’ association shall be deemed registered or vested with legal personality on the date of issuance of its certificate of registration.


May a union’s legal personality be assailed in a petition for certification election, intra/inter-union or NLRC case?

No. Such legal personality cannot thereafter be subject to collateral attack, but may be questioned only in an independent petition for cancellation in accordance with the Rules Implementing Book V of the Labor Code, as amended.


How are locals/chapters of federation or workers’ association created?

Chartering and Creation of Local/Chapter:

A duly registered federation or national union may directly create a local/chapter by submitting to the Regional Office or to the Bureau two copies of the following:
  1. A charter certificate issued by the federation or national union indicating the creation or establishment of the local/chapter;
  2. The names of the local/chapter’s officers, their addresses, and the principal office of the local/chapter;
  3. The local/chapter’s constitution and by-laws; provided that were the local/chapter’s constitution and by-laws is the same as that of the federation or national union, this fact shall be indicated accordingly.
All the foregoing supporting requirements shall be certified under oath by the Secretary or the Treasurer of the local/chapter and attested to by the President.

Duly registered workers’ association may likewise charter any of its branches, subject to the filing of the documents prescribed in chartering and creation of a local/chapter.


Are books of accounts required in order to create a local/chapter?

No. Submission of Books of Accounts is not a requirement of registration.


When does a local/chapter acquire legal personality?

A local/chapter constituted shall acquire legal personality from the date of filing of the complete required documents. Upon compliance with the documentary requirements, the Regional Office or Bureau shall issue in favor of the local/chapter a certificate indicating that it is included in the roster of legitimate labor organizations.

An applicant organization is asked to fill out a Report of Creation of Local/Chapter (BLR Form No. 5-LOC-LO, s. 1998). If the supporting documents are incomplete, the Regional Office or Bureau shall issue a Notice of Non-Compliance (BLR Form No. 5-A-LOC-LO, s. 1998). If the supporting documents are deemed complete, a Certificate of Creation of Local/Chapter (BLR Reg. Form No. 5-C-LOC-LO, s. 1998) shall be issued. (Annexes “I”, “J”, and “K”.)


How can an independent union be considered an affiliate of a federation or a national union?

An independent union shall be considered an affiliate of a federation or national or industry union upon filing two copies of the following documents with the Regional Office or Bureau:
  1. verified resolution of affiliation ratified by a majority of the members of the union; and
  2. resolution of acceptance by the federation or national union.

When may a local union disaffiliate from its mother federation?

The right of a local union to disaffiliate from its mother federation is well settled. This right is consistent with the constitutional guarantee of freedom of association.

In the absence of enforceable provisions in the federation’s constitution preventing disaffiliation of a local union, a local may sever its relationship with its federation at anytime, provided a majority of local/chapter member support the act of disaffiliation.


What are the reportorial requirements of labor organizations and workers’ associations?


It shall be the duty of every legitimate labor organization or workers’ association to submit to the Regional Office or the Bureau two copies of the following:
  1. Any amendments to its constitution and by-laws and the minutes of adoption or ratification of such amendments, within 30 calendar days from its adoption or ratification;
  2. Annual financial reports within 30 calendar days after the close of each fiscal year;
  3. Updated list of newly-election officers, together with the appointive officers or agents who are entrusted with the handling of funds, within 30 calendar days after each regular or special election of officers, or from the occurrence of any change in the officers or agents of the labor organization or workers’ association; and
  4. Updated list of individual members, locals/chapters, affiliates or branches, as the case may be, within 30 calendar days after the close of each fiscal year.
The fiscal year of a labor organization or workers’ association shall coincide with the calendar day; unless a different period is prescribed in its constitution and by-laws.


Can there be several unions in one enterprise?

Yes. There can be several bargaining units in one employer unit, and at least one legitimate labor organization per bargaining unit.

Also, there can be several union within one bargaining unit, since there is no law precluding such a situation.


Can an employee refuse to join a labor organization?

Yes. It is the employee’s prerogative to join or not to join a labor organization. But the law does recognize provision in a collective bargaining agreement which require 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.


Can an employee refuse to join a labor organization on account of religion?

Yes, members of religious sects which prohibit their members from joining a labor union cannot be compelled to join a union. Their right to self-organization will prevail on religious grounds because contractual rights must yield to the constitutional guarantee of freedom of religion. But this does not prevent members of such religious sects to form a legitimate labor organization of their own.


What is an unfair labor practice (ULP)? These are offenses by the employer and labor organization which violate the constitutional right of workers and employees to self-organization. ULP are inimical to the legitimate interest of both labor and management, disrupt industrial peace and hinder the promotion of healthy and stable labor-management relations.


How can an employer be guilty of an unfair labor practice (ULP)?

ULPs by management are as follows:
  1. Interference, restraint, or coercion of employees in the exercise of their right to self-organization;
  2. Requiring 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;
  3. Contracting out services or functions being performed by union members when such will interfere with, restrain, or coerce employees in the exercise of their right to self-organization;
  4. Initiating, dominating, assisting or otherwise interfering with the formation or administration of any labor organization, including the giving of financial or other support to it or its organizers or supporters;
  5. Discrimination 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;
  6. Dismissal, discharge, prejudice or discrimination against an employee for having given or being about to give testimony under the Labor Code;
  7. Violation of the duty to bargain collectively;
  8. 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;
  9. Violation of a collective bargaining agreement.

How can a labor organization be guilty of an unfair labor practice (ULP)?

A labor organization commits ULP by committing any of the following violations:
  1. Restraint or coercion of employees in the exercise of their right to self-organization: However, the labor organization shall have the right to prescribe its own rules with respect to the acquisition or retention of membership;
  2. Causing or attempting 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 terminating 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;
  3. Violation of the duty to bargain collectively with the employer, provided that it is the representative of the employees;
  4. Causing or attempting 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 a fee for union negotiations;
  5. Asking for or accepting negotiation or attorney’s fees from employers as part of the settlement of any issue in collective bargaining or any other dispute;
  6. Violation of a collective bargaining agreement.
Note: Except flagrant and/or malicious refusal to comply with economic provisions of the CBA, violations of the agreement are mere grievances and not unfair labor practice, thus, subject to grievance machinery and voluntary arbitration.


What is the nature of an unfair labor practice (ULP)?

Unfair labor practices are not only violation of the civil rights of both labor and management, but are also criminal offenses against the State. Criminal ULP cases may be filed with the regular courts. No criminal prosecutions may be instituted, however, without a final judgment from a Labor Arbiter that an unfair labor practice was committed.


What can the employees do if management or their union commits an unfair labor practice?

The employees can file a complaint for unfair labor practice before the Regional Arbitration Branch of the National Labor Relations Commission having jurisdiction over the workplace. In cases of employer ULPs, a legitimate labor organization may file a notice of strike with the Regional Branch of the National Conciliation and Mediation Board.


Source: http://www.blr.dole.gov.ph/selforg.htm
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