Labor Relations Prelims Lectures

7/25/2019 Labor Relations Prelims Lectures

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LABOR RELATIONS

I. Nature, purpose and scope of the subject matter

CONSTITUTIONAL BASIS

Artc!e ", Secton #$.The State affirms labor as a primary social economic force. It shallprotect the rights of workers and promote their welfare.

Artc!e %, Secton $.The right of the people, including those employed in the public andprivate sectors, to form unions, associations, or societies for purposes not contrary to law shall notbe abridged.

Artc!e #%, Secton %.The State shall afford full protection to labor, local and overseas,organized and unorganized, and promote full employment and equality of employmentopportunities for all. It shall guarantee the rights of all workers to self-organization, collectivebargaining and negotiations, and peaceful concerted activities, including the right to strike inaccordance 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 theirrights and benefits as may be provided by law. The State shall promote the principle of sharedresponsibility between workers and employers and the preferential use of voluntary modes insettling disputes, including conciliation, and shall enforce their mutual compliance therewith tofoster industrial peace. The State shall regulate the relations between workers and employers,recognizing the right of labor to its ust share in the fruits of production and the right of enterprisesto reasonable returns to investments, and to e!pansion and growth.

The State shall"

#. $fford full protection to labor

a. %ocal and overseasb. &rganized and unorganized

'. (romote full employment and equality of employment opportunities for all

). It shall guarantee the rights of $%% workers to the following"a. %abor *elations

i. Self-organizationii. +ollective bargaining and negotiationsiii. (eaceful concerted activities, including the right to strike in accordance with law

b. %abor Standards

i. Security of tenureii. umane conditions of workiii. %iving wage

c. &thersi. (articipation in policy and decision making processes affecting their rights and

benefits as may be provided by law

. (romote the principle of shared responsibility between workers and employers

. (romote the preferential use of voluntary modes in settling disputes, including conciliation, andshall enforce their mutual compliance therewith to foster industrial peace.

/. *egulate the relations between workers and employers, recognizing the right of labor to its ustshare in the fruits of production and the right of enterprises to reasonable returns of investments,and to e!pansion and growth.


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II. Understandn& Labor Re!atons, ts meann&

%abor standards is anchored in labor legislation. It is a substantive right of theemployee. %abor relations is the procedure to follow to guard such right. It is procedural.

III. Labor Re!atons' Labor Standards' Labor Le&s!atons

%abor relations 0 defines the status, rights and duties, and the institutional mechanisms thatgovern the individual interactions of the employer, employee, or their representatives

%abor standards 0 sets out the minimum terms, conditions and benefits of employment thatemployers must provide or complied with and the employees are entitled as a matter of legal right.

%abor legislation 0 the promotion of the welfare of the people, the adoption by the government ofmeasures calculated to insure economic stability of all the component elements of society thru themaintenance of proper economic and social equilibrium in the interrelations of the members of thecommunity, constitutionally, thru the adoption of measures legally ustifiable, or e!tra-

constitutionally, thru the e!ercise of powers underlying the e!istence of all governments, on timehonored principle of salus populi esta suprema le!. 1+alalang vs 2illiams3

ow these three fields work and relate each other45*" The provisions of the %abor +ode cannot be invoked if there is no employee-employerrelationship.6!cept"

#. Indirect employer7s liability 0 you can implead agency and establishment in direct andindirect employer. They are solidary liable to the money claims of the aggrieved employee.Indirect employer7s defense is to prove that it has fully paid the security agency.

'. 8isuse of (&6$ license 0 found under the %abor +ode only and not on other laws.

). Illegal recruitment

Test in determining 66*The 9four-fold test: is composed of four elements. This test is the yardstick to determine employer-employee relationship"1#3 selection and engagement of the employee;1'3 payment of wages;1)3 power of dismissal; and13 power to control 0 employer controls the manners, means and method by which the work is tobe achieved.

operators on one hand andeepney drivers on the other under the boundary system is that of employer-employee and not oflessor-lessee. The eepney operators are controlling the manners, means and methods by whichwork is to be accomplished.

(akyaw basis 0 considered as employees because they are using the facilities of the companywhich dictates the manners, means and methods by which work is to be accomplished.

?rotherhood vs @amora 0 considering the length of time, it could ustifiably be concluded that theyare employees of the company. 6mployer has the power to control the employee7s conduct withrespect to the means and methods by which the work is to be accomplished.

Three instances how an employee can be considered as a regular employee


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1. If the employee is performing service>work that is usually necessary and desirable to thebusiness of the employer and there is no agreement to the contrary, he is considered aregular employee on the first day of work.

2. 6ven if he is performing work that is desirable and necessary to the business of theemployer, there is a probationary period signed in the contract in not more than / months,he is not considered a regular employee outright. owever, if the probationary last for morethan / months, he is considered as a regular employee.

3. If the employee is rendering services>continuously suffering>working for a period of # year,the employee is considered a regular employee.

IV. Natona! Labor Re!atons Commsson

a. +omposition of A%*+

The Aational %abor *elations +ommission 1A%*+3 is a quasi-udicial agency attached tothe


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$*T. '#. $ppointment and Hualifications. - The +hairman and other +ommissioners shallbe members of the (hilippine ?ar and must have engaged in the practice of law in the (hilippinesfor at least fifteen 1#3 years, with at least five 13 years e!perience or e!posure in the field oflabor-management relations, and shall preferably be residents of the region where they are to holdoffice. The 6!ecutive %abor $rbiters and %abor $rbiters shall likewise be members of the (hilippine?ar and must have been engaged in the practice of law in the (hilippines for at least seven 1C3years, with at least three 1)3 years e!perience or e!posure in the field of labor-managementrelations" (rovided, owever, that incumbent 6!ecutive %abor $rbiters and %abor $rbiters whohave been engaged in the practice of law for at least five 13 years may be considered as alreadyqualified for purposes of reappointment as such under this $ct. The +hairman and the other+ommissioners, the 6!ecutive %abor $rbiters and %abor $rbiters shall hold office during goodbehavior until they reach the age of si!ty-five years, unless sooner removed for cause as providedby law or become incapacitated to discharge the duties of their office.

The +hairman, the division (residing +ommissioners and other +ommissioners shall beappointed by the (resident, subect to confirmation by the +ommission on $ppointments.$ppointment to any vacancy shall come from the nominees of the sector which nominated the

predecessor. The 6!ecutive %abor $rbiters and %abor $rbiters shall also be appointed by the(resident, upon recommendation of the Secretary of %abor and 6mployment and shall be subectto the +ivil Service %aw, rules and regulations.

The Secretary of %abor and 6mployment shall, in consultation with the +hairman of the+ommission, appoint the staff and employees of the +ommission and its regional branches as theneeds of the service may require, subect to the +ivil Service %aw, rules and regulations, andupgrade their current salaries, benefits and other emoluments in accordance with law. 1$samended by Section C, *epublic $ct Ao. /C#, 8arch '#, #BEB3.

d. Scope of (owers of A%*+

#. *ule-8aking (ower

*ule GIII of the *evised *ules of the Aational %abor *elations +ommission on appeal,provides"

S6+TI&A #. 1a3 $ppeal.


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who has been summoned or served with notice to appear, conduct its proceedings or anypart thereof in public or in private, adourn its hearings to any time and place, refer technicalmatters or accounts to an e!pert and to accept his report as evidence after hearing of theparties upon due notice, direct parties to be oined in or e!cluded from the proceedings,correct, amend, or waive any error, defect or irregularity whether in substance or in form,give all such directions as it may deem necessary or e!pedient in the determination of thedispute before it, and dismiss any matter or refrain from further hearing or from determiningthe dispute or part thereof, where it is trivial or where further proceedings by the+ommission are not necessary or desirable. 1$rticle '#Eb, %abor +ode3

. +ontempt (ower

K1d3 To hold any person in contempt directly or indirectly and impose appropriate penaltiestherefor in accordance with law.

$ person guilty of misbehavior in the presence of or so near the +hairman or any memberof the +ommission or any %abor $rbiter as to obstruct or interrupt the proceedings beforethe same, including disrespect toward said officials, offensive personalities toward others,

or refusal to be sworn or to answer as a witness, or to subscribe an affidavit or depositionwhen lawfully required to do so, may be summarily adudged in direct contempt by saidofficials and punished by fine not e!ceeding five hundred pesos 1(JJ3 or imprisonment note!ceeding five 13 days, or both if it be the +ommission or a member thereof, or by a finenot e!ceeding one hundred pesos 1(#JJ3 or imprisonment not e!ceeding one 1#3 day, orboth if it be a %abor $rbiter.

The person adudged in direct contempt by a %abor $rbiter may appeal to the +ommissionand the e!ecution of the udgment shall be suspended pending the resolution of the appealupon the filing of such person of a bond on a condition that he will abide by and perform theudgment of the +ommission should the appeal be decided against him. =udgment of the

+ommission on direct contempt is immediately e!ecutory and unappealable. Indirectcontempt shall be dealth with by the +ommission or %abor $rbiter in the manner prescribedunder *ule C# of the *evised *ules of +ourt. 1*$ /C#; 8arch '#, #BEB3

. (ower to +onduct &cular Inspection

$rt. '#B. &cular inspection. The +hairman, any +ommissioner, %abor $rbiter or their dulyauthorized representatives, may, at any time during working hours, conduct an ocularinspection on any establishment, building, ship or vessel, place or premises, including any

work, material, implement, machinery, appliance or any obect therein, and ask anyemployee, laborer, or any person, as the case may be, for any information or dataconcerning any matter or question relative to the obect of the investigation. 1$rt. '#B, %abor+ode3

/. $ppellate $dudicatory (ower

The +ommission shall have e!clusive appellate urisdiction over all cases decided by %abor$rbiters. 1$rticle '#Cb, %abor +ode3

C. &riginal $dudicatory (ower

To enoin or restrain any actual or threatened commission of any or all prohibited orunlawful acts or to require the performance of a particular act in any labor dispute which, ifnot restrained or performed forthwith, may cause grave or irreparable damage to any party


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or render ineffectual any decision in favor of such party" (rovided, That no temporary orpermanent inunction in any case involving or growing out of a labor dispute as defined inthis +ode shall be issued e!cept after hearing the testimony of witnesses, with opportunityfor cross-e!amination, in support of the allegations of a complaint made under oath, andtestimony in opposition thereto, if offered, and only after a finding of fact by the+ommission, to the effect"

That prohibited or unlawful acts have been threatened and will be committed and will be

continued unless restrained, but no inunction or temporary restraining order shall be issuedon account of any threat, prohibited or unlawful act, e!cept against the person or persons,association or organization making the threat or committing the prohibited or unlawful act oractually authorizing or ratifying the same after actual knowledge thereof;That substantial and irreparable inury to complainant7s property will follow;That as to each item of relief to be granted, greater inury will be inflicted upon complainantby the denial of relief than will be inflicted upon defendants by the granting of relief;That complainant has no adequate remedy at law; and

That the public officers charged with the duty to protect complainant7s property are unableor unwilling to furnish adequate protection.Such hearing shall be held after due and personal notice thereof has been served, in suchmanner as the +ommission shall direct, to all known persons against whom relief is sought,and also to the +hief 6!ecutive and other public officials of the province or city within whichthe unlawful acts have been threatened or committed, charged with the duty to protectcomplainant7s property" (rovided, however, that if a complainant shall also allege that,unless a temporary restraining order shall be issued without notice, a substantial andirreparable inury to complainant7s property will be unavoidable, such a temporaryrestraining order may be issued upon testimony under oath, sufficient, if sustained, to ustifythe +ommission in issuing a temporary inunction upon hearing after notice. Such atemporary restraining order shall be effective for no longer than twenty 1'J3 days and shallbecome void at the e!piration of said twenty 1'J3 days. Ao such temporary restraining orderor temporary inunction shall be issued e!cept on condition that complainant shall first filean undertaking with adequate security in an amount to be fi!ed by the +ommissionsufficient to recompense those enoined for any loss, e!pense or damage caused by theimprovident or erroneous issuance of such order or inunction, including all reasonablecosts, together with a reasonable attorney7s fee, and e!pense of defense against the orderor against the granting of any inunctive relief sought in the same proceeding and

subsequently denied by the +ommission.The undertaking herein mentioned shall be understood to constitute an agreement enteredinto by the complainant and the surety upon which an order may be rendered in the samesuit or proceeding against said complainant and surety, upon a hearing to assess damages,of which hearing, complainant and surety shall have reasonable notice, the saidcomplainant and surety submitting themselves to the urisdiction of the +ommission for thatpurpose. ?ut nothing herein contained shall deprive any party having a claim or cause ofaction under or upon such undertaking from electing to pursue his ordinary remedy by suitat law or in equity" (rovided, further, That the reception of evidence for the application of awrit of inunction may be delegated by the +ommission to any of its %abor $rbiters who shall

conduct such hearings in such places as he may determine to be accessible to the partiesand their witnesses and shall submit thereafter his recommendation to the +ommission.1$rticle '#Ee, %abor +ode $s amended by Section #J, *epublic $ct Ao. /C#, 8arch '#,#BEB3


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From Aotes" tripartite representation of the A%*+" ) representatives from the employer, employeeand public sector. 2hich means that the ) sectors are equally represented in the composition ofthe A%*+.

E from the labor>workers sectorE from the employers>management sectorE from public sector including the +hairman

*$ B)CC 0 on =une ', 'JJ/ composition of the A%*++hairman and ') membersA%*+ shall be composed of E divisions each shall have ) members#st, 'nd, )rd, th, th, and /thdivisions will have e!clusive urisdiction in A+*. Its office is in ?anawe,8etro 8anila

Cthdivision has e!clusive appellate urisdiction in Gisayas 1+ebu +ity3Ethdivision has e!clusive appellate urisdiction in 8indanao 1+agayan de &ro3

The chairman of the commission shall be the presiding commissioner of the #stdivision. The C

members of the public sector will be the presiding commissioners of the '

nd

, )

rd

,

th

.

th

,/

th

, C

th

, E

th

respectively.

The chairman presides. In case he is absent, the presiding commissioner of the 'nddivision will actas a chairman.

C powers of the A%*+#. *ule making power'. (ower to issue compulsory processes). To investigate and hear dispute. +onduct ocular inspection

. $ppellate adudicatory power/. &riginal adudicatory power

*izal empire insurance group vs A%*+ 0 rules of A%*+ are revised almost every ) years. 0it is still valid and has the force and effect of law.

+ompulsory process 0 document to compel the attendance of any person 1subpoena3


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employee in the official function or during official

transaction'. *esistance to a lawful order or decision). $buse or unlawful action intended to disrupt the proceedings if not constituting

direct contempt. Failure to obey subpoena issued or compulsory processes. Dsurpation of authority of the attorney or representative of the party/. &ther analogous instances

Ao imprisonment but has fine

If committed to the +hairman 0 indirect contempt #,JJJ fine for everyinstances. If committed to the labor arbiter 0 JJ everyday for everycount>instances of indirect contempt

In case of insolvency or refusal to pay, there is subsidiary imprisonment toe!ecute the decision.

(ower to investigate$ppellate adudicatory power&riginal adudicatory power 0#. In cases involving industries that are dispensable to national interest 1if

certified by the secretary of labor3'. $ll cases for petition for inunction and issuance of temporary restraining

order.

(. T)E LABOR OR*ANI+ATION

%abor organization 0 means any union or association of employees which e!ists in whole orin part for the purpose of collective bargaining or of dealing with employers covering terms andconditions of employment.

' broad purposes"#. collective bargaining'. dealing with employers

+ommon- concerned with terms and conditions of employment

+ollective bargaining 0 to bargain collectively. $ right acquired after being registered with


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a. right to unauthorized collectionb. collection of e!cessive feesc. disbursement of fundsd. require adequate recordse. access to financial recordsf. right to vote for officer of companyg. propose special assessmenth. right to be deducted on

. right to information 0 right to know the rules>regulation constitution and by laws. *ight tobe informed of the provisions of the +?$. ?asic policies and provision of union.

8ere employee without being necessary a union member has the right to present directlyhis grievances to the employer.

8ay an employee be compelled to oin %&45*" no. art 'CC %+. 6mployees cannot be compelled to oin %&6!cept" in case of closed shop agreement6ffect" all employees in +?$ must oin the ruling union otherwise, it is a valid ground for

termination6!cept" in case of religious grounds>obectionsLapatiran vs +allea> victorino vs elizalde

6ven if there is a closed shop agreement, they cannot be compelled to oin a uniondue to religious conviction. owever if they want to form a union, they can.

8ay an %& be compelled to admit an employee45*" A&. it depends upon the unions constitution and by laws>acquisition and retention ofemployees


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- $ll employees of civil service- 6!cept" employees of 5&++s with original charter covered by the civil service

code may only form association for their own mutual aid and protection but theycannot form union, strike, +?$ or unlawful act. owever, 5&++s without originalcharter formed under the corporation code and covered by the %abor +ode of the(hilippines may engage lawful concerted activities such as strike and may formunion for the purpose of +?$.

- 8anagerial employees are not eligible to oin, assist or form any labororganization.

- Supervisory employees shall not be eligible for membership in a labororganization of the rank-and-file employees but may oin, assist or form separatelabor organizations of their own.

- +ooperative owners cannot but employees can.- *eligious obectors- 8embers of $F(, (A(, ail guards cannot oin but can form, assist, oin separate

labor organization of their own for mutual aid and protection.

&riginal charter covered by civil service"

- Sss- %ocal water districts- 82SS- (A?- (+S&- (


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relations. 1Thus there is a fiduciar) and confidential relationship bet*een !anager and e!plo)er.3It is not far-fetched that in the course of +?, they might eopardize that interest which they are dutybound to protect. NMetrolab +ndustries +nc. v. 'oldan-onfessor$ 1%%,O

lobe octrine/ oncept1a3 practice designated as the K5lobe doctrine,K which sanctions the holding of a series ofelections, not for the purpose of allo*ing the group receiving an over all !a0orit) of votes torepresent all e!plo)ees, but for the specific purpose of permitting the employees in each of theseveral categories to select the group which each chooses as a bargaining unit. Napisanan ng!ga Manggaga*a sa Manila 'oad o. v. ard re* "nion $ 1%,O'ationale for the lobe octrineighly skilled or specialized technical workers may choose to form their own bargaining unitbecause they may be in better position to bargain with the employer considering the market valueof their skills.

Security guards 0 may oin labor union of rank and file and labor union of managerial.In


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litmus test to determine propriety of ?D"Test to determine the constituency of an appropriate bargaining unit12$(631#3 2ill of the 6mployees 15lobe


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- If the result is not achieved, the remedy is through consent election). +onsent 6lection 0 self made method devised by contending unions themselves to

determine which among them truly caries the maority representation of the bargaining unit.

+ertification election vs consent electionIn certification election, the decision comes from the employees themselves through secretballoting while in consent election, the decision comes from the union themselves which is madewithout secrecy.In certification election, it is inevitably conducted with the presence of mid arbiter while consentelection can be done with or without the mid arbiter from

Labor Relations Prelims Lectures

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