Labor Relations Part III

LABOR RELATIONS PART I: BASIC CONCEPTS
ST. THOMAS MORE SCHOOL OF BUSINESS AND LAW
LABOR RELATIONS PART III
following documents in addition to its charter

certificate:
LABOR ORGANIZATIONS
(a) The names of the chapter's officers, their

addresses, and the principal office of the
chapter; and
Chapter I
REGISTRATION AND CANCELLATION
Art. 234. Requirements of Registration.

A federation, national union or industry or
trade union center or an independent union
shall acquire legal personality and shall be
entitled to the rights and privileges granted
by law to legitimate labor organizations upon
issuance of the certificate of registration
based on the following requirements:
(a) Fifty pesos (P50.00) registration fee;
(b) The names of its officers, their addresses,
the
principal
address
of
the
labor
organization,
the
minutes
of
the
organizational meetings and the list of the
workers who participated in such meetings;
(c) In case the applicant is an independent
union, the names of all its members
comprising at least twenty percent (20%) of
all the employees in the bargaining unit
where it seeks to operate;
(d) If the applicant union has been in
existence for one or more years, copies of its
annual financial reports; and
(e) Four copies of the constitution and bylaws of the applicant union, minutes of its
adoption or ratification, and the list of the
members who participated in it. (As
amended by Republic Act No. 9481, May 25,
2007)
________
Art. 234-A. Chartering and Creation of a
Local
Chapter. - A duly registered federation or
national union may directly create a local
chapter by issuing a charter certificate
indicating the establishment of the local
chapter. The chapter shall acquire legal
personality only for purposes of filing a
petition for certification election from the
date it was issued a charter certificate.
The chapter shall be entitled to all other
rights and privileges of a legitimate labor
organization only upon the submission of the
(b) The chapter's constitution and by-laws:

Provided,
That
where
the
chapter's
constitution and by-laws are the same as
that of the federation or the national union,
this fact shall be indicated accordingly. The
additional supporting requirements shall be
certified under oath by the secretary or
treasurer of the chapter and attested by its
president.
________
Art. 235. Action on application. The
Bureau shall act on all applications for
registration within thirty (30) days from
filing. All requisite documents and papers
shall be certified under oath by the secretary
or the treasurer of the organization, as the
case may be, and attested to by its
president.
________
Art. 236. Denial of registration; appeal.
The decision of the Labor Relations Division
in the regional office denying registration
may be appealed by the applicant union to
the Bureau within ten (10) days from receipt
of notice thereof.
________
Art. 237. Additional requirements for
federations or national unions. Subject
to Article 238, if the applicant for registration
is a federation or a national union, it shall, in
addition to the requirements of the
preceding Articles, submit the following:
a. Proof of the affiliation of at least ten (10)
locals or chapters, each of which must be a
duly recognized collective bargaining agent
in the establishment or industry in which it
operates, supporting the registration of such
applicant federation or national union; and
b. The names and addresses of the
companies where the locals or chapters
operate and the list of all the members in
each company involved.
LABOR ORGANIZATION:
PURPOSES
TWO
BROAD
A labor organization is not always a

union; it may be an association of
employees. And, the purpose is not only or
necessarily collective bargaining but also
Page 1 of 32

dealing with employers concerning terms

and conditions of employment.
"Labor Organization" refers to any union or
association of employees in the private
sector which exists in whole or in part for the
purpose of collective bargaining, mutual aid,
interest, cooperation, protection, or other
lawful purposes.
"Legitimate Labor Organization" refers to
any labor organization in the private sector
registered or reported with the Department
in accordance with Rules III and IV of these
Rules.
"Union" refers to any labor organization in
the private sector organized for collective
bargaining and for other legitimate purposes.
We should note that not every union is
legitimate; only those properly registered
are considered LLO. But non-registration
does not mean it is illegitimate; it simply is
unregistered and has no legal personality. It
exists legally but does not possess the rights
of an LLO.
"Exclusive Bargaining Representative"
refers to a legitimate labor union duly
recognized or certified as the sole and
exclusive bargaining representative or agent
of all the employees in a bargaining unit.
"Workers' Association" refers to an
association of workers organized for the
mutual aid and protection of its members or
for any legitimate purpose other than
collective bargaining.
"Legitimate Workers' Association" refers
to an association of workers organized for
mutual aid and protection of its members or
for any legitimate purpose other than
collective bargaining registered with the
Department in accordance with Rule III,
Sections 2-C and 2-D of these Rules.
Distinction
Between
Bargaining and
Dealing with Employer
Collective
To bargain collectively is a right that may be

acquired by a labor organization after
registering itself with the Department of
Labor and Employment and after being
recognized or certified by DOLE as the
exclusive bargaining representative (EBR) of
the employees.
Dealing with employer, on the other hand, is
a generic description of interaction between
employer
and
employees
concerning
grievances, wages, work hours and other
terms and conditions of employment, even if
the employees group is not registered with
the Department of Labor and Employment.
CLASSIFICATION OF LABOR
ORGANIZATIONS
"National Union/Federation" means any labor
organization with at least ten (10) locals or
chapters each of which must be a duly
recognized collective bargaining agent.
Industry Union means any group of
legitimate labor organizations operating
within an identified industry, organized for
collective bargaining or for dealing with
employers concerning terms and conditions
of employment within an industry, or for
participating in the formulation of social and
employment
policies,
standards
and
programs in such industry, which is duly
registered with the Department. D.O. No. 4003, however, does not carry this term and
this definition, although under Rule III,
Section 2-B, labor organizations operating
within an identified industry may also apply
for registration as a federation or national
union within the specified industry by
submitting to the Bureau the same set of
documents (as required of federations and
national unions.)
Trade Union Center means any group of
registered national unions or federations
organized for the 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, which is
duly registered with the Department.
An alliance is an aggregation of unions
existing in one line of industry, or in a
conglomerate, a group of franchises, a
geographical area, or an industrial center.
A company-union is a labor organization
which, in whole or in part, is employercontrolled or employer denominated. Article
248(d) prohibits being a company union. 2.1
Unions at Enterprise Level A labor union at
the enterprise level may be created either by
(a)
independent
registration
or
(b)
chartering. Independent registration
is
obtained by the union organizers in an
enterprise through their own action instead
of through issuance of a charter by a
federation or national union. An independent
union has a legal personality of its own not
derived from that of a federation.
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WHERE TO REGISTER
"Independent Union" refers to a labor
organization operating at the enterprise level
that acquired legal personality through
independent registration under Article 234 of
the Labor Code and Rule III, Section 2-A of
these Rules.
Chartering, on the other hand, takes place
when a duly registered federation or national
union issue a charter to a union in an
enterprise and registers the creation of the
chapter with the Regional Office where the
applicants operates. The union recipient of
the charter s called a chapter or local or
chartered local. Its legal personality is
derived from the federation/ national union
but it may subsequently register itself
independently.
Applications for registration of independent

labor unions, chartered locals, and workers
association shall be filed with the Regional
Office where the applicant principally
operates.
If the Regional Office denies the application,
the denial is appealable to the Bureau and
from there to the Court of Appeals (not to the
Secretary of Labor) if proper grounds exist.
REGISTRATION REQUIREMENTS
Independent Labor Union
Section 2. Requirements for application.
A. The application for registration of an
independent
labor
union
shall
be
accompanied by the following documents:
REGISTRATION RATIONALE
A labor organization may be registered or
not. If registered with DOLE, it is considered
legitimate labor organization (LLO). But the
reverse us not true, that is, a labor
organization is not illegitimate just
because it is unregistered. It is still lawful
organization and can deal with the employer,
but it has no legal personality to demand
collective bargaining with the employer. It
cannot petition for a certification election
and cannot hold a legal strike.
(a) the name of the applicant labor union, its

principal address, the name of its officers
and their respective addresses, approximate
number of employees in the bargaining unit
where it seeks to operate, with a statement
that it is not reported as a chartered local of
any federation or national union;
Registration is merely a condition sine qua

non for the acquisition of legal personality by
labor organizations, associations or unions
and the possession of the rights and
privileges granted by law to legitimate labor
organizations.
(c) the name of all its members comprising

at least 20% of the employees in the
bargaining unit;
Such requirement is a valid exercise of the

police power, because the activities in which
labor organizations, associations and union
of workers are engaged affect public interest,
which should be protected.
Effect of Registration
Corporation Law
Under
the
A labor organization may be organized under

the Corporation Law as a non-stock
corporation and issued a certificate of
incorporation by the Securities and Exchange
Commission. But such incorporation has only
the effect of giving to it juridical personality
before regular courts of justice. Such
incorporation does not grant the rights and
privileges of a legitimate labor organization.
(b) the minutes of the organizational

meeting(s) and the list of employees who
participated in the said meeting(s);
(d) the annual financial reports if the

applicant has been in existence for one or
more years, unless it has not collected any
amount from the members, in which case a
statement to this effect shall be included in
the application;
(e) the applicant's constitution and by-laws,
minutes of its adoption or ratification, and
the list of the members who participated in
it. 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 a case, the
factual circumstances of the ratification shall
be recorded in the minutes of the
organizational meeting(s).
Federation or National Union
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B. The application for registration of

federations and national unions shall be
(a) a statement indicating the name of the
applicant labor union, its principal address,
the name of its officers and their respective
addresses;
meeting(s) and the list of employees who
participated in the said meeting(s);
(c) the annual financial reports if the
applicant union has been in existence for one
or more years, unless it has not collected any
the application;
(d) the applicant union's constitution and bylaws, minutes of its adoption or ratification,
and the list of the members who participated
in it. The list of ratifying members shall be
dispensed with where the constitution and
by-laws was ratified or adopted during the
organizational meeting(s). In such a case,
the factual circumstances of the ratification
shall be recorded in the minutes of the
organizational meeting(s);
(e) the resolution of affiliation of at least ten
(10) legitimate labor organizations, whether
independent unions or chartered locals, each
of which must be a duly certified or
recognized
bargaining
agent
in
the
establishment where it seeks to operate; and
(f) the name and addresses of the companies
where the affiliates operate and the list of all
the members in each company involved.
Labor organizations operating within an
identified industry may also apply for
registration as a federation or national union
within the specified industry by submitting to
the Bureau the same set of documents.
Workers Association
C. The application for registration of a
workers' association shall be accompanied
by the following documents:
(a) the name of the applicant association, its
principal address, the name of its officers
and their respective addresses;
meeting(s) and the list of members who
participated therein;
(c) the financial reports of the applicant

association if it has been in existence for one
or more years, unless it has not collected any
the application;
(d) the applicant's constitution and by-laws
to which must be attached the names of
ratifying members, the minutes of adoption
or ratification of the constitution and by-laws
and the date when ratification was made,
unless ratification was done in the
organizational meeting(s), in which case
such fact shall be reflected in the minutes of
the organizational meeting(s).
Chartered Local
When Does a Chartered Local Become an
LLO
The acquisition of legal personality cannot be
the date of filing of the documents. Section 3
(Department Order No. 9, 1997) was
defeating the very purpose of registration of
unions which was to block off fly-by-night
unions.
When Does a Chartered Local Acquire Legal
Personality under D.O. No. 40, Series of 2003
Section 8. Effect of registration. - The
labor union or workers' association shall be
deemed registered and vested with legal
personality on the date of issuance of its
certificate of registration or certificate of
creation of chartered local
The determinative date now is not the date
the required documents were filed but the
date the certificate was issued. And the date
of issuance is likely to be the date the
documents were filed because D.O. No. 40-D05, supplementing D.O. No. 40-03, requires
the Regional Office or the Bureau to either
approve or deny the application for
registration within one (1) day from receipt
thereof.
Recognition by BLR not a Ministerial Duty
Chartered Local
Requirements
Has
to
be
Registered;
Registration Requirements for a Chartered

Local
E. A duly-registered federation or national
union may directly create a chartered local
by submitting to the Regional Office two (2)
copies of the following:
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(a) A charter certificate issued by the

federation or national union indicating the
creation
or
establishment
of
the
local/chapter;
(b) The names of the local/chapters officers,
their addresses, and the principal office of
the local/chapter; and
(c) The local/chapters constitution and bylaws, provided that where the local/chapters
constitution and by-laws is the same as that
of the federation or national union, this fact
shall be indicated accordingly.
All of the foregoing supporting requirements
shall be certified under oath by the Secretary
or the Treasurer of the local/chapter and
attested by its President. (As amended by DO
40-B-03.)
Requirements Relaxed
The creation of a local does not need
subscription by a minimum number of
members. The 20 percent initial membership
mentioned in Article 234(c) is required of an
independent union but not of a chartered
local.
Unions Legitimacy not Subject to Collateral
Attack
Such legal personality may be questioned
only through an independent petition for
cancellation
of
union
registration
in
accordance with Rule XIV of these Rules, and
not by way of collateral attack in petition for
certification election proceedings under Rule
VIII.
COLLECTIVE BARGAINING UNIT (CBU)
"Bargaining Unit" refers to a group of
employees sharing mutual interests within a
given employer unit, comprised of all or less
than all of the entire body of employees in
the
employer
unit
or
any
specific
occupational or geographical grouping within
such employer unit.
While officers lead and represent a union, a
union represents a CBU. The representative
is the union; the group represented is the
CBU. The representative union, once
determined,
will
represent
even
the
members of other unions as long as they are
part of the CBU. This is why the
representative union (also called bargaining
agent or majority union) is called exclusive
bargaining representative (EBR).
CONSTITUION, BY-LAWS, AND

REGULATIONS
Like other voluntary associations, labor
unions have the right to adopt constitutions,
rules, and by-laws within the scope of the
lawful purposes of the union and bind their
members thereby, provided they are
reasonable, uniform, and not discriminatory,
and provided they are not contrary to public
policy or the law of the land.
The articles of agreement of a labor union,
whether called a constitution, charter, bylaws, or any other name, constitutes a
contract between the members which the
courts will enforce, if not immoral or contrary
to public policy or the law of the land. A
unions constitution and by-laws govern the
relationship
between
and
among
its
members. As in the interpretation of
contracts, if the terms are clear and leave no
doubt as to the intentions of the parties, the
literal meaning of the stipulation shall
control.
Limitation to By-laws
Under Art. 234(e) it is implied that the
members are the ones to adopt or ratify the
unions constitution and by-laws. It being a
governing law of the union, the CBL should
be democratically ratified.
Amendments
A unions constitution and by-laws may be
amended, modified and extended by the
duly constituted union authorities under the
laws of the state, In the absence of other
requirements, and subject to vested rights, a
union constitution may be made, changed,
unmade, or superseded by a majority vote of
the members or its constituent body. Under
Art. 241(d), major policy questions are to be
deliberated upon and decided by secret
ballot by the members.
AFFILIATION
An affiliate is an independently registered
union that enters into an agreement of
affiliation with a federation or a national
union. It also refers to a chartered local
which applies for and is granted an
independent registration but does not
disaffiliate from its mother federation or
national union.
Page 5 of 32

A union, either an independent or a local,

affiliates with a federation or national union
for a number of reasons. The most common
ones are to secure support or assistance
particularly during the formative stage of
unionization; or to utilize expertise in
preparing and pursuing bargaining proposals;
or to marshal mind and manpower in the
course of a group action such as strike.
The relationship between a local or chapter
and the labor federation or national union is
generally understood to be that of agency,
where the local is the principal and the
federation the agent.
Report of Affiliation; Requirements
Section 6. Report of Affiliation with
federations or national unions; Where to file.
- The report of affiliation of an independently
registered labor union with a federation or
national union shall be filed with the Regional
Office
that
issued
its
certificate
of
registration.
Section 7. Requirements of affiliation. - The
report
of
affiliation
of
independently
registered labor unions with a federation or
national union shall be accompanied by the
following documents:
(a) resolution of the labor union's board of
directors approving the affiliation;
(b) minutes of the general membership
meeting approving the affiliation;
(c) the total number of members comprising
the labor union and the names of members
who approved the affiliation;
(d) the certificate of affiliation issued by the
federation in favor of the independently
registered labor union; and
(e) written notice to the employer concerned
if the affiliating union is the incumbent
bargaining agent.
Yet the local unions remain the basic units of

association, free to serve their own interests
subject to the restraints imposed by the
constitution and bylaws of the national
federation, and free also to renounce the
affiliation upon the terms laid down in the
agreement which brought such affiliation into
existence.
To disaffiliate is a right, but to observe the
terms of affiliation is an obligation
Local Union is the Principal, Federation the
Agent
Disaffiliation of employees from their mother
union and their formation into a new union
do not terminate their status as employees
of the corporation, as the employees and
members of the local union did not form a
new union but merely exercised their right to
register their local union.
When to Disaffiliate
While it is true that a local union is free to
serve the interest of all its members and
enjoys the freedom to disaffiliate, such right
to disaffiliate may be exercised and is thus
considered a protected labor activity only
when
warranted
by
circumstances.
Generally, a labor union may disaffiliate from
the mother union to form a local or
independent union only during the 60- day
freedom period immediately preceding the
expiration of the CBA.
The freedom period refers to the last 60days of the fifth and last year of a CBA.
But even before the onset of the freedom
period (and despite the closed-shop provision
in the CBA between the mother union and
management) disaffiliation may still be
carried out, but such disaffiliation must be
effected by a majority of the members in the
bargaining unit.
This ruling is true ONLY if the contract of
affiliation does not specify the period for
possible disaffiliation.
DISAFFILIATION
The sole essence of affiliation is to increase,
by collective action, the common bargaining
power of local unions for the effective
enhancement and protection of their
interests. Admittedly, there are times when
without succor and support local unions may
find it hard, unaided by other support
groups, to secure justice for themselves.
Disaffiliation must be by Majority Decision

Article 241(d) applies to disaffiliation, thus, it
has to be decided by the entire membership
through secret balloting.
Disaffiliation: Effect on Legal Status
Page 6 of 32

When a union which is not independently

registered disaffiliates from the federation, it
is not entitled to the rights and privileges
granted to a legitimate labor organization. It
cannot file a petition for certification
election.
Disaffiliation: Effect on Union Dues
The obligation of an employee to pay union
dues is coterminous with his affiliation or
membership. A contract between an
employer and the parent organization as
bargaining agent for the employees is
terminated by the disaffiliation of the local of
which the employees are members.
Disaffiliation: Effect on Existing
theSubstitutionary Doctrine
Where there is consolidation, the legal

existence
of
the
consolidating
labor
organizations shall cease and a new labor
organization is created. The newly created
labor organization shall acquire all the rights,
interests and obligations of the consolidating
labor organizations.
CBA;
The substitutionary doctrine provides that

the employees cannot revoke the validly
executed collective bargaining contract with
their employer by the simple expedient of
changing their bargaining agent. The new
agent must respect the contract.
REVOCATION OF CHARTER
A federation, national union or workers
association may revoke the charter issued to
a local/chapter or branch by serving on the
latter a verified notice of revocation, copy
furnished the Bureau, on the ground of
disloyalty or such other grounds as may be
specified in the constitution and bylaws of
the federation, national union or workers
association.
The revocation shall divest the local/chapter
of its legal personality upon receipt of the
notice by the Bureau, unless in the
meantime the local/chapter has acquired
independent registration in accordance with
these Rules.
Effect of Cancellation of Registration of
Federation
or
National
Union
on
Locals/Chapter
The cancellation of registration of a
federation or national union shall operate to
divest its local/chapter of their status as
legitimate labor organizations, unless the
locals/chapters are covered by a duly
registered collective bargaining agreement.
MERGER AND CONSOLIDATION
Section 10. Effect of merger or consolidation.

Where there is a merger of labor
organizations, the legal existence of the
absorbed labor organization(s) ceases, while
the legal existence of the absorbing labor
organization subsists. All the rights, interests
and obligations of the absorbed labor
organizations
are
transferred
to
the
absorbing organization.
Consolidation usually occurs between two

unions that are approximately the same size,
whereas merger often involves a larger union
merging with a smaller union.
Why do unions merge?
They merge for reasons similar to those
behind corporate mergers. First, a small
union may merge with a larger union in order
to gain access to greater resources and
expertise.
Second, unions that have traditionally
competed with each other for members may
merge
in
order
to
eliminate
interorganizational conflicts.
Third, unions whose members skills have
been outmoded by technological and
economic changes may merge with a
stronger union in order to maintain job
security and institutional survival.
Notice of Merger/Consolidation
Organizations; Where to File
of
Labor
Section 8. Notice of Merger/Consolidation of

labor organizations; Where to file. - Notice of
merger or consolidation of independent labor
unions, chartered locals and workers'
associations shall be filed with and recorded
by the Regional Office that issued the
certificate
of
registration/certificate
of
creation of chartered local of either the
merging or consolidating labor organization.
Notice of merger or consolidation of
federations or national unions shall be filed
with and recorded by the Bureau.
Requirements
of
Merger/Consolidation
Page 7 of 32
Notice
of

The notice of merger of labor organizations

shall be accompanied by the following
documents:
(a) the minutes of merger convention or
general membership meeting(s) of all the
merging labor organizations, with the list of
their respective members who approved the
same; and
(b) the amended constitution and by-laws
and minutes of its ratification, unless
ratification
transpired
in
the
merger
convention, which fact shall be indicated
accordingly.
Certificate of Registration
Section 10. Certificate of Registration. The certificate of registration issued to
merged labor organizations shall bear the
registration number of one of the merging
labor organizations as agreed upon by the
parties to the merger.
The certificate of registration shall indicate
the following:
(a) the new name of the merged labor
organization;
(b) the fact that it is a merger of two or more
labor organizations;
(c) the name of the labor organizations that
were merged;
(d) its office or business address; and
(e) the date when each of the merging labor
organization.
CHANGE OF NAME
The change of name of a labor organization

shall not affect its legal personality. All rights
and obligations of a labor organization under
its old name shall continue to be exercised
by the labor organization under its new
name.
Art. 238. Cancellation of Registration.
The certificate of registration of any
legitimate
labor
organization,
whether
national or local, may be cancelled by the
Bureau, after due hearing, only on the
grounds specified in Article 239 hereof. (As
amended by Republic Act No. 9481, May 25,
2007)
________
Art. 238-A. Effect of a Petition for
Cancellation of Registration. - A petition
for cancellation of union registration shall not
suspend the proceedings for certification
election nor shall it prevent the filing of a
petition for certification election.
In case of cancellation, nothing herein shall
restrict the right of the union to seek just and
equitable remedies in the appropriate courts.
(As amended by Republic Act No. 9481, May
25, 2007)
________
Art. 239. Grounds for Cancellation of
Union Registration. - the following may
constitute grounds for cancellation of union
registration:
(a) Misrepresentation, false statement or
fraud in connection with the adoption or
ratification of the constitution and by-laws or
amendments thereto, the minutes of
ratification, and the list of members who
took part in the ratification;
Section 3. Notice of change of name of labor

organizations; Where to file. - The notice for
change of name of a registered labor
organization shall be filed with the Bureau or
the Regional Office where the concerned
labor organization's certificate of registration
or certificate of creation of a chartered local
was issued.
(b) Misrepresentation, false statements or

fraud in connection with the election of
officers, minutes of the election of officers,
and the list of voters;
Section 4. Requirements for notice of

change of name. The notice for change of
name of a labor organization shall be
________
(a) proof of approval or ratification of change

of name; and
(b) the amended constitution and by-laws.
Effect of Change of Name
(c) Voluntary dissolution by the members.

(As amended by Republic Act No. 9481, May
25, 2007)
Art. 239-A. Voluntary Cancellation of

Registration. The registration of a
legitimate labor organization may be
cancelled by the organization itself.
Provided, That at least two-thirds of its
general membership votes, in a meeting duly
called for that purpose to dissolve the
Page 8 of 32

organization: Provided, further, That an

application
to
cancel
registration
is
thereafter submitted by the board of the
organization, attested to by the president
thereof. (As amended by Republic Act No.
9481, May 25, 2007)
________
CANCELLATION OF REGISTRATION;
GROUNDS
While registration is the act that converts a
labor organization to a legitimate labor
organization, cancellation is the government
act that [divests] it of that status. It thereby
reverts to its character prior to the
registration. Although it does not cease to
exist or become an unlawful organization, its
juridical personality as well as its statutory
rights and privileges [are] suspended. It
loses entitlement to the rights enumerated in
Article 242 of the Labor Code.
It cannot demand recognition by or
bargaining with the employer, cannot file a
petition for certification election, and cannot
strike.
Cabo
"Cabo" refers to a person or group or persons
or to a labor group which, in the guise of a
labor organization, supplies workers to an
employer, with or without any monetary or
other consideration whether in the capacity
of an agent of the employer or as an
ostensible independent contractor.
(c) updated list of newly-elected officers,

together with the appointive officers or
agents who are entrusted with the handling
of funds, within thirty (30) days after each
regular or special election of officers, or from
the occurrence of any change in the officers
of agents of the labor organization or
workers association;
(d) updated list of individual members of
chartered locals, independent unions and
workers' associations within thirty (30) days
after the close of each fiscal year; and
(e) updated list of its chartered locals and
affiliates or member organizations, collective
bargaining agreements executed and their
effectivity period, in the case of federations
or national unions, within thirty (30) days
after the close of each fiscal year, as well as
the updated list of their authorized
representatives, agents or signatories in the
different regions of the country.
As understood in these Rules, the fiscal year
of a labor organization shall coincide with the
calendar year, unless
a different period is prescribed in the
constitution and bylaws.
Failure of the labor organization to submit
the reports mentioned above for five (5)
consecutive years authorizes the Bureau to
institute cancellation proceedings upon its
own initiative or upon complaint by any
party-in-interest.
WHO FILES PETITION FOR
CANCELLATION
Administrative Cancellation; the reportorial

requirements
Section 1. Reporting requirements. - It shall
be the duty of every legitimate labor unions
and workers associations to submit to the
Regional Office or the Bureau which issued
its certificate of registration or certificate of
creation of chartered local, as the case may
be, two (2) copies of each of the following
documents:
(a) any amendment to its constitution and
by-laws and the minutes of adoption or
ratification of such amendments, within
thirty (30) days from its adoption or
ratification;
(b) annual financial reports within thirty (30)
days after the close of each fiscal year or
calendar year;
Section 2. Who may file. - Any party-ininterest may commence a petition for
cancellation of registration, except in actions
involving violations of Article 241, which can
only be commenced by members of the labor
organization concerned.
Section 3. Grounds for cancellation. - The
following shall constitute grounds for
cancellation
of
registration
of
labor
organizations:
(g) commission of any of the acts
enumerated under Article 241 of the Labor
Code; provided that no petition for
cancellation based on this ground may be
granted unless supported by at least thirty
(30%) percent of all the members of the
respondent labor organization;
Page 9 of 32

The petition shall be under oath and shall

state clearly and concisely the facts and
grounds relied upon, accompanied by proof
of service to the respondent. But such
petition cannot be entertained in the petition
for certification election filed by the union.
WHERE TO FILE PETITION
Section 1. Where to file. - Subject to the
requirements of notice and due process, the
registration of any legitimate independent
labor union, chartered local and workers'
association may be cancelled by the
Regional Director, or in the case of
federations, national or industry unions and
trade union centers, by the Bureau Director,
upon the filing of an independent complaint
or petition for cancellation.
Cancellation orders issued by the Regional
Director are appealable to the BLR. The
latters decision is final and executor, hence,
not appealable to the
DOLE Secretary but it may be elevated to the
Court of Appeals by certiorari.
BLR decisions on cancellation cases that
originated at the BLR itself may be appealed
to the Secretary and, again, by certiorari to
the CA.
PROCEDURE
Section 2. Procedure. - The Labor Relations
Division of the Regional Office shall make a
report of the labor organization's noncompliance and submit the same to the
Bureau for verification with its records. The
Bureau shall send by registered mail with
return card to the labor organization
concerned, a notice for compliance indicating
the documents it failed to submit and the
corresponding period in which they were
required, with notice to comply with the said
reportorial requirements and to submit proof
thereof to the Bureau within ten (10) days
from receipt thereof.
Where no response is received by the Bureau
within thirty (30) days from the release of
the
first
notice,
another
notice
for
compliance shall be made by the Bureau,
with warning that failure on its part to
comply with the reportorial requirements
within the time specified shall cause the
continuation of the proceedings for the
administrative cancellation of its registration.
Section
3.
Publication
of
notice
of
cancellation of registration . - Where no
response is again received by the Bureau
within thirty (30) days from release of the
second notice, the Bureau shall cause the
publication of the notice of cancellation of
registration of the labor organization in two
(2) newspapers of general circulation. The
Bureau may conduct an investigation within
the employer's premises and at the labor
organization's last known address to verify
the latter's existence.
________
Art. 240. Equity of the incumbent. All
existing
federations
and
national
unions which meet the qualifications of
a legitimate labor organization and
none of the grounds for cancellation
shall continue to maintain their existing
affiliates regardless of the nature of the
industry and the location of the
affiliates.
Chapter II
RIGHTS AND CONDITIONS OF
MEMBERSHIP
Art.
241.
Rights
and
conditions
of
membership in a labor organization. The
following are the rights and conditions of
membership in a labor organization:
a. No arbitrary or excessive initiation fees
shall be required of the members of a
legitimate labor organization nor shall
arbitrary, excessive or oppressive fine and
forfeiture be imposed;
b. The members shall be entitled to full and
detailed reports from their officers and
representatives of all financial transactions
as provided for in the constitution and bylaws of the organization;
c. The members shall directly elect their
officers, including those of the national union
or federation, to which they or their union is
affiliated, by secret ballot at intervals of five
(5) years. No qualification requirements for
candidacy to any position shall be imposed
other than membership in good standing in
subject labor organization. The secretary or
any other responsible union officer shall
furnish the Secretary of Labor and
Employment with a list of the newly-elected
officers, together with the appointive officers
or agents who are entrusted with the
handling of funds, within thirty (30) calendar
Page 10 of 32

days after the election of officers or from the

occurrence of any change in the list of
officers of the labor organization; (As
amended by Section 16, Republic Act No.
6715, March 21, 1989)
d. The members shall determine by secret
ballot, after due deliberation, any question of
major policy affecting the entire membership
of the organization, unless the nature of the
organization or force majeure renders such
secret ballot impractical, in which case, the
board of directors of the organization may
make the decision in behalf of the
general membership;
e. No labor organization shall knowingly
admit
as
members
or
continue
in
membership any individual who belongs to a
subversive organization or who is engaged
directly or indirectly in any subversive
activity;
f. No person who has been convicted of a
crime involving moral turpitude shall be
eligible for election as a union officer or for
appointment to any position in the union;
g. No officer, agent or member of a labor
organization shall collect any fees, dues, or
other contributions in its behalf or make any
disbursement of its money or funds unless
he is duly authorized pursuant to its
constitution and by-laws;
h. Every payment of fees, dues or other
contributions by a member shall be
evidenced by a receipt signed by the officer
or agent making the collection and entered
into the record of the organization to be kept
and maintained for the purpose;
i. The funds of the organization shall not be
applied for any purpose or object other than
those expressly provided by its constitution
and by-laws or those expressly authorized by
written resolution adopted by the majority of
the members at a general meeting duly
called for the purpose;
j. Every income or revenue of the
organization shall be evidenced by a record
showing its source, and every expenditure of
its funds shall be evidenced by a receipt from
the person to whom the payment is made,
which shall state the date, place and purpose
of such payment.
Such record or receipt shall form part of the
financial records of the organization. Any
action involving the funds of the organization
shall prescribe after three (3) years from the
date of submission of the annual financial

report to the Department of Labor and
Employment or from the
date the same should have been submitted
as required by law, whichever comes earlier:
Provided, That this provision shall apply only
to a legitimate labor organization which has
submitted the financial report requirements
under this Code: Provided, further, that
failure of any labor organization to comply
with the periodic financial reports required
by law and such rules and regulations
promulgated thereunder six (6) months after
the effectivity of this Act shall automatically
result in the cancellation of union registration
of such labor organization; (As amended by
Section 16, Republic Act No. 6715, March 21,
1989)
k. The officers of any labor organization
shall not be paid any compensation
other than the salaries and expenses
due to their positions as specifically
provided for in its constitution and bylaws, or in a written resolution duly
authorized by a majority of all the
members at a general membership
meeting duly called for the purpose.
The minutes of the meeting and the list
of participants and ballots cast shall be
subject to inspection by the Secretary
of Labor or his duly authorized
representatives. Any irregularities in
the approval of the resolutions shall be
a ground for impeachment or expulsion
from the organization;
l.
The
treasurer
of
any
labor
organization and every officer thereof
who is responsible for the account of
such organization or for the collection,
management, disbursement, custody or
control of the funds, moneys and other
properties of the organization, shall
render to the organization and to its
members a true and correct account of
all moneys received and paid by him
since he assumed office or since the
last day on which he rendered such
account, and of all bonds, securities
and
other
properties
of
the
organization entrusted to his custody or
under his control. The rendering of such
account shall be made:
1. At least once a year within thirty (30)
days after the close of its fiscal year;
2. At such other times as may be
required by a resolution of the majority
of the members of the organization;
and
Page 11 of 32

3. Upon vacating his office. The account

shall be duly audited and verified by
affidavit and a copy thereof shall be
furnished the Secretary of Labor.
m. The books of accounts and other records
of the financial activities of any labor
organization shall be open to inspection by
any officer or member thereof during office
hours;
n. No special assessment or other
extraordinary fees may be levied upon
the members of a labor organization
unless
authorized
by
a
written
resolution of a majority of all the
members in a general membership
meeting duly called for the purpose.
The secretary of the organization shall
record the minutes of the meeting
including the list of all members
present, the votes cast, the purpose of
the special assessment or fees and the
recipient of such assessment or fees.
The record shall be attested to by the
president.
o. Other than for mandatory activities
under
the
Code,
no
special
assessments,
attorneys
fees,
negotiation
fees
or
any
other
extraordinary fees may be checked off
from any amount due to an employee
without
an
individual
written
authorization duly signed by the
employee. The authorization should
specifically state the amount, purpose
and beneficiary of the deduction; and
p. It shall be the duty of any labor
organization and its officers to inform its
members on the provisions of its constitution
and
by-laws,
collective
bargaining
agreement, the prevailing labor relations
system and all their rights and obligations
under existing labor laws.
For
this
purpose,
registered
labor
organizations may assess reasonable dues to
finance labor relations seminars and other
labor education activities. Any violation of
the above rights and conditions of
membership
shall
be
a ground
for
cancellation
of
union
registration
or
expulsion of officers from office, whichever is
appropriate. At least thirty percent (30%) of
the members of a union or any member or
members specially concerned may report
such violation to the Bureau. The Bureau
shall have the power to hear and decide any
reported violation to mete the appropriate

penalty.
Criminal and civil liabilities arising from
violations of above rights and conditions of
membership shall continue to be under the
jurisdiction of ordinary courts.
________
DEMOCRATIZATION OF UNIONS
As unionisms aim is to install industrial
democracy, the unions themselves must be
democratic. This is a rationale behind Article
241.
To democratize the unions, Article 241
requires that the union officers be elected
directly by the members through secret
ballot and that the major policy decisions, as
a rule, be made by the union members,
again, by secret ballot. As in a republic where
sovereignty resides in the people, the
members of the union are the keepers and
dispensers of authority. The governing power
is the members, not the officers.
NATURE OF RELATIONSHIP
UNION AND ITS MEMEBERS
BETWEEN
The union has been evolved as an

organization of collective strength for the
protection of labor against the unjust
exactions of capital, but equally important is
the requirement of fair dealing between the
union and its members, which is fiduciary in
nature, and arises out of two factors: "one is
the degree of dependence of the individual
employee on the union organization; the
other, a corollary of the first, is the
comprehensive power vested in the union
with respect to the individual." The union
may be considered but the agent of its
members for the purpose of securing for
them fair and just wages and good working
conditions and is subject to the obligation of
giving the members as its principals all
information relevant to union and labor
matters entrusted to it.
Duty of Court to Protect Laborers from Unjust
Exploitation by Oppressive Employers and
Union Leaders
Just as this Court has stricken down unjust
exploitation of laborers by oppressive
employers, so will it strike down their unfair
treatment by their own unworthy leaders.
The Constitution enjoins the State to afford
Page 12 of 32

protection to labor. Fair dealing is equally

demanded of unions as well as of employers
in their dealings with employees.
membership
automatically
union.
The union constitution is a covenant between

the union and its members and among the
members.
To sum up:
in
the
CBU
does
mean membership in
not
the
RIGHTS OF UNION MEMBERS
Inclusion in the CBU depends on the

determination of its appropriateness under
Art. 234 and Art. 255.
The rights and conditions of membership laid

down in Art. 241 may be summarized as
follows:
Inclusion or membership in a union depends

on the unions constitution and by-laws,
without prejudice to Art. 277(c).
(1) Political right the members right to

vote and be voted for, subject to lawful
provisions
on
qualifications
and
disqualifications.
Inclusion or coverage in the CBA depends on

the stipulations in the CBA itself.
(2) Deliberative and decision-making right

the members right to participate in
deliberations on major policy questions and
decide them by secret ballot.
The officers of the union are elected by the

members in secret ballot voting. The election
takes place at intervals of five years which is
the term of office of the union officers
including those of a national union,
federation, or trade union center.
(3) Rights over money matters the

members right against excessive fees; the
right against unauthorized collection of
contributions or unauthorized disbursements;
the right to require adequate records of
income and expenses and the right of access
to financial records; the right to vote on
officers compensation; the right to vote on
proposed special assessments and be
deducted a special assessment only with the
members written authorization.
(4) Right to Information the members right
to be informed about the organizations
constitution and by-laws and the collective
bargaining agreement and about labor laws.
Although not so denominated, Article 241 of
the Labor Code carries the character of a bill
of rights of union members.
Eligibility for Membership
ELECTION OF UNION OFFICERS
The Implementing Rules (Rule XII, Section 1)

require the incumbent president to create an
election committee within 60 days before
expiration of the incumbent officers term.
If the officers with expired term do not call
an election, the remedy, according to Rule
XII, is for at least 30% of the members to file
a petition with the DOLE Regional Office.
The
members
frustration
over
the
performance of the union officers, as well as
their fear of a fraudulent election to be
held under the latters supervision, does not
justify disregard of the unions constitution
and by-laws.
Eligibility of Voters
Only members of the union can take part in
the election of union officers.
When, how, and under what conditions does

an employee become a union member? The
answer depends on the unions constitution
and by-laws inasmuch as Article 249 gives a
labor organization the right to prescribe its
own rules for acquisition or retention of
membership. Nonetheless, under Art. 277 an
employee is already qualified for union
membership starting on his first day of
service.
Ember in good standing is any person who

has
fulfilled
the
requirements
for
membership in the union and who has
neither
voluntarily
withdrawn
from
membership nor been expelled or suspended
from
membership
after
appropriate
proceedings consistent with the lawful
provisions of the unions constitution and bylaws.
Qualifying for union membership does not

necessarily mean inclusion in the coverage
of the CBA. The reverse is equally true:
A
labor
organization
may
prescribe
reasonable rules and regulations with respect
to voting eligibility. A labor organization may
Page 13 of 32

condition the exercise of the right to vote on

the payment of dues, since paying dues is a
basic obligation of membership.
However, this rule is subject to two
qualifications in that (a) any rule denying
dues-delinquent members the right to vote
must be applied uniformly; and (b) members
must be afforded a reasonable opportunity to
pay dues, including a grace period during
which dues may be paid without any loss of
rights.
Submission of the employees names with the
BLR as qualified members of the union is not
a condition sine qua non to enable said
members to vote in the election of union's
officers.
Union Officers Must Be an Employee
(f) No person who is not an employee or
worker of the company or establishment
where an independently registered union,
affiliate, local or chapter of a labor federation
or national union operates shall henceforth
be elected or appointed as an officer of such
union, affiliate, local or chapter.
In short, one should be employed in the
company to qualify as officer of a union in
that company.
Disqualification of Union Officers
"Moral turpitude" has been defines as an act
of baseness, vileness, or depravity in the
private and social duties which a man owes
his fellow men, or to society in general,
contrary to the accepted and customary rule
of right and duty between man and man or
conduct contrary to justice, honesty,
modesty, or good morals.
proceedings. If not recorded in the minutes

and formalized within the prescribed period,
the protest shall be deemed dropped.
ACTION AGAINST UNION OFFICERS
A union officer, after his election, may not be
expelled from the union for past malfeasance
or misfeasance. To do so would nullify the
choice made by the union members.
The remedy against erring union officers is
not referendum but union expulsion, i.e., to
expel them from the Union.
It is the better part of conventional or
pragmatic solutions in cases of this nature,
absent overriding considerations to the
contrary, to respect the will of the majority of
the workers who voted in the elections.
Although decreed under a different setting, it
is apropos to recall the ruling that where the
people have elected a man to office, it must
be assumed that they did this with
knowledge of his life and character, and that
they disregarded or forgave his faults or
misconduct, if he had been guilty of any.
DUE PROCESS IN IMPEACHMENT
EXPULSION OF MEMBER
Just as an officer is entitled to due process,
so does a member. In a case, the Court
explicitly ruled that a member of a labor
union may be expelled only for a valid cause
and by following the procedure outlined in
the constitution and by-laws of the union.
Expulsion of a member for arbitrary or
impetuous reason may amount to unfair
labor practice by the union.
RELIEF WITHIN THE UNION
Union Election
Winners
Protest:
Proclamation
of
Section 13. Protest; when perfected. - Any

party-in-interest may file a protest based on
the conduct or mechanics of the election.
Such protests shall be recorded in the
minutes of the election proceedings. Protests
not so raised are deemed waived.
The protesting party must formalize its
protest with the Med-Arbiter, with specific
grounds, arguments and evidence, within
five (5) days after the close of the election
Generally, redress must first be sought

within the union itself in accordance with its
constitution and by-laws.
If intra-union remedies have failed to correct
any violations of the internal labor
organization procedures, a case can be filed
with the Bureau of Labor Relations, which is
authorized to hear and decide cases of this
nature.
Exceptions
Page 14 of 32

Where exhaustion of remedies within the

union itself would practically amount to a
denial of justice, or would be illusory or vain,
it will not be insisted upon, particularly where
property rights of the members are involved,
as a condition to the right to invoke the aid
of a court.
CONSEQUENCES
RIGHTS
OF
VIOLATION
amounts due the union for fees, fines, or

assessments. The right of a union to collect
union dues is recognized under Article
277(a).
Assessments, like dues, may also be checked
off
OF
If the conditions of membership, or the right

of the members, are violated, the violation
may result in the cancellation of the union
registration or the expulsion of the culpable
officers.
Section 4. Actions arising from Article 241. Any complaint or petition with allegations of
mishandling,
misappropriation
or
nonaccounting of funds in violation of Article 241
shall be treated as an intra-union dispute. It
shall be heard and resolved by the MedArbiter pursuant to the provisions of Rule XI.
Exception: When 30% Not Required
When such violation directly affects only one
or two members, then only one or two
members would be enough to report such
violation.
It states that a report of a violation of rights
and conditions of membership in a labor
organization may be made by "(a)t least
thirty percent (30%) of all the members of a
union or any member or members specially
concerned.
VISITORIAL POWER
Article 247 authorizes the Secretary of Labor
and Employment or his duly authorized
representative to inquire into the financial
activities of any labor organization on the
basis of a complaint under oath, supported
by 20 percent of the membership in order to
determine compliance or noncompliance
with the laws and to aid in the prosecution of
any violation thereof.
Dues are defined as payments to meet the

unions general and current obligations. The
payment must be regular, periodic, and
uniform. Payments used for a special
purpose, especially if required only for a
limited time, are regarded as assessment.
ART. 241. Rights and conditions of
membership in a labor organization. The
following are the rights and conditions of
membership in a labor organization.
(o) Other than for mandatory activities under
the Code, no special assessment, attorney's
fees, negotiation fees or any other
extraordinary fees may be checked off from
any amount due an employee without an
individual written authorization duly signed
by an employee. The authorization should
specifically state the amount, purpose and
beneficiary of the deduction.
Attorney's fees may not be deducted or
checked off from any amount due to an
employee without his written consent except
for mandatory activities under the Code.
A mandatory activity has been defined as a
judicial process of settling dispute laid down
by the law. An amicable settlement entered
into by the management and the union is not
a mandatory activity under the Code.
Moreover, the law explicitly requires the
individual written authorization of each
employee concerned, to make the deduction
of attorneys fees valid.
Deductions for union service fee are
authorized by law and do not require
individual check-off authorizations.
Notwithstanding its "compulsory" nature,
compulsory
arbitration
is
not
the
"mandatory activity" under the Code which
dispenses
with
individual
written
authorizations for check-offs.
CHECK-OFF AND ASSESSMENTS

A check-off is a method of deducting from an
employees pay at prescribed period, the
(1) Requirements The failure of the Union

to comply strictly with the requirements set
out by the law invalidates the questioned
special assessment. Substantial compliance
Page 15 of 32

is not enough in view of the fact that the

special assessment will diminish the
compensation of the union members. Their
express consent is required, and this consent
must be obtained in accordance with the
steps outlined by law, which must be
followed to the letter.
No shortcuts are allowed.
It submitted only minutes of the local
membership meetings when what is required
is a written resolution adopted at the general
meeting. Worse still, the minutes of three of
those local meetings held were recorded by a
union director and not by the union
secretary. The minutes submitted to the
Company contained no list of the members
present and no record of the votes cast.
Since it is quite evident that the Union did
not comply with the law at every turn, the
only conclusion that may be made
therefrom is that there was no valid levy of
the
special
assessment
pursuant
to
paragraph (n) of Article 241 of the Labor
Code.
(2) Effects of withdrawal of authorizations
Paragraph (o) on the other hand requires an
individual written authorization duly signed
by every employee in order that a special
assessment may be validly checked-off. Even
assuming that the special assessment was
validly levied pursuant to paragraph (n), and
granting
that
individual
written
authorizations were obtained by the Union,
nevertheless there can be no valid check-off
considering that the majority of the union
members had already withdrawn their
individual authorizations. A withdrawal of
individual authorizations is equivalent to no
authorization at all.
(3) Forms of disauthorization The Union
points
out,
however,
that
said
disauthorizations are not valid for being
collective in form, as they are "mere bunches
of randomly procured signatures, under loose
sheets of paper." The contention deserves no
merit for the simple reason that the
documents containing the disauthorizations
have the signatures of the union members.
The Court finds these retractions to be valid.
There is nothing in the law which requires
that the disauthorization must be in
individual form.
(4) Purpose of the special assessment Of
the stated purposes of the special
assessment, as embodied in the board
resolution of the Union, only the collection of
a special fund for labor and education
research is mandated, as correctly pointed

out by the Union. The two other purposes,
namely, the purchase of vehicles and other
items for the benefit of the union officers and
the general membership, and the payment of
services
rendered
by
union
officers,
consultants and others, should be supported
by the regular union dues, there being no
showing that the latter are not sufficient to
cover the same.
(5) Article 222(b) of the Labor Code, similar
charge The last stated purpose is
contended by petitioners to fall under the
coverage of Article 222 (b) of the Labor
Code.
The contention is impressed with merit.
Article 222 (b) prohibits attorney's fees,
negotiations fees and similar charges arising
out of the conclusion of a collective
bargaining agreement from being imposed
on any individual union member. The
collection of the special assessment partly
for the payment for services rendered by
union officers, consultants and others may
not be in the category of "attorney's fees or
negotiations fees." But there is no question
that it is an exaction which falls within the
category of a "similar charge," and,
therefore, within the coverage of the
prohibition in the aforementioned article.
(6) Unlimited discretion of union president,
disallowed There is an additional proviso
giving the Union President unlimited
discretion to allocate the proceeds of the
special assessment. Such a proviso may
open the door to abuse by the officers of the
Union considering that the total amount of
the special assessment is quite considerable
P1,027,694.33 collected from those union
members who originally authorized the
deduction, and P1,267,863.39 from those
who did not authorize the same, or
subsequently retracted their authorizations.
The Court, therefore, stakes down the
questioned special assessment for being a
violation of Article 241, paragraphs (n) and
(o), and Article 222 (b) of the Labor Code.
Three
Requisites
Assessment
to
Collect
Special
Article 241 speaks of three (3) requisites that

must be complied with in order that the
special assessment for Union's incidental
expenses, attorney's fees and representation
Page 16 of 32

expenses, as stipulated in Article XII of the

CBA, be valid and upheld namely:
1) authorization by a written resolution of the
majority of all the members at the general
membership meeting duly called for the
purpose;
(2) secretary's record of the minutes of the
meeting; and
(3) individual written authorization for checkoff duly signed by the employee concerned.
Art. 242. Rights of legitimate labor

organizations. A legitimate labor organization
shall have the right:
a. To act as the representative of its
members for the purpose of collective
bargaining;
b. To be certified as the exclusive
representative of all the employees in an
appropriate bargaining unit for purposes of
collective bargaining;
Check-off of Agency Fee

This is the amount, equivalent to union dues,
which a non-union member pays to the union
because he benefits from the CBA negotiated
by the union. In negotiating the CBA the
union served as the employees agent.
Check-off of agency fee is allowed under Art.
248(e).
Illegal Check-off Ground for cancellation
Employers
Arrangement
Liability
in
Check-off
Check-offs in truth impose an extra burden

on the employer in the form of additional
administrative and bookkeeping costs. It is a
burden assumed by management at the
instance of the union and for its benefit, in
order to facilitate the collection of dues
necessary
for
the
latter's
life
and
sustenance. But the obligation to pay union
dues and agency fees obviously devolves not
upon the employer, but the individual
employee. It is a personal obligation not
demandable from the employer upon default
or refusal of the employee to consent to a
check-off.
The only obligation of the employer under a
checkoff is to effect the deductions and remit
the collections to the union.
Jurisdiction Over Check-off Disputes
The Regional Director of DOLE, not the labor
arbiter, has jurisdiction over check-off
disputes.
________
Chapter III
RIGHTS OF LEGITIMATE LABOR
ORGANIZATIONS
c. To be furnished by the employer, upon

written request, with its annual audited
financial statements, including the balance
sheet and the profit and loss statement,
within thirty (30) calendar days from the
date of receipt of the request, after the union
has been duly recognized by the employer or
certified as the sole and exclusive bargaining
representative of the employees in the
bargaining unit, or within sixty (60) calendar
days before the expiration of the existing
collective bargaining agreement, or during
the collective bargaining negotiation;
d. To own property, real or personal, for the
use and benefit of the labor organization and
its members;
e. To sue and be sued in its registered name;
and
f. To undertake all other activities designed to
benefit the organization and its members,
including cooperative, housing, welfare and
other projects not contrary to law.
Notwithstanding any provision of a general
or special law to the contrary, the income
and the properties of legitimate labor
organizations, including grants, endowments,
gifts, donations and contributions they may
receive
from
fraternal
and
similar
organizations, local or foreign, which are
actually, directly and exclusively used for
their lawful purposes, shall be free from
taxes, duties and other assessments. The
exemptions
provided
herein
may
be
withdrawn only by a special law expressly
repealing this provision. (As amended by
Section 17, Republic Act No. 6715, March 21,
1989)
________
Art. 242-A. Reportorial Requirements. The
following are documents required to be
submitted to the Bureau by the legitimate
labor organization concerned:
Page 17 of 32

(a) Its constitution and by-laws, or

took part in the ratification of the
constitution and by-laws within thirty (30)
days from adoption or ratification of the
constitution and by-lam or amendments
thereto;
(b) Its list of officers, minutes of the election
of officers, and list of voters within thirty (30)
days from election;
union may act as the representative of its

members for the purpose of collective
bargaining. This authority includes the power
to represent its members for the purpose of
enforcing the provisions of the CBA.
The intervention may be allowed when there
is a suggestion of fraud or collusion or that
the representative will not act in good faith
for the protection of all interests represented
by the union.
(c) Its annual financial report within thirty

(30) days after the close of every fiscal year;
and
3.
COMPROMISE
BINDING
MINORITY
MEMBERS
OF
EXCEPTION
(d) Its list of members at least once a year or

whenever required by the Bureau.
It is an accepted rule under our laws that the

will of the majority should prevail over the
minority and that the action taken by
petitioners as minority members of the Union
is contrary to the policy of the Magna Carta
of Labor, which promotes the settlement of
differences between management and labor
by mutual agreement, and that if said action
were tolerated, no employer would ever
enter into any compromise agreement for
the minority members of the Union will
always dishonor the terms of the agreement
and demand for better terms.
4. COMPROMISE OF MONEY CLAIMS
Failure
to
comply
with
the
above
requirements shall not be a ground for
cancellation of union registration but shall
subject the erring officers or members to
suspension, expulsion from membership, or
any appropriate penalty. (As amended by
Republic Act No. 9481, May 25, 2007)
________
1. NOT ANY L.L.O.
The first three rights mentioned in this article
do not pertain to just about any union but
only to the union that has been selected as
the
bargaining
representative
of
the
employees in the bargaining unit. This article
must be read in relation to Article 255.
2. RIGHTS OF UNION TO REPRESENT ITS
MEMBERS
It is the function of a labor union to represent
its members against the employers unfair
labor practices. It can file in heir behalf
without the cumbersome procedure of
joining each and every member as a
separate party.
A labor union has the requisite personality to
sue on behalf of its members for their
individual money claims. It would be an
unwarranted impairment of the right to selforganization if such collective entities would
be barred from instituting an action in their
representative capacity.
Members Doubting Their Union
A labor union is one such party authorized to
represent its members under Article 242(a)
of the Labor Code which provides that a
UPON
UNION;
Money claims due to laborers cannot be the

object of settlement or compromise effected
by a union or counsel without the specific
individual consent of each laborer concerned.
The
beneficiaries
are
the
individual
complainants themselves. The union to
which they belong can only assist them but
cannot decide for them. Awards in favor of
laborers after long years of litigation must be
attended to with mutual openness and in the
best of faith. Only thus can we really give
meaning to the constitutional
mandate of giving laborers maximum
protection and security.
Under
the
philosophy
of
collective
responsibility, an employer who bargains in
good faith should be entitled to rely upon the
promises and agreements of the union
representatives with whom he must deal
under the compulsion of law and contract.
The collective bargaining process should be
carried on between parties who can mutually
respect and rely upon the authority of each
other." Where, however, collective bargaining
process is not involved, and what is at stake
are back wages already earned by the
individual workers by way of overtime,
premium and differential pay, and final
Page 18 of 32

judgment has been rendered in their favor,

the present case, the real parties in interest
with direct material interest, as against the
union which has only served as a vehicle for
collective action to enforce their just claims,
are the individual workers themselves.
Authority of the union to waive or quitclaim
all or part of the judgment award in favor of
the individual workers cannot be lightly
presumed but must be expressly granted,
and the employer, as judgment debtor, must
deal in all good faith with the union as the
agent of the individual workers. The Court in
turn should certainly verify and assure itself
of the fact and extent of the authority of the
union leadership to execute any compromise
or settlement of the judgment on behalf of
the individual workers who are the real
judgment creditors.
5. RIGHT TO BE FURNISHED
FINANCIAL STATEMENT
WITH
To better equip the union in preparing for or

in negotiating with the employer, the law
gives it the right to be furnished with the
employers audited financial statements.
There are four points in time when the union
may ask in writing for these statements:
(1) after the union has been recognized by
the
employer
as
sole
bargaining
representative of the employees in the
bargaining unit; or
(2) after the union is certified by DOLE as
such sole bargaining representative; or
(3) within the last 60 days of the life of a
CBA; or
(4)
during
the
collective
bargaining
negotiation.
The audited statements, including the
balance sheet and the profit and loss
statement, should be provided by the
employer within 30 calendar days after
receipt of the unions request.
6. RIGHT TO COLLECT DUES
FROM HEREINAFTER, THE REFERENCE IS

FROM THE CHAN-ROBLES-SUMIOG REVIEWER
=)
What is the significance of issuance of
Certificate of Registration to a union?
In Tagaytay Highlands International Golf

Club, Inc. vs. Tagaytay Highlands Employees
Union-PGTWO [G. R. No. 142000, January 22,
2003], the Supreme Court ruled that the
effect of issuance of certificate of registration
to a union is that it becomes legitimate and
its legal personality can only be attacked
through a petition for cancellation of
registration and not thru intervention in a
certification election petition.
Labor
register.
organizations
required
to
Prior to its amendment by R. A. No. 9481,

Article 234 makes a general reference to the
organization that may register as a labor
organization. It simply states: [a]ny
applicant labor organization, association or
group of unions or workers.
As worded now, Article 234 as amended by
R. A. No. 9481, makes specific reference to
the following organizations which may
register as labor organizations, to wit:
1. Federation;
2. National Union;
3. Industry Union;
4. Trade Union Center;
5. Independent Union.
Acquisition of legal personality as a
legitimate labor organization.
Just like in the old provision, the legal
personality of the unions mentioned in
Article 234 is acquired upon the issuance of
the certificate of registration. This should be
distinguished from the acquisition of legal
personality by a local chapter as provided for
under Article 234-A (See text and discussion
below).
20% membership requirement under
Article 234 applies only to registration
of an independent union; it does not
apply to the registration of federation
or national union.
As distinguished from the registration
requirement of twenty percent (20%)
membership applicable only to independent
union, the following are the requirements for
registration of a Federation or a National
Union provided under a separate provision
(Article 237) in the Labor Code:
(a) Proof of the affiliation of at least ten (10)

locals or chapters, each of which must be a
duly recognized collective bargaining agent
Page 19 of 32

in the establishment or industry in which it

operates, supporting the registration of such
applicant federation or national union; and
(b) The names and addresses of the
companies where the locals or chapters
operate and the list of all the members in
each company involved. (See Article 237,
Labor Code).
Approval of registration of a labor
organization, not ministerial in nature.
Previously, it was ordained that the approval
of the registration of a labor organization is a
ministerial function provided that the
applicant labor organization complies with all
the legal requirements for registration.
(Vassar Industries Employees Union v.
Estrella, G.R. No. L-46562, March 31, 1978,
82 SCRA 280).
However, it has been held lately that it is not
the ministerial function of the Bureau of
Labor Relations (BLR) to grant recognition to
a labor organization after the necessary
papers and documents for registration have
been filed. It cannot be over-emphasized,
according to the Supreme Court in S.S.
Ventures International, Inc. v. S.S. Ventures
Labor Union, [G.R. No. 161690, July 23,
2008], that the registration or the recognition
of a labor union after it has submitted the
corresponding papers is not ministerial on
the part of the BLR. Far from it. After a labor
organization
has
filed
the
necessary
registration
documents,
it
becomes
mandatory for the BLR to check if the
requirements under Article 234 of the Labor
Code have been sedulously complied with. If
the unions application is infected by
falsification
and
serious
irregularities,
especially those appearing on the face of the
application and its attachments, a union
should be denied recognition as a legitimate
labor organization. The issuance to a union
of a certificate of registration necessarily
implies that its application for registration
and the supporting documents thereof are
prima facie free from any vitiating
irregularities.
Needlessly, after a certificate of recognition
has been issued, the propriety of the labor
organizations registration could be assailed
directly through cancellation of registration
proceedings in accordance with Articles 238
and 239 of the Labor Code, or indirectly by
challenging its petition for the issuance of an
order for certification election.
What is
federation?
national
union
or
National Union or Federation refers to a

group of legitimate labor unions in a private
establishment
organized
for
collective
bargaining or for dealing with employers
concerning
terms
and
conditions
of
employment for their member-unions or for
participating in the formulation of social and
employment
policies,
standards
and
programs, registered with the Bureau of
Labor Relations.
What is an affiliate?
Affiliate refers to:
1. an independent union affiliated with a
federation, national union; or
2. a local chapter which was subsequently
granted independent registration but did not
disaffiliate from its federation.
What is a local chapter?
Local
Chapter
(formerly
known
as
Chartered Local) refers to a labor
organization in the private sector operating
at the enterprise level that acquired legal
personality through the issuance of a charter
certificate by a federation or a national
union.
What is an independent union?
Independent Union refers to a labor
organization operating at the enterprise level
that acquired legal personality through
independent registration under Article 234 of
the Labor Code.
Are local chapters required to acquire
independent registration in order to have
legal personality?
In
Laguna
Autoparts
Manufacturing
Corporation vs. Office of the Secretary,
DOLE, [G. R. No. 157146, April 29, 2005], it
was held that a local or chapter need not be
independently registered to acquire legal
personality.
How is a local chapter created through
chartering by a federation or national
union?
Under Article 234-A of the Labor Code, as
inserted as a new provision thereof by R. A.
No. 9481 [June 14, 2008], it is provided, thus:
CHARTERING AND AFFILIATION

Page 20 of 32

ART. 234-A. Chartering and Creation of a

Local Chapter. - A duly registered federation
or national union may directly create a local
chapter by issuing a charter certificate
indicating the establishment of the local
chapter. The chapter shall acquire legal
personality only for purposes of filing a
petition for certification election from the
date it was issued a charter certificate.
A Trade Union Center is not Allowed to

Charter Directly.
The chapter shall be entitled to all other

rights and privileges of a legitimate labor
organization only upon the submission of the
following documents in addition to its charter
certificate:
Thus, applying the Latin maxim expressio

unius est exclusio alterius, it was held in the
2007 case of San Miguel Corp. Employees
Union-PTGWO vs. San Miguel Packaging
Products Employees Union PDMP, [G.R. No.
171153, Sept. 12, 2007], that trade union
centers [like the Pambansang Diwa ng
Manggagawang Pilipino (PDMP)] are not
allowed to charter directly a local or a
chapter.
(a) The names of the chapters officers, their

addresses, and the principal office of the
chapter; and
(b) The chapters constitution and by-laws:
Provided,
That
where
the
chapters
constitution and by-laws are the same as
that of the federation or the national union,
this fact shall be indicated accordingly. The
additional supporting requirements shall be
certified under oath by the secretary or
treasurer of the chapter and attested by its
president.
Meaning of Trade Union Center.
A Trade Union Center is any group of
registered national unions or federations
organized for the 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, and is
duly registered with the Department of Labor
and Employment in accordance with Rule III,
Section 2 of the Implementing Rules.
(Section 1(p), Rule I, Book V, of the
Implementing Rules, as amended by
Department Order No. 9; San Miguel Corp.
Employees Union-PTGWO vs. San Miguel
Packaging Products Employees Union
PDMP, G.R. No. 171153, Sept. 12, 2007).
Only a Federation or a National Union
May Directly Create a Local Chapter.
Under Article 234-A, it is clear that the
authority to directly create a local chapter is
vested only with a duly registered federation
or national union which is empowered to
issue a charter certificate indicating the
establishment of the local chapter. No other
entities are granted the same authority
under this provision.
Article 234, as amended by R. A. No. 9481,

now includes the term Trade Union Center,
but interestingly, the provision indicating the
procedure for chartering or creating a local
or chapter laid down in Article 234-A, still
makes no mention of a trade union center.
Acquisition of legal personality by the

various unions, distinguished.
In the light of the amendatory provisions
introduced by R. A. No. 9481, there is now a
distinction between the acquisition of legal
personality by a federation, national union,
industry union and independent union under
Article 234, on the one hand, and the
acquisition of legal personality of a local
chapter created by means of chartering by a
federation or national union under Article
234-A, on the other.
1. Acquisition of legal personality under
Article 234.
According to Article 234, as amended by R.
A. No. 9481, the issuance of a certificate of
registration to a federation, national union,
industry union or independent union, marks
its acquisition of legal personality.
2. Acquisition of legal personality under
Article 234-A (See text above).
The same thing may not be said of a local
chapter. Following Article 234-A, as inserted
into the Labor Code by R. A. No. 9481, a local
chapter directly created by a federation or
national union acquires legal personality in
two (2) stages, namely:
First stage. Only partial legal personality is
acquired by a local chapter upon the
issuance to it of a charter certificate by a
federation or national union. It is partial in
the sense that the legal personality so
acquired is only meant for one purpose, that
is, to file a petition for certification election.
At this stage, the local chapter is not yet in
Page 21 of 32

full possession of all the rights and privileges

accorded by law to a legitimate labor
organization.
Second stage. Full legal personality is
accorded to a local chapter only upon
compliance with the all-too important
requirement of submission of its charter
certificate and the documents required under
Article 234-A to the Department of Labor and
Employment. In fact, it is the very act of
submission
of the said documentary
requirements that marks the grant of full
legitimate status to a local chapter which
would entitle it to all the rights and privileges
of a legitimate labor organization. No
certificate of registration is required to be
issued to a local chapter before it can
acquire full legal personality.
Obviously, the requirements on union
registration contemplated under Article 234A are far less stringent than those provided
under Article 234. As observed by the
Supreme Court in the 1996 case of San
Miguel Foods, Inc.-Cebu B-Meg Feed Plant v.
Laguesma, [G.R. No. 116172, October 10,
1996, 263 SCRA 68, 76], ordinarily, a labor
organization or a workers association should
comply with the requirements prescribed
under Articles 234 and 235 of the Labor
Code. However, the procedure laid down in
said provisions is not the only way by which
a labor union may become legitimate. When
an unregistered union becomes a branch,
local or chapter (now called local chapter)
of a federation or national union, some of the
requirements thereunder are no longer
required. (See also Progressive Development
Corporation v. Secretary, Department of
Labor and Employment, G.R. No. 96425, Feb.
4, 1992, 205 SCRA 802, 810).
The fact that even during the pendency of
the application for registration, a union can
already initiate a petition for certification
election was underscored too clearly as early
as the case of U. E. Automotive Employees v.
Noriel, [G.R. No. L-44350, November 25,
1976, 74 SCRA 72], where it was already
ruled that a unions right to file said petition
is guaranteed, even pending the registration
process, for as long as no fatal defect exists
in its application for registration.
What is the proof of affiliation with a
federation?
The proof of affiliation depends on the
nature of the affiliation. Thus, if:
1. Local chapter. - Charter Certificate issued

by the federation or national union.
2. Independently-registered union. - Contract
of Affiliation between federation and the
union.
What is the effect of affiliation?
A labor union which affiliates with a
federation or national union becomes subject
to the rules and regulations of the latter. The
federation is the agent and the local union,
the principal. An independently-registered
union does not lose its independent legal
personality when it affiliates with a
federation or national union. Appending the
name of the federation to the local union's
name does not mean that the federation
absorbed the latter.
Which one is liable for damages in case
of illegal strike the local union or
federation?
In Filipino Pipe and Foundry Corporation vs.
NLRC, (G. R. No. 115180, November 16,
1999), it was held that it is the local union
and not the federation which is liable to pay
damages in case of illegal strike.
What is disaffiliation?
The right to disaffiliate by the local union
from its mother union or federation, is a
constitutionally-guaranteed right which may
be invoked by the former at any time. It is
not an act of disloyalty on the part of the
local union nor is it a violation of the union
security clause in the CBA.
In the absence of specific provisions in the
federations
constitution
prohibiting
disaffiliation or the declaration of autonomy
of a local union, a local may dissociate with
its parent union. Thus, in one case, it was
held that there can be no disloyalty to speak
of since there is no provision in the
federations constitution which specifically
prohibits disaffiliation or declaration of
autonomy.
The local union, by disaffiliating from the old
federation to join a new federation, is merely
exercising its primary right to labor
organization for the effective enhancement
and protection of common interests. Absent
any
enforceable
provisions
in
the
federations constitution expressly forbidding
disaffiliation of a local union, a local union
Page 22 of 32

may sever its relationship with its parent

union.
Once the fact of disaffiliation has been
manifested beyond doubt, a certification
election is the most expeditious way of
determining which labor organization is to be
treated as the exclusive bargaining agent.
Disaffiliation should always carry the will of
the majority. It cannot be effected by a mere
minority group of union members. (Villar vs.
Inciong, 121 SCRA 444).
The obligation to check-off federation dues is
terminated with the valid disaffiliation of the
local union from the federation with which it
was previously affiliated.
It was held in Philippine Skylanders, Inc. vs.
NLRC, [G. R. No. 127374, January 31, 2002],
that the right of a local union to disaffiliate
from its mother federation is not a novel
thesis unillumined by case law. In the
landmark case of Liberty Cotton Mills
Workers Union Vs. Liberty Cotton Mills, Inc.
[No. L-33987, September 4, 1975, 66 SCRA
512], the Supreme Court upheld the right of
local unions to separate from their mother
federation on the ground that as separate
and voluntary associations, local unions do
not owe their creation and existence to the
national federation to which they are
affiliated but, instead, to the will of their
members. The sole essence of affiliation is to
increase, by collective action, the common
bargaining power of local unions for the
effective enhancement and protection of
their interests. Admittedly, there are times
when without succor and support local
unions may find it hard, unaided by other
support groups, to secure justice for
themselves.
Yet the local unions remain the basic units of
association, free to serve their own interests
subject to the restraints imposed by the
constitution and by-laws of the national
federation, and free also to renounce the
affiliation upon the terms laid down in the
agreement which brought such affi1iation
into existence.
Such dictum has been punctiliously followed
since then.
Upon an application of the afore-cited
principle to the issue at hand, the
impropriety of the questioned Decisions
becomes clearly apparent. There is nothing
shown in the records nor is it claimed by
AFLU that the local union was expressly
forbidden to disaffiliate from the federation

nor were there any conditions imposed for a
valid breakaway. As such, the pendency of an
election protest involving both the mother
federation and the local union did not
constitute a bar to a valid disaffiliation.
Neither was it disputed by PAFLU that 111
signatories out of the 120 members of the
local union, or an equivalent of 92.5% of the
total union membership supported the claim
of disaffiliation and had in fact disauthorized
PAFLU from instituting any complaint in their
behalf. Surely, this is not a case where one
(1) or two (2) members of the local union
decided to disaffiliate from the mother
federation, but it is a case where almost all
loca1 union members decided to disaffiliate.
It was entirely reasonable then for PSI to
enter into a collective bargaining agreement
with PSEA-NCW. As PSEA had validly severed
itself from PAFLU, there would be no
restrictions which could validly hinder it from
subsequently affiliating with NCW and
entering
into
a
collective
bargaining
agreement in behalf of its members.
Disaffiliation
of
independentlyregistered union and local chapter,
distinguished.
The disaffiliation of an independentlyregistered union does not affect its
legitimate status as a labor organization.
However, the same thing may not be said of
a union which is not independentlyregistered (Local Chapter).
Once a Local Chapter disaffiliates from the
federation, it ceases to be entitled to the
rights and privileges granted to a legitimate
labor organization. It cannot file a petition for
certification election. (Villar vs. Inciong, 121
SCRA 444, April 20, 1983).
Does
the
act
of
the
union
in
disaffiliating and entering into a CBA
with the employer constitute unfair
labor practice?
In Philippine Skylanders, Inc. vs. NLRC, [G. R.
No. 127374, Jan. 31, 2002], the mother
federation with which the local union was
formerly affiliated instituted a complaint for
unfair labor practice against the employer
(which refused to negotiate a CBA with said
federation because the local union had
already effectively and validly disaffiliated
from it), and the local union and their
respective officers because of the act of the
local union in disaffiliating from the mother
federation and in entering into a CBA with
Page 23 of 32

the employer without its participation. The

Supreme Court ruled that there was no such
unfair labor practice committed. In the first
place, the complaint for unfair labor practice
was instituted against the wishes of workers
who are members of the local union whose
interests it was supposedly protecting. In the
second place, the disaffiliation was held valid
and, therefore, the federation ceases to have
any personality to represent the local union
in the CBA negotiation. The complaint for
unfair labor practice lodged by the federation
against the employer, the local union and
their respective officers, having been filed by
a party which has no legal personality to
institute the complaint, should have been
dismissed at the first instance for failure to
state a cause of action.
As far as the employer is concerned, it is
entirely reasonable for it to enter into a CBA
with the local union which is now affiliated
with a new federation. As the local union had
validly severed itself from the old federation,
there would be no restrictions which could
validly hinder it from subsequently affiliating
with the new federation and entering into a
CBA in behalf of its members.
Is disaffiliation a
security clause?
violation
of
union
In Tropical Hut Employees Union - CGW, vs.

Tropical Hut Food Market, Inc., [G. R. No. L43495-99, Jan. 20, 1990], it was pronounced
that the union security clause in the CBA
cannot be used to justify the dismissal of the
employees who voted for the disaffiliation of
the local union from the federation. More so
in a case where the CBA imposes dismissal
only in case employees are expelled from the
union for their act of joining another
federation or for forming another union or if
they
failed
or
refused
to
maintain
membership therein. However, in a situation
where it does not involve the withdrawal of
merely some employees from the union but
the whole union itself withdraws from the
federation with which it was affiliated, there
can be no violation of the union security
clause in the CBA, and consequently, there
exists no sufficient basis to terminate the
employment of said employees.
What
is
meant
by
cancellation
proceedings against labor organization
or workers association?
Cancellation Proceedings refer to the legal
process leading to the revocation of the
legitimate status of a union or workers
association. (Section 1 [g], Rule I, Book V,
Rules to Implement the Labor Code, as

amended by Department Order No. 40-03,
Series of 2003, [Feb. 17, 2003]).
Subject to the requirements of notice and
due process, the registration of any
legitimate
independent
labor
union,
chartered local (now local chapter) and
workers' association may be cancelled by the
Regional Director, or in the case of
federations, national or industry unions and
trade union centers, by the Bureau Director,
upon the filing of an independent complaint
or petition for cancellation. (Section 1, Rule
XIV, Book V, Ibid.).
The cancellation of a certificate of
registration is the equivalent of snuffing out
the life of a labor organization. For without
such registration, it loses - as a rule - its
rights under the Labor Code. The union is
indisputably entitled to be heard before a
judgment could be rendered canceling its
certificate of registration. In David vs.
Aguilizan, [94 SCRA 707, 713-714 (December
14, 1979)], it was held that a decision
rendered without any hearing is null and
void. (Alliance of Democratic Free Labor
Organization [ADFLO] vs. Laguesma, G. R.
No. 108625, March 11, 1996).
What are the ground for cancellation of
union registration?
As amended by R. A. No. 9481, the grounds
are now limited to three, thus:
ART. 239. Grounds for Cancellation of Union
Registration. - The following may constitute
grounds
for
cancellation
of
union
registration:
(a) Misrepresentation, false statement or
fraud in connection with the adoption or
ratification of the constitution and by-laws or
took part in the ratification;
(b) Misrepresentation, false statements or
fraud in connection with the election of
officers, minutes of the election of officers,
and the list of voters;
(c) Voluntary dissolution by the members.
Can the union voluntarily cancel its own
registration?
Yes, because of the following amendatory
provision introduced by R. A. No. 9481:
Page 24 of 32

ART. 239-A. Voluntary Cancellation of

Registration. - The registration of a legitimate
labor organization may be cancelled by the
organization itself. Provided, That at least
two-thirds of its general membership votes,
in a meeting duly called for that purpose to
dissolve the organization: Provided, further,
That an application to cancel registration is
thereafter submitted by the board of the
organization, attested to by the president
thereof.
What is the effect of filing or pendency
of a cancellation proceeding?
In case cancellation of a union registration is
made during the pendency of a case, the
labor organization whose registration is
cancelled may still continue to be a party to
the case without necessity for substitution.
Whatever decision, however, may be
rendered therein shall only be binding on
those members of the union who have not
signified their desire to withdraw from the
case before its trial and decision on the
merits. (Itogon-Suyoc Mines, Inc. vs.
SangiloItogon Workers Union, 24 SCRA 873).
The non-renewal of registration or permit
does not result in the dismissal of a case
pending with the Department of Labor and
Employment. The reason is that, at the time
of the filing of the case, it has juridical
personality and the respondent court had
validly acquired jurisdiction over the case.
(Philippine
Land-Air-Sea
Labor
Union
[PLASLU], Inc. vs. CIR, 93 Phil. 47).
CASES
TOPIC:
Registration
Requirements
of
1. Progressive
Development
Corporation vs The Hon. Secretary,
DOLE
TOPIC:
Affiliation
with
Same
Federation Supervisors union and rank
and file union in same company may affiliate
with same federation. NOTE: according sa
discussion ni Atty, dili na daw ni applicable.
Paki recheck and verify
2. Adamson
Union
vs
CIR and
Adamson
Page 25 of 32
TOPIC: Right To Disaffiliate

3. Malayang
Samahan
ng
Manggagawa
vs
NLRC
Disaffiliation from the federation,

alleged as an act of disloyalty is
not a sufficient ground for dismissal
from employment. It may severe its
affiliation at any time and such
disaffiliation cannot be considered
disloyalty in the absence of specific
provisions in the federations
constitution
prohibiting
disaffiliation or the declaration of
autonomy of a local union.
4. Tropical Hut Employees vs Tropical
Hut Food Market - In the absence of
specific
provisions
in
the
federations constitution prohibiting
disaffiliation or the declaration of
autonomy of a local union, a local
may sever its relationship with its
parent.
5. Volkschel Labor Union vs BLR
disaffiliation and the effect on
union dues
6. Liberty Cotton Mills Union vs
Liberty Cotton Mills, Inc, PAFLU
Disaffiliation pursuant to the union
security clause
7. Villar vs Inciong disaffiliation must
be by majority decision
8. Associated Workers Union-PTGWO
vs NLRC when to disaffiliate:
Generally, a labor union may
disaffiliate only during the 60-day
freedom
period
immediately
preceding the expiration of the
CBA. But even before the onset of
the
freedom
period,
such
disaffiliation must be effected by a
majority of the members in the
bargaining unit.
9. Elisco-Elirol Labor Union vs Noriel
Local Union is the Principal and the
Federation is the Agent. Hence, the
disaffiliation do not terminate their
status as employees of the
corporation
for
they
merely
exercised their right to register
their local union.
NOTE: Substitutionary Doctrine

10.National Union of Bank Employees

vs PEMA and PNB Disaffiliation
and effect on union dues and the
requirement for voluntary
dissolution to be done by a secret
ballot
TOPIC: Rights and Obligations
Legitimate
Labor
Organization
Reportorial Requirements
of
11.Heritage Hotel Manila vs National

Union of Workers in the Hotel
noncompliance of the requirements
is not a ground for cancellation of
registration
(1) PROGRESSIVE DEVELOPMENT VS

HONORABLE
SECRETARY
(REQUIREMENTS OF LLO)
FACTS: Respondent Pambansang Kilusan ng

Paggawa (KILUSAN)-TUCP, alleging it is a
legitimate labor federation, issued a Charter
Certificate to Progressive Development
Union. Petitioner Progressive Development
Corporation (PDC) filed its motion to dismiss
contending that a local union failed to
comply with the IRR which requires the
submission of: (1) constitution and by-laws
(CBL); (2) names, addresses and list of
officers and/or members; and (3) books of
accounts. However, the Med Arbiter held that
there was a substantial compliance with
requirements for the formation of a chapter.
ISSUE: When does a branch, local or affiliate

of a federation become a legitimate labor
organization?
RULING: Ordinarily, a labor organization

acquires legitimacy only upon registration
with
the
BLR.
Under
Article
234
(Requirements of Registration) and under
Article 235 (Action on Application), and the
requirement under the IRR that the
application should be signed by at least 20%

of the employees in the bargaining unit
accompanied by a sworn statement of the
applicant union that there is no certified
bargaining agent or, where there is an
existing collective bargaining agreement.
But when an unregistered union becomes a

branch, local, or chapter of a federation,
some of the aforementioned requirements
for registration are no longer requires.
Section 3(e) of the IRR requires that a local
or chapter shall have and maintain a CBL, set
of officers, and books of accounts.
A local or chapter therefore becomes a

legitimate labor organization only upon
submission of the following to the BLR: (1) A
charter certificate, within 30 days from its
issuance by the labor federation or national
union, and (2) The constitution and by-laws,
a statement on the set of officers, and the
books of accounts all of which are certified
under oath by the secretary or treasurer, as
the case may be, of such local or chapter,
and attested to by its president.
Absent compliance with these mandatory

requirements, the local or chapter does not
become a legitimate labor organization.
In the case at bar, the failure of the secretary

of PDEU-Kilusan to certify the required
documents under
oath is
fatal
to
its
acquisition of a legitimate status.
(2) ADAMSON AND ADAMSON INC. VS

CIR (AFFILIATION OF RANK-AND-FILE
and SUPERVISORS IN ONE FEDERATION)
FACTS: Adamson and Adamson Inc filed a

petition to set aside the decision of the CIR
holding that the Adamson and Adamson Inc.
Supervisory
Union
(FFW)
can
legally
represent supervisors of the petitioner
corportaion notwithstanding the affiliation of
Page 26 of 32

the rank-and-file union of the same company

with the same Labor Federation, the
Federation of Free Workers (FFW).
The petitioner argues that the affiliation of

the respondent union of supervisors, the
salesmen's association, and the rank and file
personnel with the same national federation
(FFW) violates Section 3 of the Industrial
Peace Act because (1) it results in the
indirect affiliation Of supervisors and rankand-file
employees
with
one
labor
organization; (2) since respondent union and
the unions of non-supervisors in the same
company are governed by the same
constitution and by-laws of the national
federation, in practical effect, there is but
one union; and (3) it would result in the
respondent union's losing its independence
because it becomes the alter ego of the
federation.
ISSUE: Whether or not a Supervisors Union

may affiliate with a federation with which
unions of rank and-file employees of the
same employer are also affiliated.
RULING: Yes, the Supervisors Union may

affiliate with a federation that a rank and-file
employees of the same employer are also
affiliated.
Citing the case of Elisco-Elirol vs Noriel and

Liberty Cottons, the court ruled that the
locals are separate and distinct units
primarily designed to secure and maintain
the equality of bargaining power between
the employer and their employee-member in
the economic struggle for the fruits of the
joint productive effort of labor and capital;
and the association of the locals into the
national union was in the furtherance of the
same end. Yet the locals remained the basic
units of association; free to serve their own
and the common-interest of all, subject to
the restraints imposed by the Constitution
and By-laws of the Association.
In the case at bar, The Adamson and

Adamson Supervisory Union and the
Adamson and Adamson, Inc., Salesmen
Association (FFW), have their own respective
constitutions
and
by-laws.
They
are
separately and independently registered of
each other. Both sent their separate
proposals for collective bar agreements with
their employer. There could be no employer
influence on rank-and-file organizational
activities nor their could be any rank and file
influence on the supervisory function of the
supervisors because of the representation
sought to be proscribed.
(3)
MALAYANG
SAMAHAN
NG
MANGGAGAWA
(MSMG)
vs
HON.
CRESENCIO J. RAMOS ET AL. (DISMISSAL
FROM
EMPLOYMENT
DUE
TO
DISAFFILIATION;
INVOKED
SECURITY
CLAUSE OF THE CBA)
FACTS: Petitioner, Malayang Samahan ng

mga Manggagawa sa M. Greenfield, Inc.
(MSMG), a local union, is an affiliate of the
Private Respondent United Lumber and
General Workers of the Philippines (ULGWP),
a federation. A local union election was held
wherein
the
herein
petitioner,
Beda
Magdalena Villanueva, and the other union
officers were proclaimed as winners. The
defeated candidates filed a Petition for
Impeachment/Expulsion of the local union
officers with the DOLE NCR which was
dismissed. Then the local union held a
general membership meeting where several
union members failed to attend the meeting.
The imposition of P50.00 fine, that the local
union wished to be deducted from the
wages/salaries of the members who failed to
attend the meeting, became the subject of
bitter disagreement between the Federation
and the local union culminating in the latter's
declaration of general autonomy from the
former through a Resolution. The company
was thus constrained to file a Complaint for
Interpleader with the Med-Arbitration Branch
of the Department of Labor and Employment.
However, the officers were expelled from the
ULGWP for committing acts of disloyalty.
Page 27 of 32

ISSUE: Whether or not disaffiliation from the

federation is a sufficient ground for the
dismissal of employment.
RULING: No since a local union has the right

to disaffiliate from its mother union or
declare its autonomy. A local union, being a
separate and voluntary association, is free to
serve the interests of all its members
including the freedom to disaffiliate or
declare its autonomy from the federation to
which it belongs when circumstances
warrant,
in
accordance
with
the
constitutional guarantee of freedom of
association.
Thus, a local union which has affiliated itself

with a federation is free to sever such
affiliation anytime and such disaffiliation
cannot be considered disloyalty. In the
absence of specific provisions in the
federation's
constitution
prohibiting
disaffiliation or the declaration of autonomy
of a local union, a local may dissociate with
its parent union.
In the case at bar, there is no disloyalty to

speak of, neither is there any violation of the
federation's constitution because there is
nothing in the said constitution which
specifically
prohibits
disaffiliation
or
declaration of autonomy. Hence, there
cannot be any valid dismissal because the
union security clause in the CBA limits the
dismissal to only three (3) grounds, to wit:
failure to maintain membership in the union
(1) for non-payment of union dues, (2) for
resignation; and (3) for violation of the
union's Constitution and By-Laws.
(4) TROPICAL HUT EMPLOYEES UNION

VS TROPICAL HUT FOOD MARKET INC
(DISAFFILIATION)
FACTS: The rank and file workers of the

Tropical Hut Food Market Incorporated
organized a local union called the Tropical
Hut Employees Union, known for short as the

THEU, and immediately sought affiliation
with the National Association of Trade Unions
(NATU). Following such affiliation with NATU,
a Registration Certificate was issued in the
name of the Tropical Hut Employees Union
NATU. It appears, however, that NATU itself
as a labor federation, was not registered with
the Department of Labor.
Later, NATU received a letter jointly signed

by the incumbent officers of the local union
informing the NATU that THEU was
disaffiliating from the NATU federation.
Thereafter, the general membership of the
so-called
THEU-CGW
(Confideration
of
General Workers) held its annual election of
officers. NATU thru its VP Marcelino Lontok, Jr
informed Encinas, the then President of
THEU-NATU, in a letter, concerning the
request made by the NATU federation to the
respondent company
to dismiss him
(Encinas) in view of his violation of the CBA.
In view of NATU's request, the respondent
company, on the same day, suspended
Encinas
pending
the
application
for
clearance with the Department of Labor to
dismiss him.
ISSUE: Whether or not the disaffiliation of

the local union from the national federation
was valid.
RULING: Yes, the disaffiliation of the local

union from the national federation was valid.
The right of a local union to disaffiliate from

its mother federation is well-settled. A local
union, being a separate and voluntary
association, is free to serve the interest of all
its members including the freedom to
disaffiliate when circumstances warrant. This
right is consistent with the constitutional
guarantee of freedom of association.
When the local union withdrew from the old

federation to join a new federation, it was
Page 28 of 32

merely exercising its primary right to labor

organization for the effective enhancement
and protection of common interests. 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 parent.
the controversy between the two unions.

Respondent Bureau rendered a Resolution
which in effect found the disaffiliation legal
but at the same time gave the opinion that,
petitioner's members should continue paying
their dues to ALUMETAL in the concept of
agency fees.
In the case at bar, there is nothing in the

constitution of the NATU or in the
constitution of the THEU-NATU that the THEU
was expressly forbidden to disaffiliate from
the federation. The alleged non-compliance
of the local union with the provision in the
NATU Constitution requiring the service of
three months notice of intention to withdraw
did not produce the effect of nullifying the
disaffiliation for the following grounds: firstly,
NATU was not even a legitimate labor
organization and therefore did not possess
and acquire the legal personality to enforce
its constitution and laws, much less the right
and privilege under the Labor Code to
organize and affiliate chapters or locals
within its group, and secondly, the act of
non-compliance with the procedure on
withdrawal is premised on purely technical
grounds which cannot rise above the
fundamental right of self-organization.
ISSUE: Whether or not the petitioner unions

disaffiliation form respondent federation is
valid.
(5) VOLKSCHEL LABOR UNION VS BLR

(DISAFFILIATION)
FACTS: Petitioner was once affiliated with

the Associated Labor Union for Metal Workers
(ALUMETAL
for
short).
Both
unions,
ALUMETAL AND Volkschel Labor Union, using
the name Volkschel Labor Union Associated
Labor Union for Metal Workers, jointly
entered
into
a
collective
bargaining
agreement with respondent companies.
Later, majority of petitioner's members
decided to disaffiliate from respondent
federation in order to operate on its own as
an independent labor group. Confronted with
the predicament of whether or not to
continue deducting from employees' wages
and remitting union dues to respondent,
respondent companies sought the legal
opinion of the respondent Bureau as regards
RULING: Yes, the disaffiliation was valid.
The right of a local union to disaffiliate from

its mother union is well-settled. In previous
cases, it has been repeatedly held that a
local union, being a separate and voluntary
association, is free to serve the interest of all
its members including the freedom to
disaffiliate when circumstances warrant.
This
right
is
consistent
with
the
Constitutional guarantee of freedom of
association.
In the case at bar, it would go against the

spirit of the labor law to restrict petitioner's
right to self-organization due to the existence
of the CBA. We agree with the Med-Arbiter's
opinion that "A disaffiliation does not disturb
the enforceability and administration of a
collective agreement; it does not occasion a
change of administrators of the contract nor
even an amendment of the provisions
thereof.". But nowhere in the record does it
appear that the contract entered into by the
petitioner and ALUMETAL prohibits the
withdrawal of the former from the latter.
(6) LIBERTY COTTON MILLS WORKERS

UNION VS LIBERTY COTTON MILLS INC.
(DISMISSAL FROM EMPLOYMENT DUE TO
DISAFFILIATION;
INVOKED
SECURITY
CLAUSE OF THE CBA)
Page 29 of 32

FACTS: a CBA was entered into by and

between the Company and the Union
represented by PAFLU. While the Collective
Bargaining Agreement was in full force, thirty
two (32) out of the 36 members of the local
union
disaffiliated
themselves
from
respondent PAFLU pursuant to their local
union's Constitution and By-Laws. PAFLU
wrote to the Company invoking the "Union
Security" clause in the CBA and requested
for the termination of the employment. The
Company then terminated the employment
of the members expelled by the PAFLU.
conscientious lawyer to the local to attend to

the ULP case they filed against the Company.
The disaffiliation was, therefore, valid under
the local's Constitution and By-Laws which,
taken together with the Collective Bargaining
Agreement, is controlling.
ISSUE: Whether or not the dismissal of the

complaining employees, petitioners herein,
was justified or not.
FACTS: Petitioners were members of the

Amigo Employees Union-PAFLU, a duly
registered labor organization which was the
existing bargaining agent of the employees
in private respondent Amigo Manufacturing,
Inc. (Company). Upon written authority of at
least 30% of the employees in the company,
including the petitioners, the Federation of
Unions of Rizal (hereinafter referred to as
FUR) filed a petition for certification election
with the Med-Arbiter's Office, however, later,
the petitioners disauthorized FUR from
continuing the petition for certification
election for which reason FUR withdrew the
petition.
RULING: No, the dismissal of the employees

was not justified.
The resolution of this question hinges on a

precise and careful analysis of the CBA. In
these contracts, it appears that PAFLU was
acting for and in behalf of its affiliate, had
the status of an agent while the local union
remained the basic unit of the association
free to serve the common interest of all its
members
including
the
freedom
to
disaffiliate when the circumstances warrant.
For while it is correct to say that a union

security clause did exist, this clause was
limited by the provision in the Unions' CBL,
which states: that the Liberty Cotton Mills
Workers Union-PAFLU shall be affiliated with
the PAFLU, and shall remain an affiliate as
long as ten (10) or more of its members
evidence their desire to continue the said
local unions affiliation.
Record shows that 32 out of the 36 members

of the Union signed the resolution of
disaffiliation
(7) VILLAR VS INCIONG (DISMISSAL

FROM
EMPLOYMENT
DUE
TO
DISAFFILIATION; INVOKING SECURITY
CLAUSE OF THE CBA; CLOSED SHOP
AGREEMENT)
Later, The same employees who had signed

the petition filed by FUR signed a joint
resolution
named
Sama-Samang
Kapasiyahan which they stated their
disaffiliation with the PAFLU. Thereafter
petitioner Villar, representing herself to be
the authorized representative of the Amigo
Employees Union, filed a petition for
certification election.
PAFLU sent a letter to the Company

demanding to terminate the employment of
the petitioners pursuant to the security
clause of the CBA, with a statement
absolving the Company from any liability or
damage that may arise from petitioner's
termination. The Company filed the request
for clearance to terminate the petitioners
before the Department of Labor which was
granted, terminating the employment of
Villar et. al.
triggered by the alleged negligence of PAFLU

in attending to the needs of its local union,
particularly
its
failure
to
assign
a
Page 30 of 32

ISSUES: (1) Whether or not the the dismissal

of the petitioners by respondent Company
due to the demand of the PAFLU which
invoked the security clause of the CBA is
illegal.
(2) Whether or not the disaffiliation from

PAFLU of the petitioners are acts of disloyalty.
RULING: (1) No, the dismissal is valid.
It is true that disaffiliation from a labor union

is not open to legal objection. It is implicit in
the freedom of association ordained by the
Constitution. But this Court has laid down the
ruling that a closed shop is a valid form of
union security, and such provision in a
collective bargaining agreement is not a
restriction of the right of freedom of
association guaranteed by the Constitution.
In the case at bar, it appears as an

undisputed fact that the Company and the
Amigo Employees Union-PAFLU entered into
a CBA with a union security clause. The
stipulation for closed-shop is clear and
unequivocal and it leaves no room for doubt
that the employer is bound, under the
collective bargaining agreement, to dismiss
the employees, herein petitioners, for nonunion membership. Petitioners became nonunion members upon their expulsion from
the general membership of the Amigo
Employees Union-PAFLU pursuant to the
Decision of the PAFLU national president.
(2) Yes, the acts of disaffiliation and

subsequently filing of certification of
elections are acts of disloyalty.
In the first place, had petitioners merely

disaffiliated from the Amigo Employees
Union-PAFLU, there could be no legal
objections thereto for it was their right to do
so. But what petitioners did by the very clear

terms of their "Sama-Samang Kapasiyahan"
was to disaffiliate the Amigo Employees
Union-PAFLU from PAFLU, an act which they
could not have done with any effective
consequence because they constituted the
minority in the Amigo Employees UnionPAFLU.
Extant from the records is the fact that

petitioners numbering ten (10), were among
the ninety-six (96) who signed the "SamaSamang Kapasiyahan" whereas there are two
hundred thirty four (234) union members in
the Amigo Employees Union-PAFLU. Hence,
petitioners constituted a small minority for
which
reason
they
could
not
have
successfully disaffiliated the local union from
PAFLU. Since only 96 wanted disaffiliation, it
can be inferred that the majority wanted the
union to remain an affiliate of PAFLU and this
is not denied or disputed by petitioners. The
action of the majority must, therefore,
prevail over that of the minority members.
(8) ASSOCIATED WORKERS UNION VS

NLRC
(DISAFFILIATION;
THE
SUBSTITUTIONARY DOCTRINE)
FACTS: Associated Workers Union ("AWU")

PTGWO, filed a Notice of Strike against
respondent Metro Port Service, Inc. ("Metro").
In the NLRC, one of the demands raised by
AWU was that Metro terminate the
employment of respondents Adriano Yumul
and ten (10) others (individual respondents),
for having organized the Associated Workers
Union in Metroport ("AWUM") among the
rank-and-file employees of Metro, ostensibly
as a local or chapter of AWU. AWU had earlier
expelled
individual
respondents
from
membership in AWU for disloyalty and,
pursuant to the closed-shop provision of the
existing AWU-Metro CBA.
Metro initially resisted AWU's request to

terminate the employment of individual
respondents, contending that the termination
would
be
premature
as
individual
Page 31 of 32

respondents had not been afforded due

process, and that the termination would be
violative of the status quo agreement in
NLRC. Metro, however, eventually relented
and suspended individual respondents after
AWU staged a strike against it. Metro
executed a Compromise Agreement with
AWU to end the strike where Metro agreed to
preventively
suspend
the
individual
respondents effective immediately.
As a result of Metro's implementation of the

Agreement, individual respondents filed a
complaint against Metro in the NLRC which
later held the suspension or dismissal of
individual respondents as illegal and that the
formation
of
union
for
rank-and-file
employees does not constitute disloyalty for
they merely exercised their right to selforganization.
ISSUE: Whether or not the respondents are

illegally dismissed.
RULING: No, the respondents were validly

dismissed.
While it is true that AWUM as a local union,

being an entity separate and distinct from
AWU, is free to serve the interest of all its
members and enjoys the freedom to
disaffiliate, such right to disaffiliate may be
exercised, and is thus considered a protected
labor activity, only when warranted by
circumstances. Generally, a labor union may
disaffiliate from the mother union to form a
local or independent union only during the
60-day
freedom
period immediately
preceding the expiration of the CBA. Even
before the onset of the freedom period (and

despite the closed-shop provision in the CBA
between
the
mother
union
and
management) disaffiliation may still be
carried out, but such disaffiliation must be
effected by a majority of the members in the
bargaining unit. This happens when there is
a substantial shift in allegiance on the part of
the majority of the members of the union. In
such a case, however, the CBA continues to
bind the members of the new or disaffiliated
and independent union up to the CBA's
expiration date.
The record does not show that individual

respondents had disaffiliated during the
freedom period. The record does, however,
show that only eleven (11) members of AWU
(individual respondents) had decided to
disaffiliate from AWU and form AWUM.
Respondent
Metro
had
about
4,000
employees, and around 2,000 of these were
members of AWU. It is evident that individual
respondents had failed to muster the
necessary majority in order to justify their
disaffiliation.
(9)
ELISCO-ELIROL
(NAFLU) VS NORIEL
FACTS:
ISSUE:
RULING:
Page 32 of 32
LABOR
UNION

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Labor Relations Part III - Labor Organization

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LABOR RELATIONS PART I: BASIC CONCEPTS

ST. THOMAS MORE SCHOOL OF BUSINESS AND LAW

following documents in addition to its charter

(a) The names of the chapter's officers, their

Art. 234. Requirements of Registration.

(b) The chapter's constitution and by-laws:

A labor organization is not always a

LABOR RELATIONS PART I: BASIC CONCEPTS

dealing with employers concerning terms

To bargain collectively is a right that may be

LABOR RELATIONS PART I: BASIC CONCEPTS

Applications for registration of independent

(a) the name of the applicant labor union, its

Registration is merely a condition sine qua

(c) the name of all its members comprising

Such requirement is a valid exercise of the

A labor organization may be organized under

(b) the minutes of the organizational

(d) the annual financial reports if the

LABOR RELATIONS PART I: BASIC CONCEPTS

B. The application for registration of

(c) the financial reports of the applicant

Registration Requirements for a Chartered

LABOR RELATIONS PART I: BASIC CONCEPTS

(a) A charter certificate issued by the

CONSTITUION, BY-LAWS, AND

LABOR RELATIONS PART I: BASIC CONCEPTS

A union, either an independent or a local,

Yet the local unions remain the basic units of

Disaffiliation must be by Majority Decision

LABOR RELATIONS PART I: BASIC CONCEPTS

When a union which is not independently

Where there is consolidation, the legal

The substitutionary doctrine provides that

Section 10. Effect of merger or consolidation.

Consolidation usually occurs between two

Section 8. Notice of Merger/Consolidation of

LABOR RELATIONS PART I: BASIC CONCEPTS

The notice of merger of labor organizations

The change of name of a labor organization

Section 3. Notice of change of name of labor

(b) Misrepresentation, false statements or

Section 4. Requirements for notice of

(a) proof of approval or ratification of change

(c) Voluntary dissolution by the members.

Art. 239-A. Voluntary Cancellation of

LABOR RELATIONS PART I: BASIC CONCEPTS

organization: Provided, further, That an

(c) updated list of newly-elected officers,

Administrative Cancellation; the reportorial

LABOR RELATIONS PART I: BASIC CONCEPTS

The petition shall be under oath and shall

LABOR RELATIONS PART I: BASIC CONCEPTS

days after the election of officers or from the

date of submission of the annual financial

LABOR RELATIONS PART I: BASIC CONCEPTS

3. Upon vacating his office. The account