-Republic ofthe Philippines

President Ramon Magsaysay State University

Masinloc Campus
Masinloc, Zambales

College/Department COLLEGE OF ACCOUNTANCY AND BUSINESS

ADMINISTRATION
Course Code BA – HRDM 8
Course Title Labor Law and Relations
Place Of The Course In The
Program Major
Semester & Academic Year FIRST SEMESTER, AY 2020-2021
Instructor ROSALIE M. ALMARIO

MODULE NO. _1

INTRODUCTION
The field of Human Resources Management includes an important component
related to the unionization of employees. This course focuses on the history of major labor
unions, primary labor laws, and the general process of labor negotiations in a variety of
work environments. Union certification, collective bargaining, and dispute resolution will
be covered in detail. In order for students to gain a clearer understanding of labor relations,
they will participate in mock contract negotiations and grievance resolutions.

INTENDED LEARNING OUTCOMES (CILO)

You will be able to:
Demonstrate an understanding of the perspectives, theories, and concepts in
the field of labor and employment relations.
Define unions, their organizational structures, their organizing tactics, and
management’s response to union organizing campaigns.
Analyze the process of contract negotiations.
Explain contract administration and describe the use of grievance
procedures and binding arbitration to resolve disputes over the
interpretation and application of a collective bargaining agreement.
Explain the decision-making process involved with ethical negotiations.

DISCUSSION

BOOK V - LABOR RELATIONS

INTRODUCTION

Labor Relations – is the interactions between the employer and employees or their
representatives and the mechanism by which the standards and other terms and
conditions of employment are negotiated, adjusted and enforced.

Labor Relations Laws – define the status, rights, and duties and the institutional
mechanisms that govern the individual and collective interactions of employers, employees
or their representatives.

Note: Absent an employer-employee relation, there is no labor relation to speak of. If there
is no employer-employee relationship between the parties, there is no basis for organizing
for purposes of collective bargaining.

Labor Relations may be distinguished from Labor Standards in that latter is that part of
labor law which prescribes the minimum terms and conditions of employment which the
employer is required to grant to its employees.
Title One: POLICY AND DEFINITIONS
CHAPTER I. General Provisions

Article 218: Declaration of Policy

Collective Bargaining process is possible only when there is a labor organization.
1. Labor Union; or
2. Employees Association

Labor relations policy under the Labor Code is embodied in Sec. 3, Art. XII of the 1987
Constitution which guarantees to all workers their right, among others to:
1. Self-Organization;
2. Collective Bargaining and Negotiations
3. Peaceful and concerted activities including the right to strike in accordance with
law; and
4. Participate in policy and decision-making processes affecting their rights and
benefits as may be provided by law.
On the other hand, Labor Relations Policy under Art. 218 of the Labor Code provides for:
1. Free collective bargaining and negotiations, including voluntary arbitration,
mediation and conciliation, as modes of setting labor or industrial disputes;
2. Free trade unionism;
3. Free and voluntary organization
4. Enlightenment of workers concerning their rights and obligations;
5. Adequate administrative machinery;
6. Stable but dynamic and just industrial peace;
7. Participation of workers in decision and policy-making processes affecting their
rights, duties and welfare; and
8. Truly democratic method of regulating the relation between employers and
employees.

Parties to Labor Relations Cases:

1. Employees Organization;
2. Management;
3. The public – always to be considered in dispute between labor and capital, and it has
been held that the rights of the general public are paramount and
4. The State.

Note: Employer and employees are active parties while the public and the state are passive
parties.

Principles of Non-Oppression mandates capital and labor not to act oppressively against
each other or impair the interest and convenience of the public. The protection to labor
clause in the Constitution is not designed to oppress or destroy capital.

Article 218 of the labor Code mentions conciliation, mediation and voluntary arbitration as
alternative modes of settlement of labor dispute, “to the more adversarial strikes, lockouts
or any mass concerted actions.

Conciliation – is a process where a disinterested third party meets with management and
labor, at their request or otherwise, during a labor dispute or in collective bargaining
conference wherein by cooling tempers, aids the parties in reaching an agreement.

Mediation – is a process where a third party studies each side of the dispute and submits a
proposal for the disputants to consider. But a mediator cannot make an award or render a
decision.

Arbitration – is the submission of a dispute to an impartial person for determination on

the basis of evidence and arguments of the parties. The arbiter’s decision or award is
enforceable upon the disputants. This maybe either voluntary or compulsory.
CHAPTER II. DEFINITIONS
Article 219: Definitions

Employer includes:
One who employs the services of others; one for whom employees and who pays
their wages or salaries.
Any person acting in the interest of an employer, directly or indirectly. The term
does not include a labor organization or any of its officers and agent

Type of Employees under the Labor Code

1. Managerial;
2. Supervisory; and
3. Rank-and-File.

Labor Organization is a union or associated of employees which exists in whole or in part

of the purpose of collective bargaining with the employers concerning terms and
conditions of employment.

Legitimate Labor Organization (LLO) is any labor organization which is duly registered
with DOLE, the term includes local/chapter directly chartered by a legitimate federation or
national union which has been a duly reported to the Department in accordance with
Section 2, Rule, VI, Book V of the Implementing Rules (See notes under Arts. 240 and 251 of
the labor code).

Company Union is any labor organization whose formation, function or administration has
been assisted by any act defined as ULP under the Labor Code.

Bargaining Representative means a legitimate labor organization whether or not

employed by the employer.

Labor Dispute includes any controversy or matter concerning:

1. Terms or condition of employment; or
2. Association or representation of persons in negotiating, fixing, maintaining,
changing or arranging the terms and conditions of employment, regardless of
whether the disputants stand in proximate relation of employer and employee.

Test: whether it involves or concerns terms, conditions of employment, or representation

(San Miguel Corp. Employees Union_PTGWO v. Bersamira, G.R. No. 87700, June 13,
1990).

Even the question of employer-employee (Er-Ee) relationship can be considered a “labor

dispute”.

Note: A labor dispute is different from an intra-corporate dispute which arises from intra
corporate relations; relationship between or among stockholders; or relationship between
the stockholders and the corporation (Gulfo v. Ancheta, G.R No. 175301, August 14,
2012).

Types of Labor Disputes

1. Labor Standards Disputes (WBC)
a. Working conditions (e.g. unrectified work hazards);
b. Benefits (e.g. nonpayment of holiday pay, overtime pay or other benefits); and
c. Ccompensation (e.g. underpayment of minimum wage, stringement ouput qouta,
illegal payy deductions).

2. Labor Relations Disputes (TRO-BC)

a. Employment Tenure disputes (e.g. non-regularization of employees, illegal
termination, non-issuance of employment contract);
b. Representation disputes (e.g. determination of the collective bargaining unit,
ULP, strike, uncertainly as to determination of the sole and exclusive bargaining
 agent of the employees in an appropriate bargaining unit which is the majority
union);
c. Organizational right dispute/unfair labor practice (e.g. coercion, restraint or
interference in unionization efforts; reprisal or discrimination due to union
activities; company unionism);
d. Bargaining disputes (e.g. refusal to bargain (ULP), bargaining deadlock,
economic strike or lockout); and
e. Contract administration or personnel policy disputes (e.g. noncompliance with
CBA provisions (ULP if gross non-compliance with economic provisions);
disregard of grievance machinery; violation of no strike /no lockout agreement)

Parties to a Dispute
1. Primary Parties
a. Employer;
b. Employees; and
c. Union.
2. Secondary Parties
a. Voluntary arbitrator;
b. Agencies of DOLE (BLR, VAC);
c. NLRC;
d. Secretary of labor; and
e. Office of the President.

Managerial Employee is one who is vested with powers or prerogative to lay down and
execute management policies and/or to hire, transfer, suspend, layoff, recall, discharge,
assign or discipline employees.

Supervisory Employees are those who, in the interest of the employer, effectively
recommend such managerial actions if the exercise of such authority is not merely
routinely or clerical in nature but requires the use of independent judgement.

All employees not falling within any of the above definitions are rank-and-file employees.

Remedies in Labor Disputes (GMRCCCCC-JAAAI)

1. Grievance Procedure;
2. Mediation;
3. Review by Court;
4. Conciliation;
5. Compromise Agreement;
6. Certification to NLRC;
7. Enforcement of Compliance Order;
8. Certification of Bargaining Representatives ;
9. Judicial Action;
10. Arbitration (Voluntary Compulsory ).
11. Assumption of Jurisdiction:
12. Appeal; and
13. Injunction.
Voluntary Arbitrator (ANCA)
1. Any person accredited by the Board as such;
2. Any person Named or designated in the CBA by the parties to act as their Voluntary
Arbitrator;
3. One Chosen with or without the assistance of the National conciliation and
Mediation Board pursuant to a selection procedure agreed upon in the CBA or
4. Any official that may be Authorized by the secretary of Labor to act as Voluntary
Arbitrator upon the written request and agreement of the parties to a labor dispute.

TITLE TWO. NATIONAL LABOR RELATIONS COMMISION

CHAPTER 1. CREATION AND COMPOSITION

ARTICLE 220: NATIONAL LABOR RELATION COMMISION (NLRC)

It is an administrative body with quasi-judicial functions and the principal government
agency that hears and decides labor-management disputes; attached to the DOLE for
program and policy coordination only:

Composition
1. One (1) Chairman; and
2. Twenty-three (23) members.

Division
There are eight (8) division with three (3) members each to be headed by the Chairman
and seven (7) other members as Presiding Commissioners.

Presiding Commissioners
the chairman and the seven (7) remaining members shall from public sector; with the latter
to be chosen preferably from among the incumbent Labor Arbiters.

Members
The two remaining seats in the division shall be filled by a member chosen only form
among the nominees of (1) the workers and two (2) the employers organizations.

ARTICLE 221. HAED QUARTERS, BRANCHES AND PROVINCIAL EXTENSION UNITS.

The commission and its fist, second, third, fourth, fifth and sixth divisions shall have their
main offices in Metropolitan Manila, and the seventh and eighth divisions in the cities of
Cebu and Cagayan de Oro, respectively.

ARTICLE 222. APOINTMENT AND QUALIFICATIONS

Qualifications of the Chairman and the Commissioners:

1. Must be a member of the Philippine Bar;
2. Must have been engaged in the practice of law in the Philippines for at least fifteen
(15) years.;
3. Must have experience or exposure in handling Labor Management Relations for at
least five (5) years; and
4. Preferably a resident of the region where he is to hold office.

Qualifications of Executive Labor Arbiters:

1. Must be members of the Philippine Bar;
2. Must have been engaged in the practice of law in the Philippines for at least ten (10)
years; and
3. Must have experience or exposure in handling Labor Management Relations for at
least five (5) years (LABOR CODE Art. 222).

Term of Office of the Chairman, Commissioners and labor arbiters

They shall hold office during good behavior until they reach the age of 65 unless sooner
removed for causes as provided by the Law or become incapacitated to discharge the
duties of their office.

Provided. However, that the President of the Republic of the Philippines may extend the
services of the commissioners and Labor Arbiters up to the maximum age of seventy (70)
years upon the recommendation of the commission en banc (LABOR CODE, Art. 211)

ARTICLE 223: SALARIES, BENEFITS AND OTHER EMOLUMENTS

The chairman and members of the Commission shall have the same rank, receive and
annual salary equivalent to, and be entitled to the same allowances, retirement and
benefits, as those of the Presiding Justice and Associates Justices of the Court of appeals,
respectively.

Labor arbiters shall have the same rak, recieve an annual salary equivalent to and be
entitled to the saem allowances, retirement and ither benefits and previleges as those of
the judeges of the regional trial courts.
CHAPTER II. POWERS AND DUTIES

ARTICLE 224. JURISDICTION OF THE LABOR ARBITERS AND THE COMMISION

Reasonable Casual Connection Rule

If there is a reasonable casual connection between the claim asserted and the employer-
employee relations, then the case is within the jurisdiction of labor courts. In the absences
of such nexus, it is the regular courts that have jurisdiction (Kawachi v. Del Quero, G.R.
No. 163768, March 27, 2007).

The NLRC has jurisdiction to determine preliminary, the parties’ rights over a property,
when it is necessary to determine an issue related to rights or claims arising from an
employer-employee relationship (Milan, v. NLRC G.R. No. 202961, February 04, 2015)

Exclusive and Original Jurisdiction of Labor Arbiters

Except otherwise provided under this Code, the Labor Arbiters shall have the original and
exclusive jurisdiction to hear and decide, within 30 calendar days after the submission of
the case by the parties’ decision without extension, even in the absence of stenographic
notes, the following cases involving all workers, whether agricultural or non-agricultural:
(DUR-DOVE-TV-CO)
1. Claims for actual, moral exemplary and other forms of Damages arising from Er-Ee
relations;
2. ULP cases;

Notes: The Labor Arbiter has jurisdiction only over the civil aspect of ULP, the
criminal aspect being lodged with the regular courts (LABOR CODE, Art. 250, last
Par.)
3. If accompanied with claim for Reinstatement, those that workers file involving
wages, rates of pay hours of work and other terms and conditions of employment;
4. Wages Distortion disputes in unorganized establishments not voluntarily stated by
the parties pursuant to R.A 6727;
5. Monetary claims of Overseas contract workers arising from Er-Ee relations under
R.A. 8042 as amended by R.A. 10022;
6. Cases arising from any Violation of Art. 278 including questions involving the
legality of strikes and lockouts;
7. Except claims for Employment Compensation, Social Security, Phil health and
Maternity benefits, all other claims arising from Er-Ee relations, including those of
the persons in domestic or household service, involving an amount exceeding
P5,000 regardless of whether accompanied with a claim for reinstatement;

The jurisdiction of Labor Arbiters is not limited to claims arising from Er-Ee
relationships, Base on Sec 10 of R.A. 8042, Labor Arbiters have jurisdiction not only
over money claims arising out if an Er-Ee relationship but also “by virtue of any law
or contract involving Filipino workers for overseas deployment including claims for
actual, moral, exemplary and other forms of damages” (Santiago v. CF Sharp Crew
Management, Inc. G.R. No. 162419 July 10, 2007).

Note: in order for the Labor Arbiters to assume jurisdiction over the money claim,
the OCW must have a certification from POEA (Philippine National Bank v.
Cabansag, G.R. No. 157010, June 21, 2005)

8. Termination disputes (Illegal Dismissal Cases);

9. Cases under Art. 128(b) of the Labor Code (Visitorial and Enforcement powers of
the DOLE Secretary);

Note: the jurisdiction of the Labor Arbiter is found in the exception clause of Art
128(b) where the employer contests the findings of the labor employment and
enforcement officer and raises issues supported by documentary proofs which were
not considered in the course of inspection (E.O. 111, December 24, 1986).
 While it is true that under Arts. 129 and 224 of the labor code, the Labor Arbiter has
jurisdiction to hear and decide cases where the aggregate money claims of each
employee exceeds five thousand pesos (P5,000.00), said provisions of law do not
contemplate nor cover the visitorial and enforcement powers of the Secretary of
Labor or his duly authorized representatives (Ex-Bataan Veterans Security
Agency, Inc. v. Laguesma, G.R. No. 152396 November 20. 2007).
10. Enforcement of Compromise agreements when there is non-compliance by any of
the parties pursuant to Art. 233;
11. Other cases as may be provided by law

Note: although the provision speaks of exclusive and original jurisdiction of

Labor Arbiters, the cases enumerated may instead be submitted to a voluntary
arbitrator by agreement of the parties under Art. 174 of the Labor Code.

The law prefers voluntary over compulsion arbitration.

ARTICLE 225: POWER OF THE COMMISION

Power of the NRLC (ICORIC)

1. Power to Investigate – involves the power to investigate matter hear disputes
within its jurisdiction /adjudicatory power including:

a. Original jurisdiction
b. Appellate Jurisdiction
2. Power to Issue Compulsory processes – involves the following:
a. Administering oaths
b. Summoning Parties
c. Issuance do Subpoenas
3. Ocular inspection (LABOR CODE, Art. 226);
4. Rulemaking power – involves the promulgation of rules and regulations concerning:
a. Disposition of cases
b. Internal functions
c. Matters which may be necessary to case out the purpose of the Labor Code
5. Power to issue Injunctions and restraining order; and
6. Contempt power (2011 NLRC Rules of Procedure, Rule IX)

ART. 226: OCULAR INSPECTION

The Chairman, any commissioner, Labor Arbiter or their duly authorized representatives
may, at any time during working hours:
1. Conduct an ocular inspection on any establishment, building, ship, place or
premises, including any work, material, implement, machinery, appliance or any
object therein; and
2. Ask employee, laborer, or any person as the case may be for any information or date
concerning any matter or question relative to the object of the investigation.

This inpectio power is adjunct to the adjudicatory function and is different from Art.
128 (2 AZUCENA , supra at 84).

ARTICLE 227: TECHNICAL RULES NOT BINDING AND PRIOR RESORT TO AMICABLE
SETTLEMENT

Administrative and quasi-judicial bodies like the NLRC are not bound by technical rules of
procedure in the adjudication of cases (Ford Phil’s. Salaried Employees Assoc, v. NLRC, G.R.
No. 75347, December 11, 1987)

Rules of evidence are not strictly observed in the proceedings before the NLRC (Bantolino
v. Coca-Cola Bottlers Phil’s., Inc. G.R. No. 153660, June 10, 2003)

A formal or trial-type hearing is not at all times and in all instances of which are not
essential to due process, the requirements of which are not satisfied where parties
requirements of which are satisfied where parties are afforded reasonable opportunity to
explain their side of the controversy at hand (Libra Motors., Inc. v drillon. G.R. No. 82695.
November 7, 1989)

Notwithstanding Art. 227, the supreme Court had the following to say regarding the lax
application of procedural rules before quasi-judicial proceedings.

Procedural rules are not to be belittled, let alone dismissed simply because their non-
observance may have resulted in prejudice to a party’s substantial rights. Utter disregard of
the rules cannot be justifying rationalizes by harping on the policy for liberal construction
(Daikuko Electronics Phil., Inc. V. Raza G.R. no 181688, June 5, 2009).

ARTICLE 228: APPEARANCE AND FEES

Appearance of non-lawyers before the Commission (See 2011 NLRC Rules of Procedure
Rule III)

Attorney’s Fees:
1. Art 111 (Simply Monetary Claim)

a. The maximum amount to be given a lawyer for his legal assistance rendered of
10% of the total monetary award adjudged the employees excluding the award
for moral and exemplary damages. To demand more than this unlawful.
b. The attorney’s fees may be awarded only when the withholding of wages is
declared unlawful.
c. The nasis of the 10% of the attorney’s fees is the amount of wages recovered.
d. Should there be any other monetary awards given in the proceedings, the same
may not be assessed or subjected to the 10% attorney’s fees.

2. Art. 228 (Appearance and Attorney’s Fees)

a. Attorneys’ fees for CBA negotiations and conclusion shall ne in the amount
agreed upon by the parties to be taken from the union funds and not from
individual union member:
b. This Article prohibits the payment of the attorney’s fees only where the same is
effected through the forced contributions from workers from their own funds as
distinguished from the union funds.
c. Neither the lawyer nor the union itself may require the individual workers to
assume the obligation to pay the attorney’s fees from their own pockets. Any
agreement to the contrary shall be null and void.

Exercises:

Quiz I

1. Discuss the distinction of Labor Standard & Labor Relations?

2. What is National Labor Relations Commission? Discuss briefly its functions of NLRC?

3. What if one of the qualifications of the Chairman and the Commissioners does not
meet the requirement, could it be a ground not to hire or fit for that position? Justify
your answer?

Quiz II

1. Is Labor Arbiter and Labor Commissioner the same? Do they hold the same
functions and responsibilities? Discuss your answer.
 2. What are those cases being the Labor Arbiter had no jurisdiction to tried cases?

3. Discuss briefly and give example the scope of powers of NLRC?

CASE LAW

Direction: Read the full of the case given and then after a thorough reading, submit a
digested case which contains the facts of the case, issues and held.

a. San Miguel Corp. employees Union-PTGWO v. Bersamira, G.R. No. 87700, June 13,
1990

b. Nacpil v. International Broadcasting Corp., G.R. No. 144767, March 21, 2002

REQUIRED READINGS:

Presidential Decree No. 442, otherwise known as the Labor Code of the Philippines,
as amended, pertinent rules and regulations, and selected cases.

RESOURCES

C.A. Azucena, The Labor Code of the Philippines, annotated. C.A. Azucena,
Everyone’s Labor Code. A.R. V. Samson, A Comprehensive Guide on Conditions of
Employment, Employee Benefits under Special laws.