Labor Relations Review Constitutional and Statutory Basis Art. 3 Sec. 10 Section 10.

ion 10. The State shall promote social justice in all phases of national development. Art. 3 Sec. 18 Section 18. The State affirms labor as a primary social economic force. It shall protect the rights of workers and promote their welfare. Art. 13 Sec. 3 Section 3. The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all. It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure, humane conditions of work, and a living wage. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law. The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace. The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns to investments, and to expansion and growth.

Employer-Employee Relationship Employee refers to any person working for an employer. It includes one whose work has ceased in connection with any current labor dispute or because of any unfair labor practice and one who has been dismissed from work but the legality of the dismissal is being contested in a forum of appropriate jurisdiction. "Employer" refers to any person or entity who employs the services of others, one for whom employees work and who pays their wages or salaries. An employer

includes any person directly or indirectly acting in the interest of an employer. It shall also refer to the enterprise where a labor organization operates or seeks to operate. "Substantial capital or investment" refers to capital stocks and subscribed capitalization in the case of corporations, tools, equipment, implements, machineries and work premises, actually and directly used by the contractor or subcontractor in the performance or completion of the job, work or service contracted out.

Liability of Employer: 1. In Legitimate Sub-contracting joint & several liability for payment of employees wages when the sub-contractor is unable to pay, but only up to the extent of the work performed under the sub-contract Labor Only solidary liability with the labor-only contractor for all legitimate claims of the employees; sub-contractor is considered an agent only for the principal Management Prerogatives: Except as limited by special laws, an employer is free to regulate, according to his own discretion and judgment, all aspects of employment, including hiring, work assignments, working methods, time, place and manner of work, tools to be used, processes to be followed, supervision of workers, working regulations, transfer of employees, work supervision, lay off of workers and the discipline, dismissal and recall of work. Every business enterprise endeavors to increase its profits. In the process, it may adopt or devise means designed towards that goal. So long as the companys management prerogatives are exercised in good faith for the advancement of the employers interest and not for the purpose of defeating or circumventing the rights of the employees under special laws or under valid agreements, the Court will uphold them. (San Miguel Brewery Sales Force Union vs. Ople, Feb. 18, 1989) Regular Employment when the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer, Casual Employment Where the employee is engaged to perform work or service which is merely incidental to the business of the employer and such job is for a definite period made known to the employee at the time of engagement. becomes regular after one year of service, whether such service is continuous or not.

considered a regular employee only with respect to the activity for which he was hired and his employment will continue while such activity exists.

Probationary Employment where the employee, upon his engagement, is made to undergo a trial period during which the employer determines his fitness to qualify for regular employment based on reasonable standards made known to him at the time of engagement. For learnable or apprenticeable work, the period of probationary employment shall be limited to the authorized learnership or apprenticeship period. Where the work is neither apprenticeable nor learnable, the probationary period shall not exceed 6 months A probationary employee may only be terminated for just cause or for failure to qualify as a regular employee in accordance with the reasonable standards of the employer Where no standards are made known to the employee at the time of engagement, he shall be deemed a regular employee Project Employees One whose employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee If the project employee is terminated at the end of the project, he is not entitled to separation pay If the project employee is terminated without just cause before the end of the project, he is entitled to separation pay equivalent to the remaining term of his contract. A project employee may become regular when: (a) There is continuous rehiring even after the end of the original project and (b) the tasks performed by the project employee are vital, necessary and indispensable to the usual business or trade of the employer. Supervisory Employee" refers to an employee who, in the interest of the employer, effectively recommends managerial actions and the exercise of such authority is not merely routinary or clerical but requires the use of independent judgment. Managerial Employee" refers to an employee who is vested with powers or prerogatives to lay down and execute management policies or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees. To be considered a managerial employee:

1. His primary duty consists of the performance of work directly related to management policies; 2. That he regularly and customarily exercises discretion and independent judgment in the performance of his functions; 3. That he regularly and directly assists in the management of the establishment; and 4. That he does not devote 20% of his time to work other than those described above. Right to Self Organization Who cannot unionize for CB purposes? 1. Government employees 2. Employees of GOCC with original charters 3. Cooperative Members 4. Managerial Employees 5. Confidential Employees those who (1) assist or act in a confidential capacity, (2) to persons who formulate, determine, and effectuate management policies in the field of labor relations. 6. Employees of International Organizations or Labor Organization 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 IRR. "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 IRR. 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: Specialized Agencies

(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 by-laws of the applicant union, minutes of its adoption or ratification, and the list of the members who participated in it." 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 following documents in addition to its charter certificate: (a) The names of the chapter's officers, their addresses, and the principal office of the chapter; and (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 Appropriate Bargaining Unit "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. In determining an appropriate bargaining unit, the test of grouping is mutuality or commonality of interests. The employees sought to be represented by the collective bargaining agent must have substantial mutual interests in terms of employment and working conditions as evinced by the type of work they performed. [T]here are various factors which must be satisfied and considered in determining the proper constituency of a bargaining unit. No one particular factor is itself

decisive of the determination. The weight accorded to any particular factor varies in accordance with the particular question or questions that may arise in a given case. What are these factors? Rothenberg mentions a good number, but the most pertinent to our case are: (1) will of the employees (Globe Doctrine); (2) affinity and unit of employees' interest, such as substantial similarity of work and duties, or similarity of compensation and working conditions; (3) prior collective bargaining history; and (4) employment status, such as temporary, seasonal and probationary employees. (SAN MIGUEL CORPORATION EMPLOYEES UNION-PTGWO, vs. CONFESOR, et. Al. 262 SCRA 81) Certification Election Role of Employer In all cases, whether the petition for certification election is filed by an employer or a legitimate labor organization, the employer shall not be considered a party thereto with a concomitant right to oppose a petition for certification election. The employer's participation in such proceedings shall be limited to: (1) being notified or informed of petitions of such nature; and (2) submitting the list of employees during the pre-election conference should the Med-Arbiter act favorably on the petition.