University of the Philippines School of Labor and Industrial Relations Atty. Lorenzo B. Ziga IR 207.

1 EMPLOYEE RELATIONS AND INDUSTRIAL DEMORACY I. Enterprise ownership and management Economic overview - Corpuz, O.D. "An Economic History of the Philippines"; Sison, Jose Ma. "Philippine Society and Revolution" a) Managerial prerogatives Management of business : JAT General Services v.NLRC, G.R. No. 148340, Jan. 26,2004; HSBC v. NLRC, G.R. No. 125038, Nov.6, 1997; MacAdams v. MacAdams, G.R. No. 141615, Oct. 24, 2003 Reorganization Art. 283, supra; Aurelio v. NLRC, G.R. No. 99034, April 12, 1993, 221 SCRA 432; Arrieta v. NLRC, G.R. No. 126230, Sept. 18, 1997 Personnel actions Sentinel Security Agency v. NLRC, G.R. No. 122468, Sept. 3, 1998; PT&T v. CA, GR No. 152057, Sept. 29, 2003 Prescribe rules and regulations : SOCO v. Mercantile Corp. of Davao, 148 SCRA 527 Employee has no discretion : GTE Directories v. Sanchez, G.R. No. 76219, May 27, 1991 Need to consult workers: PAL v. NLRC, G.R. No. 85985, August 13, 1993 II. Policy Framework a. State Principles and Policy: Art. II, Secs. 9-11, 14, 18-22, 1987 Constitution; Art. 211, Labor Code b. Bill of Rights: Art. III, Secs. 1, 4, 10, 11, 18 (2), 1987 Constitution c. Social Justice: Art. XIII, Secs. 1-14, 1987 Constitution Cases: Calalang v. Williams, 70 Phils 726 d) Compassionate justice (secundum rationem, secundum caritatem) : Art. 4, Labor Code; Almira et al. v. BF Goodrich, G.R. No. L-34974, (July 25, 1974) e) Why State protection to workers : Victoriano v. Elizalde Rope workers union, G.R. No. L-25246, September 12, 1974 f) Other readings:

Sibal, Jorge, Contemporary issues and problems in Philippine industrial relations system, Vol XXV Philippine Journal of Labor and Industrial Relations pp. 102-119, 2005 Villegas, Edberto M., The Political Economy of Philippine Labor Laws Wurfel, David, Trade Union development and labor relations policy in the Philippines Commons and Andrews, The Basis of Labor Law, in Principles of Labor Legislation (1936) III. Concept of employer employee relations Control test Paguio v. NLRC, G.R. No. 147816 , May 9, 2003; Jardin v. NLRC, G.R. No. 119268 , February 23, 2000 ; RVM v. NLRC, GR No. 103606, Oct. 13, 1999 Whole economic activity : Francisco v. NLRC, GR No. 170087, Aug. 31, 2006 Independent contractor : Sonza v. ABS-CBN, GR No. 138051, June 10, 2004; AFPMBAI v. NLRC, GR No. 102199, Jan. 28, 1997 Fixed period: Brent School v. Zamora, Gr. No. 48494, Feb. 5, 1990; Philips Semiconductor v. Fadriquela, GR No. 141717 Security of tenure - Arts. 278, 279, Labor Code, PAL v. PALEA, G.R. No. L-24626, June 28, 1974 Sampang v. Inciong, G.R. No. L-50992, June 8, 1985 Brent Sch. V. Zamora, 181 SCRA 702 (1990) Flexible work arrangements: Department Order No. 10, series of 1997; Department Order No. 18-02 Brahm Industries v. NLRC, G.R. No. 118853, Oct. 16, 1997 Vinoya v. NLRC, G.R. No. 126586, Feb. 2, 2000 Torres, Carmela, A prognosis of the Philippine Contingent workforce, Philippine Labor Review, Vol. XXIII, No. 1, June 1999 Kinds of employment: Art. 280, LC Contracts of employment: Art. 1700, New Civil Code Ambiguity : Servidad v. NLRC, G.R. No. 128682, March 18, 1999 Probationary period: Art. 281, LC Extension : Mariwasa v. Leogardo, 169 SCRA 465 Kinds of employees: Bulletin v. Sanchez, GR No. 74425, Oct. 7, 1986; Philacor v. Laguesma, GR No. 105223, Sept. 27, 1993 United Pepsi-Cola v. Laguesma, GR No. 122226, March 25, 1998 IV. Labor justice system Cacdac, Hans Leo, Tiers of Resolution in Philippine Labor Dispute Settlement

a) National Labor Relations Commission: Jurisdiction of Labor Arbiters, Arts. 217, Labor Code: Powers of the Commission: Art. 218, LC b) Bureau of Labor Relations c) National Conciliation and Mediation Board: Executive Order No. 251 (Creating the National Conciliation and Mediation Board) 1. Voluntary Arbitration Arts. 261, 262, 262-A, 262-B, Oceanic Bic v. Romero, G.R. No. L-43890, July 16, 1984 Mantrade v. Bacungan, G.R. No. L-48437, Sept. 30, 1986 Bluebar v. Minister, G.R. No. 54427, June 6, 1989 National Conciliation and Mediation Board, Procedural in the Conduct of Voluntary Arbitration Proceedings (1989) Estrella, Fancisco, L. Labor Dispute Settlement Carnevale, J. et al., The Resolution of Conflict: Negotiation and Third Party Intervention in The Psychology of Employment Relations, supra, pp. 225267. 2. Conciliation and mediation (Notices of Strikes/Notices of Preventive Mediation) NCMB Manual of Procedures for Conciliation and Preventive mediation cases Estrella, Francisco L., The Role of Conciliation in Labor Dispute Settlement Dunlop. John et al. The New Frontier of Employment Dispute Resolution. c) Workmens compensation claims SSS, GSIS, ECC d) Illegal recruitment and overseas employment issues POEA, NLRC e) Wage fixing National Wages and Productivity Commission, Regional Tripartite Wages and Productivity Boards f) Occupational safety and health Bureau of Working Conditions, Appeals, Occupational Safety and Health Center g) Technical and vocational training issues TESDA h) Appeals i) Compulsory arbitration 1. Labor Arbiters - National Labor Relations Commission : Arts. 213 222; New Rules of Procedure of the NLRC 2. Secretary of Labor (assumption and Return-to-work orders) Sarmiento v. Tuico, G.R. No. 75271-73, June 27, 1988 UFE v. Nestle, G.R. Nos. 88710-13, Dec. 19, 1990 Guidelines

Telefunken v. Sec. Of Labor, G.R. No. 122743, Dec. 12, 1997 St. Scholasticas College v. Ruben Torres, G.R. No. 100158, June 2, 1992 Meralco v. Sec. Of Labor, G.R. No. 127598, Jan. 27, 1999 j) injunctions and appeals Arts. 218 (e), 264, LC PAL v. NLRC, Pineda, G.R. No. 120567, March 20, 1998 V. Workers right to self-organization Pankert, A., Freedom of Association in Comparative Labor Law and Industrial Relations pp. 146-163; Freeman, Richard, What Do Unions Do ? Development of international labour standards: Ghebale, From Philantrohpy to foundation: The roots of the ILO ILO Convention No. 87 (1947) ILO Convention No. 98 (1949) ILO Convention No. 135 (1971) In the Philippines: Constitutional basis: Sec. VIII, Art. III; Sec. 3, Art. XIII ; Statutory basis: Arts. 243 to 246, Labor Code; Administrative Regulation: Rule 2 to Rule 5, DO 40-03 History :Ramos, Elias T., Philippine Labor Movement in Transition (1976) Dejillas, Leopoldo J., Industrialization and the Role of Trade Unions Purpose: BSP v. Araos, G.R. No. L-10091, January 29, 1958 PAFLU v. Secretary of Labor, 16 SCRA 687 Royal Interocean Lines v. CIR, L-11745, Oct. 31, 1960 UST Faculty v. Bitonio, G.R. No. 131235, Nov. 16, 1999 Right not to join: Abo v. Philame Employees and Workers Union, 13 SCRA 120 DLSU v. DLSUEA, G.R. No. 109002, April 12, 2000 Rights and duties: Art. 242; Rights of members: Art. 241; Regulation: Arts. 234-240, Art. 249 Political and economic unionism : Dejillas, L, "Trade Union Behavior in the Philippines, 1946-1990" Other readings: Macaraya, Bach, Where to Trade Unions, PLR, Vol. 14, No. 1, 1990; Fujimura, Hiroyuki, The Future of Trade

Unions in Japan; Scipes, Kim, KMU: Building genuine trade unionism in the Philippines, 1980-1994 (1996), pp. 22-70. Ofreneo, Rene E. , The Decline of Labor Militance in the Philippines

Appropriate bargaining unit: Rule 1, Sec. 1, (d), DO 40-03 Globe doctrine: Mech. Dept. v. CIR, 24 SCRA 925 (1968); Belyca v. Ferrer, G.R. No. 77395, Nov. 29, 1988 Toyota v. Toyota Motors Labor Union, G.R. No. 121084, Feb. 19, 1997 Certification elections: Art. 256, 257, 258, 259; Rule VI to Rule X, DO 40-03; Belyca, supra UST Faculty Union v. Bitonio, GR 131 235, Nov. 16, 1999 VI. Terms and conditions of work: right to Collective bargaining ILO Convention No. 154 (1981) Barbasch, Collective Bargaining and the Theory of Conflict Craypo, Charles, The Economics of Collective Bargaining Morley, Ian E. Intra-Organizational Bargaining in The Psychology of Employment Relations pp. 203- 223 History: Jackson, Michael P, Industrial relations: a textbook, (1977) Davey, Harold, et al., Contemporary Collective Bargaining, 4th ed. , (1982) Pambusco V. Pambusco Employees Union, G.R. No. L-46739, September 29, 1939 Duty to bargain: Art. 251, 252, 253; Kiok Loy v. NLRC, G.R. No. L54334, January 22, 1986; Standard Chartered v. Confesor, G.R. No. 114974, June 16, 2004; Gen. Milling v. CA, G.R. No. 146728, Feb. 11, 2004 Disclosure of information: Rule XVI, Sec. 2, DO 40-03 Procedure: Art. 250, Labor Code Single enterprise: Rule XVI, Secs. 3 and 4, DO 40-03 Multi-employer : Rule XVI, Secs. 5 and 6, DO 40-03 Effects of the CBA: CBA is the law between the parties : Kimberly Clark v. Loredo, 226 SCRA 639 (1993) Plastic Town Center v. NLRC, 172 SCRA 580 (1989) Contract bar rule: Art. 232, LC, Art. 253

Associated Labor Union v. Calleja, GR No. 85085, Nov. 6, 1989 CCLU v. NLRC, G.R. Nos. 38955-56, Oct. 31, 1974 FDTU v. Pambansang Kilusan, G.R. No. 74228, Dec. 14, 1987 Change in agent (substitutionary doctrine) Benguet Consolidated v. BCI Employees, G.R. No. L24711, April 30, 1968 Filipinas Port Services v. NLRC, GR No. 97237, Aug. 16, 1991 Registration: Rule XVII and XVIII, DO 40-03 VII. . Concerted action Dubin, Robert, Constructive Aspects of Industrial Conflict Boomers, Gerard, Conflict Management and Industrial Relations, pp. 168-186 Policy- Art. 263 (a) , Labor Code Definition: Lockout Art. 212 (m); Strike Art. 212 (o); Labor or industrial dispute Art. 212 (l) ; Concrete Aggregates v. NLRC, G.R. No. 105090, Sept. 16, 1993 Forms: Ilaw at Buklod ng Manggagawa v. NLRC, G.R. No. 91980, June 27, 1991 Strikes by installments: PTWU v. Confesor, G.R. No. 117169, March 12, 1997 As part of freedom of speech Phil. Blooming Mills Employees Org. v.PBM, 51 SCRA 207 Passionate language, not libelous: PCIBank v. Philnabank G.R. No. L-29630, July 2, 1981 Grounds: Economic strikes- Master Iron v. NLRC, G.R. No. 92009, Feb. 17, 1993; Improved offer ballotting: Art. 265, Labor Code ULP strikes: Peoples Industrial v. Peoples Industrial Corp., 112 SCRA 442; Unfair labor practices: Arts. 247, 248, 249, Labor Code Limitations provided by law: Procedure: periods: Art. 263 (b); Cooling off period, Art. 263 (e); strike vote, Art. 263 (f) Effect of failure to comply: Lapanday v. NLRC, G.R. No.95494, Sept. 7, 1995

Prohibited activities : Art. 264, Art. 266 Sporadic violence: Shell Oil Workers v. Shell, G.R. No. L-28607, May 31, 1971 Pervasive violence: Gold City v. NLRC, G.R. No. 103560, July 6, 1995; Great Pacific Life Employees Union v. Great Pacific Life, G.R. No. 126717, Feb. 11, 1999 Liability of officers: De Ocampo v. NLRC, G.R. No. 81077, June 6, 1990 Ordinary members good faith is a defense: Ferrer v. CIR, G.R Nos. L-246267-68, May 31, 1966 Civil servants: Jacinto v. CA, G.R. No. 124540, November 14, 1997 Bangalisan v. CA, G.R. No. 124678, July 31, 97 Innocent bystander rule: Republic Flour Mills v. Reyes, G.R. No. L-21378, Nov. 28, 1966 Liwayway publications v. Permanent Concrete, G.R. No. L-25003, Oct. 23, 1981 VIII. Termination of employment 1. Suspension of operations or closure, retrenchments, layoffs Art. 283, supra; JAT Gen. Services, supra; LVN Pictures Employees and Workers Assn. V. LVN Pictures, 35 SCRA 147 2. disease/illness: Labasano v. So Han Shui, 41 SCRA 81 (1971) rule: Gentex v. NLRC, G.R. No. 102969, April 4, 1995 certification : TEISI v. NLRC, G.R. No. 129584, December 3, 1998 3. Discipline and dismissal: Art. 282, Labor Code; Manila Trading & Supply Co. v. Zulueta, 69 Phils 485; PLDT v. NLRC, 164 SCRA 671 (1988) - Not covered by company rules: Stanford Microsystems v. NLRC, G.R. No. L-74187, January 28, 1988) - Use of drugs Republic Act 9165 Roquero v. PAL, Gr. No. 152329, April 22, 2003 4. Due process requirement : Two notice rule Wenphil v. NLRC, G.R. No. 80587, Feb. 8, 1989 Serrano v. NLRC, G.R. No. 117010, Jan. 27, 2000 Agabon v. NLRC, G.R. No. 158693, Nov. 17. 2004 (just cause)

JAKA Foods v. NLRC, 2005 (authorized causes) IX. Worker participation in management Art. 255, Labor Code; Rule XXI, Book V, IRR; Art. 277 (h) Foz, Vicente B., Workers Participation: Rhetoric and Reality (2006) Cohen Rosenthal, Edward, et al., Mutual Gains, A Guide to Union Management Cooperation (1987) Gold, Charlotte, Labor-Management Committees: Confrontation, Cooptation , or Cooperation (1986) Ofreneo, Rene, Remarks given during the ECOP/Nikkeiren/ILO policy seminar on Labor-Management Consultation Mechanism, March 2, 1990. UP SOLAIR Library. Gatchalian, Jose, Employee representation and workplace participation:focus on labormanagement councils, Phil. Journal of Labor and Industrial Relations, Vol. XIX-XX, 1999-2000 Ziga, Lorenzo, LMCs in the Philippines: Issues and prospects Philippine Labor Review, Vol. XXVI, January - December 2002 Ziga, Lorenzo, When Enterprise Becomes Community