University of the Philippines School of Labor and Industrial RelationsAtty. 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 ConstitutionCases: 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, 1974Sampang v. Inciong, G.R. No. L-50992, June 8, 1985Brent 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, 1997Vinoya 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 Guidelines 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. 225-267.

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) Workmen’s compensation claims – SSS, GSIS, ECCd) Illegal recruitment and overseas employment issues – POEA, NLRCe) Wage fixing – National Wages and Productivity Commission,

Regional Tripartite Wages and Productivity Boardsf) Occupational safety and health – Bureau of Working Conditions, Appeals, Occupational Safety and Health Center g) Technical and vocational training issues – TESDAh) Appealsi) 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

Telefunken v. Sec. Of Labor, G.R. No. 122743, Dec. 12, 1997

St. Scholastica’s 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. L- 54334, 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. L-

24711, 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: People’s Industrial v. People’s 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, 1995certification : 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, 1989Serrano 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 labor-management 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