Reconcilability of Articles 138 & 139 with Article 241 of the Labor Code: A Critique and Legal Analysis

8/10/2019 Reconcilability of Articles 138 & 139 with Article 241 of the Labor Code: A Critique and Legal Analysis

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University of the Philippines

COLLEGE OF LAW

Malcolm Hall, Diliman, Q.C.

RECONCILABILITYOFARTICLE138&139WITHARTICLE241OFTHELABORCODE:

ACRITIQUE&LEGALANAYLSIS

Submitted by:

Naomi Therese F. Corpuz

Anna Criselda H. Flores

Submitted to:

Justice Vicente S.E. Veloso

Labor Law Review1st Semester, A.Y. 2014-2015


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TABLE OF CONTENTS

I. Introduction: Article 138 & 139 vis--vis Article

241 of the Labor Code ..3

II.

Legal Analysis

A.Constitutional Rights & Its Mandates

1.Protection of Labor ....6

2.Social Justice & Democratization of Unions

......................................12

B.A Critique of the Laws and Statutes..16

III. Conclusion and Recommendation21


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RECONCILABILITYOFARTICLE138&139WITHARTICLE241OFTHELABORCODE:

ACRITIQUE&LEGALANAYLSIS

Naomi Therese F. Corpuz**

Anna Criselda H. Flores***

Labor law should protect worker freedominstead of union power.

- Edward W. Youngkins1

I. Introduction

Are there only three (3) grounds for the cancellation of a union

registration? This is the issue that this paper aims to resolve by giving a

critique and legal analysis of cases, statutes, rules and regulations and other

laws focusing particularly on Article 238 and 239 of the Labor Code vis--vis

Article 241 of the Labor Code.

Article 238 of the Labor Code specifically states that the grounds for the

cancellation of registration of any legitimate labor organization are those

enumerated in Article 239, which provides for only three grounds. Article 238

and Article 239 of the Labor Code state:

ART. 238. Cancellation of Registration. - The certificate of

registration of any legitimate labor organization, whether national or

**J.D., University of the Philippines College of Law (2015 expected); A.B. Psychology, cum laude,University of the Philippines (2003).***J.D., University of the Philippines College of Law (2016 expected); A.B. Psychology, cum laude,

University of the Philippines (2011).1Edward W. Youngkins, Labor Law should protect worker freedom instead of union power at

http://www.quebecoislibre.org/000318-11.htm (last visited November 26, 2014).


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local, may be cancelledby the Bureau, after due hearing, only onthe grounds specified in Article 239 hereof.

ART. 239. Grounds for Cancellation of Union Registration. -The following may constitute grounds for cancellation ofunion registration:

(a) Misrepresentation, false statement or fraud in connection with theadoption or ratification of the constitution and by-laws oramendments thereto, the minutes of ratification, and the list ofmembers who took part in the ratification;

(b) Misrepresentation, false statements or fraud in connection withthe election of officers, minutes of the election of officers, and the listof voters;

(c) Voluntary dissolution by the members. (Emphases supplied)

However, paragraph (j) second paragraph and the second to the last

paragraph of Article 241, by their terms, expressly create additional grounds

for cancellation:

ARTICLE 241. Rights and conditions of membership in a labororganization. The following are the rights and conditions of

membership in a labor organization:

xxx

(j) Every income or revenue of the organization shall be evidenced bya record showing its source, and every expenditure of its funds shallbe evidenced by a receipt from the person to whom the payment ismade, which shall state the date, place and purpose of such payment.Such record or receipt shall form part of the financial records of theorganization.

Any action involving the funds of the organization shall

prescribe after three (3) years from the date of submission of theannual financial report to the Department of Labor and Employmentor from the date the same should have been submitted as required bylaw, whichever comes earlier: Provided, That this provision shallapply only to a legitimate labor organization which has submitted the

financial report requirements under this Code: Provided, further, thatfailure of any labor organization to comply with the periodic financialreports required by law and such rules and regulations promulgatedthere under six (6) months after the effectivity of this Act shall


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automatically result in the cancellation of union registrationof such labor organization; (As amended by Section 16, RepublicAct No. 6715, March 21, 1989).

xxx

Any violation of the above rights and conditions of membershipshall be a ground for cancellation of union registration orexpulsion of officers from office, whichever is appropriate. (Emphasessupplied)

Is it possible then to reconcile these provisions? It is of the view of the

authors of this paper that despite the difference of the terms expressly provided

in Article 238 and 239 of the Labor Code, which provides for only three (3)

grounds for cancellation of union registration, and Article 241 of the Labor

Code which provides for additional grounds for such cancellation such

provisions can still be reconciled. The authors, through research, critique and

legal analysis, conclude that grounds for the cancellation of union registration

are not only three (3) but also more, which includes additional grounds

provided by Article 241 of the Labor Code.


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II.

Legal Analysis

A.

Constitutional Rights and Its Mandates

1. Protection of Labor

The Constitution ensures and promotes the protection of labor and

workers2by guaranteeing them the right to form unions and associations3,

particularly the right to form labor organizations.

This constitutional mandate is reinforced by Presidential Decree No. 442,

or the Labor Code, in its declaration of policies, emphasizing the primacy of

collective bargaining and negotiations between labor4 - as represented by its

chosen labor organization as the collective bargaining agent, and management,

representing the employer. Furthermore, Article 4 thereof provides for the

construction of all doubts in the interpretation and implementation of the law

in favor of labor. This is in view of the recognition by the law of the fact that

there is an inherent inequality between labor and management and that the

intent is to balance the scales of justice; to put the two parties on relatively

equal positions.5

It may be argued that more grounds for cancellation of union registration

may result to a lesser bargaining power on the part of labor with their

employers as regards the rights of its members because labor organizations

could be dissolved easier on a mere ground of failure to comply with a

2Sec. 18, Art. II, 1987 Constitution3Sec. 3, Art. XIII and Sec. 8, Art. III, 1987 Constitution4Art. 211, Labor Code5Ledesma v. NLRC, G.R. No. 174585, October 19, 2007


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particular requirement under Article 241 of the Labor Code - thus derogating

protection of labor.However, it is the view of the authors of this paper that the

grounds for the cancellation of registration making it more than three (3), by

considering Article 241, in fact supports far more the protection of labor.

First. Even if there is no union registration, a labor organization is still a

lawful organization and can still deal with the employer. The registration is not

a limitation to the right of assembly and association which may be exercised

with or without said registration.6Non-registration does not mean a union is

illegitimate; it simply is unregistered and has no legal personality.7Hence, the

argument that more grounds for the cancellation of union registration will

dissolve unions absolutely is not accurate. All the union has to do is comply

with all requirements for registration and not commit any of the grounds for

cancellation of union registration that includes Article 241 of the Labor Code

that protects the rights of the laborer in a union.

Furthermore, if a unions registration is cancelled for any of the grounds

under Article 241, or even under Article 238 or 239 of the Labor Code, it does

not necessarily mean that an employee cannot bargain anymore with its

employer and has no more recourse to present its individual grievances. It

should be noted that the worker is an employee first and a union member

second which means an individual employee stands apart from the union.8 As

6PAFLU v. Sec. of Labor L-2222, February 27, 19697C.A., AZUCENA, JR., THE LABOR CODE WITH COMMENTS AND CASES, VOLUME II, 183

(2013).8Supra, Note 7.


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discussed by Azucena, an employee has the personality and the right to make

individual personal representation to the employer, as she explained:

This fact is explicitly recognized in Article 266, stating that anindividual employee or group of employees shall have the rightat any time to present grievances to their employer. Asbetween the members and the union, the members are the principal,the union is the agent and representative. This is the reason policyquestions are decided by the membership. That sovereign poweremanates from the people is as true in a state as its labor union.9(Emphasis supplied).

Thus, under Article 266 of the Labor Code, an employee has recourse in

presenting grievances to his employer, even without a union who fails to

register or whose registration is cancelled.

Second. Article 241 of the Labor Code may be viewed as the union

members Bill of Rights.10If there is a ground for the cancellation of the union

registration which is violation of any of the rights of the members of the union

under Article 241 then the union will not only be encouraged but also

compelled to uphold and protect such rights of its members. It could also serve

as a protection of the union members from the labor organization itself as it

could prevent possible abuses of union officers of their position for their own

personal benefit. It provides for security that the labor organization remains

faithful to its purpose, which is to protect the rights of its members. Article

241 of the Labor Codes11

rights and conditions may be summarized as

follows12:

9Id.10Supra Note 7, 223-22411ARTICLE 241. Rights and conditions of membership in a labor organization. The

following are the rights and conditions of membership in a labor organization:


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(a) No arbitrary or excessive initiation fees shall be required of the members of a legitimatelabor 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 by-laws ofthe organization;

(c) The members shall directly elect their officers, including those of the national union orfederation, 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 thanmembership in good standing in subject labor organization. The secretary or any otherresponsible union officer shall furnish the Secretary of Labor and Employment with a list of thenewly-elected officers, together with the appointive officers or agents who are entrusted withthe handling of funds, within thirty (30) calendar days after the election of officers or from theoccurrence of any change in the list of officers of the labor organization; (As amended bySection 16, Republic Act No. 6715, March 21, 1989).

(d) The members shall determine by secret ballot, after due deliberation, any question of majorpolicy affecting the entire membership of the organization, unless the nature of theorganization or force majeure renders such secret ballot impractical, in which case, the boardof 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 anyindividual who belongs to a subversive organization or who is engaged directly or indirectly inany subversive activity;

(f) No person who has been convicted of a crime involving moral turpitude shall be eligible forelection 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 dulyauthorized pursuant to its constitution and by-laws;

(h) Every payment of fees, dues or other contributions by a member shall be evidenced by areceipt signed by the officer or agent making the collection and entered into the record of theorganization 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 thoseexpressly provided by its constitution and by-laws or those expressly authorized by writtenresolution adopted by the majority of the members at a general meeting duly called for thepurpose;

(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 towhom 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) yearsfrom the date of submission of the annual financial report to the Department of Labor andEmployment 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 labororganization 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


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required by law and such rules and regulations promulgated there under six (6) months afterthe effectivity of this Act shall automatically result in the cancellation of union registration ofsuch 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 andby-laws, or in a written resolution duly authorized by a majority of all the members at a generalmembership meeting duly called for the purpose. The minutes of the meeting and the list ofparticipants and ballots cast shall be subject to inspection by the Secretary of Labor or his dulyauthorized representatives. Any irregularities in the approval of the resolutions shall be aground for impeachment or expulsion from the organization;

(l) The treasurer of any labor organization and every officer thereof who is responsible for theaccount of such organization or for the collection, management, disbursement, custody orcontrol of the funds, moneys and other properties of the organization, shall render to theorganization and to its members a true and correct account of all moneys received and paid byhim since he assumed office or since the last day on which he rendered such account, and ofall 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 ofthe organization; and(3) Upon vacating his office.

The account shall be duly audited and verified by affidavit and a copy thereof shall befurnished the Secretary of Labor.

(m) The books of accounts and other records of the financial activities of any labor organizationshall 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 alabor organization unless authorized by a written resolution of a majority of all the members ina general membership meeting duly called for the purpose. The secretary of the organizationshall 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. Therecord 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 anemployee without an individual written authorization duly signed by the employee. Theauthorization 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 theprovisions of its constitution and by-laws, collective bargaining agreement, the prevailing laborrelations system and all their rights and obligations under existing labor laws.For this purpose, registered labor organizations may assess reasonable dues to finance laborrelations seminars and other labor education activities.

Any violation of the above rights and conditions of membership shall be a ground forcancellation 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 speciallyconcerned may report such violation to the Bureau. The Bureau shall have the power to hear


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(1) Political right the members right to vote and be voted for, subject to

lawful provisions on qualifications and disqualifications.

(2) Deliberative and decision-making right the members right to

participate in deliberations on major policy questions and decide them by

secret ballot.

(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 of financial records; the right to vote on officers

compensation; the right to vote on 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.

Any violation of the above rights and conditions of membership shall be

a ground for cancellation of union registration,as provided by the second to

the last paragraph of Article 241 of the Labor Code, will further the rights of

the laborers as this obligates the union to uphold such rights enumerated,

otherwise, the latters union registration will be cancelled. Although the unions

registration is cancelled in such case, it does not cease to exist or become an

and decide any reported violation to mete the appropriate penalty.

Criminal and civil liabilities arising from violations of above rights and conditions ofmembership shall continue to be under the jurisdiction of ordinary courts.12Supra, Note 7.


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unlawful organization and its juridical personality as well as its statutory rights

and privileges are merely suspended.13 There is no total dissolution of the

union by mere cancellation.

B. Social Justice & Democratization of Unions

The vast majority of union officials endeavorhonesty to safeguard the rights andforward the interests of their members andto discharge the duties of their office. Yetthe reputation of the vast majority and ofthe labor movement are imperiled by thedishonest, corrupt and unethical practices of

the few who betray their trust.

Union members who fail to exercise andpractice their responsibilities as unioncitizens likewise bear a high degree ofaccountability of the abridgement of theirrights.

Most of the time but not all of it, by anymeans they do enjoy their rights asmembers of democratic unions. Most of thetime but, unfortunately, not enough of thetime

- Arthur J. Goldberg14

The Constitutional Commission devotes an article Article XIII to

Social Justice and Human Rights. This Article in part provides:

Section 1. The Congress shall give highest priority to the enactment ofmeasures that protect and enhance the right of all the people to humandignity, reduce social, economic, and political inequalities, and remove

cultural inequities by equitably diffusing wealth and political power for thecommon good.

13Supra Note 7, 214.14Supra Note 7 page 229 citing Arthur J. Goldberg, Rights and Responsibilities of Union

Mmebers, in E. Wight Bakke (ed.) Union, Management and the Public (Harcourt, New York,1967), p. 180.


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To this end, the State shall regulate the acquisition, ownership, use, anddisposition of property and its increments.

Section 2.The promotion of social justice shall include the commitment tocreate economic opportunities based on freedom of initiative and self-reliance.

Section 3. The State shall afford full protection to labor, local andoverseas, organized and unorganized, and promote full employment andequality of employment opportunities for all.

Social justice, according to Dr. Jose P. Laurel in Calalang v. Williams,15is

neither communism, nor despotism, nor atomism nor anarchy, but the

humanization of laws and the equalization of social and economic forces by the

State so that justice in its rational and objectively secular conception may at

least be approximated. Social justice means the promotion of the welfare of all

the people, the adoption of Government of measures calculated to insure

economic stability of all the component elements of society through the

maintenance of proper economic and social equilibrium in the interrelations of

the members of the community, constitutionally, through the adoption of

measures legally justifiable, or extra-constitutionally, through the exercise of

powers underlying the existence of all governments, on the time honored

principle of salus populi est suprema lex.

In relation to this, the legal measure of cancelling a unions registration

for not upholding the rights of the laborer provided under Article 241 of the

Labor Code is an application of social justice. Azucena explains that social

justice is both a procedural principle and a societal goal.16As a procedural

1570 Phil. 72616Supra Note 7, 10.


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principle, it prescribes equality of the people, rich or poor, before the law.17

This same principle applies in the nature of a relationship between a union and

its members.

Unlike in the political sphere of a democratic society, where the

constituents elect their own leaders, the workplace is different. Workers

cannot select their superiors. However, workers also aspire for power in their

work place.18 Thus, Article 241 (c) of the Labor Code which requires union

members to elect their officers every five years through secret balloting is a

manner of democratizing the union and an application of social justice.

Election of officers is the heart of union democracy. 19 Azucena further

reiterates, Further stressing union democracy, this Article 241 explicitly

grants policy-approving power to the members. They determine any question

of major policy through the deliberations and secret balloting. As in a republic

where sovereignty resides in the people, the members of the union are the

keepers and dispensers of official authority in the union. The governing power

is the members, not the officers.20If the union violates this right to vote by its

members, then there should be no union to begin with that violated such right.

It is only deem proper that a unions registration must be cancelled if such

right of members to vote is not respected.

17Id.18Supra Note 7, 222.19Id. Citing A. Cox, D.C. Bok. R.A. Gorman, Cases and Materials on Labor Law (New York:Foundation Press, 1977)20Supra Note 7, 222.


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If social justice is a procedural principal on one hand, it is a societal goal

on the other. As a societal goal, it means the attainment of decent quality of

life of the masses through humane productive efforts.21 In the world of work,

these humane productive efforts must not only be made by the employers but

also the union of the members. By protecting the rights of the members in

Article 241 by a union, the quality of life of the workers are uplifted. In Heirs of

Teodoro M. Cruz v. CIR22the Supreme Court said, The union has been evolved

as an organization of collective strength for the protection of labor against

unjust exactions of capital, but equally important is the 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; and 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. As agent, the union is

subject to the obligation of giving the members as its principals all information

relevant to union and labor matters entrusted to it.

There is also the duty of the Court to protect laborers from unjust

exploitation not only by oppressive employers but also by oppressive union

leaders. Just as the Supreme Court has stricken down unjust exploitation of

laborers by oppressive employers, so will it strike down their unfair treatment

21Supra Note 7, 102230 SCRA 917.


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by their own unworthy leaders.23Fair dealing is equally demanded of unions as

well as of employers in their dealings with employees. 24 Where the union

leadership was recreant in its duty towards the union members, the courts

must be vigilant to protect the individual interests of the union members. 25 To

consider additional grounds for cancellation of union registration under Article

241 will eradicate unfair treatment of the union leaders to its laborers.

C. A Critique of the Laws and Statutes

Presidential Decree No. 442 as enacted in 1974 provided for at least

eleven (11) grounds for cancellation of union registration: Article 239 thereof

provides for ten (10) and the second to the last paragraph of Article 241 thereof

adds that the violation of all rights and conditions of membership mentioned in

said section shall be a ground for cancellation of registration.

In 1989, Republic Act No. 6715 was enacted, amending the then

paragraph (j) of Article 241, which provided for a ground for automatic

cancellation of union registration, which is the failure to comply with periodic

financial reports within six (6) months from the effectivity thereof.

Later on, in 2007, Republic Act No. 9481 lapsed into law, completely

amending Articles 238 and 239 of Presidential Decree No. 442 and explicitly

pointing out that only three (3) grounds exist for the cancellation of a union

registration. Said Act did not specifically amend Article 241.

23Supra Note 7, 22324Id.25Id.


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In an interview with Prof. Marco De Luz (who asked not to divulge his

real name), a labor law professor of the University of the Philippines College of

Law, there are only three (3) grounds for the cancellation of the union

registration based on Article 238 and 239 of the Labor Code as amended by RA

9841. 26 His basis is the later rule principle and Azucena has the same

opinion.27 Pursuant to RA 9841 which lapsed into law in year 2007, DO 40-F-

03, Series of 2008 was issued by the then Secretary of Labor, Marianito D.

Roque amending section 3, Rule XIV, Book V of the Omnibus Rules of the

Labor Code. According to Professor De Luz, this said Department Order

pursuant to RA 9841 essentially reduced the ten grounds mentioned in the

unamended Article 239 to three. He stressed that the latest enactment of

Congress must be followed implying that RA 9841 which was enacted in 2007

must prevail over PD 442 which was enacted in 1974.

This argument of Professor De Luz and supported by Azucena follows the

later rule principle in statutory construction where as between two laws on the

same subject matter, which are irreconcilably inconsistent, that which is

passed later prevails, since this is the express intent of the legislative will.28

However, is there really an express intent of the legislative will to amend

Article 241 of the Labor Code by implication? The authors are of the view that

there is neither express nor implied intent to amend Article 241 of the Labor

26Interview with Marco De Luz (not his real name), senior lecturer of labor law of the Universityof the Philippines, College of Law(November 21, 2014).27Supra Note 3, 214-21528R.E. Agpalo, STATUTORY CONSTRUCTION, 21 (5THED., 2003) citing David v. COMELEC, 81SCAD 482, 271 SCRA 90 (1997).


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Code. We must consider that statutory rule of construction that repeal by

implication is not favored. For the legislature is presumed to know the existing

laws on the subject and not to have enacted inconsistent or conflicting

statutes.29 It would have been clear if Congress expressly mentioned that the

second to the last paragraph is amended by including it as one of the

provisions amended by RA 9841 but it did not do so. The Court in a case

explains the principle in detail as follows:

Repeals by implication are not favored, and will not be decreed unlessit is manifest that the legislature so intended. As laws are presumed tobe passed with deliberation, and with full knowledge of all existingones on the subject, it is but reasonable to conclude that in passing astatute it was not intended to interfere with or abrogate any formerlaw

Could it be that Congress forgot that there is an existing Article 241 of

the Labor Code which provides for additional grounds? Be that as it may, the

authors are of the view that when RA 9841 was enacted, the Congress being

the lawmakers are presumed to always be mindful of the Constitution. As the

Constitution is the fundamental law to which all laws are subservient, a

statute must not be interpreted independently of the Constitution. The statute

should be construed in harmony with, and not in violation of the fundamental

law. 30 For this reason, the view that DO 40-F-03, Series of 2008 amending

section 3, Rule XIV, Book V of the Omnibus Rules of the Labor Code implies

reduction of the ten grounds to three (3) is incorrect.

29R.E. Agpalo, STATUTORY CONSTRUCTION, 21 (5THED., 2003) citing U.S. v Palacio, 33 Phil208 (1916); Maceda v Macaraeg, 197 SCRA 520.30R.E. Agpalo, STATUTORY CONSTRUCTION, 21 (5THED., 2003) citing Garcia v. COMELEC237 SCRA 279 (1994).


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It should be stressed that RA 9841 amended Articles 238 and 239 of the

Labor Code but did not amend Article 241 of the same statute. By the fact that

only Article 238 and 239 were amended, the Department of Labor and

Employment should not have made an amendment to the Omnibus Rules

reducing the grounds to only three (3) when there is an existing unamended

second to the last paragraph of Article 241 of the Labor Code which in its

express terms provides the complete opposite of Articles 238 and 239. Article

241 has not been deleted nor amended, hence it is valid and existing. If a

discrepancy occurs between the basic law and an implementing rule and

regulation, it is the former that prevails.31

The Constitution protects labor. Apart from the above-mentioned

Constitutional provisions protecting labor, the Labor Code also provides:

ARTICLE 3. Declaration of basic policy. - The State shall affordprotection to labor, promote full employment, ensure equal work

opportunities regardless of sex, race or creed and regulate the relationsbetween workers and employers. The State shall assure the rights ofworkers to self-organization, collective bargaining, security of tenure, and

just and humane conditions of work.

ARTICLE 4. Construction in favor of labor. - All doubts in theimplementation and interpretation of the provisions of this Code,including its implementing rules and regulations, shall be resolved infavor of labor. (Emphases supplied)

It has been stressed by the authors of this paper that the second to the

last paragraph of Article 241 is consistent with the constitutional mandate and

statutory mandate of protecting labor. Even if there are Article 238 and 239

31R.E. Agpalo, STATUTORY CONSTRUCTION, 21 (5THED., 2003) citing United BF HomeownersAssn. v. BF Homes, Inc. 109 SCAD 27, 310 SCRA 304, 315-316 (1999).


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which in their express terms are contradictory to Article 241, the implementing

rules and regulations must be resolved in favor of labor as provided in Article 4

of the Labor Code. Constitutional and statutory provisions control what rules

and regulations may be promulgated by such a body, as well as with respect to

what fields are subject to regulation by it. 32 It may not make rules and

regulations which are inconsistent with the provisions of the Constitution or a

statute, particularly the statute it is administering or which created it, or which

are in derogation of, or defeat the purpose of a statute. 33 In Grego v.

COMELEC34 the Court said, being merely an implementing rule, the same

must not override, but remain consistent and in harmony with the law it seeks

to apply and implement. Administrative rules and regulations are intended to

carry out, neither to supplant nor modify, the law. Article 241 of the Labor

Code is clear that any violation of the rights of the members enumerated

therein will be a ground for cancellation of union registration which is an

application of the constitutional and statutory mandates of protecting labor

must not be deemed repealed by a mere Omnibus Rule which was amended by

an erring administrative order that is DO 40-F-03, Series of 2008.

32Id.33Id.3483 SCAD 923, 274 SCRA 481 (1997)


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IV. Conclusion and Recommendation

In spite of RA 9841 amending Article 238 and Article 239 of the Labor

Code expressly stating that there are three grounds for the cancellation of a

union, we conclude that the ground provided for in Article 241 of the Labor

Code, i.e., the violation of rights and conditions of membership, is not impliedly

repealed and, therefore, still considered a ground for cancellation of union

registration. Repeals by implication are not favored.

Further, Article 241 may be considered the union members Bill of Rights

as it is in fact consistent to the principles of social justice and human rights by

protecting the rights of the members of the union and democratization of

unions. It protects the union members from possible abuses of union officers

and secures that the labor organization serves only its purpose, which is to

protect its members.

Cancellation of registration does not actually result to dissolution of the

union itself. The union still exists, albeit without legal personality, and their

statutory rights and privileges are merely suspended. Nothing in the law

prevents them from registering again provided they comply with all the

requirements.

Lastly, Article 4 of the Labor Code is clear enough, All doubts in the

implementation and interpretation of the provisions of the Labor Code,

including its implementing rules and regulations, shall be resolved in favor of

labor, consistent with the mandate of the Constitution in affording full

protection to labor. It is a well-settled rule of statutory construction that a


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statute should be construed whenever possible in a manner that will avoid

conflict with the Constitution. The statute must be read and understood in the

light of such provisions of the constitution as may bear on the subject so as to

harmonize the former with the latter and avoid their conflicting with each other.

Henceforth, we recommend that Congress must amend Article 238 and

Article 239 and include the additional grounds for the cancellation of union

registration under Article 241 of the Labor Code.

Documents

Reconcilability of Articles 138 & 139 with Article 241 of the Labor Code: A Critique and Legal Analysis