Title
Amending Labor Code Book vs. Implementing Rules
Law
Dole Department Order No. 40-03
Decision Date
Feb 17, 2003
DOLE Department Order No. 40-03 amends the implementing rules of the Labor Code to streamline the registration of labor unions and workers' associations, ensuring the right to self-organization and collective bargaining for eligible employees while defining key terms and processes related to labor relations.

Law Summary

Coverage and Policy on Right to Self-Organization

  • Promotion of free and responsible right to self-organization.
  • Legitimate labor unions exclusively represent members in collective bargaining.
  • Workers' associations can represent members except for collective bargaining.
  • Eligibility includes employees across sectors and government-controlled corporations without original charters.
  • Supervisory employees may form their own unions; managerial employees cannot join unions.
  • Alien employees with reciprocal rights may join unions under conditions.
  • Other worker groups may form associations for mutual aid.

Registration of Labor Organizations

  • Applications filed at the Regional Office where the organization operates or Bureau for multi-region operations.
  • Requirements include union constitution, by-laws, financial reports, lists of members, officers, and minutes of meetings.
  • Changes in name, affiliations, mergers, and consolidations require filing notices with supporting documents.
  • Certificates of registration bear registration numbers indicating status and history.

Common Provisions on Registration

  • All registration documents must be certified and attested under oath.
  • Registration fees required to receive certificates.
  • Offices must act within 10 days to approve or deny registrations.
  • Denials must state reasons and are appealable within 10 days.
  • Registration grants legal personality with effects continuing despite name changes or mergers.

Reporting Requirements for Labor Organizations

  • Submit amendments to constitution/by-laws, annual financial reports, updated officers and membership lists annually.
  • Federations or national unions submit lists of affiliates and collective bargaining agreements.

Determination of Representation Status

  • Promotes free trade unionism with expeditious procedures.
  • Exclusive bargaining agent determined via voluntary recognition or certification, run-off, consent election.

Voluntary Recognition

  • Employer may recognize sole union in unorganized establishments.
  • Notice of voluntary recognition filed within 30 days with supporting documentation.
  • Recorded recognition bars other certification petitions for one year unless a CBA is executed.

Certification Election - Procedures and Rules

  • Any legitimate union or employer may file petitions.
  • Filed with Regional Office; Med-Arbiter conducts hearing.
  • Petition filing barred during existing CBAs or within one year of voluntary recognition.
  • Supporting documents and minimum employee support required.
  • Hearings and conferences determine bargaining units, contending unions, and bars.
  • Consent elections may be agreed upon; otherwise formal election ordered.
  • Decisions issued within 10 days; orders subject to appeal.

Conduct of Certification Elections

  • Election Officers assigned by raffle.
  • Pre-election conference sets election mechanics, voter lists, polling places, ballot preparation.
  • Proper posting of notices required.
  • Secret ballots ensure sanctity and voter eligibility.
  • Challenges to voters allowed and handled via sealed envelopes.
  • Counting and canvassing observed by parties; results certified if no valid protests.
  • Failure of election declared under specified conditions with provisions for re-election.

Run-Off Elections

  • Held when no union gains majority in elections with 3 or more choices.
  • Only top two unions contest; "No Union" option excluded.

Inter/ Intra-Union Disputes and Related Labor Relations Disputes

  • Covers cancellation of registrations, elections, audit of accounts, CBA deregistration, voluntary recognition validity, membership disputes.
  • Also covers disputes between labor unions and employers or other entities.
  • Complaints must be in writing, verified, and filed with proper offices.
  • Procedures include raffle, preliminary conferences, hearings, decisions within prescribed periods.
  • Appeal mechanisms provided.

Election of Officers of Labor Unions and Workers Associations

  • Composition and duties of election committees specified.
  • Where constitutional provisions lacking, Department may order elections.
  • Petition for election conducted with similar formalities as dispute cases.

Administration of Trade Union Funds and Audits

  • Incumbent bargaining agents entitled to collect dues even during disputes.
  • Audit Examiner authorized to inspect labor organization financials upon complaint or request.
  • Procedures for audit, including pre-audit conference, subpoena issuance, audit examination defined.
  • Audit reports submitted within specified periods, with decisions and appeals mechanisms.
  • Restrictions on audits near union officer elections to prevent interference.

Cancellation of Registration of Labor Organizations

  • Petition for cancellation may be filed by any party-in-interest.
  • Grounds include fraud in constitution/by-laws, failure to submit required documents, illegal activities, violations of law, failure to submit financial reports, misappropriation.
  • Procedures follow rules with right of appeal.

Administrative Cancellation for Non-Compliance with Reporting

  • Applied after five years of no submission of required reports despite notices.
  • Bureau may publish notice and verify existence before cancellation.
  • Ensures procedural compliance and opportunity to respond.

Collective Bargaining Provisions

  • Encourages free and responsible collective bargaining.
  • Disclosure of financial information for negotiations to ensure meaningful discussions.
  • Single enterprise bargaining available to recognized unions.
  • Multi-employer bargaining allowed under conditions of consent and written agreements.
  • Collective bargaining agreements posted and registered.

Registration of Collective Bargaining Agreements

  • Filed with the Regional or Bureau Office within 30 days.
  • Requirements include signed agreement, posting statements, ratification statements.
  • Fee payment required.
  • Offices act within 5 days to approve or deny; denial appealable.
  • Representation status valid for five years; petitions outside designated periods barred.
  • Re-negotiation required after three years.

Central Registry

  • Forms prescribed for registration and reporting.
  • Rapid transmittal of registration documents and final decisions to Bureau.

Grievance Machinery and Voluntary Arbitration

  • Parties must establish grievance machinery for resolution of disputes.
  • Procedures for grievance handling outlined including shop steward role.
  • Unresolved grievances may be submitted to voluntary arbitration.
  • Voluntary arbitrator has exclusive jurisdiction over grievances.
  • Arbitration procedure and powers defined; awards are final and executory.
  • Cost sharing and fee guidelines for arbitration.
  • Board maintains records of cases.

Labor Education and Research

  • Department to promote labor education on rights and responsibilities.
  • Seminars on labor laws and related matters mandatory.
  • Special funds for labor education maintained by labor organizations.

Labor-Management Councils and Cooperation

  • Formation of councils to promote workers' participation in policy and welfare.
  • Department facilitates programs on productivity, safety, quality of work life.
  • Worker representatives nominated by unions or elected where no union exists.

Conciliation, Strikes, and Lockouts

  • Board authorized to provide conciliation services.
  • Communications during conciliation privileged.
  • Compromise agreements are final and binding.
  • Grounds for strikes and lockouts limited to bargaining deadlocks and unfair labor practices.
  • Strict requirements on notice, vote, and conduct of strikes and lockouts.
  • Peaceful picketing guaranteed.
  • Courts may enjoin picketing only as provided by law; Commission may issue temporary restraining orders.

Contempt Proceedings

  • Direct contempt punishable with fines or imprisonment.
  • Appeals allowed under defined circumstances.
  • Indirect contempt follows Revised Rules of Court.

Execution of Decisions, Awards, or Orders

  • Officials empowered to issue writs of execution within 5 years.
  • Special sheriffs may be designated.
  • Police and law enforcement may be deputized for enforcement.

General Provisions

  • Incidental motions not given due course.
  • Restriction on intervention by outsiders in labor disputes.
  • Complaints deemed filed upon receipt by appropriate agency.
  • Check-off of union dues from non-members mandated.

Transitory Provisions

  • Pending cases under old rules governed accordingly.
  • Recognition of existing legitimate statuses maintained.

Effectivity

  • Rules take effect two weeks after publication.
  • Supersede inconsistent issuances.
  • Severability clause ensures unaffected provisions remain valid.

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