Title
Amendments to Labor Code on Unionism and Bargaining
Law
Batas Pambansa Blg. 130
Decision Date
Aug 21, 1981
Batas Pambansa Blg. 130 amends the Philippine Labor Code to establish the headquarters and branches of the Commission, expand the jurisdiction of the Commission, regulate the registration of labor organizations, define unfair labor practices, and provide procedures for representation issues, grievance machinery, voluntary arbitration, strikes, lockouts, termination of employment, and closure of establishments.
A

Registry and Records of Labor Organizations

  • The Bureau maintains a registry of legitimate labor organizations.
  • It keeps files of collective agreements, settlements of labor disputes, and decisions of voluntary arbitrators.
  • Files are accessible under prescribed conditions to interested parties, but confidential information is protected.
  • Parties must submit collective agreements with proof of ratification by majority workers in the bargaining unit.
  • The Bureau publishes final decisions and awards of the Minister of Labor and Employment and the Commission.

Prohibition on Certain Certification Elections

  • The Bureau shall not entertain petitions for certification elections or actions disturbing existing collective bargaining agreements, except as allowed under Articles 254 and 257.

Requirements for Registration of Labor Organizations

  • Legal personality and rights are granted upon certificate of registration.
  • Registration requirements include a fee, officer and member information, organizational meeting minutes, and constitution and by-laws documentation.
  • A minimum membership of 30% of all employees in the bargaining unit is required.
  • Financial reports required if the organization has existed for one or more years.

Unfair Labor Practices by Employers

  • Employers are prohibited from interfering with employees' rights to self-organization.
  • Prohibition of employment conditions requiring non-membership or withdrawal from labor organizations.
  • Prohibitions include contracting out union functions, dominating labor organizations, discrimination, retaliation for testimony, failure to bargain collectively, and paying negotiation or attorney's fees in certain disputes.
  • Criminal liability extends only to officers and agents who participated in unfair labor practices.

Unfair Labor Practices by Labor Organizations

  • Labor organizations must not restrain or coerce employees in self-organization.
  • They must not cause employer discrimination or refuse to bargain collectively.
  • Prohibitions include demanding fees for services not performed and accepting negotiation or attorney's fees from employers improperly.
  • Officers and agents who participate in unfair practices are subject to criminal liability.

Procedures on Representation Issues

  • A Med-Arbiter decides on employee representation and certifies the chosen bargaining agent.
  • If doubt exists, a secret ballot election is conducted under Ministry rules.
  • No certification election if a valid collective agreement exists, except within 60 days prior to its expiration.

Grievance Machinery and Voluntary Arbitration

  • Grievances arising from collective agreements should first be adjusted between employer and bargaining representative.
  • Unsettled grievances go to voluntary arbitration.
  • Termination disputes follow special rules unless parties agree otherwise.
  • Collective agreements must designate arbitrators; the Ministry compiles a list.
  • Voluntary arbitration decisions are final and executory.

Strikes, Picketing, and Lockouts

  • The State promotes free trade unionism and collective bargaining.
  • Workers have the right to concerted activities, including strikes and picketing; employers can declare lockouts.
  • Strikes and lockouts may not be declared over inter- or intra-union disputes.
  • Notices of strikes or lockouts must be filed in advance with the Ministry, with specified periods depending on the nature of the dispute.
  • The Ministry mediates during the cooling-off period.
  • Strike or lockout decisions require a two-thirds majority vote by union members or employer’s board of directors.
  • The Ministry supervises ballots and receives voting results.
  • The Minister may intervene in disputes affecting national interest, ordering compulsory arbitration and enjoining strikes or lockouts.
  • The President may assume jurisdiction in such disputes anytime.

Prohibited Activities Related to Strikes and Lockouts

  • Illegal to declare strike or lockout without bargaining, proper notice, or vote.
  • Illegal to strike or lock out during assumption of jurisdiction by the President or Minister or during arbitration processes.
  • Workers terminated due to illegal lockouts are entitled to reinstatement with back wages.
  • Union officers knowingly participating in illegal strikes or acts may lose employment status.

Additional Provisions on Union Contributions and Termination Procedures

  • Unions authorized to collect contributions for labor education and research.
  • Clearance to terminate employment is not necessary but notice and opportunity to be heard must be given.
  • The burden to prove valid cause for dismissal lies with the employer.
  • Ministry may suspend termination effects during disputes posing serious labor issues or mass lay-offs.
  • Positions and salaries in the Labor Relations System are to be created or upgraded.
  • A Voluntary Arbitration Fund is established to assist indigent parties.
  • Promotion of labor-management cooperation programs and voluntary labor-management committees are encouraged.

Grounds and Procedures for Termination and Closure

  • Just causes for termination include serious misconduct, neglect, fraud, crime against employer or family, and analogous causes.
  • Termination due to installation of labor-saving devices, redundancy, retrenchment, or closure requires written notice one month in advance.
  • Workers affected by such terminations are entitled to separation pay at specified rates depending on cause.

Repeal of Inconsistent Provisions

  • Various Articles and provisions inconsistent with this Act are repealed.

Effectivity

  • The Act takes effect upon approval.

Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster, building context before diving into full texts. AI-powered analysis, always verify critical details.