Policy and purpose
- Republic Act No. 9481 strengthens workers’ constitutional right to self-organization by amending Presidential Decree No. 442 (the Labor Code of the Philippines) through specific changes on union registration, internal union governance, and certification election processes.
Amendments to union registration requirements
- Section 1 amends Article 234 of the Labor Code to require that a federation, national union, industry or trade union center, or independent union acquire legal personality and become entitled to rights and privileges of legitimate labor organizations upon issuance of a certificate of registration.
- The issuance of the certificate of registration under Article 234 requires the following:
- A P50.00 registration fee.
- The names of officers, their addresses, the principal address of the labor organization, the minutes of the organizational meetings, and the list of workers who participated in the meetings.
- For an independent union, the names of all members comprising at least 20% of all employees in the bargaining unit where it seeks to operate.
- If the applicant union has been in existence for one or more years, copies of annual financial reports.
- Four copies of the constitution and by-laws, minutes of adoption or ratification, and the list of members who participated in it.
- Section 2 inserts Article 234-A on chartering and creation of a local chapter, allowing a duly registered federation or national union to directly create a local chapter by issuing a charter certificate.
- Under Article 234-A, the local chapter acquires legal personality only for purposes of filing a petition for certification election from the date the charter certificate is issued.
- Under Article 234-A, the local chapter earns all other rights and privileges of a legitimate labor organization only after submitting, in addition to the charter certificate:
- The names of the chapter’s officers, their addresses, and the principal office of the chapter.
- The chapter’s constitution and by-laws, with an instruction that where these are the same as those of the federation or national union, that fact must be indicated accordingly.
- Under Article 234-A, the additional supporting requirements must be certified under oath by the chapter’s secretary or treasurer and attested by its president.
Cancellation of registration and its effects
- Section 3 amends Article 238 to require that the Bureau, after due hearing, may cancel the certificate of registration of any legitimate labor organization (national or local) only on grounds specified in Article 239.
- Section 4 inserts Article 238-A, providing that filing a petition for cancellation of union registration:
- does not suspend proceedings for certification election; and
- does not prevent the filing of a petition for certification election.
- Under Article 238-A, in case of cancellation, nothing restricts the union’s right to seek just and equitable remedies in the appropriate courts.
Grounds and modes for cancellation
- Section 5 amends Article 239 to list these grounds for cancellation of union registration:
- Misrepresentation, false statement, or fraud connected with the adoption or ratification of the constitution and by-laws (including amendments), the minutes of ratification, and the list of members who took part in the ratification.
- Misrepresentation, false statements, or fraud connected with the election of officers, minutes of the election of officers, and the list of voters.
- Voluntary dissolution by the members.
- Section 6 inserts Article 239-A allowing voluntary cancellation by the organization itself if:
- At least two-thirds of its general membership votes in a meeting duly called to dissolve the organization; and
- An application to cancel registration is thereafter submitted by the organization’s board and attested to by its president.
Reportorial requirements and consequences
- Section 7 inserts Article 242-A requiring submission of the following documents to the Bureau by the legitimate labor organization:
- The constitution and by-laws (or amendments thereto), minutes of ratification, and the list of members who took part in ratification of the constitution and by-laws (within 30 days from adoption or ratification).
- The list of officers, minutes of the election of officers, and list of voters (within 30 days from election).
- The annual financial report (within 30 days after the close of every fiscal year).
- The list of members at least once a year or whenever required by the Bureau.
- Under Article 242-A, failure to comply with these reportorial requirements:
- is not a ground for cancellation of union registration; and
- subjects the erring officers or members to suspension, expulsion from membership, or any appropriate penalty.
Eligibility rules for joining unions
- Section 8 amends Article 245 to provide that:
- Managerial employees are not eligible to join, assist, or form any labor organization.
- Supervisory employees are not eligible for membership in the collective bargaining unit of rank-and-file employees, but may join, assist, or form separate collective bargaining units and/or legitimate labor organizations of their own.
- The rank-and-file union and the supervisors’ union operating within the same establishment may join the same federation or national union.
- Section 9 inserts Article 245-A providing that inclusion as union members of employees outside the bargaining unit:
- is not a ground for cancellation of the union’s registration; and
- results in those employees being automatically deemed removed from the union’s membership list.
Certification elections: representation issue and procedures
- Section 10 amends Article 256 to govern representation issue in organized establishments when a verified petition questioning the majority status is filed.
- Under Article 256, the Med-Arbiter must automatically order a secret ballot election when the petition is supported by written consent of at least 25% of all employees in the bargaining unit to ascertain employees’ will in the appropriate bargaining unit.
- Under Article 256, an election is valid only if at least a majority of all eligible voters in the unit cast votes.
- Under Article 256, the union receiving the majority of valid votes is certified as the exclusive bargaining agent of all workers in the unit.
- Under Article 256, when an election with three or more choices results in no choice receiving a majority of valid votes:
- a run-off election is conducted between the two unions with the highest number of votes; and
- the total votes for all contending unions must be at least 50% of the number of votes cast.
- Under Article 256, when the petition is filed by a national union or federation, disclosure of the names of the local chapter’s officers and members is not required.
- Under Article 256, at the expiration of the freedom period, the employer continues to recognize the majority status of the incumbent bargaining agent where no petition for certification election is filed.
- Section 11 amends Article 257 to require that in unorganized establishments (no certified bargaining agent), a certification election is automatically conducted by the Med-Arbiter upon filing of a petition by any legitimate labor organization, including a national union or federation with a charter certificate to its local chapter participating in the certification election, or a local/chapter issued a charter certificate by the national union or federation.
- Under Article 257, when the petition is filed by a national union or federation, disclosure of the names of the local chapter’s officers and members is not required.
- Section 12 inserts Article 258-A establishing the rule that the employer is a bystander in all certification election cases whether the petition is filed by an employer or a legitimate labor organization.
- Under Article 258-A, the employer is not considered a party with the right to oppose; employer participation is limited to:
- being notified or informed of petitions of such nature; and
- submitting the list of employees during the pre-election conference if the Med-Arbiter acts favorably on the petition.
Severability, repeals, and consolidation effects
- Section 13 provides a separability clause: if any part, section, or provision of Republic Act No. 9481 is held invalid or unconstitutional, the remaining provisions are not affected.
- Section 14 provides a repealing clause: Presidential Decree No. 442 (the Labor Code of the Philippines), as amended, and all other acts, laws, presidential issuances, rules, and regulations are repealed, modified, or amended accordingly.
- The act is a consolidation of Senate Bill No. 2466 and House Bill No. 1351, and was finally passed by the Senate and House of Representatives on February 20, 2007.