I.

Legal Bases of Unfair Labor Practice (ULP)

International Basis

●​ ILO Convention No. 98 (Right to Organize and Collective Bargaining, 1949)​

○​ Article 1 & 2: Protection against anti-union discrimination.​

○​ Employment must not be conditioned on relinquishing union

membership.​

Philippine Labor Code Provisions

●​ Article 258 – Defines ULP and affirms it as a violation of constitutional

and civil rights.​

●​ Article 259 – Enumerates ULPs by the employer.​

●​ Article 260 – Enumerates ULPs by labor organizations.​

●​ Article 274 – CBA violations not gross are grievances, not ULPs.​

●​ Article 278(c) – Pertains to ULP in relation to union posting.​

●​ Article 303 – Provides penalties for ULP (criminal aspect).​

●​ Article 305 – Discusses prescriptive periods for ULP.​

II. Basic Premise of ULP

●​ Not all unfair acts are ULP – only those specifically defined by law.​

●​ ULP must relate to the exercise of the right to self-organization, such as:​

○​ Union formation​

○​ Collective bargaining​

○​ Discriminatory acts against union activities​

●​ The list under Articles 259 and 260 is exclusive.​

III. Nature of ULP
ULP is a multi-faceted violation:

1. Constitutional Violation

●​ Affects:​

○​ Workers’ right to self-organization​

○​ Security of tenure​

○​ Conditions of employment​

2. Civil Violation

●​ Violates the civil rights of both labor and management.​

●​ May give rise to civil damages:​

○​ Moral​

○​ Exemplary​

○​ Actual​

○​ Nominal​

3. Criminal Violation

●​ ULP is also penalized under Article 303 of the Labor Code.​

●​ Penal sanctions are applicable.

IV. Jurisdiction Over ULP Cases

A. Administrative & Civil Aspects

●​ Handled by Labor Arbiters (NLRC) under Article 224.​

●​ Also governed by Section 1, Rule 5 of the 2011 NLRC Rules of Procedure.​

●​ Civil claims may include damages (moral, actual, etc.).​

B. Voluntary Arbitration (Article 275)

●​ Labor arbiters may cede jurisdiction if parties agree in a CBA or

grievance machinery.​

●​ Voluntary arbitrators may decide ULP cases when there is mutual

agreement.​

C. Criminal Aspect

●​ Under Article 303, criminal complaints for ULP may be filed before:​

○​ Municipal Trial Court (MTC)​

○​ City Courts​

○​ Regional Trial Courts (RTC)​

●​ These courts have concurrent jurisdiction over the criminal component

of ULP.

Penalties for Unfair Labor Practice

A. Civil Aspect

1.​ Injunctive Penalty​

○​ Cease and Desist Orders to stop the commission of ULP acts.​

2.​ If ULP results in illegal dismissal:​

○​ Reinstatement with full back wages, or​

○​ Separation pay in lieu of reinstatement (plus back wages).​

3.​ Other Civil Remedies:​

○​ Moral and exemplary damages​

○​ Attorney’s fees​

○​ Other affirmative reliefs as deemed proper by the labor arbiter.​

B. Criminal Aspect (Article 303, Labor Code)

 ●​ Fine: ₱1,000 to ₱10,000​

●​ Imprisonment: 3 months to 3 years​

II. Prescription Period (Article 305, Labor Code)

●​ ULP must be filed within 1 year from the time the act was committed.​

●​ ULP is criminal in nature, hence the application of prescriptive rules for

criminal acts.​

●​ Tolling of Prescription:​

○​ The filing of a labor case suspends (tolls) the running of the

criminal prescription period.

III. Condition Precedent for Filing Criminal ULP

Case
●​ Before a criminal ULP case can be filed in MTC, city, or RTC, there must
be:​

○​ A final judgment from the labor tribunal confirming that a ULP

was committed.​

●​ Effect of Final Judgment:​

○​ NOT considered evidence in the criminal case.​

○​ It is required only as a condition precedent for criminal

prosecution.​

IV. Elements of Unfair Labor Practice

1.​ Existence of Employer-Employee Relationship​

○​ Exception:​

■​ When ULP is committed by or against federations or

national unions, even if officers are not employees of the
employer.​

2.​ Act must fall under defined ULP acts​

 ○​ As listed in:​

■​ Articles 259 and 260​

■​ Article 278(c) – Union posting​

■​ Article 274 – Gross violations of a CBA​

V. CBA Violations and ULP

●​ Simple CBA Violations → Not ULP, treated as grievances.​

○​ Example: Delay in a 5% salary increase due to force majeure (e.g.,

pandemic).​

○​ Handled through:​

■​ Grievance machinery​

■​ Voluntary arbitration (if unresolved)​

●​ Gross CBA Violations → May constitute ULP​

○​ Must be willful, flagrant, and malicious.

Who Can Commit Unfair Labor Practices?

1. Employers

●​ Defined in Article 259 of the Labor Code.​

●​ Includes:​

○​ Officers​

○​ Agents​

○​ Corporations​

○​ Partnerships​

●​ Liability attaches to those who:​

○​ Participated in​
 ○​ Authorized, or​

○​ Ratified the unfair labor practice.​

2. Labor Organizations

●​ Covered by Article 260 of the Labor Code.​

●​ Includes:​

○​ Labor organizations​

○​ Federations​

○​ National unions​

○​ Officers and members thereof​

II. Unfair Labor Practices by Employers (Article

259)
🔹 A. Interference, Restraint, or Coercion
●​ Against the right to self-organization.​

●​ Must be characterized by:​

○​ Ill will​

○​ Bad faith​

○​ Fraud​

○​ Oppressiveness to labor​

○​ Acts contrary to morals, good customs, or public policy

III. Illustrative Case: T&H Shopfeeters Case

📚 GR No. 191714, Feb 26, 2014​
Case Title: T&H Shopfeeters Corporation and Gin Queen Corporation vs. T&H
Shopfeeters and Gin Queen Workers Union

🔹 Employer’s ULP Acts:

 ●​ Excluded union members from a field trip (before certification election)​

●​ Actively campaigned against the union​

●​ Escorted employees to the polling center​

●​ Continuous hiring of illegitimate contractuals​

●​ Reduced regular hours of union members​

●​ Retrenched union officers and members​

🔹 Supreme Court Ruling:

●​ Confirmed multiple ULPs and awarded:​

○​ ₱50,000 in moral damages​

○​ ₱35,000 in exemplary damages to each affected employee​

●​ Claims included:​

○​ Unfair labor practice​

○​ Illegal lockout​

○​ Damages and attorney's fees​

📌 Note: Despite severe violations, only civil damages were

awarded—highlighting a possible under-penalization.

IV. Legal Presumption: Good Faith

●​ General Rule: Employers are presumed to act in good faith.​

●​ Burden of Proof: Lies on the complainant, who must prove bad faith.​

○​ Essential in interference, restraint, or coercion cases.​

V. The Totality of Conduct Doctrine

📌 Used to determine whether employer conduct amounts to ULP.
🔹 Two-Step Evaluation:
 1.​ Is the act among those enumerated in Articles 259 or 260?​

2.​ Examine the factual context, including:​

○​ History of employer conduct​

○​ Patterns of hostility toward unionism​

🔹 Signs of Hostility:
●​ Dismissals​

●​ Threats​

●​ Surveillance/spying​

●​ Interrogation​

●​ Offers or bribes to leave the union​

●​ Promises of promotions or better terms in exchange for union

withdrawal​

. Conditional Employment to Undermine Unionism

●​ Unfair practice: Making employment, promotion, or retention

contingent upon:​

○​ Not joining a union, or​

○​ Withdrawing from an existing union​

●​ This takes the form of an unwritten agreement known as:​

○​ Yellow Dog Contract (Labor Relations term)​

○​ Also called: Ironclad Contract​

2. Contracting Out Unionized Work

✅ General Rule:
●​ Contracting out is not ULP per se.​
 ●​ It may be a valid management prerogative.​

🚫 Exception:
●​ If used to interfere with the right to self-organization, it becomes an
unfair labor practice.

II. Jurisprudence on Contracting Out and ULP

📚 Case 1: Bankard v. NLRC

GR No. 171664, March 6, 2013

🔹 Key Facts:
●​ Bankard implemented a Manpower Rationalization Program (MRP)​

●​ Offered 2 months' pay per year of service to all employees​

●​ Later contracted an agency to handle call center operations​

●​ Union claimed discrimination and unfair labor practice​

🔹 Supreme Court Ruling:

●​ No ULP committed:​

○​ MRP was valid and non-discriminatory​

○​ Contracting out was a cost-cutting measure, not union-targeted​

○​ No bad faith shown​

●​ Contracting out = valid as long as:​

○​ Done in good faith​

○​ Does not interfere with employees' union rights​

Case 2: Digital Telecommunications v. Digital Employees Union

GR No. 184903, October 10, 2012

🔹 Key Facts:
 ●​ Digital’s union reached a bargaining deadlock​

●​ Later received new CBA proposals from union​

●​ Digital refused to bargain and filed petition to cancel union registration​

●​ While pending, Digital closed operations​

●​ Later reopened using an in-house agency (DigiServe) and replaced

union workers​

🔹 Supreme Court Ruling:

1.​ Pending petition to cancel union registration:​

○​ Does NOT bar collective bargaining​

○​ Prejudicial questions are not favored in labor relations​

2.​ DigiServe = labor-only contractor​

○​ Merely a conduit for Digital, thus illegal​

3.​ Digital committed ULP:​

○​ Awarded union workers:​

■​ Back wages​

■​ Separation pay​

■​ ₱10,000 moral damages​

■​ ₱5,000 exemplary damages​

○​ Plus: Injunctive relief (cease and desist order)​

I. Requirements for Valid Outsourcing

To avoid constituting Unfair Labor Practice (ULP), outsourcing by the employer
must comply with the following:

✅ 1. Must Involve a Legitimate Contractor

●​ If done with a labor-only contractor, it becomes ULP.​
 ●​ A legitimate contractor must have:​

○​ Substantial capital​

○​ Control over methods of work​

○​ Distinct and independent business​

✅ 2. Must Be Due to a Genuine Business Need

●​ Outsourcing must not be in reaction to union activity, such as:​

○​ Formation of a union​

○​ Petition or conduct of certification election​

○​ Submission of CBA proposals​

✅ 3. Must Not Curtail Union Employment Opportunities

●​ Outsourcing must not target union members or diminish their roles to
suppress union activity.​

II. Employer Interference in Union Affairs (ULP)

Cited Under Article 259 [formerly 248(a)] of the Labor Code:

"To interfere with, restrain or coerce employees in the exercise of

their right to self-organization."

Specifically:

"To initiate, dominate, assist or otherwise interfere with the

formation or administration of any labor organization, including
giving financial or other support to it or its organizers/supporters."

Correlated Rule: Article 271 – Innocent Bystander

Rule
●​ Employers must remain neutral in union activities.​
 ●​ They are to act as "innocent bystanders" and not interfere in union
formation, administration, or decision-making.​

I. Unfair Labor Practice: Discrimination

✅ Definition:
Discrimination is treating persons unequally without reasonable
basis—particularly based on union affiliation or participation.

❌ Examples of Discriminatory Acts by Employers:

●​ Excluding probationary employees or non-union members from the
bargaining unit​

●​ Withholding salary increases or benefits from union members​

●​ Reducing overtime pay for union members​

●​ Denying promotion to union members or officers​

➡️ These actions discourage the exercise of the right to self-organization, and

are considered ULPs under Article 259 [formerly 248] of the Labor Code.

II. Permissible Discrimination: Union Security

Clause
✅ Legal Basis:
●​ Article 259(e) of the Labor Code permits union security clauses in CBAs.​

●​ It is a valid form of discrimination that requires or favors union

membership as a condition for employment.​

🔑 Purpose:
To safeguard the continued existence of the union by:

●​ Ensuring a steady flow of union dues​

●​ Preventing union disloyalty​

Elements of a Valid Union Security Clause:

 1.​ Express inclusion of the clause in the CBA​

2.​ Clause specifies dismissal as a consequence of violation​

3.​ Due process is followed:​

○​ At the union level​

○​ At the employer level​

II. Case Law: Slord Development Corp. v. Noya

GR No. 232687, February 4, 2019

📌 Facts:
●​ Noya, a union officer, formed a new union​

●​ He was dismissed based on the closure provision of the union security

clause in the CBA​

📌 Supreme Court Ruling:

●​ Dismissal for violation of union security clause is a just cause​

●​ However, Noya was not given due process​

●​ Result: He was awarded ₱30,000 nominal damages​

🔑 Key Takeaway:
Even if dismissal is justified under a union security clause, due process must
still be observed.

IV. Application of Union Security Clause: Who Has

Authority?
⚖️ Scenario: Federation vs. Independent Union
●​ An independent union affiliated with a federation​

●​ Federation entered into the CBA​

 ●​ Federation demanded enforcement of union security clause​

📌 Supreme Court Ruling:

●​ Only the independent/affiliate union, not the federation, may:​

○​ Invoke the union security clause​

○​ Request dismissal based on it​

V. Employees Exempted from Union Security

Clause
Exempted Employee Type Reason

Members of another Prior to CBA effectivity

(minority) union

Religious objectors Protected by religious freedom

Expressly excluded by the Based on clause terms

CBA

Confidential employees Privy to management-labor relations; barred

from unionizing

Retaliatory Unfair Labor Practice

✅ Definition:
●​ Acts of dismissal, discharge, or discrimination against an employee for
giving or about to give testimony under the Labor Code.​

📜 Legal Basis:
●​ Article 259(f) (formerly 248(f)) – Unfair labor practice to discriminate for
testimony.​

●​ Article 118 – Prohibits dismissal, wage reduction, or discrimination for

filing a complaint or testifying against the employer.

II. Violation of Duty to Bargain Collectively

✅ Definition:
●​ Refusal to engage in collective bargaining after the union initiates it,
without valid reason.​

🔑 Key Principle:
●​ Employer is not required to initiate bargaining but must respond in
good faith once the union initiates it.​

III. Key Case Doctrines on Violation of Collective

Bargaining Duty
⚖️ 1. Kiok Loy v. NLRC
●​ GR No. L-54334, January 22, 1986​

●​ Doctrine: Kiok Loy Doctrine​

○​ If the employer stubbornly refuses to bargain in bad faith, the

entire union proposal may be imposed as the CBA terms.​

●​ 📌 Employer's failure to negotiate = arbitral award in favor of the union.​

⚖️ 2. General Milling Corporation v. CA
●​ GR No. 146728, February 11, 2004​

●​ Employer refused to make a counterproposal; claimed union lacked

competency.​

●​ Supreme Court ruling:​

○​ Refusal to counterpropose = Bad faith​

○​ Employer interfered by soliciting retractions from union members.​

○​ Union proposal imposed in full, like in Kiok Loy.​

⚖️ 3. Divine Word University of Tacloban v. Sec. of Labor

●​ GR No. 91915, September 11, 1992​
 ●​ Stubborn refusal to bargain = Bad faith​

●​ Resulted in:​

○​ Arbitral award favoring union​

○​ ₱100 million penalty​

○​ Closure of the school​

⚖️ 4. Tabangao Shell Refinery Employees Assn. v. Filipinas Shell

●​ GR No. 17007, April 7, 2014​

●​ Facts:​

○​ 44 negotiation meetings, but deadlock over wage proposals​

○​ Union: 20% increase; Shell: ₱88k lump sum​

●​ Supreme Court ruling:​

○​ No ULP – Employer bargained in good faith​

○​ Law does not require agreement, only good faith efforts​

○​ Deadlock ≠ refusal to bargain​

⚖️ 5. SUNEDCO Workers Free Labor Union v. Universal Robina

Corp.

●​ GR No. 220383, July 5, 2017​

●​ Demand for ₱16 wage increase (2008); ₱32 (2009)​

●​ Supreme Court ruled:​

○​ Wage increases not part of CBA are not demandable​

○​ Exception: If withheld due to ULP, then they must be granted​

○​ Employer found guilty of restricting bargaining power​

II. Unfair Labor Practices Committed by Labor
Organizations
✅ A. Restraint or Coercion of Employees (Art. 260[a])
●​ What is prohibited:​

○​ Labor organization restraining or coercing employees in the

exercise of their right to self-organization.​

●​ ❌ NOT Included: Interference​

○​ Labor organizations interfering by:​

■​ Encouraging employees to join the union​

■​ Repeated persuasion​

■​ Involvement in employee activities​

○​ This is not ULP as long as it doesn’t amount to coercion.​

●​ 📌 Key Point:​
Labor organizations can set rules on acquisition and retention of
membership, as long as they comply with the law.​

🔒 Limitations:
●​ Cannot bar probationary employees or other lawful employee groups
from union membership.​

●​ Cannot exclude minority union members (within the bargaining unit)

from CBA benefits.​

○​ Doing so is tantamount to ULP.​

B. Discrimination or Attempt to Cause Discrimination (Art. 260[b])

●​ ULP occurs when a labor organization:​

○​ Causes or attempts to cause the employer to discriminate

against an employee (e.g., denial of union membership).​

○​ Requests for an employee’s termination without a valid union

security clause.​
📌 Example:
●​ Union officers convince the employer to withhold signing bonuses from
a member who questioned union dues.​

○​ ✅ This is clearly an ULP by the union.​

●​ ❗ Exception:​
If there is a valid union security clause, such requests may be allowed
under the law.

C. Failure to Bargain Collectively

●​ Applies only to the CBA agent union (the recognized bargaining

representative).​

●​ A CBA agent union that refuses or neglects to engage in collective

bargaining commits ULP.​

D. Exaction or Acceptance of Fees from Employers

●​ It is ULP for labor organizations to:​

○​ Exact or accept negotiation or attorney’s fees from employers.​

○​ Especially during the settlement of labor disputes.​

III. Featherbedding
📌 Definition:
●​ Practice where a union forces an employer to:​

○​ Hire more workers than needed​

○​ Extend job durations unnecessarily​

○​ Pay wages for work not actually performed​

💡 Purpose (Originally Positive):

●​ Initially used to counteract job displacement due to automation or
technology.​
 ⚠️ Modern Connotation (Negative):
●​ Now viewed as a method to extract money or benefits unfairly from the
employer.​

Elements of Featherbedding:
# Element Explanation

1️⃣ Attempt to cause employer to May include negotiation fees, monetary

pay or deliver benefits, or things of value

2️⃣ Payment is an act of exaction No legitimate labor service in return

3️⃣ No services performed Payment/demand is not tied to any actual

labor rendered

📍 Example:
●​ Project requires 10 workers → Union demands 20​

●​ Job can be done in 3 days → Union demands 2 weeks​

●​ Result: Excess wages/benefits go to union without justification​

I. Sweetheart Contract / Ex-Deals (Unfair Labor

Practice of Labor Organizations)
📌 Definition:
●​ A secretly arranged agreement between an employer and a labor union,
typically:​

○​ Favorable to the employer​

○​ Orchestrated by union officials without knowledge or approval of

union members​

⚠️ Key Features:
●​ Secretive​

●​ Bypasses union membership consultation​

 ●​ Undermines union integrity and purpose​

●​ Unfair Labor Practice (ULP) by the union​

II. Strikes and Lockouts

📜 A. Legal Bases
Provision Content

1987 Constitution Art. III, Protects freedom of speech, expression,

Sec. 4 assembly, and redress

1987 Constitution Art. XIII, Guarantees the right to strike, in accordance

Sec. 3 with law

Labor Code Art. 278 & 279 Governs strikes, lockouts, procedures, and
prohibited acts

Labor Code Art. 219(o) Defines "strike" as a labor concept

B. Reasons for Staging a Strike

1.​ Collective Bargaining Deadlock​

2.​ Mutual Aid and Protection​

○​ e.g., when union officers/members face discrimination or

harassment​

3.​ Preserve Existence of the Union​

4.​ Redress of Grievances​

C. Grounds for a Valid Strike

(Labor Code, Article 278 [c])

1.​ Collective Bargaining Deadlock​

2.​ Unfair Labor Practice (ULP)​

3.​ Union Busting​

 ○​ Example: Dismissal of union officers threatening union existence​

⚠️ Note: Article 278 (c–f) details strike requirements; Article 279

details prohibited conduct during strikes/lockouts.

D. Definition of Strike

(Article 219[o])

"A temporary stoppage of work by concerted action as a result of a

labor or industrial dispute."

💥 Includes:
●​ Slowdowns​

●​ Mass leaves​

●​ Sit-down strikes​

●​ Sabotage of property or equipment​

●​ Other collective work disruptions​

⚠️ Strikes are forms of economic warfare between labor and

management.

E. Nature of the Right to Strike

Characteristic Explanation

✅ Constitutional Right Protected by the 1987 Constitution

⚠️ Recourse of Last Only after good faith bargaining has failed

Resort

🤝 Requires Good Faith Must try peaceful methods first

Bargaining

⛔ Not to Be Abused Should be based on rational and responsible

decisions, not emotion or agitation

I. Key Concepts Related to Strikes (Labor Code,

Article 219)
1. Strike Breaker (Art. 219, par. R)
 ●​ A person who impedes, interferes, or impacts a peaceful strike through:​

○​ Force​

○​ Violence​

○​ Coercion​

○​ Threats​

○​ Intimidation​

●​ Includes interference with:​

○​ Wages, hours, conditions of work​

○​ The right to self-organization or collective bargaining​

Strike Area

●​ Refers to:​

○​ The employer’s establishment (e.g., office, plant, warehouse, depot)​

○​ Runaway shops​

○​ Immediate vicinity used by picketing workers moving to/from

entry/exit points

II. Who Can Declare a Strike?

●​ Exclusive Bargaining Agent (SEBA) – Yes​

●​ Minority Union – Only if based on Unfair Labor Practice

III. Strike vs. Picketing

✅ Similarities:
Aspect Strike Picket

Legal Basis Art. XIII, Sec. 3 (Right to Art. III, Sec. 4 (Freedom of
self-org) expression)

Constitutional ✅ ✅
Rights
Forms of Protest ✅ ✅
Coercive in ✅ ✅
Nature

Differences:
Aspect Strike Picket

Definition Temporary stoppage of work Public assembly outside

workplace

Action Includes work stoppage, Peaceful demonstration

slowdown

Target Typically employer May be general or specific

Goal Gain concessions, redress Attract public attention

grievances

Relation Employer-employee Not necessary

Required relationship

Nature Economic weapon Publicity tool (PR)

IV. Prohibited Picketing (Art. 279, par. E)

Converts a legal strike into an illegal one if violated.

1.​ Violence​

2.​ Coercion or Intimidation​

3.​ Obstruction of Access (Ingress/Egress)​

4.​ Blocking Public Thoroughfares​

V. Strikeable vs. Non-Strikeable Issues

✅ Strikeable Issues:
1.​ Collective Bargaining Deadlock​

2.​ Unfair Labor Practices​

3.​ Union Busting​

❌ Non-Strikeable Issues:
1.​ Inter/Intra-Union Disputes​

2.​ Labor Standards Violations​

3.​ Wage Distortion (Even if Massive)

VI. Legal Bars to Strike

Bar Legal Basis / Description

1. Assumption / Art. 278, par. 3: When the Secretary of Labor

Certification by DOLE assumes jurisdiction or certifies dispute to NLRC
Secretary

2. Submission to Art. 279 (2nd paragraph): If dispute is submitted to

Arbitration compulsory or voluntary arbitration, pending
outcome bars strike

3. Illegal Strike Petition When pending before the Labor Arbiter or

Voluntary Arbitrator

🔑 Principle:​
A valid strike cannot be enjoined, but procedural and legal bars
must be observed.

I. Injunctions on Strikes (Sec. 2, Rule 10 of 2011 NLRC Rules / Art. 225

[E], Labor Code)

Requirements for Injunction to Issue:

1.​ After hearing – with right of cross-examination.​

2.​ There is a threat of prohibited or unlawful acts unless restrained.​

3.​ There will be substantial and irreparable injury to property without the
injunction.​

4.​ Greater injury to the petitioner than to the respondent.​

5.​ The petitioner has no adequate remedy at law.​

6.​ Public officers are unable or unwilling to protect the petitioner.​

General Rule:
 ●​ A valid legal strike cannot be enjoined.​

II. No Strike, No Lockout Clause

●​ Applies only to economic strikes (e.g., deadlock in CBA negotiations).​

●​ Does not apply to strikes grounded on unfair labor practices (ULPs).​

III. Assumption / Certification Power of the Secretary of Labor

●​ Automatically enjoins an impending or ongoing strike.​

●​ Striking employees must return to work.​

●​ Employer must readmit employees under same terms and conditions

(status quo ante).​

●​ No conditions or reassignments allowed.​

●​ Return to work order is immediately effective, even if a motion for

reconsideration is pending.​

Exceptions:

●​ Payroll Reinstatement may be ordered:​

○​ In cases of strained relations (e.g., Nico Hotel v. CA, GR Nos. 163942

& 166295).​

○​ If presence of employees will exacerbate situation (Immaculate

Conception Academy v. Sec. of Labor, GR No. 151379).​

○​ If actual reinstatement is impracticable (e.g., mid-semester

reinstatement in UST v. NLRC, GR No. 89920).

IV. Effect of Replacement Workers

●​ Only applies in economic strikes.​

●​ Workers may be paid separation pay:​

○​ One month per year of service, up to finality of the decision.​

V. Return to Work Order

 ●​ Must come from Secretary of Labor or NLRC – not the employer.​

●​ Does not render moot the issue of strike legality.​

●​ Refusal to obey return to work order = ground for termination, if proven

by substantial evidence (e.g., Calamba Medical Center, GR No. 176484).​

VI. Legal Protection for Valid Strikes

1.​ No discrimination against strikers (Art. 259[e]):​

○​ Discrimination is Unfair Labor Practice (ULP).​

2.​ Legal strike cannot be enjoined (Art. 266), with exceptions:​

○​ Art. 225 – NLRC power to issue injunction.​

○​ Art. 279 – if strike involves unlawful acts or return to work orders.​

3.​ Participation in a strike does not sever employer-employee relationship:​

○​ The relationship is merely suspended, even if replacements have

been hired.​

○​ Mere union membership ≠ participation in the strike.​

Substantive Requirements of a Valid Strike

1.​ Existence of an Industrial Dispute​

○​ There must be an actual labor dispute between the employer and

the employees or union.​

2.​ Presence of Strikeable Issues​

○​ Permissible grounds for a strike:​

■​ CBA Deadlock (economic strike)​

■​ Unfair Labor Practices (ULP)​

■​ Gross violation of the CBA (akin to ULP)​

■​ Union Busting (e.g., dismissal of union officers threatening

the union’s existence)​
 3.​ Non-Commission of Prohibited Acts during the Strike​

○​ Acts prohibited under Article 279 of the Labor Code:​

■​ Use of force, violence, coercion, threats, or intimidation to

disrupt peaceful picketing​

■​ Use of scabs or strikebreakers​

■​ Bringing in by police or armed groups to replace strikers​

■​ Obstruction of ingress or egress to/from employer’s

premises​

■​ Obstruction of major public thoroughfares​

🔔 Substantive requirements are as important as procedural

requirements in determining the validity of a strike.

Procedural Requirements of a Valid Strike

1. Filing of a Notice of Strike

●​ Timeframe:​

○​ 30 days before the strike (if based on CBA deadlock)​

○​ 15 days before the strike (if based on ULP)​

●​ Contents:​

○​ For CBA deadlock: must include proposals, counter-proposals,

and point of impasse​

○​ For ULP: detailed description of ULP acts + narrative of efforts to

resolve them​

2. Observance of the Cooling-Off Period

●​ Time counted from receipt of the Notice of Strike:​

○​ 30 days for CBA deadlock​

○​ 15 days for ULP​

 ●​ 📌 No cooling-off period for union busting, but other procedural steps
still required​

●​ Source: Section 7, Rule 4, NCMB Rules on Conciliation and Mediation

(2017)​

3. Conversion to Preventive Mediation (Optional)

●​ When:​

○​ Issues are non-strikeable, or​

○​ Parties agree to conversion​

●​ Effect:​

○​ Case is dropped from NCMB's docket​

●​ Must be done before expiration of cooling-off period with proper

notification to parties​

4. 24-Hour Strike Vote Notice Rule

●​ Union must inform NCMB at least 24 hours before holding a strike vote​

●​ Purpose: allows NCMB to observe the vote​

●​ Source: Capital Medical Center v. NLRC, GR No. 147080, April 26, 2005​

5. Conduct of Strike Vote

●​ Who votes: All union members​

●​ Requirement: Majority of total union membership must approve​

●​ Conducted via secret ballot in a meeting or referenda​

6. Submission of Strike Vote Results

●​ Must be submitted to NCMB at least 7 days before the actual strike

7. Observance of the Seven-Day Strike Ban

 ●​ Strike can only take place 7 days after submission of strike vote results​

●​ ⚠️ This is different from the cooling-off period

Legal Consequences of an Illegal Strike (Philippine
Labor Law)

🔹 1. Dismissal of Union Officers (Article 279, Labor Code)

●​ Union officers who knowingly participate in an illegal strike may be
dismissed.​

●​ This is within the employer’s prerogative.​

●​ The word "knowingly" is critical — intent and awareness must be proven.​

🔹 2. Treatment of Union Members

●​ Union members (rank-and-file) are not automatically dismissed for
participating in an illegal strike.​

●​ However, they may be dismissed if they:​

○​ Knowingly commit illegal or prohibited acts during the strike (e.g.,

violence, obstruction, coercion).​

●​ Mere participation in an illegal strike is not enough to lose employment

unless accompanied by illegal acts.​

🔹 3. No Wholesale Forfeiture of Employment

●​ Even if a strike is declared illegal:​

○​ There is no automatic mass dismissal of all strikers.​

○​ Liability is personal, not collective.​

○​ No vicarious liability: each worker’s case must be judged on its

own merits.​
🔹 4. ⚖️ Pari Delicto Rule (Both Parties at Fault)
●​ Case: Automotive Engine Rebuilders et al. v. Progresibong Union​
(G.R. Nos. 160138 & 160192, July 13, 2011)​

●​ When both the union and employer commit illegal acts, the pari delicto
principle may apply.​

●​ Result:​

○​ Reinstatement to previous positions before the illegal

strike/lockout.​

○​ If reinstatement is not possible, separation pay should be

awarded.​

●​ Note: The SC took a lenient approach here. Strict application would

mean each party bears its own losses.

🔹 5. Hiring of Replacements During a Strike

➤ ✅ Economic Strike
●​ Employer may hire replacements.​

●​ Replacements can be made permanent if:​

○​ Workers refuse to obey a return-to-work order.​

○​ There is persistent refusal despite the employer's willingness to

readmit workers.​

➤ ❌ Unfair Labor Practice (ULP) Strike

●​ No permanent replacements allowed.​

●​ Even if the strike is illegal, strikers must be reinstated.​

●​ Replacements must be dismissed to make way for returning workers.​

🔹 Refusal to Honor Return-to-Work Order

●​ Justifies employer’s hiring of replacements.​

●​ Especially applicable when a return-to-work order is issued (e.g., by the

Secretary of Labor) and workers refuse to comply.​
🔹 Reliefs for Legal Strikers (Union Officers or Members)
1.​ ✅ Reinstatement without loss of seniority rights​
○​ Employment relationship is suspended, not terminated, during a
strike.​

2.​ ❌ No back wages​

○​ Applies the "no work, no pay" principle.​

🔹 Exceptions to No Back Wages Rule

(From jurisprudence)

1.​ 🚫 Illegal lockout by employer.​

2.​ 🔥 Gross unfair labor practice committed by the employer.​

3.​ ⚖️ Discriminatory conditions in rehiring returning workers (e.g.,

requiring NBI clearance, medical fitness).​

4.​ 🛑 Strikers who offered to return unconditionally but were rejected.​

➡️ In such cases, back wages may be awarded.
📝 Note: Liability for back wages or damages lies with:
●​ The employer, or​

●​ The union officers (in case of illegal strike)​

📜 IMPROVED OFFER BALLOTING (Article 280,

Labor Code)
●​ Employer-initiated move during an economic strike.​

●​ Must be made on or before the 30th day of the strike.​

●​ Involves an improved offer to the union.​

●​ Triggers a balloting/referendum by union members to accept or reject

the offer.​
🔐 LOCKOUT: Employer's Equivalent to Strike
🔹 Definition
●​ Temporary refusal to furnish work by the employer due to a labor
dispute.​

●​ Can be partial (some divisions/employees only).​

●​ Used to address:​

1.​ Unfair labor practice by the union​

2.​ Bargaining impasse​

🔹 Procedural Requirements for Valid Lockout

1.​ 📄 Notice of Lockout​
▪️
○​ Filed with NCMB​

▪️
30 days prior (for CBA deadlock)​
15 days prior (for ULP)​

2.​ 🕒 24-Hour Lockout Vote Notice​

○​ NCMB must be notified 24 hours before the vote.​

○​ Ensures transparency and supervision.​

3.​ 🗳️ Lockout Vote​

○​ Done by majority of the board (corporation), partners
(partnership), or sole proprietor.​

4.​ 📤 Submission of Lockout Vote​

○​ Must be submitted to NCMB 7 days before lockout.​

5.​ 🚫 Seven-Day Lockout Ban​

○​ No lockout during the 7 days following submission of vote to
NCMB.

⚠️ Prohibited Acts During Strike or Lockout

(Article 279, Labor Code)
 ●​ Harassment, coercion, violence.​

●​ Discrimination or retaliation against union members or returning

workers.​

🔄 REDUCED OFFER (During Lockout)

●​ Union-initiated equivalent of “improved offer”.​

●​ Applies only to economic lockouts.​

●​ Must be made on or before the 30th day of the lockout.​

●​ Followed by a referendum by the board or partners to decide on

acceptance.​

JURISDICTION & STRIKES/LOCKOUTS: INTERPLAY

OF AUTHORITIES
🔹 Filing of Notice of Strike or Lockout
✅
●​ Filed with:​
National Conciliation and Mediation Board (NCMB)

🔹 Petition to Declare Legality of Strike/Lockout

●​ Where to file:​

1.​ Labor Arbiter – Article 224, Labor Code​

2.​ Voluntary Arbitrator – Article 275 (only if agreed upon by the

parties)​

3.​ Secretary of Labor or NLRC Commission Proper – if there's an

assumption or certification of jurisdiction​

Injunction Against Strike or Lockout

●​ Secretary of Labor – Article 278, Labor Code​

●​ NLRC (Commission Proper) – Article 225 & Sec. 2, Rule 10 of NLRC Rules of
Procedure
🔹 Assumption or Certification of Jurisdiction
●​ May be done by:​

○​ Secretary of Labor​

○​ NLRC​

○​ President of the Philippines (in cases of national interest)​

🧑‍⚖️ KEY CASES & PRINCIPLES

🏛️ 1. Albay Electric Cooperative vs. ALECO Employees Labor
Union

G.R. No. 241437, September 14, 2020

Key Doctrines:

●​ Return-to-work orders must be respected by both employer and

employees.​

●​ Back wages awarded because the union members were not reinstated
despite employer compliance.​

●​ Only the sole and exclusive bargaining agent (SEBA) can declare a strike
on the basis of a bargaining deadlock.​

●​ Any legitimate labor organization can strike based on unfair labor

practice (ULP).​

🏛️ 2. Biggs, Inc. vs. Boncacas et al. & Arenas et al.

G.R. No. 200487, March 6, 2019

Facts & Rulings:

●​ Two strikes staged in 1996:​

▪️
○​ First strike (Feb 1996): Illegal sit-down strike​

▪️
No notice of strike​

▪️
No cooling-off period​
No proof of ULP or union busting​
 ▪️ Declared illegal​
▪️
○​ Second strike (March 1996): Also declared illegal​

▪️
Violent acts, vandalism, and blockade​

▪️
Organized by union president​
President and others legally dismissed​

Outcome:

●​ 🔴 Union officers dismissed (for knowing participation in illegal acts)​

●​ 🟢 21 members reinstated (no proof of illegal acts)​
●​ ✅ Reinstatement replaced with separation pay due to:​
○​ Strained relations, and​

○​ Delay of 23 years in case resolution