Compiled by AB Agosto
Agency fee – charged to non-union employees at a workplace that has union representation. The fee is intended to compensate the union for benefits that are collectively bargained for that the non-union employee will receive, such as paid personal days.
Agency shop agreement: The employer binds itself to check off from those who are not union members of the collective bargaining representative a reasonable fee equivalent to the dues and other fees paid by union members if the non-union members accept the benefits of the CBA.
Appropriate Bargaining Unit – group of employees of a given employer comprised of all or less than all of the entire body of employees, which the collective interest of all the employees, consistent with the interest of the employer, indicate to be the best suited to serve reciprocal rights and duties of the parties under the collective bargaining provisions of the law.
Artificial Deadlock — a deadlock prearranged or preserved by collusion of the employer and the majority union — is deception of the workers, hence, not a barrier to a petition for a C.E.
Automatic renewal clause means that although a CBA has expired, it continues to have legal effects as between the parties until a new CBA has been entered into. This is so because the law makes it a duty of the parties to keep the status quo and to continue in full effect the terms and conditions of the existing agreement until a new agreement is reached by the parties
Bargaining deadlock: Failure to agree on the terms and conditions of the Collective Bargaining Agreement between the management and the union.
Bargaining in good faith – A fair criterion of good faith in collective bargaining requires that the parties involved deal with each other with open and fair mind and sincerely endeavor to overcome obstacles or difficulties existing between them to the end that employment relations may be established and obstruction to the free flow of commerce prevented.
Bargaining Representative – a legitimate labor organization or any officer or agent of such organization, whether or not employed by the employer.” Under this definition the officer or agent may be a total stranger to the employer, may be a counsel or president of a mother union. The only requirement is that he is duly authorized to negotiate by the employees through the union that he represents
Blue-Sky Bargaining – “unrealistic and unreasonable demands in negotiations by either or both labor and management, where neither concedes anything and demands the impossible”
Boulwarism – making a proposal which is not subject to bargaining, take-it-or-leave-it bargaining. In effect there was to be no bargaining and the union was rendered ineffective or irrelevant.
Bystander Rule – In bystander rule in certification election, the employer is regarded as nothing more than a bystander with no right to interfere at all in the election, the same being the sole concern of the workers.
Casual employee: Engaged to perform a job, work, or service which is incidental to the business of the employer. Moreover, the definite period of his employment is made known to him at the time of his engagement. His continued employment after the lapse of one (1) year makes him a regular employee.
Certification Election – Process of determining through secret ballot the sole and exclusive representative of the employees in an appropriate bargaining unit, for purposes of collective bargaining or negotiation.
Certification election: Refers to the process of determining through secret ballot the sole and exclusive representative of the employees in an appropriate bargaining unit for purposes of collective bargaining or negotiation. A certification election is ordered by the Department of Labor and Employment.
Certification year bar (One year bar rule) – No petition for C. E. may be filed within one year from the date of a valid certification, consent, or run-off election or from the date of entry of a voluntary recognition of the union by the employer.
Closed shop: A union security clause in a collective bargaining agreement where the employer agrees not to employ any person who is not a member of the exclusive bargaining representative of the employees in a bargaining unit.
Collective bargaining – democratic framework to stabilize the relation between labor and management to create a climate of sound and stable industrial peace
Collective Bargaining Agreement (CBA)
Collective Bargaining Unit – group of employees sharing mutual interests within a given employer unit, comprised of all or less than all of the entire body of employees in the employer unit or any specific occupational or geographical grouping within such employer unit.
Community of Interest Rule states that in choosing the appropriate bargaining unit, there must be a determination of the community of interests of employees. The test grouping is community or mutuality of interests, such as substantial similarity of works and duties or of compensation and working conditions, because the basic test of an asserted bargaining unit’s acceptability is whether or not it is fundamentally the combination which will best assure to all employees the exercise of their collective bargaining rights.
Company union: Union of employees dominated or under the control of the employer of said employees.
Compulsory Arbitration – process of settlement of labor disputes by a government agency (or other means provided by the government) which has the power to investigate and make an award binding upon the parties.
Conciliator-mediator: Official of the NCMB whose principal function is to settle and dispose potential and actual labor disputes through conciliation and preventive mediation including the promotion and encouragement of voluntary approaches to labor disputes prevention and settlement.
Consent Election – election voluntarily agreed upon by the parties to determine the issue of majority representation of all the workers in the appropriate collective bargaining unit.
Contract Bar Rule– A certification election cannot be held if there is in force and effect a collective bargaining agreement that has been duly registered with the Department of Labor and Employment except during the freedom period of such CBA which is the 60-day period prior to the expiry date of said CBA.
Deadlock – signals rather the need to continue the bargaining with the assistance of a third party as conciliator or arbitrator whose first aim is to get the parties back to the negotiating table and help them craft a win-win solution.
Deadlock bar rule: A certification election cannot be held if a bargaining deadlock to which an incumbent or certified bargaining agent is a party had been submitted to conciliation or mediation or had become the subject of a valid notice of strike or lockout.
Duty to bargain collectively means the performance of a mutual obligation to meet and convene promptly and expeditiously in good faith for the purpose of negotiating an agreement with respect to wages, hours of work and all other terms and conditions of employment including proposals for adjusting any grievances or questions arising under such agreement and executing a contract incorporating such agreements if requested by either party but such duty does not compel any party to agree to a proposal or to make any concession. (
Economic strike: One staged by workers to force wage or other economic concessions from the employer which he is not required by law to grant (Consolidated Labor Association of the Phil. vs. Marsman and Company, 11 SCRA 589).
Election Bar – The 12-month Bar – filing of a petition within one (1) year from the date of recording of the voluntary recognition, or within the same period from a valid certification, consent or run-off election where no appeal on the results of the certification, consent or run-off election is pending.
Employee: Includes any person in the employ of an employer. The term shall not be limited to the employees of a particular employer, unless the Code so explicitly states. It shall include any individual whose work has ceased as a result of or in connection with any current labor dispute or because of any unfair labor practice if he has not obtained any other substantially equivalent and regular employment.
Employer: Includes any person acting in the interest of an employer, directly or indirectly. The term shall not include any labor organization or any of its officers or agents except when acting as employer.
Exclusive Bargaining Representative – any legitimate labor organization duly recognized or certified as the sole and exclusive bargaining agent of all the employees in a bargaining unit.” The bargaining representative of the employees is an entity – the union – and not the officers of the union. The entity remains though the officers are changed.
Featherbedding – Is the name given to employee practices which create or spread employment by unnecessarily maintaining or increasing the number of employees used, or the amount of time consumed, to work on a particular job.
Freedom Period – time when unions are legally allowed to challenge openly and formally the statue of a union as the exclusive bargaining representative. The last 60 days of the CBA’s 5th year of th representational aspect.
General strike: Workers go on a strike to publicly protest a certain policy or action taken by the government.
Globe Doctrine – The desires of the employees are relevant to the determination of the appropriate bargaining unit. The relevancy of the wishes of the employees concerning their inclusion or exclusion from a proposed bargaining unit is inherent in the basic right to self-organization. While the desires of employees with respect to their inclusion in bargaining unit is not controlling, it is a factor which would be taken into consideration in reaching a decision.
Grievances – Any question by either the employer or the union regarding the interpretation or application of the collective bargaining agreement or company personnel policies or any claim by either party that the other party is violating any provision of the CBA or company personnel policies
Hold-over Rule – It is a rule which declares that in the absence of an express or implied constitutional or statutory provisions prohibiting hold-over, an officer is entitled to hold office until his successor is appointed and qualified. This rule prevents disruption of public service in the meantime that a successor is not yet appointed and qualified to assume the functions of the office.
Holiday Pay: Refers to payment of the regular daily wage for any unworked regular holiday. (Wage and Wage Related Benefits- Bureau of Working Conditions).
Horse Trading Approach – each side eventually compromising initial unreasonable positions, it advertised its initial proposals as fair and firm
Illegal strike: One staged for a purpose not recognized by law, or if for a valid purpose, conducted through means not sanctioned by law.
Impasse – reasonable effort at good-faith bargaining which, despite noble intentions, does not conclude in an agreement between the parties
Indirect employer: The provisions of the immediately preceding article shall likewise apply to any person, partnership, association or corporation which, not being an employer, contracts with an independent contractor for the performance of any work, task, job or project.
Industrial dispute: An industrial or labor dispute includes any controversy or matter concerning terms or conditions of employment or the association or representation of persons in negotiating, fixing, maintaining, changing or arranging the terms and conditions of employment regardless of whatever the disputants stand in the proximate relation of employer and employee.
Inter-union dispute: Refers to cases involving a petition for certification election and direct certification filed by a duly registered labor organization which is seeking to be recognized as the sole and exclusive bargaining agent of the rank-and-file employees in the appropriate bargaining unit of a company, firm or establishment.
Intra-union dispute: Refers to a case involving the control, supervision, and management of the internal affairs of a duly registered labor union such as those relating to specific violations of the union’s constitution and by-laws.
Job contracting: When a person, not being an employer, contracts with an independent contractor for the performance of any work, task, job or project.
Kiok Loy Doctrine – A Company’s refusal to make counter proposal if considered in relation to the entire bargaining process, may indicate bad faith and this is specially true where the Union’s request for a counter proposal is left unanswered
Labor dispute includes any controversy or matter concerning terms or conditions of employment or the association or representation of persons in negotiating, fixing, maintaining, changing or arranging the terms and conditions of employment regardless of whether the disputants stand in the proximate relations of employer and employee.
Labor only contracting: When a person supplies workers to an employer and said person does not have substantial capital or investments in the form of tools, equipment, machineries, work premises, among others, and the workers recruited and placed by such person are performing activities related to the principal business of the employer to whom the workers are supplied.
Labor Organization – any union or association of employees in the private sector which exists in whole or in part for the purpose of collective bargaining or for dealingwith employers concerning terms and conditions of employment.
Large Scale (Illegal recruitment): Exists when committed against three (3) or more persons, individually or as a group.
Legal strike: One called for a valid purpose and conducted through means allowed by law.
Legitimate labor organization: Any labor organization duly registered with the Department of Labor and Employment, and includes any branch or local thereof. (Article 212 Book V- Labor Code).
Lockout: Temporary refusal of an employer to furnish work as a result of a labor or industrial dispute.
Managerial employee: One who is vested with the powers or prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees. Supervisory employees are those who, in the interest of the employer, effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment. All employees not falling within any of the above definitions are considered rank-and-file employees for purposes of this Book. (Article 212 Book V- Labor Code).
Negotiation Bar – duly recognized or certified union has commenced negotiation with the employer within the one year period mentioned above, and the negotiation is on-going
Night Shift Differential: Refers to the additional compensation for work performed from 10:00 in the evening to 6:00 in the morning. (Wage and Wage Related Benefits- Bureau of Working Conditions).
No strikeout lockout clause – Provision in a collective bargaining agreement through which the union agrees not to strike and the employer agrees not to lockout employees for the duration of the contract.
Notice Period – proper time to propose modifications to the existing CBA
Overtime Pay: Refers to the additional pay for work performed in excess of 8 hours a day.
Payroll reinstatement: A form of reinstatement which an employee may opt to exercise in lieu of an actual reinstatement. Here, the illegally dismissed employee is to receive his basic pay without the obligation of rendering any service to the employer. This occurs when a Labor Arbiter decides that an employee was illegally dismissed and as a consequence, awards reinstatement.
Preventive mediation case: Refers to the potential or brewing labor dispute which is the subject of a formal or informal request for conciliation and mediation assistance sought by either or both parties in order to remedy, contain or prevent its degeneration into a full blown dispute through amicable settlement.
Principle of co-determination: The workers have a right to participate in the decision making process of employers on matters affecting their rights and benefits through collective bargaining agreements, grievance machineries, voluntary modes of settling disputes and conciliation proceedings mediated by the government.
Principle of hold over – in the absence of a new CBA, the parties must maintain the status quo and must continue in full force and effect the terms and conditions of the existing agreement until a new agreement is reached
Project worker: Employed for a specific project or undertaking, the completion or termination of which has been determined at the time of the engagement of the employee.
Refusal to bargain – finding made by the administrative agency indicating that either the employer or the union has failed to bargain.
Regular employee: Engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer.
Rerun election – to an election conducted to break a tie between contending unions, including between “no union” and one of the unions. It shall likewise refer to an election conducted after a failure of election has been declared by the election officer and/or affirmed by the mediator-arbiter.
Run-away shop: Includes transferring or outsourcing work or services from one’s own bargaining unit to another to gain economic advantage over employees.
Run-off Election – election between the labor unions receiving the 2 higher number of voters when a certification election which provides for 3 or more choices results in no choice receiving a majority of the valid votes cast, where the total number of votes for all contending unions is at least 50% of the number of votes cast.
Seasonal employee: Employed to perform a task that is usually necessary or desirable to the usual business or trade of the employer and is temporarily laid off during the off-season.
SEBA Certification – process where a union requests the DOLE regional director to recognize and certify the union as the sole and exclusive bargaining agent (SEBA) of the bargaining unit it purports to represent to negotiate a CBA with the employer
Sit down strike: One where the workers stop working but do not leave their place of work.
Slow down strike: One staged without the workers quitting their work but by merely slackening or by reducing their normal work output.
Strike area: Includes (a) the establishment of the employer struck against including run-away shops, factories or warehouses and other premises where members of the bargaining unit carry out the operations and business of the employer, and (b) the area immediately before points of entrance and exit of establishment struck against.
Strike-breaker: Means any person who obstructs, impedes, or interferes with by force, violence, coercion, threats or intimidation any peaceful picket by employees during any labor controversy.
Substitutionary” Doctrine – states that even during the existence of a collective bargaining agreement executed between the employer and the employees through their agent, the employees can change the said agent but the contract continues to bind them up into its expiration date. According to the doctrine, the employees cannot revoke the validly executed collective bargaining contract with their employer by the simple expedient of changing their bargaining agent. In the event, the new agent must respect the earlier contract.
Supervisory employees – those who in the interest of the employer, effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment
Surface Bargaining – sophisticated pretense in the form of apparent bargaining, does not satisfy the statutory duty to bargain, not negotiating on the mandatory subjects
ULP strike: One called to protest against the employer’s acts of unfair practice enumerated in Article 248 of the Labor Code, as amended, including gross violation of the collective bargaining agreement (CBA) and union busting.
Unfair labor practice means any unfair labor practice as expressly defined by the Labor Code. Essentially, an unfair labor practice is any act committed by an employer or by a labor organization, its officers, agents or representatives which has the effect of preventing the full exercise by employees of their rights to self-organization and collective bargaining.
Union Election – object is to elect officers of the union
Union shop – refers to a union security clause in a collective bargaining agreement whereby the employer agrees to terminate the employment of an employee who has not become a “member of the union which Is the exclusive collective bargaining representative of the employees in a bargaining unit within a certain period after the employment of said employee or has ceased to become a union member.
Union shop clause: Refers to a union security clause in a collective bargaining agreement where the employer agrees to terminate the employment of an employee who has not become a member of the union which is the exclusive collective bargaining representative of the employees in the bargaining unit within a certain period after the employment of said employee or has ceased to become a union member.
Union shop clause: Refers to a union security clause in a collective bargaining agreement where the employer agrees to terminate the employment of an employee who has not become a member of the union which is the exclusive collective bargaining representative of the employees in the bargaining unit within a certain period after the employment of said employee or has ceased to become a union member.
Union-busting – To interfere with, restrain or coerce employees in the exercise of their right to self-organization.
Unorganized establishment: Refers to an establishment where there is no certified bargaining agent.
Voluntary Arbitration – contractual proceeding whereby the parties to any dispute or controversy, in order to obtain a speedy and inexpensive final disposition of the matter involved, select a judge of their own choice and by consent submit their controversy to him for determination
Voluntary recognition is when in an unorganized establishment with only one legitimate labor organization, the employer voluntarily recognizes the representation status of such as a union. Within 30 days from such recognition, the employer and union shall submit a notice of voluntary recognition with the Regional Office of the Department of Labor and Employment which issued the recognized labor union’s certificate of registration or certificate of creation of a chartered local.
Wage – remuneration or earnings, however designated, capable of being expressed in terms of money.
Wage distortion: When there is an increase in prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and among employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills, length of service or other logical bases of differentiation.
Wage Order: Refers to the order promulgated by the Regional Board which fixes the minimum wage rates to be paid by employers.
Whipsawing: A situation in labor relations where a union, seeking to exert pressure on a multi-plant employer, strikes or pickets a single plant.
Wild-cat strike: One declared and staged without filing the required notice of strike and without the majority approval of the recognized bargaining agent.
Wiley Doctrine – The disappearance by merger of a corporate employer which has entered into a collective bargaining agreement with a union does not automatically terminate all rights of the employees covered by the agreement, even though the merger is for genuine business reasons.
Yellow Dog Contract – A promise exacted from workers or prospective employees that they will not belong to, or form, a union during their employment. Unless the promise is given, the worker will not be hired, or if already hired will lose his job.
Zipper Clause – stipulation in a CBA indicating that issues that could have been negotiated upon but not contained in the CBA cannot be raised for negotiation when the CBA is already in effect
Real LexEcon 