Unfair Labor Practice | LABOR RELATIONS

Overview and Legal Basis
Unfair Labor Practices (ULPs) in the Philippines are governed by the Labor Code of the Philippines (Presidential Decree No. 442, as amended), specifically found in Book V, Title VII, and related provisions. ULPs are wrongful, prohibited acts committed by either employers or labor organizations that violate the workers’ fundamental rights to self-organization, collective bargaining, and concerted activities. These rights are guaranteed by the Philippine Constitution and by the Labor Code, and thus any act that impedes, interferes with, or restrains the lawful exercise of these rights may constitute an Unfair Labor Practice.

Key Principles and Purpose
The primary goal of prohibiting ULPs is to maintain industrial peace, ensure the free exercise of workers’ rights, promote harmonious employer-employee relations, and foster a productive environment for both parties. ULP laws protect the collective bargaining process, discourage coercive behavior, and preserve the integrity and voluntariness of union representation.

Parties Liable for Unfair Labor Practices

1. Employers: The law imposes liability on employers who commit acts that impede employees’ right to self-organization and collective bargaining.
2. Labor Organizations or Their Agents: Labor unions, their officers, and agents may also commit ULPs if they engage in acts that violate an employer’s or an employee’s corresponding rights or disrupt the orderly process of union recognition and collective bargaining.

Unfair Labor Practices by Employers
Under Article 258 [previously Article 248] of the Labor Code, the following are considered ULPs by employers:

1. Interference with the Right to Self-Organization:

   • Interfering with, restraining, or coercing employees in the exercise of their right to self-organization.
   • Examples: Threatening employees with termination if they join or form a union; promising benefits to discourage union activity.

2. Yellow-Dog Contracts or Discrimination:

   • Requiring, as a condition of employment, that a worker shall not join a labor organization or shall withdraw from one.
   • Discrimination in hiring, tenure, or terms and conditions of employment to encourage or discourage union membership.
   • Examples: Firing employees after discovering they joined a union; refusing to promote union members while promoting non-members.

3. Violation of the Duty to Bargain Collectively:

   • Refusal to meet and bargain in good faith with the duly recognized or certified collective bargaining agent.
   • Surface bargaining or engaging in bargaining with no genuine intent to reach an agreement.
   • Unjustified delays in setting meetings or making proposals.

4. Contracting Out to Defeat Unionization:

   • Outsourcing or sub-contracting work for the sole purpose of eroding union membership or bargaining strength.

5. Discrimination Due to Testimony or Participation in ULP Proceedings:

   • Discharging or otherwise prejudicing an employee because he has given testimony or has filed charges under the Labor Code related to ULPs.

Unfair Labor Practices by Labor Organizations or Their Agents
Article 259 [previously Article 249] of the Labor Code enumerates ULPs by labor organizations:

1. Coercion of Employees:

   • Restraining or coercing employees in the exercise of their right to self-organization.
   • Forcing employees to join the union against their will.
   • Engaging in acts of physical or verbal intimidation, threats, or violence to compel union membership.

2. Causing the Employer to Discriminate:

   • Causing or attempting to cause an employer to discriminate against an employee who is not a union member or who has been critical of union leadership.
   • Pressuring the employer to discharge or not hire employees who refuse union membership.

3. Refusal to Bargain Collectively:

   • Similar to the employer’s obligation, a labor organization must bargain in good faith once it is the duly recognized bargaining agent.
   • Surface bargaining or deliberate delays aimed at frustrating the negotiation process may constitute ULP.

4. Excessive or Unlawful Dues:

   • Charging excessive or arbitrary fees, initiation fees, or dues beyond what is lawfully allowed, especially when such charges effectively coerce membership.

5. Causing Unjustified Work Stoppages:

   • While strikes are a legitimate form of concerted activity, a union must comply with legal requirements. Instigating work stoppages for reasons other than legitimate labor disputes or employing violence and intimidation during strikes may be construed as ULP if they interfere with rights protected by law.

Recognition and Certification of Bargaining Agents
ULPs often arise in the context of representation disputes. The Labor Code ensures that the process of selecting a bargaining representative is free from coercion, interference, or manipulation. The employer must maintain a posture of strict neutrality and must not extend benefits or threaten reprisals to influence union choice. Similarly, a labor organization cannot force or induce an employer to engage in discriminatory practices affecting representation elections.

Good Faith Bargaining Standard
Good faith bargaining requires sincerity, openness, and a genuine desire to reach a collective agreement. Both parties must:

• Attend scheduled meetings promptly and regularly.
• Make reasonable proposals and counterproposals.
• Justify refusals with legitimate business or representational reasons.
• Avoid dilatory tactics or actions intended to frustrate the bargaining process.

Failure to do so could lead to a charge of ULP, as the refusal or avoidance of meaningful negotiations subverts the right of employees to secure collective agreements governing their terms and conditions of employment.

Remedies and Enforcement Mechanisms

1. Filing of Complaints:

   • Complaints for ULPs are filed before the appropriate Regional Arbitration Branch of the National Labor Relations Commission (NLRC) or any duly authorized labor arbiter.
   • The complaint must allege the specific act or acts constituting ULP, referencing the statutory or regulatory basis.

2. Administrative and Judicial Processes:

   • The labor arbiter initially hears and decides ULP cases.
   • The decision may be appealed to the NLRC and, subsequently, to the Court of Appeals and the Supreme Court, if warranted.
   • The Department of Labor and Employment (DOLE) and the Bureau of Labor Relations (BLR) may provide technical guidance or intervene in representation issues.

3. Possible Penalties and Remedies:

   • Cease-and-Desist Orders: The immediate cessation of the unfair practice.
   • Reinstatement: If employees were terminated or discriminated against, the remedy may include reinstatement to their former positions without loss of seniority and other privileges.
   • Backwages and Damages: Employees who suffered economic loss due to ULPs may be awarded backwages, benefits due, and possibly damages for other losses.
   • Orders to Bargain: If the violation involved the refusal to bargain, orders may be issued directing the parties to commence bargaining in good faith.
   • Validation or Invalidation of Representation Elections: If ULPs affected a certification election, the results of the election may be set aside, and a new election may be ordered under more neutral conditions.

Impact on Certification Elections and Union Recognition
ULPs that occur during the run-up to a certification election may taint the results. If the employer’s or union’s conduct has created a climate of fear or coercion, the election may be invalidated. The BLR or NLRC can order a rerun election or, in cases of extreme employer interference, issue a certification in favor of the union without rerunning the election, applying the principle that the employer should not profit from its unlawful acts.

Jurisprudential Guidance
Philippine jurisprudence has consistently emphasized the importance of preserving the sanctity of employees’ rights. Supreme Court decisions underscore that even subtle acts of interference—e.g., threats of closure, veiled promises, creating in-plant “unions” not genuinely initiated by employees—are prohibited. Courts scrutinize conduct in its totality, ensuring that even indirect pressures are deemed unlawful if they reasonably inhibit employees from exercising their constitutional and statutory rights.

Preventive Strategies and Best Practices

• For Employers:

  • Maintain strict neutrality in representation matters.
  • Train supervisors and managers on what constitutes ULP and the consequences of interference.
  • Adopt sound, transparent human resources policies consistent with collective bargaining agreements and labor laws.

• For Unions:

  • Educate members about their rights and responsibilities.
  • Ensure that union organizing and collective bargaining processes are conducted without intimidation or coercion.
  • Cooperate with management in establishing fair election conditions and negotiate in good faith during CBAs.

Conclusion
Unfair Labor Practices represent serious violations of fundamental labor rights. The Labor Code’s robust set of rules and jurisprudential standards penalizes both employer and union misconduct that undermine free self-organization, lawful collective bargaining, and industrial peace. All stakeholders—employers, unions, and workers—must remain vigilant, knowledgeable, and compliant with ULP prohibitions to foster a just and equitable labor relations climate in the Philippines.