5. Labor Organizations

Labor Organizations

Concept

The right to self-organization allows employees to act together in matters affecting their work. A labor organization is a union or association of employees existing, in whole or in part, to bargain collectively or to deal with employers concerning terms and conditions of employment. Its purpose, not merely its name, determines whether it falls within this definition. (Labor Code (amending Art. 212))¹

Governing provisions

The Labor Code defines labor organizations and distinguishes those registered with the Department of Labor and Employment (DOLE). It also recognizes rights that attach to legitimate labor organizations, including representation in collective bargaining, ownership of property for the organization’s benefit, and the capacity to sue and be sued in their registered name. (Labor Code (amending Art. 212))¹ (Executive Order No. 111, as amended by Labor Code)²

Requisites / Rules

• Labor organization; legitimate labor organization. The first term describes an organization by its employee membership and labor-relations purpose. The second describes a labor organization duly registered with DOLE; the statutory definition includes its branch or local. Registration thus matters when identifying which organization may exercise the rights expressly given to a legitimate labor organization. (Labor Code (amending Art. 212))¹ (Executive Order No. 111, as amended by Labor Code)²
• Union; workers’ association; legitimate workers’ association. A union is organized for collective bargaining or for dealing with the employer on employment terms. A workers’ association is organized principally for members’ mutual aid and protection or other lawful purposes, rather than collective bargaining. Legitimacy refers to registration under the applicable labor-relations rules; it does not make a workers’ association the exclusive bargaining representative of a unit. (Labor Code (amending Art. 212))¹ (DOLE Department Order No. 40-03, Rule I)
• National union or federation; trade union center. These are broader organizational forms through which labor organizations combine and coordinate. A national union or federation links unions or locals, while a trade union center brings together national unions or federations. The local, national, and center levels should not be treated as interchangeable when identifying the organization that holds a particular right. (DOLE Department Order No. 40-03, Rule I) (Executive Order No. 111, as amended by Labor Code)²
• Company union. This classification directs attention to employer interference with the employees’ choice of organization. Employer coercion in obtaining union membership and employer participation in union activities may establish company domination or assistance. (Labor Code (amending Art. 212))¹ (Oceanic Air Products, Inc. v. COURT OF INDUSTRIAL RELATIONS and OCEANIC AIR PRODUCTS INCORPORATED EMPLOYEES UNION., G.R. No. L-18704, 31 January 1963)³

Bar tip

Classify the group first by its purpose and organizational level. Then ask separately whether it is registered and whether the employer has improperly influenced it; those questions lead to different legal consequences. (Labor Code (amending Art. 212))¹ (Oceanic Air Products, Inc. v. COURT OF INDUSTRIAL RELATIONS and OCEANIC AIR PRODUCTS INCORPORATED EMPLOYEES UNION.)³