B. Bargaining Unit

Bargaining Unit

A 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. (D.O. No. 40-03, Sec. 1[d], Rule I, Book V)

Appropriate Bargaining Unit (ABU)

A group of employees of a given employer comprised of all or less than all of the entire body of employees, which the collective interests of the employees, consistent with the equity of the employer, indicate to be best suited to serve reciprocal rights and duties of the parties. (Belyca Corp. v. Calleja, G.R. No. 77395, 1988)

Fundamental Factors in Determining the Appropriate Collective Bargaining Unit:

• Will of the Employees
• Substantial Mutual Interests
• Prior Collective Bargaining History
• Similarity of Employment Status

Out of these, the controlling test of grouping is mutuality or commonality of interest (San Miguel Corporation v. Laguesma, G.R. 100485, 1994).

Community of Interests Rule: States that the employees within an appropriate bargaining unit must have commonality of collective bargaining interests in the terms of employment and working conditions as evidenced by the type of work they perform. (San Miguel Foods Inc. v. San Miguel Corp. Supervisors and Exempt Union, G.R. No. 146206, 2011)

Spin-Off Corporations

In the case of subsidiaries or corporations formed out of former divisions of a mother company following a bona fide reorganization, it is best to have separate bargaining units for the different companies. (San Miguel v. Confesor, G.R. 11262, 1996) Owner check: Verify the G.R. number; the intended citation may be San Miguel Corporation v. Confesor, G.R. No. 111262 (1996).