1. Definition and Concept

Definition and Concept of Unfair Labor Practice

Concept

Unfair labor practice (ULP) concerns conduct that violates workers’ constitutional right to self-organization and undermines the legitimate interests of labor and management in bargaining collectively and dealing with each other in freedom and mutual respect. The Labor Code recognizes that ULP disrupts industrial peace and hinders stable labor-management relations. (Art. 258 [247], Labor Code)¹

Governing provisions

The Constitution guarantees workers’ rights to self-organization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with law. It also promotes shared responsibility between workers and employers and the preferential use of voluntary modes of dispute settlement. (Art. XIII, Sec. 3, 1987 Const.)²

Article 258 [247] states the character and consequences of ULP. Articles 259 [248] and 260 [249] identify prohibited conduct by employers and labor organizations, respectively; the specific acts are addressed in the succeeding notes. (Art. 258 [247], Labor Code)¹ (Art. 259 [248], Labor Code)³ (Art. 260 [249], Labor Code)⁴

Requisites / Rules

• Identify the actor and the conduct. Employer interference with, restraint of, or coercion of employees in exercising self-organization rights is prohibited. For a labor organization, the stated prohibition is restraint or coercion of employees in exercising that right. (Art. 259 [248], Labor Code)³ (Art. 260 [249], Labor Code)⁴
• Connect the conduct to the protected right or applicable bargaining duty. For example, contracting out functions performed by union members falls within the employer provision when it will interfere with, restrain, or coerce employees in exercising self-organization rights. (Art. 259 [248], Labor Code)³
• For civil aspects of ULP cases, Article 258 [247] assigns jurisdiction to Labor Arbiters, subject to the powers of the President or Secretary of Labor and Employment stated there. Possible civil relief includes damages, attorney’s fees, and other affirmative relief. (Art. 258 [247], Labor Code)¹

Distinctions

ULP has both civil and criminal dimensions: Article 258 [247] describes it as a violation of the civil rights of labor and management and as a criminal offense against the State. A finding on the civil aspects should therefore not obscure the Code’s separate characterization of the offense. (Art. 258 [247], Labor Code)¹

Key doctrines

For employer interference, the inquiry is whether the conduct reasonably tends to interfere with employees’ free exercise of their rights. Direct proof of intimidation is unnecessary if an adverse effect may reasonably be inferred. (Asian Institute of Management Faculty Association v. Asian Institute of Management, Inc., G.R. No. 219025, 9 September 2020)⁵

In assessing an employer’s good-faith bargaining, consider the totality of its acts during negotiations. An employer that refuses to bargain and attempts to restrict the union’s bargaining power commits ULP. The duty to bargain requires meeting in good faith, but does not compel agreement. (Sonedco Workers Free Labor Union v. Universal Robina Corporation, G.R. No. 220383, 5 October 2016)⁶ (Guagua National Colleges v. Guagua National Colleges Faculty Labor Union and Guagua National Colleges Non-Teaching and Maintenance Labor Union, G.R. No. 204693, 13 July 2016)⁷

Exceptions

Not every dispute involving a collective bargaining agreement is necessarily ULP. The distinction between an ordinary CBA grievance and a gross, flagrant, or malicious violation matters when classifying the dispute. (Guagua National Colleges v. Guagua National Colleges Faculty Labor Union and Guagua National Colleges Non-Teaching and Maintenance Labor Union)⁷ (Art. 260 [249], Labor Code)⁴

Bar tip

Start with the protected right, identify the actor and the particular conduct, then explain why the conduct meets the applicable prohibition; do not label a labor dispute ULP merely because bargaining or union activity is involved. (Art. XIII, Sec. 3, 1987 Const.)² (Art. 259 [248], Labor Code)³ (Art. 260 [249], Labor Code)⁴