d. Company Union

FOURTH ULP: COMPANY DOMINATION OF UNION (ART. 259 [D])

To initiate, dominate, assist or otherwise interfere with the formation or administration of any labor organization, including the giving of financial or other support to it or its organizers or supporters

Manifestations of Domination of a Labor Union

• Initiation of company union idea. This may further occur in three styles:
• outright formation by the employer or his representatives
• employee formation on outright demand or influence by employer
• managerially motivated formation by employees
• Financial support to the union.

By defraying the union expenses or paying the attorney’s fees of the lawyer who drafted the constitution and by – laws of the union.

• Employer encouragement and assistance.

Immediately granting the union exclusive recognition as a bargaining agent without determining whether the union represents the majority of employees.

• Supervisory assistance.

This takes the form of soliciting membership, permitting union activities during working time or coercing employees to join the union by threats of dismissal or demotion. (Philippine American Cigar & Cigarette Factory Workers Union v. Philippine American Cigar & Cigarette Mfg. Co., G.R. No. L-18364, 1963)

A labor union is company – dominated where it appears that key officials of the company have been forcing employees belonging to rival labor union to join the former under pain of dismissal should they refuse to do so; that key officials of the company, as well as its legal counsel, have attended the election of officers of the former union; that officers and members of the rival union were dismissed allegedly pursuant to a retrenchment policy of the company, after they had presented demands for the improvement of the working conditions despite its alleged retrenchment policy; and that, after dismissal of the aforesaid officers of the rival labor union, the company engages the services of new laborers. (Oceanic Air Products, Inc. v. CIR, GR No. L18704, 1963)

When Deadlock Bar Not Applicable:

Artificial Deadlock: A deadlock prearranged or preserved by collusion of the employer and the majority union. (See Kaisahan ng Manggagawang Pilipino (KAMPIL-KATIPUNAN) v. Trajano, G.R. No. 758110, 1991)