In sum, we find that the public respondent did not act with grave abuse of discretion amounting to lack

or excess of
jurisdiction when it issued the questioned order and resolutions. While the approval of the CBA and the release of the signing
bonus did not estop the Union from pursuing its claims of ULP against the Bank, we find the latter did not engage in ULP.
We, likewise, hold that the Union is not guilty of ULP.

Collective Bargaining and Negotiations

- Art. 261-272, Labor Code, as amended

ART. 261. [250] Procedure in Collective Bargaining. – The following procedures shall be observed in collective bargaining:

(a) When a party desires to negotiate an agreement, it shall serve a written notice upon the other party with a statement of
its proposals. The other party shall make a reply thereto not later than ten (10) calendar days from receipt of such notice;

(b) Should differences arise on the basis of such notice and reply, either party may request for a conference which shall begin
not later than ten (10) calendar days from the date of request;

(c) If the dispute is not settled, the Board shall intervene upon request of either or both parties or at its own initiative and
immediately call the parties to conciliation meetings. The Board shall have the power to issue subpoenas requiring the
attendance of the parties to such meetings. It shall be the duty of the parties to participate fully and promptly in the
conciliation meetings the Board may call;

(d) During the conciliation proceedings in the Board, the parties are prohibited from doing any act which may disrupt or
impede the early settlement of the disputes; and

(e) The Board shall exert all efforts to settle disputes amicably and encourage the parties to submit their case to a voluntary
arbitrator.

ART. 262. [251] Duty to Bargain Collectively in the Absence of Collective Bargaining Agreements. – In the absence of an
agreement or other voluntary arrangement providing for a more expeditious manner of collective bargaining, it shall be the
duty of employer and the representatives of the employees to bargain collectively in accordance with the provisions of this
Code.

ART. 263. [252] Meaning of Duty to Bargain Collectively. – The duty to bargain collectively means the performance of a
mutual obligation to meet and convene promptly and expeditiously in good faith for the purpose of negotiating an agreement
with respect to wages, hours of work and all other terms and conditions of employment including proposals for adjusting
any grievances or questions arising under such agreement and executing a contract incorporating such agreements if
requested by either party but such duty does not compel any party to agree to a proposal or to make any concession.

ART. 264. [253] Duty to Bargain Collectively When There Exists a Collective Bargaining Agreement. – When there is a
collective bargaining agreement, the duty to bargain collectively shall also mean that neither party shall terminate nor modify
such agreement during its lifetime. However, either party can serve a written notice to terminate or modify the agreement at
least sixty (60) days prior to its expiration date. It shall be the duty of both parties to keep the status quo and to continue in
full force and effect the terms and conditions of the existing agreement during the 60-day period and/or until a new
agreement is reached by the parties.

ART. 265. [253-A] Terms of a Collective Bargaining Agreement. – Any Collective Bargaining Agreement that the parties
may enter into shall, insofar as the representation aspect is concerned, be for a term of five (5) years. No petition questioning
the majority status of the incumbent bargaining agent shall be entertained and no certification election shall be conducted
by the Department of Labor and Employment outside of the sixty-day period immediately before the date of expiry of such
five-year term of the Collective Bargaining Agreement. All other provisions of the Collective Bargaining Agreement shall be
renegotiated not later than three (3) years after its execution. Any agreement on such other provisions of the Collective
Bargaining Agreement entered into within six (6) months from the date of expiry of the term of such other provisions as
fixed in such Collective Bargaining Agreement, shall retroact to the day immediately following such date. If any such
agreement is entered into beyond six months, the parties shall agree on the duration of retroactivity thereof. In case of a
deadlock in the renegotiation of the Collective Bargaining Agreement, the parties may exercise their rights under this Code.
ART. 266. [254] Injunction Prohibited. – No temporary or permanent injunction or restraining order in any case involving
or growing out of labor disputes shall be issued by any court or other entity, except as otherwise provided in Articles 218
and 264 of this Code.

ART. 267. [255] Exclusive Bargaining Representation and Workers’ Participation in Policy and Decision-Making. – The
labor organization designated or selected by the majority of the employees in an appropriate collective bargaining unit shall
be the exclusive representative of the employees in such unit for the purpose of collective bargaining. However, an individual
employee or group of employees shall have the right at any time to present grievances to their employer.

Any provision of law to the contrary notwithstanding, workers shall have the right, subject to such rules and regulations as
the Secretary of Labor and Employment may promulgate, to participate in policy and decision-making processes of the
establishment where they are employed insofar as said processes will directly affect their rights, benefits and welfare. For
this purpose, workers and employers may form labor-management councils: Provided, That the representatives of the
workers in such labor-management councils shall be elected by at least the majority of all employees in said establishment.

ART. 268. [256] Representation Issue in Organized Establishments. – In organized establishments, when a verified petition
questioning the majority status of the incumbent bargaining agent is filed by any legitimate labor organization including a
national union or federation which has already issued a charter certificate to its local chapter participating in the certification
election or a local chapter which has been issued a charter certificate by the national union or federation before the
Department of Labor and Employment within the sixty (60)-day period before the expiration of the collective bargaining
agreement, the Med-Arbiter shall automatically order an election by secret ballot when the verified petition is supported by
the written consent of at least twenty-five percent (25%) of all the employees in the bargaining unit to ascertain the will of
the employees in the appropriate bargaining unit. To have a valid election, at least a majority of all eligible voters in the unit
must have cast their votes. The labor union receiving the majority of the valid votes cast shall be certified as the exclusive
bargaining agent of all the workers in the unit. When an election which provides for three or more choices results in no
choice receiving a majority of the valid votes cast, a run-off election shall be conducted between the labor unions receiving
the two highest number of votes: Provided, That the total number of votes for all contending unions is at least fifty percent
(50%) of the number of votes cast. In cases where the petition was filed by a national union or federation, it shall not be
required to disclose the names of the local chapter’s officers and members.

At the expiration of the freedom period, the employer shall continue to recognize the majority status of the incumbent
bargaining agent where no petition for certification election is filed.

ART. 269. [257] Petitions in Unorganized Establishments. – In any establishment where there is no certified bargaining
agent, a certification election shall automatically be conducted by the Med-Arbiter upon the filing of a petition by any
legitimate labor organization, including a national union or federation which has already issued a charter certificate to its
local/chapter participating in the certification election or a local/chapter which has been issued a charter certificate by the
national union or federation. In cases where the petition was filed by a national union or federation, it shall not be required
to disclose the names of the local chapter’s officers and members.

ART. 270. [258] When an Employer May File Petition. – When requested to bargain collectively, an employer may petition
the Bureau for an election. If there is no existing certified collective bargaining agreement in the unit, the Bureau shall, after
hearing, order a certification election.

All certification cases shall be decided within twenty (20) working days.

The Bureau shall conduct a certification election within twenty (20) days in accordance with the rules and regulations
prescribed by the Secretary of Labor.

ART. 271. [258-A] Employer as Bystander. – In all cases, whether the petition for certification election is filed by an employer
or a legitimate labor organization, the employer shall not be considered a party thereto with a concomitant right to oppose
a petition for certification election. The employer’s participation in such proceedings shall be limited to: (1) being notified
or informed of petitions of such nature; and (2) submitting the list of employees during the pre-election conference should
the Med-Arbiter act favorably on the petition.

ART. 272. [259] Appeal from Certification Election Orders. – Any party to an election may appeal the order or results of
the election as determined by the Med-Arbiter directly to the Secretary of Labor and Employment on the ground that the
rules and regulations or parts thereof established by the Secretary of Labor and Employment for the conduct of the election
have been violated. Such appeal shall be decided within fifteen (15) calendar days.

Collective Bargaining Representation

Collective Bargaining is the process in which workers, through their unions, negotiate contracts with their employers to
determine the terms of employment, including wages, benefits, hours of work, leave, occupational health and safety policies,
including ways to balance work and family.

Collective Bargaining Agent

A collective bargaining agent refers to the union chosen by the majority of the employees in the bargaining unit to represent
them in bargaining with the employer.

A union certified as an exclusive bargaining agent represents not only is members, but also other employees who are not
union members.

Based on the existing laws and decisions of the Supreme Court, only the sole and exclusive bargaining agent chosen by the
members of the collective bargaining unit is authorized to bargain with the employer and enter into a contract — Collective
Bargaining Agreement — with the employer.

- Art. 267, Labor Code, as amended

ART. 267. [255] Exclusive Bargaining Representation and Workers’ Participation in Policy and Decision-Making. – The
labor organization designated or selected by the majority of the employees in an appropriate collective bargaining unit shall
be the exclusive representative of the employees in such unit for the purpose of collective bargaining. However, an individual
employee or group of employees shall have the right at any time to present grievances to their employer.

Any provision of law to the contrary notwithstanding, workers shall have the right, subject to such rules and regulations as
the Secretary of Labor and Employment may promulgate, to participate in policy and decision-making processes of the
establishment where they are employed insofar as said processes will directly affect their rights, benefits and welfare. For
this purpose, workers and employers may form labor-management councils: Provided, That the representatives of the
workers in such labor-management councils shall be elected by at least the majority of all employees in said establishment.

Collective Bargaining Unit

A bargaining unit is a group of employees sought to be represented by a petitioning union. Such employees need not be
members of a union seeking the conduct of a certification election. A union certified as an exclusive bargaining agent
represents not only its members but also other employees who are not union members.

In a given employer, there are different bargaining units which may be represented by a union. For instance, in a school, the
teachers constitute one bargaining unit. The nonteaching personnel is another bargaining unit and the like. However, these
employees belonging to different bargaining units may decide to be part of a single bargaining unit and that is allowed by
law. The only exception is that the supervisory employees are not allowed to join the union of the rank-and-file employees
but must create their own supervisory employees union to bargain with the employer. As decided by the Supreme Court,
the teaching and nonteaching personnel of the school must form separate bargaining units.

Collective Bargaining Agreement (CBA)

A collective bargaining agreement is the law between the parties. A collective bargaining agreement or CBA refers to the
negotiated contract between a legitimate labor organization and the employer concerning wages, hours of work and all other
terms and conditions of employment in a bargaining unit. As in all contracts, the parties in a CBA may establish such
stipulations, clauses, terms and conditions as they may deem convenient provided these are not contrary to law, morals,
good customs, public order, or public policy. This, where the CBA is clear and unambiguous, it becomes the law between
the parties and compliance therewith is mandated by the express policy of the law.

- Goya, Inc. vs. Goya, Inc. Employees Union-FFW (G.R. No. 170054, January 21, 2013)

Sometime in January 2004, petitioner Goya, Inc. (Company), a domestic corporation engaged in the manufacture,
importation, and wholesale of top quality food products, hired contractual employees from PESO Resources Development
Corporation (PESO) to perform temporary and occasional services in its factory in Parang, Marikina City. This prompted
respondent Goya, Inc. Employees Union–FFW (Union) to request for a grievance conference on the ground that the
contractual workers do not belong to the categories of employees stipulated in the existing Collective Bargaining Agreement
(CBA). When the matter remained unresolved, the grievance was referred to the National Conciliation and Mediation Board
(NCMB) for voluntary arbitration.

During the hearing on July 1, 2004, the Company and the Union manifested before Voluntary Arbitrator (VA) Bienvenido
E. Laguesma that amicable settlement was no longer possible; hence, they agreed to submit for resolution the solitary issue
of “[w]hether or not the Company is guilty of unfair labor acts in engaging the services of PESO, a third party service
provider, under the existing CBA, laws, and jurisprudence.”

A collective bargaining agreement is the law between the parties:

It is familiar and fundamental doctrine in labor law that the CBA is the law between the parties and they are obliged to
comply with its provisions. We said so in Honda Phils., Inc. v. Samahan ng Malayang Manggagawa sa Honda:

A collective bargaining agreement or CBA refers to the negotiated contract between a legitimate labor organization and the
employer concerning wages, hours of work and all other terms and conditions of employment in a bargaining unit. As in all
contracts, the parties in a CBA may establish such stipulations, clauses, terms and conditions as they may deem convenient
provided these are not contrary to law, morals, good customs, public order or public policy. Thus, where the CBA is clear
and unambiguous, it becomes the law between the parties and compliance therewith is mandated by the express policy of
the law.

Moreover, if the terms of a contract, as in a CBA, are clear and leave no doubt upon the intention of the contracting parties,
the literal meaning of their stipulations shall control. x x x.

In this case, Section 4, Article I (on categories of employees) of the CBA between the Company and the Union must be read
in conjunction with its Section 1, Article III (on union security). Both are interconnected and must be given full force and
effect. Also, these provisions are clear and unambiguous. The terms are explicit and the language of the CBA is not
susceptible to any other interpretation. Hence, the literal meaning should prevail. As repeatedly held, the exercise of
management prerogative is not unlimited; it is subject to the limitations found in law, collective bargaining agreement or the
general principles of fair play and justice Evidently, this case has one of the restrictions- the presence of specific CBA
provisions-unlike in San Miguel Corporation Employees Union-PTGWO v. Bersamira, De Ocampo v. NLRC, Asian
Alcohol Corporation v. NLRC,28 and Serrano v. NLRC29cited by the Company. To reiterate, the CBA is the norm of
conduct between the parties and compliance therewith is mandated by the express policy of the law.

Bargaining Collectively with the Employer

- Art. 263, Labor Code, as amended

ART. 263. [252] Meaning of Duty to Bargain Collectively. – The duty to bargain collectively means the performance of a
mutual obligation to meet and convene promptly and expeditiously in good faith for the purpose of negotiating an agreement
with respect to wages, hours of work and all other terms and conditions of employment including proposals for adjusting
any grievances or questions arising under such agreement and executing a contract incorporating such agreements if
requested by either party but such duty does not compel any party to agree to a proposal or to make any concession.

Certification Election

Certification Election refers to the process of determining through secret ballot the sole and exclusive representative of the
employees in bargaining with the employer in case there are two or more unions operating in the bargaining unit. This is
done by filing a petition for certification election with the Bureau of Labor Relations or DOLE Regional Office.

- Art. 269-272, Labor Code, as amended

ART. 269. [257] Petitions in Unorganized Establishments. – In any establishment where there is no certified bargaining
agent, a certification election shall automatically be conducted by the Med-Arbiter upon the filing of a petition by any
legitimate labor organization, including a national union or federation which has already issued a charter certificate to its
local/chapter participating in the certification election or a local/chapter which has been issued a charter certificate by the
national union or federation. In cases where the petition was filed by a national union or federation, it shall not be required
to disclose the names of the local chapter’s officers and members.

ART. 270. [258] When an Employer May File Petition. – When requested to bargain collectively, an employer may petition
the Bureau for an election. If there is no existing certified collective bargaining agreement in the unit, the Bureau shall, after
hearing, order a certification election.

All certification cases shall be decided within twenty (20) working days.

The Bureau shall conduct a certification election within twenty (20) days in accordance with the rules and regulations
prescribed by the Secretary of Labor.

ART. 271. [258-A] Employer as Bystander. – In all cases, whether the petition for certification election is filed by an employer
or a legitimate labor organization, the employer shall not be considered a party thereto with a concomitant right to oppose
a petition for certification election. The employer’s participation in such proceedings shall be limited to: (1) being notified
or informed of petitions of such nature; and (2) submitting the list of employees during the pre-election conference should
the Med-Arbiter act favorably on the petition.

ART. 272. [259] Appeal from Certification Election Orders. – Any party to an election may appeal the order or results of
the election as determined by the Med-Arbiter directly to the Secretary of Labor and Employment on the ground that the
rules and regulations or parts thereof established by the Secretary of Labor and Employment for the conduct of the election
have been violated. Such appeal shall be decided within fifteen (15) calendar days.

Consent Election

When there are two or more unions contending to bargain with the employer in the bargaining unit and they do not want
to file a petition for certification election, they may agree to conduct a consent election to determine who among them would
bargain with the employer.

The difference between a consent election and certification election is that the conduct of a consent election is agreed upon
by the parties, while the conduct of a certification election is ordered by the Med-Artbiter.

“Certification Election” or “Consent Election” refers to the process of determining through secret ballot the sole and
exclusive representative of the employees in an appropriate bargaining unit for purposes of collective bargaining or
negotiation. A certification election is ordered by the Department, while a consent election is voluntarily agreed upon by the
parties, with or without the intervention by the Department.

Run-Off Election

A run-off election refers to an election between the labor unions receiving the two highest number of votes in a certification
or consent election with three or more choices, where such a certified or consent election results in none of the three or
more choices receiving the majority of the valid votes cast; provided that the total number of votes for all contending unions
is at least fifty percent (50%) of the number of votes cast.

Rerun Election

Rerun election refers to an election conducted to break a tie between contending unions, including between “no union” and
one of the unions. It shall likewise refer to an election conducted after a failure of election has been declared by the election
officer and/or affirmed by the mediator-arbiter.

When a certification, consent or run-off election results to a tie between the two (2) choices, the election officer shall
immediately notify the parties of a re-run election. The election officer shall cause the posting of the notice of re-run election
within five (5) days from certification, consent or run-off election. The re-run election shall be conducted within ten (10)
days after the posting of notice.

Sole and Exclusive Bargaining Agent (SEBA)

- Department Order No. 40-1-15

In case there is only one legitimate labor union operating in the industry, the said union may request the Department of
Labor Regional Office that a SEBA (Sole and Exclusive Bargaining Agent) Certification is issued as provided under
Department Order No. 40-1-15. Such SEBA Certification issued by the DOLE Regional Office would give the union the
personality to bargain with the employer.

Stages in the Collective Bargaining

- Art. 261 Labor Code, as amended

ART. 261. [250] Procedure in Collective Bargaining. – The following procedures shall be observed in collective bargaining:

a) When a party desires to negotiate an agreement, it shall serve a written notice upon the other party with a statement of its
proposals. The other party shall make a reply thereto not later than ten (10) calendar days from receipt of such notice;

b) Should differences arise on the basis of such notice and reply, either party may request for a conference which shall begin
not later than ten (10) calendar days from the date of request;

c) If the dispute is not settled, the Board shall intervene upon request of either or both parties or at its own initiative and
immediately call the parties to conciliation meetings. The Board shall have the power to issue subpoenas requiring the
attendance of the parties to such meetings. It shall be the duty of the parties to participate fully and promptly in the
conciliation meetings the Board may call;

d) During the conciliation proceedings in the Board, the parties are prohibited from doing any act which may disrupt or
impede the early settlement of the disputes; and

e) The Board shall exert all efforts to settle disputes amicably and encourage the parties to submit their case to a voluntary
arbitrator.

Based on the law and decisions of the Supreme Court, the following are the necessary steps/stages in collective bargaining
and negotiation:

1. Preliminary stage – This refers to the sending of a written notice to bargain.

2. Negotiation – This pertains to the stage where the parties (the employer and the labor union) give their proposals and
counter-proposals.

3. Execution – This is the stage where the parties sign the collective bargaining agreement.

4. Publication – This refers to the posting of copies of the CBA in two conspicuous places in the factory or industry at least
five days before the scheduled date of ratification.

5. Ratification – This is the process where the members of the bargaining unit vote to approve or disapprove the CBA.

6. Registration – This is the stage where the parties register their CBA with the DOLE Regional Office or the Bureau of
Labor Relations.

7. Administration – This is the stage where the parties implement the provisions of the CBA for the mutual benefits of the
employees and the employer.

8. Interpretation and application – This happens if there is ambiguity in any of the provisions of the CBA.

National Conciliation and Mediation Board (NCMB)

The Board mentioned in Article 261 of the Labor Code refers to the National Conciliation and Mediation Board created
under Executive Order No. 126, January 31, 1987, reorganizing the DOLE, and was tasked to formulate policies, develop
plans and programs, and set standards and procedures relative to the promotion of conciliation and mediation of labor
disputes through the preventive mediation, conciliation, and voluntary arbitration; facilitation of labor-management
cooperation through joint mechanisms for information sharing, effective communication and consultation, and group
problem-solving.

Requirements for Collective Bargaining

As already discussed earlier, only the exclusive bargaining agent duly chosen by the employees in the bargaining unit—the
union which won in the certification election, consent election, or run-off election or the only union operating in the
bargaining unit which was issued a SEBA Certification by the DOLE Regional Office—is the only union which can demand
that the employer bargains with it.

In other words, the mechanics of collective bargaining are set in motion only when the following jurisdictional preconditions
are present, namely:

1) Possession of the status of majority representation of the employees’ representative in accordance with any of the means
of selection and designation provided for by the Labor Code;

2) Proof of majority representation by the union which refers to the certification issued by the Election Officer or Mediator-
Arbitrator (Med-Arbiter) from the Bureau of Labor Relations or the DOLE Regional Office; and

3) A demand to bargain with the employer as provided under Article 261(a) of the Labor Code.

Parts of the Collective Bargaining Agreement

The Collective Bargaining Agreement (CBA) is the law between the employees in the collective bargaining unit represented
by the bargaining union and the employer. In general, the CBA has the following parts:

1. Preamble – Introduction

2. Recognition of the majority status of the contracting union and its right to exclusively represent the members of the
collective bargaining unit

3. Management prerogative – The right of the employer to discipline its employees

4. Union prerogative – The right of the union to discipline its members

5. Scale of wages – The provisions which are intended to prevent discrimination in the payment of different types of workers
and to avoid wage distortion

6. Promotion of employees to higher positions

7. Leave of absence – The provisions for leaves like sick leave, vacation leave, etc.

8. Union security clause – The provision requiring the employer to recognize the right of the union which negotiated the
CBA to maintain and protect its membership by imposing certain terms and conditions in hiring new employees and
retention of employment for the duration of the CBA

9. Grievance machinery – A method of addressing and resolving grievance or questions by the management or the union
regarding interpretation and enforcement of the CBA provisions and interpretation and implementation of company
personnel policies

10. Voluntary arbitration – A method of settling labor-management disputes by submitting the controversy before a
voluntary arbitrator or panel of voluntary arbitrators chosen by the parties to the CBA or accredited by the National
Conciliation Mediation Board (NCMB)

11. Check-off – a method of deducting from an employee’s salary at prescribed periods to pay the employees’ union
membership fees, fines, or assessments for the purpose of raising funds for the union as provided under Article 250(o) of
the Labor Code

12. Family planning – population education pursuant to the program of the government for reproductive health

13. Labor education – a mechanism designed to inform and educate the workers regarding their rights and duties

14. Effectivity clause

15. Interpretation clause – provision for the mechanism in applying and interpreting the provisions of the CBA

Lifetime of the CBA

- Art. 265, Labor Code, as amended

ART. 265. [253-A] Terms of a Collective Bargaining Agreement. – Any Collective Bargaining Agreement that the parties
may enter into shall, insofar as the representation aspect is concerned, be for a term of five (5) years. No petition questioning
the majority status of the incumbent bargaining agent shall be entertained and no certification election shall be conducted
by the Department of Labor and Employment outside of the sixty-day period immediately before the date of expiry of such
five-year term of the Collective Bargaining Agreement. All other provisions of the Collective Bargaining Agreement shall be
renegotiated not later than three (3) years after its execution. Any agreement on such other provisions of the Collective
Bargaining Agreement entered into within six (6) months from the date of expiry of the term of such other provisions as
fixed in such Collective Bargaining Agreement, shall retroact to the day immediately following such date. If any such
agreement is entered into beyond six months, the parties shall agree on the duration of retroactivity thereof. In case of a
deadlock in the renegotiation of the Collective Bargaining Agreement, the parties may exercise their rights under this Code.

Representation Aspect of the CBA

The representation aspect of the CBA refers to the union who represents the employees in the bargaining unit in negotiating
with the employer. Once a particular union is selected as the exclusive bargaining agent based on the processes already
discussed (certification election, consent election, run-off election, or SEBA certification), the selected union will be
representing the employees for the period of five years that is also the duration of the CBA.

- Art. 268, Labor Code, as amended

ART. 268. [256] Representation Issue in Organized Establishments. – In organized establishments, when a verified petition
questioning the majority status of the incumbent bargaining agent is filed by any legitimate labor organization including a
national union or federation which has already issued a charter certificate to its local chapter participating in the certification
election or a local chapter which has been issued a charter certificate by the national union or federation before the
Department of Labor and Employment within the sixty (60)-day period before the expiration of the collective bargaining
agreement, the Med-Arbiter shall automatically order an election by secret ballot when the verified petition is supported by
the written consent of at least twenty-five percent (25%) of all the employees in the bargaining unit to ascertain the will of
the employees in the appropriate bargaining unit. To have a valid election, at least a majority of all eligible voters in the unit
must have cast their votes. The labor union receiving the majority of the valid votes cast shall be certified as the exclusive
bargaining agent of all the workers in the unit. When an election which provides for three or more choices results in no
choice receiving a majority of the valid votes cast, a run-off election shall be conducted between the labor unions receiving
the two highest number of votes: Provided, That the total number of votes for all contending unions is at least fifty percent
(50%) of the number of votes cast. In cases where the petition was filed by a national union or federation, it shall not be
required to disclose the names of the local chapter’s officers and members.

At the expiration of the freedom period, the employer shall continue to recognize the majority status of the incumbent
bargaining agent where no petition for certification election is filed.

Contract Bar Rule

The contract bar rule is provided in Article 265 of the Labor Code, that no petition questioning the majority status of the
incumbent bargaining agent shall be entertained and no certification election shall be conducted by the Department of Labor
and Employment outside of the sixty-day period immediately before the date of expiry of such five-year term of the
Collective Bargaining Agreement.

This means that for the period of five years, the bargaining agent (union) has an assurance that the employer will not negotiate
with any other union. On the part of the Department of Labor and Employment (Bureau of Labor Relations and/or DOLE
Regional Office), it is prohibited from entertaining any petition for certification election filed before it by anyone for five
years.

Exceptions to the Contract Bar Rule

The exceptions are:

1) During the freedom period, the DOLE may entertain a petition for certification election filed before it; and

2) If the CBA is not registered with the Bureau of Labor Relations by the parties to the CBA.
Freedom Period

The freedom period refers to the sixty-day period immediately before the date of expiry of such five-year term of the
Collective Bargaining Agreement.

For example, the CBA was agreed upon on December 19, 2020, the representation aspect will last until December 19, 2025,
and the freedom period is from October 19, 2025 to December 19, 2025 which is the sixty-day period before the expiration
of the CBA. Only during that period, Article 265 of the Labor Code allows the DOLE to entertain a petition for another
certification election.

Automatic Renewal Clause

The automatic renewal clause is deemed incorporated in all Collective Bargaining Agreements. It is also known as the
evergreen clause. Article 264 of the Labor Code provides that when there is a collective bargaining agreement, the duty to
bargain collectively shall also mean that neither party shall terminate nor modify such agreement during its lifetime. However,
either party can serve a written notice to terminate or modify the agreement at least sixty (60) days prior to its expiration
date. It shall be the duty of both parties to keep the status quo and to continue in full force and effect the terms and
conditions of the existing agreement during the 60-day period and/or until a new agreement is reached by the parties.

The provision guarantees that even after the CBA has expired, the employees will not be in limbo in so far as the benefits
and terms and conditions of employment are concerned. The employer and the union will continue to honor and implement
the CBA despite its expiration until the employer and the union have agreed on a new CBA.

- Art. 264, Labor Code, as amended

ART. 264. [253] Duty to Bargain Collectively When There Exists a Collective Bargaining Agreement. – When there is a
collective bargaining agreement, the duty to bargain collectively shall also mean that neither party shall terminate nor modify
such agreement during its lifetime. However, either party can serve a written notice to terminate or modify the agreement at
least sixty (60) days prior to its expiration date. It shall be the duty of both parties to keep the status quo and to continue in
full force and effect the terms and conditions of the existing agreement during the 60-day period and/or until a new
agreement is reached by the parties.

Economic Aspect of the CBA

The economic aspect refers to the terms and conditions of employment as well as the benefits that the employees in the
bargaining unit should enjoy. As stated in Article 265 of the Labor Code, all other provisions of the Collective Bargaining
Agreement shall be renegotiated not later than three (3) years after its execution.

At the end of the third year of the CBA, the union may request the management to renegotiate the economic aspect of the
CBA, obviously to improve the living conditions of the employees covered by such CBA. The management has the duty to
negotiate with the union on this aspect of the CBA, otherwise the management may be held liable for unfair labor practice.
The new agreement on the economic aspect will expire in two years in order to coincide with the expiration of the
representation aspect of the CBA. However, if the union decides not to renegotiate at this period, the only implication is
that there will be no increase in the benefits of the employees until the end of the five-year period. That is the reason why
the union must initiate the bargaining at the end of the three years of the CBA.

Automatic Retroactivity

As provided in Article 265 of the Labor Code, any agreement on such other provisions of the Collective Bargaining
Agreement entered into within six (6) months from the date of expiry of the term of such other provisions as fixed in such
Collective Bargaining Agreement shall retroact to the day immediately following such date. If any such agreement is entered
into beyond six months, the parties shall agree on the duration of retroactivity thereof. In case of a deadlock in the
renegotiation of the Collective Bargaining Agreement, the parties may exercise their rights under this Code.

Let us assume that the CBA was agreed upon on December 19, 2020, the representation aspect will last until December 19,
2025. On the other hand, the economic aspect will expire on December 19, 2023, which is the third year of the CBA. The
parties renegotiated and agreed to implement 30 pesos increase in the daily wages of the covered employees. The agreement
was finalized on March 16, 2024 or withing three months from December 19, 2023. The effectivity of the 30 pesos wage
increase shall automatically retroact to December 20, 2023, the day after the expiration of the CBA on December 19, 2023.
This means that every employee covered by the CBA shall receive an increase in his/her daily wage from December 20,
2023 until the expiration of the CBA.

On the other hand, if the parties renegotiated and agree to implement 30 pesos increase in the daily wage of the covered
employees and the agreement was finalized on July 23, 2024, that was already more than six months after the expiration of
the CBA, the automatic retroaction clause would no longer apply based on Article 265 provision. The effectivity of the wage
increase shall be agreed upon by the union and the employer.

In case the union and the employer could not agree on the date of effectivity, the remedy is to bring the matter to the
grievance machinery of the CBA, and failure to settle it in the grievance machinery, the next step is to submit the issue to
the voluntary arbitrators. Whatever is the order of the voluntary arbitrator (arbitral award) that would be the date of the
effectivity of the new provision of the CBA. Any party who wants to challenge or questions the validity of the arbitral award,
the proper remedy is to file an appeal to the Court of Appeals.

- Art. 265, Labor Code, as amended

ART. 265. [253-A] Terms of a Collective Bargaining Agreement. – Any Collective Bargaining Agreement that the parties
may enter into shall, insofar as the representation aspect is concerned, be for a term of five (5) years. No petition questioning
the majority status of the incumbent bargaining agent shall be entertained and no certification election shall be conducted
by the Department of Labor and Employment outside of the sixty-day period immediately before the date of expiry of such
five-year term of the Collective Bargaining Agreement. All other provisions of the Collective Bargaining Agreement shall be
renegotiated not later than three (3) years after its execution. Any agreement on such other provisions of the Collective
Bargaining Agreement entered into within six (6) months from the date of expiry of the term of such other provisions as
fixed in such Collective Bargaining Agreement, shall retroact to the day immediately following such date. If any such
agreement is entered into beyond six months, the parties shall agree on the duration of retroactivity thereof. In case of a
deadlock in the renegotiation of the Collective Bargaining Agreement, the parties may exercise their rights under this Code.

Enforcement of the Collective Bargaining Agreement

The collective bargaining agreement (CBA) is a contract between the union representing the employees in the bargaining
unit and the employer. A collective bargaining contains provisions on wages, hours of work, and all other terms and
conditions of employment in a bargaining unit. The parties to the CBA are expected to implement and comply with its terms
and conditions in good faith.

Publication of the CBA

Once the collective bargaining agreement has been finalized, the employer is mandated by the implementing rules of the
Labor Code as well as the decisions of the Supreme Court to post a copy of the CBA in two conspicuous places in the
workplace at least five days before the date of tis ratification. Failure to post the CBA is a fatal defect and will invalidate the
CBA.

Non-posting of the CBA is a Fatal Defect

When the CBA was not posted in at least two conspicuous places in the factory or industry at least five days before the
scheduled date of ratification, of the CBA cannot be implemented as it was defective for lack of publications. Specifically,
when the CBA was not posted for at least five days in two conspicuous places in the establishment before ratification, to
enable the workers to clearly inform themselves of its provisions, the same is defective. Non-compliance with this
requirement being mandatory rendered the said CBA ineffective.

- Associated Trade Unions vs. Trajano (G.R. No. L-75321, June 20, 1988)

The Employer Has the Obligation to Post the CBA

The posting of the CBA as compliance with the publication requirement of the rules is the obligation of the employer. As
ruled by the Supreme Court, in the first place, the posting of copies of the collective bargaining agreement is the responsibility
of the employer which can easily comply with the requirement through a mere mechanical act.
The purpose of the requirement is precisely to inform the employees in the bargaining unit of the contents of said agreement
so that they could intelligently decide whether to accept the same or not. The contract (CBA) is intended for all the employees
and not only for the members of the purported representative alone. It may even be said that the need to inform the non-
members of the terms thereof is more exigent and compelling since, in all likelihood, their contract with the persons who
are supposed to represent them is limited.

- Associated Labor Unions vs. Ferrer-Calleja (G.R. No. L-77282, May 5, 1989)

Public respondent ordered the holding of a certification election ruling that the “contract bar rule” relied upon by her
predecessor does not apply in the present controversy. According to the decision of said respondent, the collective bargaining
agreement involved herein is defective because it “was not duly submitted in accordance with Section I, Rule IX, Book V of
the Implementing Rules of Batas Pambansa Blg. 130.” It was further observed that “(t)here is no proof tending to show that
the CBA has been posted in at least two conspicuous places in the establishment at least five days before its ratification and
that it has been ratified by the majority of the employees in the bargaining unit.”

An additional infirmity of the collective bargaining agreement involved was the failure to post the same in at least two (2)
conspicuous places in the establishment at least five days before its ratification. Petitioners rationalization was that “(b)ecause
of the real existence of the illegal strike staged by SPFL in all the stores of GAW Trading, Inc. it had become impossible to
comply with the posting requirement in so far as the realization of tits purpose is concerned as there were no impartial
members of the unit who could be appraised of the CBA’s contents.” This justification is puerile and unacceptable.

In the first place, the posting of copies of the collective bargaining agreement is the responsibility of the employer which
can easily comply with the requirement through a mere mechanical act. The fact that there were “no impartial members of
the unit” is immaterial. The purpose of the requirement is precisely to inform the employees in the bargaining unit of the
contents of said agreement so that they could intelligently decide whether to accept the same or not. The assembly of the
members of ALU wherein the agreement in question was allegedly explained does not cure the defect. The contract is
intended for all employees and not only for the members of the purported representative alone. It may even be said the the
need to inform the non-members of the terms thereof is more exigent and compelling since, in all likehood, their contact
with the persons who are supposed to represent them is limited. Moreover, to repeat, there was an apparent and suspicious
hurry in the formulation and finalization of said collective bargaining accord. In the aforementioned letter where respondent
company required petitioner union to present proof of its support by the employees, the company already suggested that
petitioner ALU at the same time submit the proposals that it intended to embody in the projected agreement. This was on
May 12, 1986, and promptly on the following day the negotiation panel; furnish respondent company final copies of the
desired agreement which, with equal dispatch, was signed on May 15, 1986.

Purpose of the Publication

It must be remembered that the ones who negotiate the CBA with the employer are the officers of the union, therefore, the
employees in the bargaining unit are not aware of the terms and conditions contained in the CBA, yet in the years to come,
they will be bound by the provisions of the CBA, as such, they need to know and understand the contents so that they could
form a judgment to accept or reject the CBA during the referendum for the ratification of the CBA.

Ratification of the CBA

Five days after the posting of the CBA, all the employees in the bargaining unit, whether members of the union or not, are
given the opportunity to vote YES or NO on the issue of accepting or rejecting the CBA. The referendum shall be facilitated
by the Mediator-Arbiter (Med-Arbiter) from the DOLE Regional Office or the Bureau of Labor Relations. If the majority
of the employees in the bargaining unit ratifies the CBA, the CBA must be registered with the DOLE Regional Office.

Registration of the CBA

Within 30 days from execution of a collective bargaining agreement, the parties thereto shall submit to the DOLE Regional
Office:

1. Original and two (2) duplicate signed copies of the CBA which must be certified under oath by the representatives of the
employer and labor/union concerned;

2. Duly accomplished and notarized Application Form;

3. Statement that the CBA was posted in at least two (2) conspicuous places in the establishment concerned for at least five
(5) days before its ratification;

4. Statement that the CBA was ratified by the majority of the employees in the bargaining unit of the employer concerned;
and

5. Pay the registration fee of Php 1,000.00.

Effect of Registration of the CBA

The registration of the collective bargaining agreement with the DOLE will cause the operation of the contract bar rule as
already discussed earlier. No one in allowed to modify or disturb the terms and conditions of the said CBA and the DOLE
will not entertain any petition for certification election filed by any party for five years except only during the sixty-day
freedom period. However, if the parties failed or refuse to register the CBA to the DOLE, the CBA remains valid and
binding between the union and the employer who are parties to the said CBA. But the parties cannot invoke the contract
bar rule.

Violation of the CBA

The parties to the collective bargaining agreement are expected to comply with the provisions of the said agreement because
the CBA between the employer and the union has the force and effect of law between the parties and they are expected to
comply and adhere to its provisions during its lifetime.

Needless to say, therefore, that if a party violates the CBA provisions, the aggrieved party has legal remedies under the Labor
Code and existing jurisprudence. The violations of the provisions of the collective bargaining agreement are considered
grievances and are to be resolved through the grievance machinery and voluntary arbitration as provided for in the CBA
itself.

Settlement of Grievances

- Art. 273-277, Labor Code, as amended

ART. 273. [260] Grievance Machinery and Voluntary Arbitration. – The parties to a Collective Bargaining Agreement shall
include therein provisions that will ensure the mutual observance of its terms and conditions. They shall establish a
machinery for the adjustment and resolution of grievances arising from the interpretation or implementation of their
Collective Bargaining Agreement and those arising from the interpretation or enforcement of company personnel policies.

All grievances submitted to the grievance machinery which are not settled within seven (7) calendar days from the date of
its submission shall automatically be referred to voluntary arbitration prescribed in the Collective Bargaining Agreement.

For this purpose, parties to a Collective Bargaining Agreement shall name and designate in advance a Voluntary Arbitrator
or panel of Voluntary Arbitrators, or include in the agreement a procedure for the selection of such Voluntary Arbitrator or
panel of Voluntary Arbitrators, preferably from the listing of qualified Voluntary Arbitrators duly accredited by the Board.
In case the parties fail to select a Voluntary Arbitrator or panel of Voluntary Arbitrators, the Board shall designate the
Voluntary Arbitrator or panel of Voluntary Arbitrators, as may be necessary, pursuant to the selection procedure agreed
upon in the Collective Bargaining Agreement, which shall act with the same force and effect as if the Arbitrator or panel of
Arbitrators have been selected by the parties as described above.

ART. 274. [261] Jurisdiction of Voluntary Arbitrators and Panel of Voluntary Arbitrators. – The Voluntary Arbitrator or
panel of Voluntary Arbitrators shall have original and exclusive jurisdiction to hear and decide all unresolved grievances
arising from the interpretation or implementation of the Collective Bargaining Agreement and those arising from the
interpretation or enforcement of company personnel policies referred to in the immediately preceding article. Accordingly,
violations of a Collective Bargaining Agreement, except those which are gross in character, shall no longer be treated as
unfair labor practice and shall be resolved as grievances under the Collective Bargaining Agreement. For purposes of this
article, gross violations of Collective Bargaining Agreement shall mean flagrant and/or malicious refusal to comply with the
economic provisions of such agreement.

The Commission, its Regional Offices and the Regional Directors of the Department of Labor and Employment shall not
entertain disputes, grievances or matters under the exclusive and original jurisdiction of the Voluntary Arbitrator or panel