The concept of collective bargaining

The duty to bargain collectively arises only between the “employer” and its “employees.” Where neither party is an “employer” nor an “employee” of the other, no such duty exists. Where there is no duty to bargain collectively, the duty to bargain violates no right.

The Omnibus Rules Implementing the Labor Code of the Philippines, as amended by Department Order 04-03 ([Omnibus Rules], 1989) specifically provides the laws governing collective bargaining. The following terms have been defined by the Rules as follows:

1) A "Collective Bargaining Agreement" or "CBA" refers to the contract between a legitimate labor union and the employer concerning wages, hours of work, and all other terms and conditions of employment in a bargaining unit.

2) "Legitimate Labor Organization” refers to any labor organization in the private sector registered or reported with the Department of Labor and Employment in accordance with Rules III and IV Implementing the Labor Code of the Philippines.
"Union" refers to any labor organization in the private sector organized for collective bargaining and for other legitimate purposes.

In other words, a legitimate labor union is a labor organization in the private sector, duly registered with the Department of Labor and Employment, and is organized for collective bargaining and for other legitimate purposes.

3) "Exclusive Bargaining Representative" refers to a legitimate labor union duly recognized or certified as the sole and exclusive bargaining representative or agent of all the employees in a bargaining unit.

4) "Bargaining Unit" refers to 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.

The collective bargaining that the law envisions occurs between the employer and the employees comprised in an “appropriate collective bargaining unit.” It is that group of jobs that serves as the election constituency in the employer enterprise. In a hotel, for instance, all the rank-and-file employees may constitute one bargaining unit, and another unit for all supervisory employees [not classified as managerial employees]. Geographically, all the rank and file employees in Cebu may be one unit, and those in Metro Manila compose another unit.

5) "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. This is in accordance with Article 255 of the Labor Code of the Philippines (1974) which states, “The labor organization designated or selected by the majority of the employees in an appropriate bargaining unit shall be the exclusive representative of the employees in such unit for purposes of collective bargaining.”

The Bureau of Labor Relations is the official repository of all the collective bargaining agreements which are required to be filed in accordance with the Omnibus Rules Implementing the Labor Code of the Philippines.

Azucena (2000) explains that CBA negotiated by the employees’ bargaining agent should be ratified or approved by the majority of all the workers in the bargaining unit. The ratification and the way to do it are mandatory as provided in the Omnibus Rules. Further, the collective bargaining agreement, after ratification should be registered with the Bureau of Labor Relations or the Department of Labor and Employment Regional Office that has jurisdiction over the establishment. Registration is required to be done within thirty (30) calendar days from execution of the agreement. Economic provisions in the CBA shall be renegotiated not later than three (3) years after its execution.

Nevertheless, the Department of Labor and Employment (Omnibus Rules, 1989, s. 1 Rule XXI) also promotes the formation of labor-management councils in organized and unorganized establishments to enable the workers to participate in policy and decision-making processes in the establishment, insofar as said processes will directly affect their rights, benefits and welfare, except those which are covered by collective bargaining agreements or are traditional areas of bargaining.