Published — May 24, 2021
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
After knowing when to renegotiate a CBA, read also: WHAT IS COLLECTIVE BARGAINING AGREEMENT?
-
A Collective Bargaining Agreement (CBA) shall, insofar as the representation aspect is concerned, be for a term of five (5) years
-
The economic provisions of the CBA shall be renegotiated not later than three (3) years after its execution
-
Questioning the majority status of the incumbent bargaining agent outside of the sixty-day before the expiration of the CBA is not allowed
In our previous article, we wrote about Collective Bargaining Agreement. This time, let us talk about when to renegotiate a CBA.
For a better understanding, let us take the case of General Milling Corporation vs. Hon. Court of Appeals, G.R. No. 146728
In this case, General Milling Corporation (GMC) employed 190 workers. These workers are all members of General Milling Corporation Independent Labor Union (union) which is their duly certified bargaining agent.
On April 28, 1989, GMC and the union concluded a CBA which included the issue of representation effective for a term of three years. The CBA was effective for three years starting from December 1, 1988. On November 29, 1991, a day before the expiration of the CBA, the union sent GMC a proposed CBA, with a request that a counter-proposal be submitted within ten (10) days.
As early as October 1991, however, GMC had received letters from workers who stated that they had withdrawn from their union membership. Believing that the union no longer had standing to negotiate a CBA, GMC did not send any counter-proposal. On December 16, 1991, GMC wrote a letter to the union’s officers stating that it felt there was no basis to negotiate with a union which no longer existed. In its answer, the union officers wrote a letter dated December 19, 1991 disclaiming any massive disaffiliation or resignation from the union.
Also, on January 13, 1992, GMC dismissed a union member, on the ground of incompetence. The union protested and requested GMC to submit the matter to the grievance procedure provided in the CBA. GMC, however, advised the union to “refer to our letter dated December 16, 1991.
Can the union renegotiate the Collective Bargaining Agreement with GMC?
The law says:
Yes.
Any CBA 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 CBA. All other provisions of the CBA shall be renegotiated not later than three (3) years after its execution
In relation to the case of GMC and the union, the Supreme Court said:
The law mandates that the representation provision of a CBA should last for five years. The relation between labor and management should be undisturbed until the last 60 days of the fifth year.
Hence, it is indisputable that when the union requested to renegotiate the economic terms of the CBA on November 29, 1991, it was still the certified collective bargaining agent of the workers, because it was seeking said renegotiation within five (5) years from the date of effectivity of the CBA on December 1, 1988. The union’s proposal was also submitted within the prescribed 3-year period from the date of effectivity of the CBA, albeit just before the last day of said period. It was obvious that GMC had no valid reason to refuse to negotiate in good faith with the union.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
All rights reserved.
SUBSCRIBE NOW FOR MORE LEGAL UPDATES!
[email-subscribers-form id=”4″]