6.1 Legislation in brief
The right to form unions is recognised in the Philippine Constitution, and reinforced by the Labor Code and implementing regulations.
Managerial employees are not eligible to join, assist or form any labor organisation. Supervisory employees who are not ‘managerial’ may join labor organisations of their own, but they may not join those of the rank and file employees. Supervisory employees are those who, in the interests of the employer, recommend managerial actions with the use of independent judgment, provided that the exercise of such authority is not merely routine or clerical in nature.
6.2 Role of trade unions and collective agreements
Trade unions play a significant role in many companies in the Philippines. Their basic role is to foster collective bargaining and mutual protection. Unions often assist workers in the enforcement of their rights and in obtaining improved terms and conditions of employment.
6.3 Industrial action and disputes
The Constitution and the Labor Code guarantee both workers and employers the right to engage in certain activities in order to achieve legitimate activities. For employees, such activities may include strikes, picketing and boycotts, and for employers this means lockouts. Certain mandatory requirements apply in order to lawfully engage in such activities.
Disputes, including impending or existing strikes or lockouts, may be resolved through mediation by the National Conciliation and Mediation Board (NCMB) or by intervention by the Secretary of Labor, which may result in compulsory or voluntary arbitration. An assumption or certification by the Secretary of Labor of a dispute has the effect of automatically enjoining the intended or impending strike or lockout.