Unfair Labor Practice: Examples and What It Means
Quick answer
An unfair labor practice (ULP) is an act that attacks the workers' right to form or join a union and to bargain collectively. The Labor Code lists the ULP of employers in Article 259 [248] and the ULP of unions in Article 260 [249]. Common examples are threatening workers who join a union, firing union officers for union activity, contracting out union work to break the union, and refusing to bargain. A ULP is both a civil wrong decided by Labor Arbiters and a crime.
What makes an act an unfair labor practice?
The Labor Code explains the idea in Article 258 [247]:
Unfair labor practices violate the constitutional right of workers and employees to self-organization, are inimical to the legitimate interests of both labor and management, including their right to bargain collectively and otherwise deal with each other in an atmosphere of freedom and mutual respect, disrupt industrial peace and hinder the promotion of healthy and stable labor-management relations.
So the common thread is the right to self-organization. A harsh or unfair decision by an employer is not a ULP unless it is linked to that right or appears in the lists of the Code. In Standard Chartered Bank Employees Union v. Confesor (2004), the Supreme Court said "The right to self-organization necessarily includes the right to collective bargaining," and that "substantial evidence is required" to prove a ULP.
What are examples of unfair labor practice by employers?
[Article 259 [248]](/law/labor-code/article-259) lists nine acts. Some of them read:
It shall be unlawful for an employer to commit any of the following unfair labor practices:
(a) To interfere with, restrain or coerce employees in the exercise of their right to self-organization;
(c) To contract out services or functions being performed by union members when such will interfere with, restrain or coerce employees in the exercise of their right to self-organization;
(f) To dismiss, discharge or otherwise prejudice or discriminate against an employee for having given or being about to give testimony under this Code;
(g) To violate the duty to bargain collectively as prescribed by this Code;
(h) To pay negotiation or attorney’s fees to the union or its officers or agents as part of the settlement of any issue in collective bargaining or any other dispute; or
(i) To violate a collective bargaining agreement.
The other items, in plain words:
- Item (b): requiring, as a condition of employment, that a person or an employee not join a union or withdraw from one.
- Item (d): starting, dominating, assisting or interfering with the formation or administration of a union, including giving it financial or other support. This is how a "company union" is formed.
- Item (e): discriminating in employment to encourage or discourage union membership. The same item allows a union security clause: the parties may require membership in the recognized bargaining agent as a condition for employment, except for employees already members of another union when the agreement is signed.
Can a union commit an unfair labor practice too?
Yes. Article 260 [249] lists the ULP of labor organizations. It begins:
It shall be unfair labor practice for a labor organization, its officers, agents or representatives:
(a) To restrain or coerce employees in the exercise of their right to self-organization. However, a labor organization shall have the right to prescribe its own rules with respect to the acquisition or retention of membership;
Other items include causing an employer to discriminate against an employee, refusing to bargain collectively when the union is the representative, demanding money for services not performed, asking for or accepting negotiation fees from employers, and violating the collective bargaining agreement.
Is every CBA violation an unfair labor practice?
No. Item (i) of Article 259 must be read with Article 274 [261]. Violations of a collective bargaining agreement, except those that are gross in character, are treated as grievances, not as ULP. A gross violation means flagrant or malicious refusal to comply with the economic provisions of the agreement.
What is usually not an unfair labor practice?
Good faith business decisions that apply to everyone. In Sime Darby Pilipinas v. NLRC (1998), a factory changed its lunch break schedule for all workers in the same line of work, "whether or not they are members of private respondent union." The Court held that "it cannot be said that the new scheme adopted by management prejudices the right of private respondent to self-organization." See can an employer change your work schedule?
In Standard Chartered Bank Employees Union, the Court described "surface bargaining" as "going through the motions of negotiating" without any legal intent to reach an agreement. The union's ULP claims in that case were not proven.
Who decides ULP cases, and who can be punished?
- Civil side. The Labor Arbiters have jurisdiction over ULP cases under [Article 224 [217]](/law/labor-code/article-224). Article 258 [247] says the civil aspects may include claims for actual, moral, exemplary and other damages and attorney's fees.
- Criminal side. ULP are also criminal offenses against the State. But no criminal case may be filed without a final judgment in the labor case finding that a ULP was committed.
- Who is liable criminally. Only the officers and agents who actually took part in, authorized or ratified the act.
A ULP by the employer is also a ground for a strike, with a shorter notice period than a bargaining deadlock. See when is a strike legal? and [Article 278 [263]](/law/labor-code/article-278).
How does this work in real life?
These are made-up examples to show how the rules work. They are not advice for any real case.
Eric is told by his supervisor that he will not be regularized unless he leaves the union. Requiring him to withdraw from a union as a condition of employment falls under item (b) of Article 259.
Lani's company contracts out all the packing work right after the packers form a union, and most union members lose their jobs. If this interferes with the employees' right to self-organization, it can fall under item (c).
Ramil testified for a co-worker in a labor case. A week later he is suspended without a clear reason. Discriminating against an employee for having given testimony under the Code falls under item (f). Whether the suspension was really because of his testimony depends on the evidence.
Bert's company changes the shift schedule for all production workers, union and non-union, to meet a new delivery contract. Under Sime Darby, a good faith change applied to all is generally not ULP.
See also the topic page on unions and strikes.
When do you need a lawyer?
ULP cases depend on proof: dates of union activity, memos, notices, who was affected and who was not. Talk to a lawyer, your union federation or the Public Attorney's Office before filing a case or before a strike based on ULP. Employers facing a ULP charge also need legal advice. If you cannot afford a lawyer, see Free legal help in the Philippines.
Which provisions does this answer rest on?
Frequently asked questions
What is an unfair labor practice?
It is an act listed in the Labor Code that attacks the workers' right to self-organization and to bargain collectively. Article 259 [248] lists the unfair labor practices of employers and Article 260 [249] those of labor organizations.
What are examples of unfair labor practice by an employer?
Examples in Article 259 [248] include interfering with or coercing employees in their right to self-organization, requiring an employee not to join or to leave a union as a condition of employment, contracting out union members' work to weaken the union, refusing to bargain collectively, and violating the collective bargaining agreement.
Can a union commit unfair labor practice?
Yes. Article 260 [249] lists acts of labor organizations, such as restraining or coercing employees in their right to self-organization, refusing to bargain with the employer when the union is the representative, and asking for negotiation fees from employers as part of a settlement.
Is every violation of a CBA an unfair labor practice?
No. Under Article 274 [261], violations of a collective bargaining agreement, except gross ones, are treated as grievances. A gross violation means flagrant or malicious refusal to comply with the economic provisions of the agreement.
Is a schedule change for all workers an unfair labor practice?
Not by itself. In Sime Darby Pilipinas v. NLRC (1998), a new lunch break schedule applied to all workers in the same line of work, union members or not, was held not to prejudice the union's right to self-organization.
Who handles unfair labor practice cases?
The civil aspects go to the Labor Arbiters under Article 224 [217] and Article 258 [247]. Unfair labor practices are also criminal offenses, but a criminal case may be filed only after a final judgment finding that an unfair labor practice was committed.
General information, not legal advice. For your case, ask a lawyer, the Public Attorney's Office (PAO) or the agency.
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