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CHAPTER II

RIGHTS AND CONDITIONS OF MEMBERSHIP

Art. 250. [241] Rights and conditions of membership in a labor


organization. The following are the rights and conditions of membership in a
labor organization:

a.No arbitrary or excessive initiation fees shall be required of the members


of a legitimate labor organization nor shall arbitrary, excessive or oppressive
fine and forfeiture be imposed;

b. The members shall be entitled to full and detailed reports from their
officers and representatives of all financial transactions as provided for in
the constitution and by-laws of the organization;

c. The members shall directly elect their officers, including those of the
national union or federation, to which they or their union is affiliated, by secret
ballot at intervals of five (5) years. No qualification requirements for candidacy
to any position shall be imposed other than membership in good standing in
subject labor organization. The secretary or any other responsible union
officer shall furnish the Secretary of Labor and Employment with a list of the
newly-elected officers, together with the appointive officers or agents who are
entrusted with the handling of funds, within thirty (30) calendar days after the
election of officers or from the occurrence of any change in the list of officers
of the labor organization; (As amended by Section 16, Republic Act No. 6715,
March 21, 1989)

d. The members shall determine by secret ballot, after due deliberation, any
question of major policy affecting the entire membership of the organization,
unless the nature of the organization or force majeure renders such secret
ballot impractical, in which case, the board of directors of the organization
may make the decision in behalf of the general membership;

e. No labor organization shall knowingly admit as members or continue in


membership any individual who belongs to a subversive organization or
who is engaged directly or indirectly in any subversive activity;

f. No person who has been convicted of a crime involving moral turpitude


shall be eligible for election as a union officer or for appointment to any
position in the union;

g. No officer, agent or member of a labor organization shall collect any


fees, dues, or other contributions in its behalf or make any disbursement of its
money or funds unless he is duly authorized pursuant to its constitution and
by-laws;

h. Every payment of fees, dues or other contributions by a member shall be


evidenced by a receipt signed by the officer or agent making the collection
and entered into the record of the organization to be kept and maintained for
the purpose;

i. The funds of the organization shall not be applied for any purpose or object
other than those expressly provided by its constitution and by-laws or
those expressly authorized by written resolution adopted by the majority
of the members at a general meeting duly called for the purpose;

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j. Every income or revenue of the organization shall be evidenced by a record
showing its source, and every expenditure of its funds shall be evidenced by a
receipt from the person to whom the payment is made, which shall state the date,
place and purpose of such payment. Such record or receipt shall form part of
the financial records of the organization.

Any action involving the funds of the organization shall prescribe after three
(3) years from the date of submission of the annual financial report to the
Department of Labor and Employment or from the date the same should have
been submitted as required by law, whichever comes earlier: Provided, That this
provision shall apply only to a legitimate labor organization which has submitted
the financial report requirements under this Code: Provided, further, that failure of
any labor organization to comply with the periodic financial reports required by law
and such rules and regulations promulgated thereunder six (6) months after the
effectivity of this Act shall automatically result in the cancellation of union
registration of such labor organization; (As amended by Section 16, Republic Act
No. 6715, March 21, 1989)

k. The officers of any labor organization shall not be paid any


compensationother than the salaries and expenses due to their positions as
specifically provided for in its constitution and by-laws, or in a written
resolution duly authorized by a majority of all the members at a general
membership meeting duly called for the purpose. The minutes of the meeting
and the list of participants and ballots cast shall be subject to inspection by
the Secretaryof Labor or his duly authorized representatives. Any
irregularitiesin the approval of the resolutions shall be a ground for
impeachment or expulsion from the organization;

l. The treasurer of any labor organization and every officer thereof who is
responsible for the account of such organization or for the collection,
management, disbursement, custody or control of the funds, moneys and other
properties of the organization, shall render to the organization and to its members
a true and correct account of all moneys received and paid by him since he
assumed office or since the last day on which he rendered such account, and of all
bonds, securities and other properties of the organization entrusted to his custody
or under his control. The rendering of such account shall be made:

(1) At least once a year within thirty (30) days after the close of its fiscal year;

(2) At such other times as may be required by a resolution of the majority of the
members of the organization; and

(3) Upon vacating his office.

The account shall be duly audited and verified by affidavit and a copy thereof shall
be furnished the Secretary of Labor.

(m) The books of accounts and other records of the financial activities of any
labor organization shall be open to inspection by any officer or member thereof
during office hours;

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(n) No pecial assessment or other extraordinary fees may be levied upon the
members of a labor organization unless authorized by a written resolution of a
majority of all the members in a general membership meeting duly called for the
purpose. The secretary of the organization shall record the minutes of the
meeting including the list of all members present, the votes cast, the purpose
of the special assessment or fees and the recipient of such assessment or
fees. The record shall be attested to by the president.

Other than for mandatory activities under the Code, no special assessments,
attorneys fees, negotiation fees or any other extraordinary fees may be checked
off from any amount due to an employee without an individual written
authorization duly signed by the employee. The authorization should specifically
state the amount, purpose and beneficiary of the deduction; and

It shall be the duty of any labor organization and its officers to inform its members
on the provisions of its constitution and by-laws, collective bargaining agreement,
the prevailing labor relations system and all their rights and obligations under
existing labor laws.
For this purpose, registered labor organizations may assess reasonable dues to
finance labor relations seminars and other labor education activities.
Any violation of the above rights and conditions of membership shall be a ground
for cancellation of union registration or expulsion of officers from office, whichever
is appropriate. At least thirty percent (30%) of the members of a union or any
member or members specially concerned may report such violation to the
Bureau. The Bureau shall have the power to hear and decide any reported
violation to mete the appropriate penalty.
Criminal and civil liabilities arising from violations of above rights and conditions
of membership shall continue to be under the jurisdiction of ordinary courts.

(o) Other than for mandatory activities under the Code, no special assessments,
attorneys fees, negotiation fees or any other extraordinary fees may be checked
off from any amount due to an employee without an individual written
authorization duly signed by the employee. The authorization should specifically
state the amount, purpose and beneficiary of the deduction; and

(p) It shall be the duty of any labor organization and its officers to inform its
members on the provisions of its constitution and by-laws, collective bargaining
agreement, the prevailing labor relations system and all their rights and
obligations under existing labor laws.

For this purpose, registered labor organizations may assess reasonable dues to
finance labor relations seminars and other labor education activities.

Any violation of the above rights and conditions of membership shall be a ground
for cancellation of union registration or expulsion of officers from office, whichever
is appropriate. At least thirty percent (30%) of the members of a union or any
member or members specially concerned may report such violation to the
Bureau. The Bureau shall have the power to hear and decide any reported
violation to mete the appropriate penalty.

Criminal and civil liabilities arising from violations of above rights and conditions
of membership shall continue to be under the jurisdiction of ordinary courts.

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NATURE OF RELATIONSHIP

Labor Union had been evolved as an organization of collective strength for the
protection of labor against the unjust exactions of capital, but equally important is the
requirement of fair dealing between the union and its members, which is fiduciary in
nature. The Labor Union may also be considered as agent of its members for the
purpose of securing for them fair and just wages and good working conditions.

1. Rights and Conditions of membership in a labor organization

The rights and conditions of membership in a labor organization are classified


as follows:

a. As to fees, dues, assessments and other contributions of union members


b. As to union funds and financial transactions
c. As to union officers/members
d. As to question of major union policy
e. As to workers education

A. As to fees, dues, assessments and other contributions of union


members

(a) No arbitrary or excessive initiation fees shall be required to the members


(b) No arbitrary, excessive or oppressive fine and forfeiture shall be imposed
(c) No officer, agent, or member of a labor organization shall collect any fees,
dues, or other contributions in its behalf or make any disbursements of its
money or funds unless he is duly authorized by its constitution and by-laws
(d) Every payment of fees, dues and other contributions shall be evidenced by
a receipt signed by the officer/agent making the collection, and entered into
the record of the organization to be kept and maintained for the purpose
(e) No special assessment or other extraordinary fees may be levied upon
unless:
i. Authorized by a written resolution of a majority of all the
members in general membership meeting
ii. The Secretary of the organization shall record the following:
- Minutes of the meeting
- List of all members present
- Votes cast
- Purpose of the special assessment or fees
- Recipient of such fees
- The record shall be attested by the President

B. As to union funds and financial transactions

(a) To full and detailed reports of all financial transactions


(b) The funds of the Union shall not be applied for any purpose or object other
than those expressly provided by its by-laws or those expressly authorized
by a written resolution
(c) Every income or revenue shall be evidenced by a record
(d) Every expenditure shall be evidence by a receipt, which shall state the
place, date and purpose of such payment
(e) Any action involving the funds of the Union shall prescribe after three (3)
years from the date of submission of the Annual Financial Report to the
DOLE
(f) The officers of any Organization shall not be paid any compensation other
than the salaries due to their positions

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(g) The Books of Accounts and other records of financial activities shall be
open to inspection by any member thereof during office hours.

C. As to union officers/members

(a) To directly elect their officers, including those of the national union or
federation to which they are affiliated. The election takes place at intervals
of five years.
(b) No qualification requirements for candidacy to any position shall be
imposed other than membership in good standing
(c) No Labor Organization shall knowingly admit as members any individual
who belongs to a subversive organization or who is engaged in any
subversive activity
(d) No person who has been convicted of a crime involving moral turpitude
shall be eligible for election as a union officer or for appointment to any
position in the union

Union Officer
The Implementing Rules used to contain the following provision:

No person who is not an employee/worker of the company where an


independently registered union. . . shall henceforth be elected or appointed as
an officer of such union .

D. As to question of major union policy

(a) To determine by secret ballot any question of major policy affecting the
entire membership of the organization
(b) Unless such secret ballot cannot be done, the Board of Directors of the
organization may make decision in behalf of the general membership

E. As to workers education

(a) It shall be the duty of any Labor Organization to inform its members on the
provision of its (1) Constitution/By-laws; (2) Collective Bargaining
Agreement; (3) Prevailing Labor Relations System; and (4) Right &
Obligations under existing labor laws.
(b) For this purpose, registered labor organizations may assess reasonable
dues to finance labor relations seminars and other labor education
activities.
(c) Effect any violation of the Right and Conditions of membership, as
provided by law.

CASES:

DEL PILAR ACADEMY VS DEL PILAR ACADEMY EMPLOYEES UNION, G.R. NO.
170112 APRIL 30, 2008

FACTS: Respondent Del Pilar Academy Employees Union is the certied collective
bargaining representative of teaching and non-teaching personnel of petitioner Del
Pilar Academy. The Union entered into a Collective Bargaining Agreement granting
salary increase and other benets like compensation for overloads, limitations of
teaching assignments, increase in the number of incentive leaves, vacation leave
and longevity pay. The Union assessed the agency fees and requested the school to
deduct the said fees from the employees salary. However, Del Pilar refused to e ect
the deductions claiming that the non-union members were not amenable to it and
they did not sign any written authorization.

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The Union led a case of unfair labor practice against the employer stating that the
act of Del Pilar Academy was done to undermine the union or stie the right to self-
organization. The Labor Arbiter dismissed the case of unfair labor practice against
the employer, but compelled the academy to deduct the assessed union fees from
the salary of the non-union members. Del Pilar Academy appealed the case before
the NLRC and the CA, but both tribunals armed the decision of the arbiter. Hence,
this appeal.

ISSUES:
1. Whether or not the union is entitled to collect agency fees from non-union
members.
2. Whether or not an individual written authorization is necessary for a valid check o .

RULING:
1. Yes. The Supreme Court ruled that the collection of agency fees in an amount
equivalent to union dues and fees, from employees who are not union members, is
recognized by Article 248(e) of the Labor Code, thus: Employees of an appropriate
collective bargaining unit who are not members of the recognized collective
bargaining agent may be assessed reasonable fees equivalent to the dues and other
fees paid by the recognized collective bargaining agent, if such non-union members
accept the benefits under the collective bargaining agreement. Provided, That the
individual authorization required under Article 241, paragraph (o) of this Code shall
not apply to the non-members of recognized collective bargaining agent.
2. No. requirement of written authorization from the non-union employees is needed
to effect a valid check off. Article 248(e) makes it explicit that Article 241, paragraph
(o), requiring written authorization is inapplicable to non-union members, and
especially in this case where the non-union employees receive several benefits
under the CBA.
When so stipulated in a collective bargaining agreement or authorized in writing by
the employees concerned, the Labor Code and its Implementing Rules recognize it to
be the duty of the employer to deduct the sum equivalent to the amount of union
dues, as agency fees, from the employees wages for direct remittance to the union

MARINO V. GAMILIA, G.R NO. 149763, JULY 7, 2009

FACTS: Petitioners Marinoet. Al were among the executive officers and directors
(Mario Group) of the University of Sto. Tomas Faculty Union (USTFU), the bargaining
representative of faculty members of UST and Respondents Gamillaet. Al were UST
professors and USTFU members. Pursuant to a MOA between UST and USTFU,
faculty members belonging to the collective bargaining unit were granted additional
economic benefits in a lump sum of 42 million. As stated in the MOA, a check-off of
ten percent will be deducted from the lump sum for Labor Education Fund and
Attorneys fees from USTFumemmbers and agency fee from non-members. Hence,
through its President Mario, the Union has collected 10% of the 42M from the UST.

Respondents filed with the Med-Arbiter, DOLE- National Capital Region a complaint
for the expulsion of Mario Group as USTFU officers and directors contending that
they violated the rights and conditions of membership in USTFU in investing the
unspent balance of 42 M without prior approval of the general membership, holding
elections viva voce, ratifying the CBA involving P42M economic benefits and finally
approving the 4.2 million in the form of check-off.

The case, along with the three others involving the parties were consolidated and
indorsed to the Office of the Regional Director, DOLE-NCR which ruled that the 4.2 M
check-off collected by petitiones as negotiation fees was invalid pursuant to R.A 6728
stating that 70% of the tuition fee increases should be allotted to academic and non-

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academic personnel. Thus, petitioners were relieved from their post and ordered to
pay the 4.2 M check-off as attorneys fee.

On appeal, the Bureau of Labor Relations affirmed with modification the assailed
ruling and reasoned that the 4.2 M was in the nature of attorneys fees and, thus, fell
under the general prohibition against such fees under Art 222 (b) now Art. 228(b) of
the Labor Code. Likewise the charging against the union funds is not applicable, as
the same was intended not for the union officers, but for the member for the entire
bargaining unit.

On appeal with the CA under Rule 65, affirmed the assailed ruling and reasoned that
under Art. 241 (n) now 250 (n) of the Labor Code provides that no special
assessment shall be levied upon members of the union unless authorized by a
written resolution of a majority of all the members at a general membership meeting
duly called for the purpose. Contrary to Articles 222(b) and 241(n) of the Code and
Sec. 5, Rule X of the CBL of the Union, no resolution ratified by the general
membership of the USTFU through secret balloting which embodied the award of
attorneys fees was submitted. MR was denied. Hence, this petition.

ISSUE: Whether or not the 4.2 M check-off taken on the 42 M lump sum economic
benefits granted to faculty members is validly deducted thereon.

RULING: No. The Supreme Court held that a check-off is a process or device
whereby the employer, on agreement with the Union, recognized as the proper
bargaining representative, or on prior authorization from the employees, deducts
union dues or agency fees from the latter's wages and remits them directly to the
Union. Its desirability in a labor organization is quite evident. The Union is assured
thereby of continuous funding. As this Court has acknowledged, the system of check-
off is primarily for the benefit of the Union and, only indirectly, for the individual
employees.[50]
In the instant case, The P42 million economic benefits package granted by UST did
not constitute union funds from whence the P4.2 million could have been validly
deducted as attorneys fees. The P42 million economic benefits package was not
intended for the USTFU coffers, but for all the members of the bargaining unit
USTFU represented, whether members or non-members of the union. A close
reading of the terms of the MOA reveals that after the satisfaction of the outstanding
obligations of UST under the 1986 CBA, the balance of the P42 million was to be
distributed to the covered faculty members of the collective bargaining unit in the
form of salary increases, returns on paycheck deductions; and increases in
hospitalization, educational, and retirement benefits, and other economic
benefits. The deduction of the P4.2 million, as alleged attorneys/agency fees, from
the P42 million economic benefits package effectively decreased the share from said
package accruing to each member of the collective bargaining unit.
The Court further determines that the requisites for a valid levy and check-off of
special assessments, laid down by Article 241(n) and (o), respectively, of the Labor
Code, as amended, have not been complied with in the case at bar. To recall, these
requisites are: (1) an authorization by a written resolution of the majority of all the
union members at the general membership meeting duly called for the purpose; (2)
secretary's record of the minutes of the meeting; and (3) individual written
authorization for check-off duly signed by the employee concerned.

The failure of the Mario Group to strictly comply with the requirements set forth by the
Labor Code, as amended, and the USTFU Constitution and By-Laws, invalidates the
questioned special assessment. Substantial compliance is not enough in view of the
fact that the special assessment will diminish the compensation of the union
members. Their express consent is required, and this consent must be obtained in

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accordance with the steps outlined by law, which must be followed to the letter. No
shortcuts are allowed.

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