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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.
AT A GLANCE:
Under the Labor Code, it is an unfair labor practice to cause or attempt to cause an employer to pay or deliver or agree to pay or deliver any money or other things of value, in the nature of an exaction, for services which are not performed or not to be performed, including the demand for fee for union negotiations. (Article 260, Labor Code of the Philippines, as renumbered.)
Unfair labor practices violate the constitutional right of workers and employees to self-organization. These practices 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. They likewise disrupt industrial peace and hinder the promotion of healthy and stable labor-management relations.
Under the Labor Code, unfair labor practices are not only violations of the civil rights of both labor and management but are also criminal offenses against the State which shall be subject to prosecution and punishment as herein provided. (Article 258, Labor Code of the Philippines, as renumbered)
Unfair labor practices may be committed by an employer or by labor organizations.
The Labor Code refers to unfair labor practices of labor organizations in the following manner:
“Article 260 (249). Unfair Labor Practices of Labor Organizations. It shall be unfair labor practice for a labor organization, its officers, agents or representatives:
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;
To cause or attempt to cause an employer to discriminate against an employee, including discrimination against an employee with respect to whom membership in such organization has been denied or to terminate an employee on any ground other than the usual terms and conditions under which membership or continuation of membership is made available to other members;
To violate the duty, or refuse to bargain collectively with the employer, provided it is the representative of the employees;
To cause or attempt to cause an employer to pay or deliver or agree to pay or deliver any money or other things of value, in the nature of an exaction, for services which are not performed or not to be performed, including the demand for fee for union negotiations;
To ask for or accept negotiation or attorney’s fees from employers as part of the settlement of any issue in collective bargaining or any other dispute; or
To violate a collective bargaining agreement.
The provisions of the preceding paragraph notwithstanding, only the officers, members of governing boards, representatives or agents or members of labor associations or organizations who have actually participated in, authorized or ratified unfair labor practices shall be held criminally liable.” (Article 260, Labor Code of the Philippines, as renumbered.)
Featherbedding
Under the Labor Code, causing or attempting to cause an employer to pay or deliver or agree to pay or deliver any money or other things of value, in the nature of an exaction, for services which are not performed or not to be performed, including the demand for fee for union negotiations is prohibited. This is featherbedding.
Featherbedding, otherwise called as make-work arrangements, refers to the practices of employees which create or spread employment by unnecessarily maintaining or increasing the number of employees used, or the amount of time consumed to work on a particular job.
To be held liable for featherbedding, it must be shown that:
(1) The labor organization, its officers, agents, or representatives have caused or attempted to cause an employer either (a) to pay or agree to pay any amount of money, including the demand for union negotiation fees; or (b) to deliver or agree to deliver a thing of value;
(2) Such demand for payment of money or delivery of things of value is in the nature of an exaction;
(3) The services contemplated in exchange for the exaction are not actually performed or will not be performed.
Read also: Who are not covered by the Labor Code?
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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