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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:
Employees of an appropriate bargaining unit who are not members of the recognized collective bargaining agent may be assessed a reasonable fee equivalent to the dues and other fees paid by members of the recognized collective bargaining agent, if such non-union members accept the benefits under the collective bargaining agreement. (Article 259 (e), Labor Code of the Philippines)
Union dues are the regular monthly contributions paid by the members to the union in exchange for the benefits given to them by the collective bargaining agreement (CBA) and to finance the activities of the union in representing them. If such dues are collected by the union from non-members, such dues are referred to as agency fees. Agency fees are charged from the non-members who benefited under the CBA negotiated by the union, despite non-membership to the union.
Payment by non-union members of agency fees does not amount to unjust enrichment basically because the purpose of such dues is to avoid discrimination between union and non-union members. When the union bids to be the bargaining agent, it voluntarily assumes the responsibility of representing all employees in the appropriate bargaining unit. (National Brewery and Allied Industries Labor Union of the Philippines v. San Miguel Brewery Workers’ Association, G.R. No. L-18170, August 31, 1963)
The Labor Code provides that:
“Nothing in the Labor Code or in any other law shall stop the parties from requiring membership in a recognized collective bargaining agent as a condition from employment, except those members who are already members of another union at the time of signing of the collective bargaining agreement.
Employees of an appropriate bargaining unit who are not members of the recognized collective bargaining agent may be assessed a reasonable fee equivalent to the dues and other fees paid by members of the recognized collective bargaining agent, if such non-union members accepts the benefits under the collective bargaining agreement: Provided, That the individual authorization required under Article 242 paragraph (o) shall not apply to the non-members of the recognized collective bargaining agent.” (Article 259 (e), Labor Code of the Philippines)
The legal basis of the union’s right to agency fees is neither contractual nor statutory but quasi-contractual, deriving from the established principle that non-union employees may not unjustly enrich themselves by benefiting from employment conditions negotiated by the bargaining union. (Holy Cross of Davao College, Inc. v. Hon. Jerome Joaquin, et al. (G.R. No. 110007, October 18, 1996)
No requirement of written authorization from the non-union employees is necessary if the non-union employees accept the benefits resulting from the CBA. (Del Pilar Academy v. Del Pilar Academy Employees Union, G.R. No. 170112, April 30, 2008)
Read also: What are the requisites for enforcement of union security clauses?
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