2013 Labor Law, Q9

Pablo works as a driver at the National Tire Company (NTC). He is a member of the Malayang Samahan ng Manggagawa sa NTC, the exclusive rank-and-file collective bargaining representative in the company. The union has a CBA with NTC which contains a union security and a check-off clause. The union security clause contains a maintenance of membership provision that requires all members of the bargaining unit to maintain their membership in good standing with the union during the term of the CBA under pain of dismissal. The check-off clause on the other hand authorizes the company to deduct from union members’ salaries defined amounts of union dues and other fees. Pablo refused to issue an authorization to the company for the check-off of his dues, maintaining that he will personally remit his dues to the union.
(A) Would the NTC management commit unfair labor practice if it desists from checking off Pablo’s union dues for lack of individual authorization from Pablo? (4%)
(B) Can the union charge Pablo with disloyalty for refusing to allow the check off of his union dues and, on this basis, ask the company to dismiss him from employment? (4%)

Quick check

What is legally required before an employer may deduct union dues from an employee's salary under the Labor Code?

Does an employer commit unfair labor practice by refusing to deduct union dues from a worker who withheld written consent?

When does a breach of a collective bargaining agreement constitute an unfair labor practice under Article 259 of the Labor Code?

Can a union demand the dismissal of a member under a maintenance of membership clause for refusing check-off while personally paying dues?

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What ground under a maintenance of membership clause justifies requesting an employer to terminate a union member's employment?

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1. Check-Off Authorization
Under Articles 113 and 250(o) of the Labor Code, an employer cannot deduct union dues from an employee's salary without a specific individual written authorization signed by the worker. The check-off provision in a collective bargaining agreement serves as a contractual mechanism, but individual written consent remains a mandatory statutory requirement. Consequently, an employer that desists from deducting union dues due to the absence of an employee's written authorization does not commit an unfair labor practice, as it merely complies with statutory restrictions governing wage deductions.

2. Union Security Clause
A union security clause, such as a maintenance of membership provision, requires bargaining unit members to maintain their union standing as a condition of continued employment. However, expulsion from the union or termination of employment under a union security clause can only be justified by grave grounds such as disloyalty or non-payment of union dues. Refusal to allow check-off does not constitute disloyalty when the employee continuously and personally remits dues to the union, preserving membership in good standing.

3. Unfair Labor Practice
Under Article 259 of the Labor Code, violations of a collective bargaining agreement constitute unfair labor practice only when they involve gross, flagrant, or malicious refusal to comply with economic provisions. An employer's refusal to deduct union dues without employee authorization lacks malicious intent and strictly adheres to labor standard laws. Thus, desisting from check-off under such circumstances does not amount to anti-union discrimination or interference with the right to self-organization.

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The questions reproduced here are the official texts of the Philippine Bar Examinations, published by the Supreme Court. They are reproduced for study purposes.The suggested answers are the author’s own.

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