2022 Labor Law, Q3

Cristina, a new-hire of Sterling Corporation (Sterling), was made to join Sterling Corporation Employees Union (SCEU) in compliance with the union shop provision in the collective bargaining agreement (CBA) between SCEU and Sterling. At the request of SCEU, Sterling started deducting union dues from Cristina’s salary and remitting the same to SCEU pursuant to the CBA provisions. Cristina protested, claiming that she has not authorized the deduction in writing. Is Cristina’s claim valid? Explain briefly. (5 points)

Quick check

Under Article 113(b) of the Labor Code, when is an employer allowed to deduct union dues without individual written authorization?

What is the primary purpose of a check-off provision in a Collective Bargaining Agreement?

Why was Cristina's claim demanding written authorization for union dues deduction legally invalid?

Under Article 113 of the Labor Code, what is the general rule regarding wage deductions by employers?

What obligation is imposed on a new hire who joins a union pursuant to a union shop provision in a CBA?

Learn more about these topics

1. Check-Off System Exception
Under Article 113(b) of the Labor Code, an employer is authorized to deduct union dues from an employee's wages without individual written consent when the union's right to check-off has been recognized by the employer in a Collective Bargaining Agreement (CBA). The check-off system is an administrative mechanism designed to facilitate the collection of union dues necessary for union operations. When incorporated into a valid CBA, the agreement binds union members and creates a valid legal basis for automatic wage deductions without requiring separate written authorizations from each member.

2. Union Security Clauses
Union security clauses, such as union shop provisions, require newly hired employees to become members of the recognized exclusive bargaining agent as a condition of continued employment. When a worker joins a labor organization under a union shop provision, she submits to the constitution, by-laws, and collective bargaining agreements executed by the union. Membership obligates the employee to pay standard union dues, which may be automatically deducted via check-off arrangements negotiated between the bargaining representative and the employer.

3. Wage Deduction Rules
As a general rule under Article 113 of the Labor Code, employers are prohibited from making deductions from the wages of employees without their prior written consent. However, the law provides explicit statutory exceptions, including employer-recognized check-offs for union dues, statutory deductions for social security and health insurance, and deductions authorized by law. Deductions made pursuant to a valid CBA check-off clause fall under these statutory exceptions, making an employee's protest based on the lack of written authorization legally untenable.

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