Overview

In Philippine labor relations, the terms unorganized and organized describe the status of a bargaining unit within an establishment for purposes of choosing a sole and exclusive bargaining agent (SEBA). The label matters because it controls who may file, what showing of support is needed, when an election can be held, and what legal bars apply.

Core definition: An unorganized establishment (more precisely, an unorganized bargaining unit within an establishment) is one where no labor union has been certified or duly recognized as the exclusive bargaining agent and no registered collective bargaining agreement (CBA) is in force for that unit. The mere existence of a registered union, a labor-management council, or ongoing union activity does not make the unit “organized” unless there is certification/recognition and typically a registered CBA.

Legal Architecture (Plain-English)

Constitutional policy: Workers’ right to self-organization and collective bargaining.
Labor Code framework & implementing rules (BLR/DMW/DOLE): Set procedures for Petitions for Certification Election (PCE) in unorganized and organized settings, SEBA certification in unorganized units, and the bars that prevent repeated or premature elections.
Med-Arbiter jurisdiction: Decides petitions, orders the conduct of elections, and resolves pre-election issues.
BLR/DOLE election officers: Conduct the election and certify the winner.

How to Tell if a Unit is “Unorganized”

A bargaining unit is unorganized if all are true:

No certified/recognized SEBA for that unit (no prior certification election/consent election result vesting exclusivity, and no administrative SEBA certification).
No registered CBA covering that unit (no contract bar).
No valid bar currently running (e.g., one-year election bar due to a very recent valid election).

Still unorganized even if:

A union is registered/chartered in the company but has not been certified or recognized as SEBA for that unit.
Another union represents a different unit (e.g., supervisors), but the rank-and-file unit remains uncertified.
There was a CBA in the distant past that expired without renewal and without a currently certified incumbent.

Organized (for contrast) means: there is a certified/recognized SEBA and typically a registered CBA currently in effect for that same unit.

Why the Label Matters

1) Who may file & support requirement

Unorganized: Any legitimate labor organization (LLO) that seeks to represent the unit may file a PCE, but must show written support from at least 25% of all employees in the appropriate bargaining unit at the time of filing; or it may pursue SEBA certification (see below).
Organized: Any LLO (including the incumbent) may file only within the 60-day “freedom period” before CBA expiry; the 25% support is not required.

2) SEBA certification option (no election)

In an unorganized unit, a single union may seek administrative SEBA certification instead of an election by proving majority support (typically through membership/payroll-based verification). If granted, the union becomes SEBA without a certification election. This option is unavailable in organized units.

3) Bars and timing

Unorganized: No contract bar (no CBA yet). But once a valid election is held—win or lose—a one-year election bar generally applies to the same unit.
Organized: Contract bar applies (no election except during the 60-day freedom period). A valid election likewise triggers the one-year bar.

The “Appropriate Bargaining Unit” Lens

Status (organized vs. unorganized) is determined per bargaining unit, not per entire company, using community-of-interest tests (similarity of work, supervision, wages, work location, history of bargaining). Thus:

Rank-and-file may be unorganized even if supervisors are organized (and vice versa).
Multi-site or multi-plant enterprises may have separate units with different statuses.

Petitions in an Unorganized Unit: What the Union Must Show

A) PCE Route (Certification Election)

Standing: Petitioner must be a legitimate labor organization.
Showing of interest: ≥ 25% written support from employees in the appropriate unit at filing.
Sufficient pleading: Clear unit description and establishment identification; attach evidence of legitimacy and support.
Hearing & order: The Med-Arbiter verifies legitimacy, appropriateness of the unit, and the 25% showing; if met, issues an Order for Certification Election (OCE).
Pre-election conference: Finalizes voters’ list, precincts, mechanics.
Election: Majority of valid votes cast determines the SEBA; “No Union” is always a choice.

B) SEBA Certification Route (No Election)

Prerequisites: Unit is unorganized; the applicant union is the only union seeking to represent the unit (or no competing claim is timely filed); it proves majority support (not just 25%).
Effect: The Med-Arbiter may certify the union as SEBA without an election. If a rival union appears with a proper adverse claim, the matter typically proceeds to a PCE instead.

Special Voting Rules and Voter Eligibility

Rank-and-file vs. supervisors vote separately; managerial employees are excluded from any unit.
Probationary and regular employees in the unit are generally eligible voters; casuals may be included depending on unit definition and regularity of employment.
New hires before the cut-off date may vote; resignees or those dismissed for cause before the election are typically excluded (subject to challenge).
Contractuals/agency workers: Only those who are employees of the principal and part of the defined unit may vote; true employees of a manpower agency belong, if at all, to the agency’s unit.

Common Bars & Doctrines (Applied to Unorganized Units)

One-Year Bar Rule: After a valid certification/consent election—regardless of outcome—no new petition for the same unit within one year.
Prior-Petition Bar: A later petition may be dismissed if a similar petition for the same unit is pending and first-in-time.
Contract Bar: Not applicable in unorganized units (no CBA yet). Once a CBA is registered, the unit becomes organized and the freedom period rule takes over.
SEBA Certification Bar: A recent valid SEBA certification functions like a recent election—bars another petition for one year.

Employer Conduct Rules (Heightened in Unorganized Establishments)

No employer petitions. Employers cannot initiate a certification election; doing so is interference.
No assistance or coercion. Providing support to any union (financial, facilities beyond neutral access rules) or threats/promises to discourage organization constitutes unfair labor practice (ULP).
Voter list neutrality. Employers must submit accurate employee lists and honor ELRO guidelines (Election, Leave, Relief, and Overtime neutrality practices) without discrimination.
Status quo on terms. Wages/benefits should not be unilaterally altered to influence the vote.

Edge Cases & Clarifications

Company union exists but not certified; no CBA: Unit remains unorganized; rival legitimate unions may file (subject to 25% support) or seek SEBA certification.
Expired CBA with no registered renewal: If the incumbent is still the certified SEBA and the CBA is within extension while bargaining continues, the unit generally remains organized until decertified or the bar lifts (e.g., after freedom period lapses without petition and the CBA is renewed).
Multiple plants/sites: One site may be organized, another unorganized, depending on the unit configuration approved or historically recognized.
Newly spun-off entity: If no SEBA/CBA covers the transferees’ new unit, it is unorganized, even if employees came from an organized predecessor.
Supervisory vs. rank-and-file: The rank-and-file may be unorganized though supervisors are organized, and vice versa; petitions and SEBA certifications are unit-specific.
Consent election: In unorganized units, parties may agree to a consent election (bypassing litigation of some issues); its result has the same bar effect as a certification election.

Practical Playbooks

For Unions (Unorganized Unit)

Choose the track: PCE (25% support) vs SEBA certification (majority).
Define the unit well: Avoid over- or under-inclusive descriptions; anticipate challenges (e.g., probationaries, job order workers).
Time the filing: Earlier filings may preempt rivals; avoid technical defects.
Secure documentation: Legitimacy papers, support signatures, payroll-based tallies for SEBA.
Election readiness: Poll watchers, communications, neutrality enforcement, challenge lists.

For Employers (Compliance)

Stay neutral: No endorsement, no discouragement. Train supervisors.
Accurate lists: Submit thorough and timely voters’ lists; be transparent on cut-off dates.
No retaliatory actions: Discipline must be cause-based and documented, unrelated to union activity.
Coordinate logistics: Grant access per rules, ensure non-disruptive operations, and respect official voting hours.

Decision Table (Quick Reference)

Feature	Unorganized Unit	Organized Unit
SEBA/CBA in force?	None	Yes (SEBA recognized/certified; CBA usually registered)
Who may file?	Any LLO seeking to represent	Any LLO (incl. incumbent)
Support needed?	≥ 25% for PCE; >50% for SEBA certification	No 25% requirement; must be within freedom period
Bars	One-year bar after valid election/SEBA	One-year bar; contract bar outside freedom period
SEBA (no election) available?	Yes (majority proof; no rival union)	No

Common Pitfalls

Treating the entire company as organized because one unit has a CBA. Status is unit-specific.
Filing a PCE in an unorganized unit without the 25% showing.
Confusing a registered union with a certified/recognized SEBA.
Overbroad unit definitions that sweep in supervisors/managerials, leading to dismissal or fragmented voting.
Employer “assistance” (even well-meant) that crosses into ULP.

Key Takeaways

“Unorganized establishment” means the bargaining unit has no certified/recognized exclusive bargaining agent and no CBA in force.
In an unorganized unit, a union may pursue either a PCE with a 25% showing or SEBA certification by demonstrating majority support (no election when uncontested).
Once a SEBA is certified or a CBA is registered, the unit becomes organized, activating the freedom-period and contract-bar doctrines.
Status is unit-specific; compliance, neutrality, and precise unit definition are decisive.

If you want, I can convert this into: (1) a checklist-style filing kit for PCEs in unorganized units, (2) a SEBA certification evidence matrix, and (3) a neutrality protocol for HR to avoid ULP risks during the campaign.