In the Philippine labor landscape, the relationship between a labor union and its members is governed by the principles of transparency, democracy, and express consent. While unions require financial resources to operate, the Labor Code of the Philippines provides stringent checks to prevent the arbitrary or illegal increase of union dues and the imposition of special assessments without the proper mandate from the rank-and-file.
1. Statutory Basis: The Labor Code
The primary law governing the rights and conditions of membership in a labor organization is Article 250 (formerly Article 241) of the Labor Code. This article serves as a "Bill of Rights" for union members, ensuring that they are protected against exorbitant, unauthorized, or illegal deductions from their wages.
Key Provisions under Article 250:
- Paragraph (n): No special assessment or any extraordinary fees may be levied upon the members of a labor organization unless authorized by a written resolution of a majority of all the members in a general membership meeting duly called for the purpose.
- Paragraph (o): Other than for mandatory activities under the Code, no special assessments, attorney's fees, negotiation fees, or any other extraordinary fees may be checked off from any amount due to an employee without an individual written authorization duly signed by the employee.
2. Requirements for a Valid Increase
For an increase in union dues or the imposition of a special assessment to be legally binding, three cumulative requirements must be met:
- A General Membership Meeting: The union must call a meeting specifically for the purpose of discussing the proposed increase or assessment.
- Majority Approval: The increase must be approved by a written resolution passed by the majority of all the members (not just the members present at the meeting).
- Proper Documentation: The secretary of the organization must record the minutes of the meeting, including the list of all members present and the votes cast, and the record of the written resolution.
3. The "Check-Off" System and Individual Consent
A "check-off" is a method where the employer deducts union dues directly from the employee's wages and remits them to the union. While regular union dues (stipulated in the CBA) may be deducted based on the collective agreement, increases and special assessments are treated differently.
Special Assessments vs. Regular Dues
- Regular Dues: Usually authorized by the Union’s Constitution and By-Laws or the Collective Bargaining Agreement (CBA).
- Special Assessments: These are one-time or extraordinary charges (e.g., for a strike fund, legal fees, or building funds).
Under Philippine jurisprudence (notably cases like Palacol vs. Ferrer-Calleja), even if a majority of the union approves a special assessment in a meeting, the deduction remains illegal if the union fails to secure individual written authorizations from each employee. The "majority rule" does not supersede the requirement for individual consent when it comes to extraordinary deductions.
4. When is an Increase Considered Illegal?
An increase in union dues or a new assessment is considered illegal under the following circumstances:
- Unilateral Board Action: If the Union Executive Board increases dues through a simple board resolution without a general membership vote.
- Lack of Notice: If the meeting was held without proper notice to the members regarding the specific agenda of increasing dues.
- Absence of Individual Check-off Forms: If the employer deducts the increased amount or special assessment without the employee signing a specific authorization form.
- Violation of Constitution/By-Laws: If the increase exceeds the caps or violates the procedures set out in the union's own internal governing documents.
5. Remedies for Employees
If a union member believes that dues have been increased illegally or that unauthorized deductions are being made, several legal avenues are available:
A. Complaint for Violation of Rights and Conditions of Membership
Under Article 250, at least 20% of the entire membership of the union may file a complaint with the Bureau of Labor Relations (BLR) or the Regional Office of the Department of Labor and Employment (DOLE). They can seek to nullify the illegal assessment and demand a refund.
B. Unfair Labor Practice (ULP)
If the employer and the union collude to deduct unauthorized fees, it may be argued as an Unfair Labor Practice, as it interferes with the employees' right to self-organization and their wages.
C. Action Against the Employer
Since the employer acts as the "collector" in a check-off system, they can be held liable for making unauthorized deductions. Employees may demand that the employer cease the deductions if no individual written authorization was provided.
6. Summary Table: Requirements for Validity
| Feature | Regular Union Dues | Special Assessments / Increases |
|---|---|---|
| Authority | Constitution & By-Laws / CBA | Written Resolution of Majority |
| Meeting Required | No (if already in By-Laws) | Yes (General Membership Meeting) |
| Individual Consent | Generally covered by CBA | Mandatory (Individual Written Authorization) |
| Minutes of Meeting | N/A | Must be submitted to DOLE/BLR |
Legal Note: The Supreme Court has consistently held that the protection of an employee's wages is a matter of public policy. Therefore, any ambiguity in the collection of union fees is generally resolved in favor of the employee's right to receive their full wages.