Dear PAO,
I am an assembly worker at a manufacturing company in the Philippines. A few months ago, a collective bargaining agreement (CBA) was signed between the newly established union of workers and the company for the grant of salary increases and other benefits. Although I am not a member of the bargaining union, I received benefits from such CBA. As such, the company automatically deducted agency fees on my salaries and wages. May I know if such salary deduction is valid even without my written authorization?
Donnalyn
Dear Donnalyn,
Agency fees are dues equivalent to union dues, which are charged from the non-bargaining union members who benefited by or under the CBA. Payment by non-bargaining union members of agency fees does not amount to unjust enrichment because the purpose of such dues is to avoid discrimination between bargaining and non-bargaining union members.
Under the Labor Code of the Philippines and its Implementing Rules, upon agreement with the bargaining union, the employer has the duty to deduct the sum equivalent to the amount of union dues, as agency fees, from the employees’ wages for direct remittance to the union. The system is referred to as check off. In the case of Del Pilar Academy v. Del Pilar Academy Employees Union, GR 170112, April 30, 2008, Ponente: Associate Justice Antonio Eduardo Nachura, the Supreme Court held that there is no requirement of authorization from the non-bargaining union employees before their salary is charged for agency fees, if they accept the benefits resulting from the CBA.
Also, Article 259 (e) of the Labor Code of the Philippines, as amended, provides that:
“To discriminate in regard to wages, hours of work and other terms and conditions of employment in order to encourage or discourage membership in any labor organization. Nothing in this Code or in any other law shall stop the parties from requiring membership in a recognized collective bargaining agent as a condition for employment, except those employees who are already members of another union at the time of the 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 accept the benefits under the collective bargaining agreement.”
As explained by the Supreme Court in the case of Holy Cross of Davao College, Inc. v. Hon. Joaquin, GR 110007, Oct. 18, 1996, Ponente: Chief Justice Andres Narvasa:
“The employee’s acceptance of benefits resulting from a collective bargaining agreement justifies the deduction of agency fees from his pay and the union’s entitlement thereto. In this aspect, 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.”
Thus, in the situation that you mentioned, the said agency fees deducted by the company from your salaries and wages were valid. Under the Labor Code of the Philippines, as amended, there is no requirement of written authorization or consent from the non-bargaining union employees and they may be assessed a reasonable fee equivalent to the dues and other fees paid by members of the recognized collective bargaining agent, if they accept the benefits under the CBA.
We hope that we were able to answer your queries. This advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.
Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected]
