Peninsula Employees Union (PEU) Vs. Michael B. Esquivel, et al.
G.R. No. 218454. December 1, 2016

PEU-NUWHRAIN sought to increase the union dues/agency fees from one percent (1%) to two percent (2%) of the rank and file employees' monthly salaries, brought about by PEU's affiliation with NUWHRAIN, which supposedly requires its affiliates to remit to it two percent (2%) of their monthly salaries.

The non-PEU members objected to the assessment of increased agency fees arguing that: (a) the new CBA is unenforceable since no written CBA has been formally signed and executed by PEU-NUWHRAIN and the Hotel; (b) the 2% agency fee is exorbitant and unreasonable; and (c) PEU-NUWHRAIN failed to comply with the mandatory requirements for such increase.


1.    Based on the facts given, may PEU-NUWHRAIN increase the rate of agency fees?

No.

Failure to comply with the three documentary requirements under the labor code precludes PEU-NUWHRAIN to increase the rate of agency fees.

Jurisprudence states that the express consent of the employee to any deduction in his compensation is required to be obtained in accordance with the steps outlined by the law, which must be followed to the letter; however, PEU-NUWHRAIN failed to comply.


2.    Under the labor code, what are the three documentary requirements to justify a valid levy of increased union dues?

These are: (a) an authorization by a written resolution of the majority of all the members at the general membership meeting duly called for the purpose; (b) the secretary's record of the minutes of the meeting, which shall include the list of all members present, the votes cast, the purpose of the special assessment or fees and the recipient of such assessment or fees; and (c) individual written authorizations for check-off duly signed by the employees concerned.

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