A closed shop agreement is a type of collective bargaining agreement that allows trade unions to require all employees of a company or organization to become members of the union. The Labor Relations Act (LRA) of 1952 in the Philippines recognizes the validity of closed shop agreements, as long as certain conditions are met.
One of the conditions of a closed shop agreement is that it should be agreed upon through collective bargaining negotiations between the union and the employer. The agreement should also provide for an open period during which employees can opt out of the union if they wish to do so.
Another important condition is that the union should be a legitimate labor organization duly registered with the Department of Labor and Employment. This means that the union should have complied with all the requirements for registration, including having a minimum number of members and having a constitution and by-laws that comply with the LRA.
It is also worth noting that closed shop agreements can only be applied in highly unionized industries or workplaces. In industries where there are no established unions, the LRA prohibits employers from entering into closed shop agreements.
Closed shop agreements can have both advantages and disadvantages for both employers and employees. For employers, closed shop agreements can ensure labor stability, as they provide a means for resolving labor disputes and preventing strikes and work stoppages. However, closed shop agreements can also limit an employer`s ability to hire and promote employees, as union membership becomes a requirement for employment.
For employees, closed shop agreements can provide collective bargaining power and job security. However, it can also limit their individual freedom to choose whether or not to join a union.
Overall, closed shop agreements are an important aspect of labor relations and are recognized under the LRA in the Philippines. Employers and employees should carefully consider the advantages and disadvantages of closed shop agreements before entering into one. It is also important to ensure that any closed shop agreement complies with the conditions set forth by the LRA.