3 functions of a collective bargaining unit

An appropriate collective bargaining unit (CBU) has three functions.

[1] Electoral district. It is an electoral district that marks the boundaries of those who may participate in a certification election. In other words, those within the CBU are voters in the election for a bargaining representative.

[2] Economic unit. It is an economic unit because employees therein are under one employer and, therefore, they have common economic interests (a community of interest in their financial situation and the financial success of the employer's business).

[3] Sovereign body. A CBU is a sovereign body. It has constituents and the electorate selects its sole and exclusive bargaining agent (SEBA). The SEBA is the majority union that bargains with the employer on behalf of the CBU.

It must be noted that the CBU has no separate personality under the law. It is the registered union, called a legitimate labor organization, that is granted separately personality by the Labor Code.

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