The Labor Code grants Filipino workers the right to self-organization. Self-organization is defined as the right of every worker, free of any interference from the employer or from government, to form or join any legitimate worker's organization, association or union of his or her own choice.

An organized labor union is the one that enters with the management of a company into the so-called collective bargaining process or another process where both parties agree to resolve their differences with regards to wages, benefits and minimum standards set by the law. The final result of such process is called collective bargaining agreement (CBA), a contract that has to be honored by both parties in a given period.

Labor disputes occur when the management of the company and the labor union fail to resolve their differences in collective bargaining or when one party fails to honor the CBA. In such case, the labor union usually conducts work stoppage. While the government encourages the management of the company and its labor union to settle their differences by themselves, the National Conciliation and Mediation Board (NCMB) usually enter the scene if the situation warrants. The final decision of NCMB is based on two major considerations:

· Employees have a right to a just share in the fruits of production; and

· Employers are entitled to reasonable returns on their investment and to expansion and growth.

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