COLLECTIVE BARGAINING

Labor Code: Arts. 250-254, 247-249, 261

Art. 250. Procedure in collective bargaining. The following procedures shall be observed in collective bargaining:
a. When a party desires to negotiate an agreement, it shall serve a written notice upon the other party with a statement of its proposals. The
other party shall make a reply thereto not later than ten (10) calendar days from receipt of such notice;
b. Should differences arise on the basis of such notice and reply, either party may request for a conference which shall begin not later than
ten (10) calendar days from the date of request.
c. If the dispute is not settled, the Board shall intervene upon request of either or both parties or at its own initiative and immediately call the
parties to conciliation meetings. The Board shall have the power to issue subpoenas requiring the attendance of the parties to such
meetings. It shall be the duty of the parties to participate fully and promptly in the conciliation meetings the Board may call;
d. During the conciliation proceedings in the Board, the parties are prohibited from doing any act which may disrupt or impede the early
settlement of the disputes; and
e. The Board shall exert all efforts to settle disputes amicably and encourage the parties to submit their case to a voluntary arbitrator. (As
amended by Section 20, Republic Act No. 6715, March 21, 1989)
Art. 251. Duty to bargain collectively in the absence of collective bargaining agreements. In the absence of an agreement or other voluntary
arrangement providing for a more expeditious manner of collective bargaining, it shall be the duty of employer and the representatives of the
employees to bargain collectively in accordance with the provisions of this Code.
Art. 252. Meaning of duty to bargain collectively. The duty to bargain collectively means the performance of a mutual obligation to meet and
convene promptly and expeditiously in good faith for the purpose of negotiating an agreement with respect to wages, hours of work and all other
terms and conditions of employment including proposals for adjusting any grievances or questions arising under such agreement and executing a
contract incorporating such agreements if requested by either party but such duty does not compel any party to agree to a proposal or to make any
concession.
Art. 253. Duty to bargain collectively when there exists a collective bargaining agreement. When there is a collective bargaining agreement,
the duty to bargain collectively shall also mean that neither party shall terminate nor modify such agreement during its lifetime. However, either party
can serve a written notice to terminate or modify the agreement at least sixty (60) days prior to its expiration date. It shall be the duty of both parties
to keep the status quo and to continue in full force and effect the terms and conditions of the existing agreement during the 60-day period and/or until
a new agreement is reached by the parties.
Art. 253-A. Terms of a collective bargaining agreement. Any Collective Bargaining Agreement that the parties may enter into shall, insofar as the
representation aspect is concerned, be for a term of five (5) years. No petition questioning the majority status of the incumbent bargaining agent shall
be entertained and no certification election shall be conducted by the Department of Labor and Employment outside of the sixty-day period
immediately before the date of expiry of such five-year term of the Collective Bargaining Agreement. All other provisions of the Collective Bargaining
Agreement shall be renegotiated not later than three (3) years after its execution. Any agreement on such other provisions of the Collective
Bargaining Agreement entered into within six (6) months from the date of expiry of the term of such other provisions as fixed in such Collective
Bargaining Agreement, shall retroact to the day immediately following such date. If any such agreement is entered into beyond six months, the
parties shall agree on the duration of retroactivity thereof. In case of a deadlock in the renegotiation of the Collective Bargaining Agreement, the
parties may exercise their rights under this Code. (As amended by Section 21, Republic Act No. 6715, March 21, 1989)
Art. 254. Injunction prohibited. No temporary or permanent injunction or restraining order in any case involving or growing out of labor disputes
shall be issued by any court or other entity, except as otherwise provided in Articles 218 and 264 of this Code. (As amended by Batas Pambansa
Bilang 227, June 1, 1982)
Art. 247. Concept of unfair labor practice and procedure for prosecution thereof. Unfair labor practices violate the constitutional right of
workers and employees to self-organization, are inimical to the legitimate interests of both labor and management, including their right to bargain
collectively and otherwise deal with each other in an atmosphere of freedom and mutual respect, disrupt industrial peace and hinder the promotion of
healthy and stable labor-management relations.
Consequently, unfair labor practices are not only violations of the civil rights of both labor and management but are also criminal offenses against the
State which shall be subject to prosecution and punishment as herein provided.
Subject to the exercise by the President or by the Secretary of Labor and Employment of the powers vested in them by Articles 263 and 264 of this
Code, the civil aspects of all cases involving unfair labor practices, which may include claims for actual, moral, exemplary and other forms of
damages, attorneys fees and other affirmative relief, shall be under the jurisdiction of the Labor Arbiters. The Labor Arbiters shall give utmost priority
to the hearing and resolution of all cases involving unfair labor practices. They shall resolve such cases within thirty (30) calendar days from the time
they are submitted for decision.
Recovery of civil liability in the administrative proceedings shall bar recovery under the Civil Code.
No criminal prosecution under this Title may be instituted without a final judgment finding that an unfair labor practice was committed, having been
first obtained in the preceding paragraph. During the pendency of such administrative proceeding, the running of the period of prescription of the
criminal offense herein penalized shall be considered interrupted: Provided, however, that the final judgment in the administrative proceedings shall
not be binding in the criminal case nor be considered as evidence of guilt but merely as proof of compliance of the requirements therein set forth. (As
amended by Batas Pambansa Bilang 70, May 1, 1980 and later further amended by Section 19, Republic Act No. 6715, March 21, 1989)
Art. 248. Unfair labor practices of employers. It shall be unlawful for an employer to commit any of the following unfair labor practice:
a. To interfere with, restrain or coerce employees in the exercise of their right to self-organization;
b. To require as a condition of employment that a person or an employee shall not join a labor organization or shall withdraw from one to
which he belongs;
c. To contract out services or functions being performed by union members when such will interfere with, restrain or coerce employees in the
exercise of their rights to self-organization;
d. To initiate, dominate, assist or otherwise interfere with the formation or administration of any labor organization, including the giving of
financial or other support to it or its organizers or supporters;

e.

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:
Provided, that the individual authorization required under Article 242, paragraph (o) of this Code shall not apply to the non-members of the
recognized collective bargaining agent;
f. To dismiss, discharge or otherwise prejudice or discriminate against an employee for having given or being about to give testimony under
this Code;
g. To violate the duty to bargain collectively as prescribed by this Code;
h. To pay negotiation or attorneys fees to the union or its officers or agents as part of the settlement of any issue in collective bargaining or
any other dispute; or
i. To violate a collective bargaining agreement.
The provisions of the preceding paragraph notwithstanding, only the officers and agents of corporations, associations or partnerships who have
actually participated in, authorized or ratified unfair labor practices shall be held criminally liable. (As amended by Batas Pambansa Bilang 130,
August 21, 1981)
Art. 249. Unfair labor practices of labor organizations. It shall be unfair labor practice for a labor organization, its officers, agents or
representatives:
a. To restrain or coerce employees in the exercise of their right to self-organization. However, a labor organization shall have the right to
prescribe its own rules with respect to the acquisition or retention of membership;
b. To cause or attempt to cause an employer to discriminate against an employee, including discrimination against an employee with respect
to whom membership in such organization has been denied or to terminate an employee on any ground other than the usual terms and
conditions under which membership or continuation of membership is made available to other members;
c. To violate the duty, or refuse to bargain collectively with the employer, provided it is the representative of the employees;
d. To cause or attempt to cause an employer to pay or deliver or agree to pay or deliver any money or other things of value, in the nature of
an exaction, for services which are not performed or not to be performed, including the demand for fee for union negotiations;
e. To ask for or accept negotiation or attorneys fees from employers as part of the settlement of any issue in collective bargaining or any
other dispute; or
f. To violate a collective bargaining agreement.
The provisions of the preceding paragraph notwithstanding, only the officers, members of governing boards, representatives or agents or members
of labor associations or organizations who have actually participated in, authorized or ratified unfair labor practices shall be held criminally liable. (As
amended by Batas Pambansa Bilang 130, August 21, 1981)
Art. 261. Jurisdiction of Voluntary Arbitrators or panel of Voluntary Arbitrators. The Voluntary Arbitrator or panel of Voluntary Arbitrators shall
have original and exclusive jurisdiction to hear and decide all unresolved grievances arising from the interpretation or implementation of the
Collective Bargaining Agreement and those arising from the interpretation or enforcement of company personnel policies referred to in the
immediately preceding article. Accordingly, violations of a Collective Bargaining Agreement, except those which are gross in character, shall no
longer be treated as unfair labor practice and shall be resolved as grievances under the Collective Bargaining Agreement. For purposes of this
article, gross violations of Collective Bargaining Agreement shall mean flagrant and/or malicious refusal to comply with the economic provisions of
such agreement.
Omnibus Rules, Book V, Rule I, Sec. 1 (d, h, j, t, bbb), Rules XVI-XVII, as amended by D.O. 40-03
(d) "Bargaining Unit" refers to a group of employees sharing mutual interests within a given employer unit, comprised of all or less than all of the
entire body of employees in the employer unit or any specific occupational or geographical grouping within such employer unit.
(h) "Certification Election" or "Consent Election" refers to the process of determining through secret ballot the sole and exclusive representative
of the employees in an appropriate bargaining unit for purposes of collective bargaining or negotiation. A certification election is ordered by the
Department, while a consent election is voluntarily agreed upon by the parties, with or without the intervention by the Department.
(j) "Collective Bargaining Agreement" or "CBA" refers to the contract between a legitimate labor union and the employer concerning wages,
hours of work, and all other terms and conditions of employment in a bargaining unit.
(t) "Exclusive Bargaining Representative" refers to a legitimate labor union duly recognized or certified as the sole and exclusive bargaining
representative or agent of all the employees in a bargaining unit.
(bbb) "Voluntary Recognition" refers to the process by which a legitimate labor union is recognized by the employer as the exclusive bargaining
representative or agent in a bargaining unit, reported with the Regional Office in accordance with Rule VII, Section 2 of these Rules.
RULE XVI
COLLECTIVE BARGAINING
Section 1. Policy. - It is the policy of the State to promote and emphasize the primacy of free and responsible exercise of the right to selforganization and collective bargaining, either through single enterprise level negotiations or through the creation of a mechanism by which different
employers and recognized or certified labor unions in their establishments bargain collectively.
Section 2. Disclosure of information. - In collective bargaining, the parties shall, at the request of either of them, make available such up-to-date
financial information on the economic situation of the undertaking, which is normally submitted to relevant government agencies, as is material and
necessary for meaningful negotiations. Where the disclosure of some of this information could be prejudicial to the undertaking, its communication
may be made condition upon a commitment that it would be regarded as confidential to the extent required. The information to be made available
may be agreed upon between the parties to collective bargaining.
Section 3. When single enterprise bargaining available. - Any voluntarily recognized or certified labor union may demand negotiations with its
employer for terms and conditions of work covering employees in the bargaining unit concerned.

Section 4. Procedure in single enterprise bargaining - A recognized or certified labor union that desires to negotiate with its employer shall
submit such intention in writing to the employer, together with its proposals for collective bargaining.
The recognized or certified labor union and its employer may adopt such procedures and processes they may deem appropriate and necessary for
the early termination of their negotiations. They shall name their respective representatives to the negotiation, schedule the number and frequency of
meetings, and agree on wages, benefits and other terms and conditions of work for all employees covered in the bargaining unit.
Section 5. When multi-employer bargaining available. - A legitimate labor union(s) and employers may agree in writing to come together for the
purpose of collective bargaining, provided:
(a) only legitimate labor unions who are incumbent exclusive bargaining agents may participate and negotiate in multi-employer bargaining;
(b) only employers with counterpart legitimate labor unions who are incumbent bargaining agents may participate and negotiate in multiemployer bargaining; and
(c) only those legitimate labor unions who pertain to employer units who consent to multi-employer bargaining may participate in multi-employer
bargaining.
Section 6. Procedure in multi-employer bargaining. - Multi-employer bargaining may be initiated by the labor unions or by the employers.
(a) Legitimate labor unions who desire to negotiate with their employers collectively shall execute a written agreement among themselves, which
shall contain the following:
1) the names of the labor unions who desire to avail of multi-employer bargaining;
2) each labor union in the employer unit;
3) the fact that each of the labor unions are the incumbent exclusive bargaining agents for their respective employer units;
4) the duration of the collective bargaining agreements, if any, entered into by each labor union with their respective employers.
Legitimate labor unions who are members of the same registered federation, national, or industry union are exempt from execution of this written
agreement.
(b) The legitimate labor unions who desire to bargain with multi-employers shall send a written notice to this effect to each employer concerned. The
written agreement stated in the preceding paragraph, or the certificates of registration of the federation, national, or industry union, shall accompany
said notice.
Employers who agree to group themselves or use their existing associations to engage in multiemployer bargaining shall send a written notice to
each of their counterpart legitimate labor unions indicating their desire to engage in multi-employer bargaining. Said notice shall indicate the
following:
1) the names of the employers who desire to avail of multi-employer bargaining;
2) their corresponding legitimate labor organizations;
3) the fact that each corresponding legitimate union is any incumbent exclusive bargaining agent;
4) the duration of the current collective bargaining agreement, if any, entered into by each employer with the counterpart legitimate labor union.
(c) Each employer or concerned labor union shall express its willingness or refusal to participate in multi-employer bargaining in writing, addressed to
its corresponding exclusive bargaining agent or employer. Negotiations may commence only with regard to respective employers and labor unions
who consent to participate in multi-employer bargaining;
(d) During the course of negotiations, consenting employers and the corresponding legitimate labor unions shall discuss and agree on the following:
1) the manner by which negotiations shall proceed;
2) the scope and coverage of the negotiations and the agreement; and
3) where appropriate, the effect of the negotiations on current agreements or conditions of employment among the parties.
Section 7. Posting and registration of collective bargaining agreement. - Two (2) signed copies of collective bargaining agreement reached
through multi-employer bargaining shall be posted for at least five ( 5) days in two conspicuous areas in each workplace of the employer units
concerned. Said collective bargaining agreement shall affect only those employees in the bargaining units who have ratified it.
The same collective bargaining agreement shall be registered with the Department in accordance with the following Rule.
RULE XVII
REGISTRATION OF COLLECTIVE BARGAINING AGREEMENTS
Section 1. Where to file. - Within thirty (30) days from execution of a collective bargaining agreement, the parties thereto shall submit two (2) duly
signed copies of the agreement to the Regional Office which issued the certificate of registration/certificate of creation of chartered local of the labor
unionparty to the agreement. Where the certificate of creation of the concerned chartered local was issued by the Bureau, the agreement shall be
filed with the Regional Office which has jurisdiction over the
place where it principally operates. Multi-employer collective bargaining agreements shall be filed with the Bureau.
Section 2. Requirements for registration. - The application for CBA registration shall be accompanied by the original and two (2) duplicate copies
of the following documents which must be certified under oath by the representative(s) of the employer(s) and labor union(s) concerned
(a) the collective bargaining agreement;
(b) a statement that the collective bargaining agreement was posted in at least two (2) conspicuous
places in the establishment or establishments concerned for at least five (5) days before its ratification; and
(c) a statement that the collective bargaining agreement was ratified by the majority of the employees in the bargaining unit of the employer or
employers concerned.
No other document shall be required in the registration of collective bargaining agreements.
Section 3. Payment of registration fee. - The certificate of registration of collective bargaining agreement shall be issued by the Regional Office
upon payment of the prescribed registration fee.
Section 4. Action on the application. - The Regional Office and the Bureau shall act on applications for registration of collective bargaining
agreements within five (5) days from receipt thereof, either by:
(a) approving the application and issuing the certificate of registration; or
(b) denying the application for failure of the applicant to comply with the requirements for registration.
Where the documents supporting the application are not complete or are not verified under oath, the Regional Office or the Bureau shall, within
five (5) days from receipt of the application, notify the applicants in writing of the requirements needed to complete the application. Where the
applicants fail to complete the requirements within ten (10) days from receipt of notice, the application shall be denied without prejudice.
Section 5. Denial of registration; grounds for appeal. - The denial of registration shall be in writing, stating in clear terms the reasons therefor
and served upon the applicant union and employer within twenty-four (24) hours from issuance. The denial by the Regional Office of the

registration of single enterprise collective bargaining agreements may be appealed to the Bureau within ten (10) days from receipt of the notice
of denial. The denial by the Bureau of the registration of multi-employer collective
bargaining agreements may be appealed to the Office of the Secretary within the same period.
The memorandum of appeal shall be filed with the Regional Office or the Bureau, as the case may be. The same shall be transmitted, together
with the entire records of the application, to the Bureau or the Office of the Secretary, as the case may be, within twenty-four (24) hours from
receipt of the memorandum of appeal.
Section 6. Period and manner of disposition of appeal. - The Bureau and the Office of the Secretary shall resolve the appeal within the same
period and in the same manner prescribed in Rule XI of these Rules.
Section 7. Term of representation status; contract bar rule. - The representation status of the incumbent exclusive bargaining agent which is a
party to a duly registered collective bargaining agreement shall be for a term of five (5) years from the date of the effectivity of the collective
bargaining agreement. No petition questioning the majority status of the incumbent exclusive bargaining agent or petition for certification election
filed outside of the sixty-day period immediately preceding the expiry date of such five-year term shall be entertained by the Department.
The five-year representation status acquired by an incumbent bargaining agent either through single enterprise collective bargaining or multiemployer bargaining shall not be affected by a subsequent collective bargaining agreement executed between the same bargaining agent and the
employer during the same five-year period.
Section 8. Re-negotiation of collective bargaining agreements. - All provisions of a collective bargaining agreement, except the representation
status of the incumbent bargaining agent shall, as a matter of right, be renegotiated not later than three (3) years after its execution. The renegotiated collective bargaining agreement shall be ratified and registered with the same
Regional Office where the preceding agreement was registered. The same requirements and procedure in the registration of collective bargaining
agreements prescribed in the preceding rules shall be applied.
Art. 231, 212 (n), 260-262 (b), 277 (f,g,h) Omnibus Rules, Book V, Rule XIX, XXI, as amended by D.O. 40-03
Art. 231. Registry of unions and file of collective bargaining agreements. The Bureau shall keep a registry of legitimate labor organizations. The
Bureau shall also maintain a file of all collective bargaining agreements and other related agreements and records of settlement of labor disputes
and copies of orders and decisions of voluntary arbitrators. The file shall be open and accessible to interested parties under conditions prescribed by
the Secretary of Labor and Employment, provided that no specific information submitted in confidence shall be disclosed unless authorized by the
Secretary, or when it is at issue in any judicial litigation, or when public interest or national security so requires.
Within thirty (30) days from the execution of a Collective Bargaining Agreement, the parties shall submit copies of the same directly to the Bureau or
the Regional Offices of the Department of Labor and Employment for registration, accompanied with verified proofs of its posting in two conspicuous
places in the place of work and ratification by the majority of all the workers in the bargaining unit. The Bureau or Regional Offices shall act upon the
application for registration of such Collective Bargaining Agreement within five (5) calendar days from receipt thereof. The Regional Offices shall
furnish the Bureau with a copy of the Collective Bargaining Agreement within five (5) days from its submission.
The Bureau or Regional Office shall assess the employer for every Collective Bargaining Agreement a registration fee of not less than one thousand
pesos (P1,000.00) or in any other amount as may be deemed appropriate and necessary by the Secretary of Labor and Employment for the effective
and efficient administration of the Voluntary Arbitration Program. Any amount collected under this provision shall accrue to the Special Voluntary
Arbitration Fund.
The Bureau shall also maintain a file and shall undertake or assist in the publication of all final decisions, orders and awards of the Secretary of
Labor and Employment, Regional Directors and the Commission. (As amended by Section 15, Republic Act No. 6715, March 21, 1989)
Voluntary Arbitrator means any person accredited by the Board as such or any person named or designated in the Collective Bargaining
Agreement by the parties to act as their Voluntary Arbitrator, or one chosen with or without the assistance of the National Conciliation and Mediation
Board, pursuant to a selection procedure agreed upon in the Collective Bargaining Agreement, or any official that may be authorized by the
Secretary of Labor and Employment to act as Voluntary Arbitrator upon the written request and agreement of the parties to a labor dispute.
Art. 260. Grievance machinery and voluntary arbitration. The parties to a Collective Bargaining Agreement shall include therein provisions that
will ensure the mutual observance of its terms and conditions. They shall establish a machinery for the adjustment and resolution of grievances
arising from the interpretation or implementation of their Collective Bargaining Agreement and those arising from the interpretation or enforcement of
company personnel policies.
All grievances submitted to the grievance machinery which are not settled within seven (7) calendar days from the date of its submission shall
automatically be referred to voluntary arbitration prescribed in the Collective Bargaining Agreement.
For this purpose, parties to a Collective Bargaining Agreement shall name and designate in advance a Voluntary Arbitrator or panel of Voluntary
Arbitrators, or include in the agreement a procedure for the selection of such Voluntary Arbitrator or panel of Voluntary Arbitrators, preferably from the
listing of qualified Voluntary Arbitrators duly accredited by the Board. In case the parties fail to select a Voluntary Arbitrator or panel of Voluntary
Arbitrators, the Board shall designate the Voluntary Arbitrator or panel of Voluntary Arbitrators, as may be necessary, pursuant to the selection
procedure agreed upon in the Collective Bargaining Agreement, which shall act with the same force and effect as if the Arbitrator or panel of
Arbitrators has been selected by the parties as described above.
Art. 262. Jurisdiction over other labor disputes. The Voluntary Arbitrator or panel of Voluntary Arbitrators, upon agreement of the parties, shall
also hear and decide all other labor disputes including unfair labor practices and bargaining deadlocks.
Art. 262-A. Procedures. The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have the power to hold hearings, receive evidences and take
whatever action is necessary to resolve the issue or issues subject of the dispute, including efforts to effect a voluntary settlement between parties.
All parties to the dispute shall be entitled to attend the arbitration proceedings. The attendance of any third party or the exclusion of any witness from
the proceedings shall be determined by the Voluntary Arbitrator or panel of Voluntary Arbitrators. Hearing may be adjourned for cause or upon
agreement by the parties.
Unless the parties agree otherwise, it shall be mandatory for the Voluntary Arbitrator or panel of Voluntary Arbitrators to render an award or decision
within twenty (20) calendar days from the date of submission of the dispute to voluntary arbitration.
The award or decision of the Voluntary Arbitrator or panel of Voluntary Arbitrators shall contain the facts and the law on which it is based. It shall be
final and executory after ten (10) calendar days from receipt of the copy of the award or decision by the parties.

Upon motion of any interested party, the Voluntary Arbitrator or panel of Voluntary Arbitrators or the Labor Arbiter in the region where the movant
resides, in case of the absence or incapacity of the Voluntary Arbitrator or panel of Voluntary Arbitrators, for any reason, may issue a writ of
execution requiring either the sheriff of the Commission or regular courts or any public official whom the parties may designate in the submission
agreement to execute the final decision, order or award.
Art. 262-B. Cost of voluntary arbitration and Voluntary Arbitrators fee. The parties to a Collective Bargaining Agreement shall provide therein a
proportionate sharing scheme on the cost of voluntary arbitration including the Voluntary Arbitrators fee. The fixing of fee of Voluntary Arbitrators,
whether shouldered wholly by the parties or subsidized by the Special Voluntary Arbitration Fund, shall take into account the following factors:
a. Nature of the case;
b. Time consumed in hearing the case;
c. Professional standing of the Voluntary Arbitrator;
d. Capacity to pay of the parties; and
e. Fees provided for in the Revised Rules of Court.
f. A special Voluntary Arbitration Fund is hereby established in the Board to subsidize the cost of voluntary arbitration in cases involving the
interpretation and implementation of the Collective Bargaining Agreement, including the Arbitrators fees, and for such other related purposes to
promote and develop voluntary arbitration. The Board shall administer the Special Voluntary Arbitration Fund in accordance with the guidelines it
may adopt upon the recommendation of the Council, which guidelines shall be subject to the approval of the Secretary of Labor and Employment.
Continuing funds needed for this purpose in the initial yearly amount of fifteen million pesos (P15,000,000.00) shall be provided in the 1989 annual
general appropriations acts.
The amount of subsidy in appropriate cases shall be determined by the Board in accordance with established guidelines issued by it upon the
recommendation of the Council.
The Fund shall also be utilized for the operation of the Council, the training and education of Voluntary Arbitrators, and the Voluntary Arbitration
Program. (As amended by Section 33, Republic Act No. 6715, March 21, 1989)
g. The Ministry shall help promote and gradually develop, with the agreement of labor organizations and employers, labor-management cooperation
programs at appropriate levels of the enterprise based on the shared responsibility and mutual respect in order to ensure industrial peace and
improvement in productivity, working conditions and the quality of working life. (Incorporated by Batas Pambansa Bilang 130, August 21, 1981)
h. In establishments where no legitimate labor organization exists, labor-management committees may be formed voluntarily by workers and
employers for the purpose of promoting industrial peace. The Department of Labor and Employment shall endeavor to enlighten and educate the
workers and employers on their rights and responsibilities through labor education with emphasis on the policy thrusts of this Code. (As amended by
Section 33, Republic Act No. 6715, March 21, 1989)
RULE XIX
GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION
Section 1. Establishment of grievance machinery. - The parties to a collective bargaining agreement shall establish a machinery for the
expeditious resolution of grievances arising from the interpretation or implementation of the collective bargaining agreement and those arising from
the interpretation or enforcement of company personnel policies. Unresolved grievances will be referred to voluntary arbitration and for this purpose,
parties to a collective bargaining agreement shall name and designate in advance a voluntary arbitrator or panel of voluntary arbitrators, or include in
the agreement a procedure for the selection of such voluntary arbitrator or panel of voluntary arbitrators, preferably from the listing of qualified
voluntary arbitrators duly accredited by the Board.
In the absence of applicable provision in the collective bargaining agreement, a grievance committee shall be created within ten (10) days from
signing of the collective bargaining agreement. The committee shall be composed of at least two (2) representatives each from the members of the
bargaining unit and the employer, unless otherwise agreed upon by the parties. The representatives
from among the members of the bargaining unit shall be designated by the union.
Section 2. Procedure in handling grievances. - In the absence of a specific provision in the collective bargaining agreement or existing company
practice prescribing for the procedures in handling grievance, the following shall apply:
(a) An employee shall present this grievance or complaint orally or in writing to the shop steward. Upon receipt thereof, the shop steward shall verify
the facts and determine whether or not the grievance is valid.
(b) If the grievance is valid, the shop steward shall immediately bring the complaint to the employee's immediate supervisor. The shop steward, the
employee and his immediate supervisor shall exert efforts to settle the grievance at their level.
(c) If no settlement is reached, the grievance shall be referred to the grievance committee which shall have ten (10) days to decide the case.
Where the issue involves or arises from the interpretation or implementation of a provision in the collective bargaining agreement, or from any order,
memorandum, circular or assignment issued by the appropriate authority in the establishment, and such issue cannot be resolved at the level of the
shop steward or the supervisor, the same may be referred immediately to the grievance committee.
Section 3. Submission to voluntary arbitration. - Where grievance remains unresolved, either party may serve notice upon the other of its
decision to submit the issue to voluntary arbitration. The notice shall state the issue or issues to be arbitrated, copy thereof furnished the board or the
voluntary arbitrator or panel of voluntary arbitrators named or designated in the collective bargaining agreement.
If the party upon whom the notice is served fails or refuses to respond favorably within seven (7) days from receipt thereof, the voluntary arbitrator or
panel of voluntary arbitrators designated in the collective bargaining agreement shall commence voluntary arbitration proceedings. Where the
collective bargaining agreement does not so designate, the board shall call the parties and appoint a voluntary arbitrator or panel of voluntary
arbitrators, who shall thereafter commence arbitration proceedings in
accordance with the proceeding paragraph.
In instances where parties fail to select a voluntary arbitrator or panel of voluntary arbitrators, the regional branch of the Board shall designate the
voluntary arbitrator or panel of voluntary arbitrators, as may be necessary, which shall have the same force and effect as if the parties have selected
the arbitrator.
Section 4. Jurisdiction of voluntary arbitrator or panel of voluntary arbitrators. - The voluntary arbitrator or panel of voluntary arbitrators shall
have exclusive and original jurisdiction to hear and decide all grievances arising from the implementation or interpretation of the collective bargaining
agreements and those arising from the interpretation or enforcement of company personnel policies which remain unresolved after exhaustion of the
grievance procedure.
They shall also have exclusive and original jurisdiction, to hear and decide wage distortion issues arising from the application of any wage orders in

organized establishments, as well as unresolved grievances arising from the interpretation and implementation of the productivity incentive programs
under RA 6971.
The National Labor Relations Commission, its regional branches and Regional Directors of the Department of Labor and Employment shall not
entertain disputes, grievances or matters under the exclusive and original jurisdiction of the voluntary arbitrator or panel of voluntary arbitrators and
shall immediately dispose and refer the same to the appropriate grievance machinery or voluntary arbitration provided in the collective bargaining
agreement.
Upon agreement of the parties, any other labor dispute may be submitted to a voluntary arbitrator or panel of voluntary arbitrators. Before or at any
stage of the compulsory arbitration process, the parties may opt to submit their dispute to voluntary arbitration.
Section 5. Powers of voluntary arbitrator or panel of voluntary arbitrators. - The voluntary arbitrator or panel of voluntary arbitrators shall have
the power to hold hearings, receive evidence and take whatever action is necessary to resolve the issue/s subject of the dispute.
The voluntary arbitrator or panel of voluntary arbitrators may conciliate or mediate to aid the parties in reaching a voluntary settlement of the dispute.
Section 6. Procedure. - All parties to the dispute shall be entitled to attend the arbitration proceedings. The attendance of any third party or the
exclusion of any witness from the proceedings shall be determined by the voluntary arbitrator or panel of voluntary arbitrators. Hearing may be
adjourned for cause or upon agreement by the parties.
Unless the parties agree otherwise, it shall be mandatory for the voluntary arbitrator or panel of voluntary arbitrators to render an award or decision
within twenty (20) calendar days from the date of submission for resolution.
Failure on the part of the voluntary arbitrator to render a decision, resolution, order or award within the prescribed period, shall upon complaint of a
party, be sufficient ground for the Board to discipline said voluntary arbitrator, pursuant to the guidelines issued by the Secretary. In cases that the
recommended sanction is de-listing, it shall be unlawful for the voluntary arbitrator to refuse or fail to turn over to the board, for its further disposition,
the records of the case within ten (10) calendar days from demand thereof.
Section 7. Finality of Award/Decision. - The decision, order, resolution or award of the voluntary arbitrator or panel of voluntary arbitrators shall be
final and executory after ten (10) calendar days from receipt of the copy of the award or decision by the parties and it shall not be subject of a motion
for reconsideration.
Section 8. Execution of Award/Decision. - Upon motion of any interested party, the voluntary arbitrator or panel of voluntary arbitrators or the
Labor Arbiter in the region where the movant resides, in case of the absence or incapacity for any reason of the voluntary arbitrator or panel of
voluntary arbitrators who issued the award or decision, may issue a writ of execution requiring either the Sheriff of the Commission or regular courts
or any public official whom the parties may designate in the submission agreement to execute the final decision, order or award.
Section 9. Cost of voluntary arbitration and voluntary arbitrator's fee. - The parties to a collective bargaining agreement shall provide therein a
proportionate sharing scheme on the cost of voluntary arbitration including the voluntary arbitrator's fee. The fixing of fee of voluntary arbitrators or
panel of voluntary arbitrators, whether shouldered wholly by the parties or subsidized by the Special Voluntary Arbitration Fund, shall take into
account the following factors:
(a) Nature of the case;
(b) Time consumed in hearing the case;
(c) Professional standing of the voluntary arbitrator;
(d) Capacity to pay of the parties; and
(e) Fees provided for in the Revised Rules of Court.
Unless the parties agree otherwise, the cost of voluntary arbitration proceedings and voluntary arbitrator's fee shall be shared equally by the parties.
Parties are encouraged to set aside funds to answer for the cost of voluntary arbitration proceedings
including voluntary arbitrator's fee. In the event the said funds are not sufficient to cover such expenses, an amount by way of subsidy taken out of
the Special Voluntary Arbitration fund may be availed of by either or both parties subject to the guidelines on voluntary arbitration to be issued by the
Secretary.
Section 10. Maintenance of case records by the Board. - The Board shall maintain all records pertaining to a voluntary arbitration case. In all
cases, the Board shall be furnished a copy of all pleadings and submitted to the voluntary arbitrator as well as the orders, awards and decisions
issued by the voluntary arbitrator.
The records of a case shall be turned over by the voluntary arbitrator or panel of voluntary arbitrators to the concerned regional branch of the Board
within ten (10) days upon satisfaction of the final arbitral award/order/decision.