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Labor Relations

Principles, Jurisprudence & the Bar


Labor Relations
Self-organization
Collective Bargaining
Peaceful Concerted Activities
Procedure & Jurisdiction
Self-Organization
Self-Organization
Right to form, join or assist labor organizations for:
Collective bargaining
Mutual aid & protection
Engaging in lawful concerted activities
Concepts:
(1)Liberty or freedom
(2)Power, including the right not to join (Knitjoy v. Ferrer-Calleja
[1992; 2000]; 2000, 2005 Bar)
Self-Organization
Union security clauses v. (1994, 1995, 2007 Bar)
Self-Organization
Union security clauses v. (1994, 1995, 2007 Bar)
Promotes trade unionism; fosters the organization of a
strong and united labor movement.
Self-Organization
Union security clauses v. (1994, 1995, 2007 Bar)
Promotes trade unionism; fosters the organization of a
strong and united labor movement.
Self-Organization
To whom the right belongs?
ALL PERSONS employed, including:
SUPERVISORS, but may only form, join or assist unions
for supervisors

A capataz is a supervisor, hence, may form a labor


union of its own (Lepanto Consolidated Mining v.
Capataz Union [2013])
GOVERNMENT EMPLOYEES but only to form unions or
associations for purposes not contrary to law
ALIENS/FOREIGNERS from countries which afford the
same rights to their Filipino counterparts (2000 Bar)
Self-Organization
GOVERNMENT EMPLOYEES (1996, 2004 Bar)
for purposes NOT CONTRARY TO LAW

CANNOT engage in lawful concerted activities or any


collective activities prejudicial to public service (GSIS v.
Kapisanan ng Manggagawa sa GSIS; CSC Memorandum
Circular No. 6, s. of 1987; E.O. No. 180)

Self-Organization
NOT AVAILABLE TO:
MANAGERS (1992, 1994, 1995, 1999, 2003, 2004 Bar)
CONFIDENTIAL EMPLOYEES (Confidential
rule/Doctrine of necessary implication)

employee

GOVERNMENT EMPLOYEES
Members of the AFP, POLICE OFFICERS,
FIREMEN & JAIL GUARDS (E.O. No. 180)
MEMBERS OF COOPERATIVES (2014 Bar; Central Negros
Electric Cooperative v. DOLE)
Self-Organization
CONFIDENTIAL EMPLOYEES (Confidential employee rule/Doctrine of
necessary implication)
(1)Assist or act in a confidential capacity
(2)To persons who formulate, determine and effectuate
management policies in the field of labor relations
(3)Division secretaries
(4)Staff of Gen. Mgt., Personnel and Industrial Relations Dept.
(5)Secretaries of Audit, EDP and Financial Systems (Philips
Industrial v. NLRC)
(6)Legal secretaries (Pier 8 Arrastre v. Roldan-Confesor; 2014
Bar)

(7)Secretaries/clerks with access to confidential data relating


to management policies (Tunay na Pagkakaisa ng
Manggagawa sa Asia Brewery v. Asia Brewery, Inc [2010])
Self-Organization
COMMINGLING/MIXTURE (2014 Bar)
Not a ground for cancellation of union registration,
EXCEPT
Misrepresentation, fraud, false statement (Holy
Child Catholic School v. Sto. Tomas [2013])
EFFECT
Employees outside of the bargaining unit are
deemed excluded
Self-Organization
CANCELLATION OF UNION REGISTRATION
Only after hearing by the BLR
GROUNDS (ART. 244-A, LC)
(1)Misrepresentati
on, fraud, false
statement
(2)Constitution
and by-laws
(3)Adoption,
ratification
(4)Minutes
(5)List of members
(b)

(2)

Election of officers
(i)

Minutes

(ii)

List of voters

Voluntary Dissolution
2/3 of general
membership
voting
in
a
meeting
called
for the purpose

Bargaining Unit
Bargaining Unit

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 the employer unit
Employees of the College of St. Benilde shall be excluded from the
bargaining unit of the rank-and-file employees of De La Salle
University, because the two institutions have separate and distinct
personalities (DLSU v. DLSU Employees Asso. [2000])
Bargaining Unit
Principles in determining appropriate bargaining unit

Substantial Mutual Interest


community of interest substantial similarity of work
and duties or similarity in compensation and working
conditions (Democratic Labor Asso. v. Cebu Stevedoring;
San Miguel Employees Union v. Confesor)

Globe Doctrine
The will of the employees becomes important when either
of two or more units are otherwise appropriate (In re:
Globe Machine and Stamping)

Collective Bargaining Principle


Prior collective bargaining history and affinity of the
employees

Employment Status Principle

Bargaining Agent

Legitimate labor union duly recognized or certified as the sole


and exclusive bargaining representative or agent of all
employees in a bargaining unit

A union which is not recognized as the legitimate bargaining


representative cannot demand from the employer the right to
collectively bargain (Philippine Diamond Hotel v. Manila Diamond
Hotel Employees Union [2006])
Bargaining Agent
When do labor unions acquire legal personality?

A. Independent Union / Federation / National Union / Trade


Union
Upon issuance of certificate of registration (2003 Bar)
EFFECT: Entitled to exercise rights and privileges of a legitimate labor
union
Bargaining Agent
B. Local/Chartered Union
1. Upon issuance of charter certificate
PURPOSE: Filing of a petition for certification election
2. Upon submission of (a) names of officers, address of principal
office and (b) Constitution and by-laws
PURPOSE: To exercise rights and privileges of a legitimate labor union
Bargaining Agent
20% support requirement

Withdrawal of support after filing a petition for certification


election has no effect and will not nulify the registration of
the union (S.S. Ventures International v. S.S. Ventures Labor
Union)

Not necessary in case of local or chapters (San Miguel Corp.


Employees Union v. San Miguel Packaging Products Employees
Union)

Bargaining Agent
Disaffiliation of a local union

Right to disaffiliate is not disloyalty, absent any specific


provisions in the federations constitution (NUBE v. PhilnaBank
Employees Asso. [2014])

Does not owe its existence to the federation, but from the will of
its members (Cirtek Employees Labor Union v. Cirtek
Electronics)

The federation only acts as an agent. The local union


remains as the basic unit of association, existing principally and
freely to serve the common interest of all members, including
the right to disaffiliate (Elisco-Elirol Labor Union (NAFLU) V.
Noriel)

Bargaining Agent
Substitutionary Doctrine (2009 Bar)

Change in the bargaining agent does not result in the revocation


of the existing CBA

EXCEPTION: Union may negotiate the shortening of the lifetime of the


CBA

Successor bargaining agent is not bound by the personal


undertaking (e.g. not to strike) of the previous union (Benguet
Consolidated v. BCI Employees and Workers Union-PAFLU)

Bargaining Agent
Assessments and Check Off (WMGMI)
(2001, 2002 Bar)
1 Written resolution
2 Majority of all the members
3 General membership meeting duly called for the purpose
4 Minutes of the meeting
5 Individual written authorization
Bargaining Agent
Check Off

Based on agreement, the employer deducts union dues or


agency fees from the wages and remunerations remits them
directly to the union

In case of employers failure to deduct:

Union must undertake the collection of union dues and


assessments

Employer liable for ULP (Holy Cross of Davao College v.


Joaquin)

In case of disaffiliation

Local union is entitled to check-off dues (Holy Cross


of Davao College v. Joaquin)

Bargaining Agent
Individual Written Authorization

Not required for non-union members who accept benefits


from the CBA (agency fees) (Del Pilar Academy v. Del Pilar
Academy Employees Union)

Attorneys fees cannot be deducted or check off without a


written consent from the employee

Award of attorneys fees does not become union funds after


the deduction or payment of such fee (Marino, Jr. v. Gamilla)

Bargaining Agent
Determination of Representation Status
A. Voluntary Recognition
B. Certification Election
C. Consent Election
D. Run-off Election
Bargaining Agent
Voluntary Recognition (2006 Bar)

Only in unorganized establishments (only one legitimate


labor union)

No voluntary recognition of a union when there is a pending


petition for certification election by another (Sta. Lucia East
Commercial Center v. Sec. of Labor)

EFFECT OF RECORDING: No certification election may be filed


within 1 year from date of entry of recognition (Certification
year bar rule)

Bargaining Agent
Certification Election (1990, 1992, 2004, 2006 Bar)
Process of determining the sole and exclusive bargaining agent for
purposes of collective bargaining
Mandatory in unorganized establishments; consent of at least 25% of
the bargaining unit is not required (1990 Bar)
Not proper if there is no employer-employee relationship (1998 Bar)
Bargaining Agent
Certification Election; Requisites
1 Filed within the freedom period
2 Verified petition
3 Written consent of at least 25% of all employees of the
bargaining unit
Bargaining Agent
Certification Election
Who may file
a) Legitimate labor organization

b) Employer, when requested to bargain collectively and its status


is in doubt

Non-litiguous: A mere investigation of a non-adversary factfinding character where the DOLE is a disinterested investigator
(Asso. of Labor Unions v. Ferrer-Calleja)

Certification of non-forum shopping not required (SAMMALIKHA v. SAMMA Corporation)

Bargaining Agent
WHEN TO FILE A PETITION FOR CERTIFICATION ELECTION
General rule: Anytime, in the absence of a CBA
EXCEPT:
1. Certification year-bar rule
2. Contract-bar rule
3. Bargaining deadlock rule (1999 Bar)
Bargaining Agent
CERTIFICATION YEAR-BAR RULE (2006 Bar)
i.

Entry of voluntary recognition, or

ii.

Date of a valid certification election, consent or run-off


election

Final certification election result means there was an actual


conduct of an election (R. transport Corp. v. Ledesma)
Bargaining Agent
CONTRACT-BAR RULE

When a CBA has been registered with the DOLE-BLR

Shall not apply during the 60-day freedom period

Applies after the expiration of the 60-day freedom period, even


when the parties had not concluded a CBA (National Congress of
Unions in the Sugar Industry of the Phils. v. Ferrer-Calleja)

Bargaining Agent
CONTRACT-BAR RULE
EXCEPTIONS
1. During the 60-day freedom period
2. CBA not registered with the BLR
3. CBA contains provisions lower than the standards fixed by law

4. Supporting documents are falsified, fraudulent or tainted with


misrepresentation
5. CBA did not contain mandatory provisions
6. CBA was entered prior to the expiration of the 60-day freedom
period
Bargaining Agent
BARGAINING DEADLOCK RULE
i.

Collective bargaining has commenced and sustained in good


faith within 1 year from date of a valid certification election,
consent or run-off election or date of voluntary recognition

ii.

There is bargaining deadlock submitted to conciliation or


arbitration or had become the subject of a valid notice of strike
or lockout

Bargaining Agent
Misrepresentation, False
certification election

Statement

before

and

during

False statements by union officers before and during a


certification election that the union is independent and not
affiliated with a national federation are material facts likely to
influence the election results

After members learned of the misrepresentation, and after a


majority of the members disaffiliated and formed another union,
a new certification election should be held to enable them to
express their true will (DHL Phils. Union v. Buklod Manggagawa
ng DHL)

Bargaining Agent
Certification Election (1990, 1992, 2004, 2006 Bar)

Petition is proper if filed during the 60-day freedom period even


though a new CBA has been entered within that period (Oriental
tin Can and Metal Sheet v. Laguesma)

Double majority rule: (a) majority of the bargaining unit must


have voted and (b) the winning union must have garnered
majority of the valid votes cast (NUWHRAIN v. Sec. of Labor;
2014 Bar)

Bystander rule: employer shall not be a party to a certification


election. Its participation is limited to (a) being notified or informed and
(b) submit the list of employees
Bargaining Agent

Consent Election (2004, 2006 Bar)

Voluntarily agreed upon by the parties, with or without the


intervention of the DOLE

To determine the issue of majority representation of all workers


in the appropriate collective bargaining unit (Algire v. de Mesa)

Bargaining Agent
Run-off Election (1998, 2006, 2014 Bar)
REQUISITES
a) 3 or more choices
b) No choice (No union) receiving majority of the valid votes cast

The med-arbiter must declare such fact in the order (2006 Bar)

a) Total number of votes of highest contending unions = at least


50% of the votes cast
b) No objections or challenges which if sustained, may substantially
alter the result
Bargaining Agent
Failure of Election
1. Less than a majority of the eligible voters had voted in an
election,
2. No challenged votes
Shall not bar filing for immediate holding of certification or
consent election within 6 months
Bargaining Agent
WHO MAY VOTE

All employees belonging to the bargaining unit sought to


be represented by the labor union, whether members or not
of a labor union (Airtime Specialists, Inc. v. Ferrer-Calleja)

Probationary employees are included (2014 Bar)

Dismissed employees absent a final judgment declaring


the validity of their dismissal at the time of the election,
are allowed to vote (2014 Bar)

Collective Bargaining
Performance of a mutual obligation to meet and convene promptly
and expeditiously in good faith for the purpose of negotiating an
agreement

Does not compel any party to agree to a proposal or to make a


concession

Employer is not under legal duty to initiate contract


negotiation (Kiok Loy v. NLRC)

Companys refusal to make a counter proposal indicates


bad faith. It therefore loses its right to negotiate or
renegotiate (Kiok Loy v. NLRC; General Milling v. CA)

Use of temporary suspension of operations as an excuse to


evade the duty to bargain only proves bad faith (San Pedro
Hospital of Digos v. Sec. of Labor)

Pending petition for certification election does not preclude collective


bargaining (Digitel v. Digitel Employees Union; 2001 Bar)
Violations of duty to bargain amounting to ULP
1. Failure or refusal to meet and convene
2. Evading the purposes of bargaining
3. Not observing good faith in bargaining
4. Grossly violating the economic provisions of the CBA (1990 Bar)
When there is an existing CBA
The parties shall not terminate nor modify the agreement during
its lifetime; they should keep the status quo and continue in full
force and effect the terms and conditions thereof during the 60-day
freedom period and/or until a new CBA has been reached (1999, 2000,
2001, 2008 Bar)
Procedure
1. Serve a written notice with a statement of proposals to the
other party;
2. Reply (counter proposal) not later than 10 calendar days from
receipt
3. Should differences arise, request for a conference which shall
begin not later than 10 calendar days from the date of request
4. If dispute is not settled, the NCMB shall intervene upon
request or motu proprio, and shall immediately call for
conciliation meetings
DEADLOCK
Parties may:
1. Refer to conciliation and mediation by the NCMB; or
2. Declare a strike or lockout; or

3. Refer case to compulsory or voluntary arbitration


Terms

5 years representation aspect; 3 years all other provisions

Representation aspect identity and majority status of the


union that negotiated the CBA as the exclusive bargaining
representative

All other provisions economic, as well as non-economic,


except representation

Representation limit does not apply when the parties agreed to


suspend the CBA (Rivera v. Espiritu)
Agreement to extend the original 5-year term will not carry with it the
representation aspect. Exclusive bargaining status cannot go
beyond 5 years (FVC Labor Union v. SANAMA-FVC-SIGLO)
AUTOMATIC RENEWAL CLAUSE

Parties shall observe the status quo and continue in full force and
effect the existing CBA during the freedom period and/or until a
new agreement is reached

HOLD-OVER PRINCIPLE

Despite the lapse of the formal effectivity of the CBA, it will


continue to have force and efect until a new CBA shall have been
validly executed (Meralco v. Quisumbing)

RETROACTIVITY

If agreement is reached within 6 months from the expiration of


the CBA - Day immediately following expiry date of CBA

If agreement was reached beyond 6 months date agreed by


the parties

During assumption of jurisdiction over a labor dispute date


fixed by the Secretary of Labor

AUTOMATIC INCORPORATION CLAUSE

Existing laws form part of a valid CBA without need for the
parties to make reference to it

A school CBA must be read in conjunction with statutory and


administrative regulations governing faculty qualifications (UE v.
Pepanio)

POSTING/PUBLICATION

2 conspicuous places within the workplace for at least 5 days


prior to ratification

Mandatory, noncompliance will render the CBA ineffective


(Associated Trade Unions v. Trajano)

Responsibility of the employer (ALU v. Ferrer-Calleja)

MANDATORY PROVISIONS (1996 bar)

Wages

Hours of work

Grievance machinery

Voluntary arbitration

no strike-no lockout clause

Labor-management council

Drug free workplace

UNION SHOP (2004 Bar)

All new regular employees are required to join the union within a
certain period as a condition of continued employment

MAINTENANCE OF MEMBERSHIP

Employees who are union members as of the effectivity of the


CBA or thereafter, become
members, must maintain
membership until promoted, transferred out of the bargaining
unit, or the agreement is terminated

CLOSED SHOP (2004 Bar)

No person may be employed unless he or she becomes a


member in good standing until the termination of the agreement

TERMINATION DUE TO UNION SECURITY


1. Union security clause is applicable
2. Union is requesting enforcement of the clause
3. Sufficient evidence to support decision of the union to expel the
employee (PICOP v. Taneca)
TERMINATION DUE TO UNION SECURITY

Employer must conduct its own inquiry whether there is


sufficient ground to dismiss the employee based on union
security (NUWHRAIN v. NLRC [2008])

Employer is not required to pay backwages or financial


assistance as a form of penalty for dismissing an employee
pursuant to a union security clause if such was done in good
faith. (Olvido v. CA [2007]

Unfair Labor Practice

2 ASPECTS
1. Civil claims for damages, attorneys fees, other affirmative
reliefs

Recovery of civil liability in the administrative proceedings shall


bar recovery under the civil code

Jurisdiction is vested in the Labor Arbiter

2. Criminal requires a final judgment finding that ULP was


committed

Jurisdiction is vested in the regular courts

Final judgment in the administrative proceedings is not binding


but merely a procedural requirement

Prescription does not run during the administrative proceeding

PRESCRIPTION: 1 year
ELEMENTS
1. Employer-employee relationship
2. Act must be expressly mentioned and defined under the
Labor Code
3. Violates the right of the workers to self-organization
(employer)
By the Employer (1990, 1991, 1992, 1996, 1999, 2001, 2004, 2006
Bar)
1. Interference
2. Yellow-dog contract
3. Contracting-out
4. Company union/domination
5. Discrimination
6. Dismissal or discriminate an employee who will give out
testimony
7. Violate duty to bargain collectively
8. Pay negotiation or attorneys fees to union or officers
9. Gross violation of CBA
TEST: Employer is engaged in conduct which interferes with the free
exercise of the employees rights

Direct evidence that an employee was in fact intimidated or


coerced is not necessary

Sending out of letters promising benefits to striking


employees without coursing through the union (strike-breaking)
[Insular Life Assurance Employees Asso. v. Insular Life]

Interferes in the selection of negotiators or coerces the


union to exclude from its panel a representative of the
union in order to yield adverse effects on the right to selforganization or collective bargaining (Standard Chartered v.
Confesor)

No interference if separation of service is effected through


retirement (Cainta Catholic School c. Cainta Catholic School Employees
Union [2006])
Sponsoring a field trip for employees excluding union members
before the certification election, active campaigning against the union
during the field trip, escorting them to the polling center [T&H
Shopfitter v. T& H Shopfitters Union [2014])]
Not illegal per se, absent proof that the management acted in a
malicious or arbitrary manner (BPI Employees union v. BPI [2013])
BUT if stipulated in the CBA, employer is precluded what otherwise
would have been within its prerogative to do [Shell Oil Workers Union
v. Shell Oil Company [1971])]
Must be committed
membership

to

encourage

or

discourage

union

No discrimination if keeping the employees out of the premises


arose from fear or apprehension that they may sabotage the
products, machinery and spare parts which was done in another
branch by striking union members (Rizal Cement Workers v.
Madrigal [1964])

Dismissal of the brother of an employee who did not withdraw


his complaint against the company (Phil-Am Cigar Factory
Workers Union v. Phil-Am Cigar [1963])

Industrial plant moved by the owners from one location to another to


escape union labor regulations or to discriminate employees in the old
plant because of union activities (Complex Electronics Employees
Asso. v. Complex Electronics [1999])
Going through the motions of negotiating without any legal intent to
reach an agreement (Standard Chartered v. Confesor [2004])
of Labor Organization (1998 Bar)
1. Restrain or coerce employees in exercise of right to selforganization

2. Cause or attempt to cause the employer to discriminate an


employee
3. Violate the duty or refusal to bargain collectively
4. Cause or attempt to cause the employer to pay or deliver
or agree to pay or deliver any money or other things of value for
services which are not performed or not to be performed
(featherbedding)
5. Ask or accept negotiation or attorneys fees from employers
(Sweetheart Contract)
6. Gross violation of CBA
Economic demands of the employees were exaggerated
unreasonable (Standard Chartered v. Confesor [2004])

or

Peaceful Concerted Activities


STRIKE
Any temporary stoppage of work arising from industrial or labor
dispute
Slowdown
Mass leave
Sitdown
Attempts
to
equipment/facilities

damage/destroy/sabotage

plant

Wildcat strike declared by a group of workers without formal


union approval (1997 Bar)
STRIKE
Concerted violation of the grooming standards resulting in
temporary cessation or disruption of operations constitutes
illegal strike (NUWHRAIN v. CA [2008])
Not reporting for work, gathering in front of company
premises to hold a protest action, deliberate absence, wearing of
red ribbons, carried placards and slogans, marhcing to and fro in
front of company premises during work hours, all affecting
company operations (Club Filipino v. Bautista [2009])
Illegal if the notice to strike is converted into a
preventive mediation (PAL v. Sec. of Labor [1991]) or issues
are already brought to arbitration or conciliation
Innocent Bystander

Injunction is proper if filed by third parties to a labor


dispute or those without industrial connection or interest totally
foreign to the context of the dispute (MSF Rubber Tire v. CA
[1999])
PICKETING
Right of workers to peacefully march to and fro before an
establishment involved in a labor dispute generally accompanied by
the carrying or placing of signs, placards and banners intended to
inform the public of the dispute
Illegal when: (a) staged through the use of illegal means; (b)
involves employment of violence and other illegal acts; (c)
injunction is necessary to protect the rights of third parties
(innocent bystander)
LOCKOUT
Any temporary refusal of the employer to furnish work as a result of an
industrial dispute
Labor/Industrial Dispute
Any controversy concerning
1. Terms and conditions of employment
2. Association or representation of persons in negotiating,
fixing, maintaining, changing or arranging terms and conditions
of employment
REQUISITES OF STRIKE/LOCKOUT
1 Valid and factual ground (strikeable ground)
2 Notice of strike/lockout
3 Notice served to the DOLE-NCMB
4 Strike/Lockout vote
5 Strike/Lockout vote report
6 Cooling-off period
7 7-day waiting period / strike ban
1. Valid and Factual Ground
a. CBA deadlock

Presupposes reasonable effort at good faith bargaining, which


despite noble intentions, does not conclude in an agreement
(Capitol Medical Center Alliance of Concerned Employees v.
Laguesma [1997])

b. ULP

Only economic provisions of the CBA are treated as ULP;


otherwise, they are mere grievances

Violation of a union shop agreement is not ULP (BPI Employees


Union v. BPI [2003])

2. Notice of strike/lockout
a. CBA deadlock

30 days from intended strike/lockout

b. ULP

15 days

3. Notice served to NCMB


At least 24 hours prior to strike/lockout vote; otherwise, strike is illegal
(Capitol Medical Center v. NLRC [2005])
4. Strike/lockout vote

Majority of union membership/board of directors

Necessary even in case of union busting

5. Strike/lockout vote report

At least 7 days prior to intended strike/lockout

Still required even in case of union busting

6. Cooling-off period

CBA deadlock

30 days

ULP

15 days

Union busting

none

Reckoning period NCMB

filing of notice of strike/lockout with the

6. 7-day waiting period/strike ban

Reckoning period -

submission of strike vote report

1-day deficiency will render the strike illegal

PURPOSE: to ensure that the strike/lockout vote was indeed taken and
majority of the members approved of it
ILLEGAL STRIKE
Liability of union officer who knowingly participates in an illegal
strike or commit illegal acts during a strike, is declared to have
lost his employment status (1997, 2006 Bar)

Knowledge is sine qua non before he may be dismissed (Club


Filipino v. Bautista [2009])
Union officer may be dismissed even if the illegal strike was held
only for one day (Samahan ng Manggagawa sa Sulpicio Lines v.
Sulpicio Lines [2004])
Wholesale forfeiture of employment status is not allowed
(Telefunken Semiconductors Employees Union v. Secretary of
Labor [1997])
ILLEGAL STRIKE
Liability of union members who knowingly participates in the
commission of illegal acts during a strike, may be declared to
have lost his employment status
Mere participation in a lawful strike shall not constitute
sufficient ground for termination, even if a replacement
had been hired by the employer during such strike (2013 Bar)
Relief for dismissed union members for participating in an
illegal strike is separation pay in lieu of reinstatement (Visayas
Community Medical Ceter v. Yballe [2014])
ASSUMPTION OF JURISDICTION (1991, 1992, 1994, 1996, 1997,
1998, 2003, 2004, 2008 Bar)
Requisite

Industry indispensable to the national interest

A match factory is not imbued with national interest (PHIMCO v.


Brillantes [1991])
A telecommunications industry is indispensable to national
interest (PLDT v. Manggagawa ng Kominikasyon [2005])
Airline companies, banks, educational institutions, daily
newspaper, shipping and port services, company producing
chlorine for water treatment are industry imbued with national
interest
ASSUMPTION OF JURISDICTION
Who may exercise

DOLE Secretary

President

ASSUMPTION OF JURISDICTION
Nature

Plenary power (2014 Bar)

Great breadth of discretion doctrine

All cases filed or may be filed may be subsumed/absorbed by the


assumed or certified cases
ASSUMPTION OF JURISDICTION
Service

Rule on service of summons shall apply

Must be made personally


If impossible, by leaving a copy between 8:00 a.m. and 6:00 p.m.
at the partys/counsels resident if known, with a person of
sufficient age and discretion residing therein
Presumption of receipt of the order cannot be lightly inferred
(FEU v. FEU-NRMF Employees Association [2006])
ASSUMPTION OF JURISDICTION; Effects
Intended or impending strike or lockout is automatically
enjoined even if a motion for reconsideration is filed
Strikers or locked-out employees should immediately return to
work; employer should reinstate them under the same
terms and conditions prevailing before the strike (status
quo) (PLDT v. Manggagawa ng Kominikasyon [2005])
ASSUMPTION OF JURISDICTION; Return to work
Immediately executory
Payroll reinstatement in lieu of actual reinstatement is not
allowed EXCEPT reinstatement is impossible or not
conducive to attaining the purposes of the law (University of
Immaculate Concepcion v. Sec. of Labor [2005]; NUWHRAIN v. CA
[2008])
Defying a return to work order constitutes abandonment (St.
Scholasticas College v. Torres[1992])
ASSUMPTION OF JURISDICTION; Return to work
Employer may hire replacements in case of defiance by workers
without need of a hearing (2013 Bar)
BUT employer may be liable for backwages, damages and other
reliefs, even criminal prosecution in case of refusal to readmit workers
Employer waived its right to proceed against employees who
committed illegal acts during a strike, when during a conference,
it agreed to reinstate them and comply with the return to work
order (Unlicensed Crews Employees Union v. CA [2004])
Improved offer balloting in case of strike, the NCMB Regional
branch shall conduct a referendum on the improved offer by the
employer, on or before the 30th day of the strike

Reduced offer balloting in case of lockout, the NCMB Regional


Branch shall conduct a referendum on the reduced offer by the labor
union or before the 30th day of the lockout
Procedure and Jurisdiction
VOLUNTARY ARBITRATOR

Subject Matter: Interpretation of CBA and company policies


EXCEPT gross violation of CBA

Has plenary jurisdiction and authority to interpret the CBA


and determine the scope of his authority; may call for the
resolution or related and incidental issues whether the company
violated the CBA without being guilty of CBA (Goya v. Goya
Employees Union [2013])
By agreement of the parties, voluntary arbitrator may exercise
jurisdiction over other labor disputes where the Labor
Arbiter exercises original and exclusive jurisdiction (7K v.
Albarico [2013]; 1997, 2003 Bar)
VOLUNTARY ARBITRATOR
Quasi-judicial agency, decisions and awards are appealable to
the CA via Rule 43 (LEYECO v. LEYECO Employees Union
[2007])
A government instrumentality. Decisions are akin to those of the
RTC, and must therefore be appealed to the CA before being
elevated to the SC (AMA v. Nacino [2008])
Awards/decision shall contain the facts and the law on which it is
based; Shall be final and executory after 10 days from receipt of
the award or decision by the parties (1993 Bar)
VOLUNTARY ARBITRATOR
On account of Article 262-A of the Labor Code, the period to
appeal was necessarily 10 days from receipt of the copy of the
award or decision of the Voluntary Arbitrator or panel of
Voluntary Arbitrators; otherwise, the order of July 25, 2001 would
become final and immutable (Baronda v. Court of Appeals
[2015])
Reinstatement aspect of the Voluntary Arbitrator's decision or
award remains executory regardless of the filing of such motion
for reconsideration or appeaL (Id.)
Grievance Machinery

All grievances submitted to grievance which are not settled within 7


calendar days from date of their submission shall automatically be
referred to voluntary arbitration prescribed in the CBA
Parties must strictly observe the agreed procedure to resolve
grievances or when they submit the dispute to voluntary arbitration
(PLDT v. Octavio [2013]; Ace Navigation v. Fernandez [2012])
BUREAU OF LABOR RELATIONS
Exercises appellate jurisdiction over all cases originating from the
Regional Director including complaints for examination of union book of
accounts (2001 Bar)
LABOR ARBITER

Reasonable causal connection rule, between the claim


asserted and the employer-employee relations, jurisdiction is
vested in the labor courts; otherwise, regular courts (Indophil
Textile Mills v. Adviento [2014])

Good will clause or non-compete clause is a contractual


undertaking effective after the cessation of the employment
relationship. Breach thereof is a civil law dispute. (Portillo v.
Rudolf Lietz [2012])

In case of ULP, there must be concurrence of (1) gross violation


of CBA; and (2) violation pertains to the economic provisions of
the CBA. The grievance machinery provision is not an economic
provision. (San Miguel Foods v. SMC Employees Union [2007])

LABOR ARBITER
Regular courts have no jurisdiction to act on labor cases or various
incidents, including execution of decisions, awards or orders by the
Labor Arbiter (Delta Ventures v. Labato [2000]; 2001 Bar)
Doctrine of forum non conveniens may be invoked against the
jurisdiction of the Labor Arbiter/NLRC when the main aspects of the
case transpired in foreign jurisdictions and the only link that the
Philippines has is that the employee is a Filipino citizen (Manila Hotel v.
NLRC [2000])
LABOR ARBITER
The appeal bond equivalent to around 20% of the total amount of
monetary bond is sufficient to perfect an appeal. With the employer's
demonstrated good faith in filing the motion to reduce the bond on
demonstrable grounds coupled with the posting of the appeal bond in
the requested amount, as well as the filing of the memorandum of
appeal, the right of the employer to appeal must be upheld (Balite v.
S.S. Ventures [2015]; 2001 Bar)

LABOR ARBITER
A substantial compliance may be allowed by the NLRC especially where
the party which submitted the bond is a multibillion company which
can easily pay whatever monetary award may be adjudged against it.
Even if there is no proof of security deposit or collateral, the surety
bond issued by an accredited company is adequate to answer for the
liability if any to be incurred by the employer. (SMART Comm. V.
Solidum [2015])
NATIONAL LABOR AND RELATIONS COMMISSION (NLRC)
Has jurisdiction to determine, preliminarily, the parties rights over a
property, when it is necessary to determine an issue related to rights
or claims arising from an employer-employee relationship; A claim only
needs to be sufficiently connected to the labor issue raised and must
arise from an employer-employee relationship for the labor tribunals to
have jurisdiction (Milan v. NLRC [2015])
A second motion for reconsideration, which is a prohibited pleading
under the NLRC Rules. As a prohibited pleading, the filing of said
motion could not have tolled the running of the 60-day reglementary
period for the filing of a petition for certiorari under Rule 65 of the
Rules of Court before the CA. (Michelin Asia v. Ortiz [2015])
Remedy against the decision of the NLRC is a petition for certiorari
under Rule 65 of the Rules of Court on the ground of grave abuse of
discretion, before the Court of Appeals, not the Supreme Court,
pursuant to the doctrine of hierarchy of courts. The remedy against the
decision of the CA is that of a petition for review under Rule 45, raising
purely questions of law before the Supreme Court. (St. Martin Funeral
Homes v. NLRC [1998])
SECRETARY OF LABOR
REMEDY: Motion for reconsideration as a precondition to filing a
special civil action for certiorari under Rule 65 (PHILTRANCO v.
PHILTRANCO Workers Union [2014])
The absence of a specific prohibition in Section 4 of Rule 65, for
the extension of the 60-day period to file a petition for certiorari
was construed as a discretionary authority of the courts to grant
an extension (Waterfront Cebu City Hotel v. Ledesma [2015])
PRESCRIPTION OF ACTIONS

An action for reinstatement by reason of illegal dismissal is based


on an injury to the complainants rights which should be brought within
4 YEARS from the time of dismissal under Art. 1146 of the Civil Code.
(Philippine Manufacturing v. Tagyamon [2013])
The prescriptive period continues even after withdrawal of the
case as though no action has been filed. While filing the complaint for
illegal dismissal interrupted the running of the prescription period, its
voluntary withdrawal leaves the petitioners in exactly the same
position as though no complaint had been filed at all. (Montero v.
Times Transportation Co., Inc., [2015])