Revised Guidelines in the Conduct of Voluntary Arbitration

GRIEVANCE MACHINERY
-While there is a CBA, the State recognizes the possibility of a dispute between
interpretations.
-What is a grievance under the revised guidelines?
-Other questions that parties agree to be a grievance will be a "grievance".
-Grievance machinery (and voluntary arbitration) mandatory in CBA. No particular setup. If
no provision on grievance machinery or voluntary arbitration, IRR will apply.
-Grievance may be initiated by the union or employer.
-Grievable issues that are filed before the LA (for ULP) should be dismissed.
-Individual employee or group of employees can still present their grievance directly to the
employer.
-But individual employee or group of employees cannot bring that grievance using the
grievance machinery. Only the certified bargaining union.
-There should be grievance committee with equal representation from employer and
employee.

VOLUNTARY ARBITRATION
-If not resolved through grievance machinery, go to voluntary arbitration.
-Policy of the state to promote voluntary arbitration as a mode of settling disputes.
-ADR Law does not apply.
-2 types of arbitration: voluntary (agreement by the parties) and compulsory (compelled
by the government)
-Arbitration is referral of a labor dispute by the parties to an impartial third person where
these parties have agreed to be bound by that decision.
-Decision of the Labor Arbiter is final and executory (after 10 calendar days from receipt).
-Voluntary Arbitrator is a quasi-judicial instrumentality (not agency). VA performs a State
function pursuant to a governmental power delegated to him under the Labor Code.
-Decision of a VA may be reviewed by the Court of Appeals through Petition for Review
under Rule 43 (not the NLRC or SOLE). Reglementary period is 15 days from receipt of
order.
-Jurisdiction of VA (Sections 1 and 2, Rule IV).
-Remember these terminologies: Permananent and Adhoc Arbitrator (temporary),
Submission Agreement, Notice to Arbitrate, Arbitration Cause

LABOR MANAGEMENT COUNCIL (LMC)

-Workers have the right to participate in policy and decision-making processes insofar as
those processes directly affect their rights, benefits, and welfare, including the
establishment of a Labor Management Council.
-Case of Philippine Airlines - PAL created a cod of discipline w/o consulting the organized
union. SC ruled in favor of union and said that code of conduct, while management
prerogative, cannot be enforced w/o involving workers through the process of
consultation.
-LMC can exist whether establishment is organized or unorganized.
-Function of LMC is only on matters which are not covered by the CBA. Thus, it does not
handle wage increase provisions, vacation/sick leaves, union security clause, scope of
bargaining unit.
-LMC does not replace grievance procedure.
-LMC is a voluntary body and non-adversarial relationship between the establishment and
the workers. It is a forum for discussion of problems that might otherwise develop into a
dispute.
-Examples are committees on socials, livelihood, personnel and policies, productivity and
quality, recreation, benefits, safety and health, etc.
-If unorganized, the composition of LMC will be from the management appointees and
workers selected by at least majority of the employees in the establishment. Number
depends on them.
If organized, the composition of LMC will be from the management appointees and workers
selected by the certified bargaining union. Number depends on them.
-LMC does not exercise any quasi-judicial authority. Purely voluntary and non-adversarial.
-Right of workers to participate in policy and decision-making processes does not involve
principle of co-determination (practice where the employees have a role in the
management of the company). Co-determination is not applicable in the PH. Hence,
workers cannot manage the establishment.
-Workers cannot be appointed as members of the board of directors.