10

LABOR MANAGEMENT RELATIONS

INTENDED LEARNING OUTCOMES

By the end of the learning experience, students must be able to:

1. Define the terms used in labor management relations;
2. Discuss the labor organizations in the Philippines; and
3. Enumerate the requirements in the registration of a labor organization.

THE LABOR MOVEMENT

A labor union can be defined as an organization of employees that uses collective action to advance its
members interests in regard to wages, benefits, working conditions, and other terms and conditions of
employment.

The impact of unionization on productivity, profitability, and employee attitudes can be positive or
negative depending on the circumstances. The presence of a union significantly alters several HR
activities.

Unions typically try to extend their influence into other areas of management aside from wages and
benefits such as establishment of work standards, scheduling of work, subcontracting, and the
introduction of new equipment and methods which management claims as exclusive management
prerogatives.

Whether an employer succeeds in maintaining exclusive control over these prerogatives depends on
the relative strength of each side in collective bargaining and on the resolution of other conflicts, such
as grievances, strikes, and lockouts.

A BACKGROUND ON THE EARLY PHILIPPINE LABOR MOVEMENT

While it is contended that trade unions in the Philippines may be traced back to the years when this
country was still exerting efforts to extricate herself from the grip of Spain, Philippine trade unionism
did not begin to take healthy roots and development unti11901. In that year, Isabelo delos Reyes
formed the Union de Litografos e Impressores de Filipinas upon his return to the country from his exile
in Spain. He is thus acknowledged as the Father of Philippine trade unionism.

During this time, the workers were not protected by any labor law or accorded protection by the
government as there were hardly any labor law regulating labor and employment in the Philippines. As
a result, Filipino workers suffered a lot of injustices from the hands of the Spaniard employers. Without
state legislation to protect their rights, laborers and farmers often worked under extremely difficult
conditions. Filipino workers were often forced to give free labor to their Spanish masters.
Up to the 1960s, due to the oppression and excesses of landowners, farm laborers were burdened with
debt and were compelled to till the land of their masters. The passage of R. A. No. 3844 0n August 8,
1963 known as the Agricultural Land Reform Code made a slight improvement on the living conditions
of the tenants.

This legislation was strengthened by the passage of the Labor Code. It was on May 1, 1974 when the
former president, Ferdinand E. Marcos issued Presidential Decree No. 442,"a decree instituting a labor
code and consolidating labor and social to afford protection to labor, promote employment and
human resource development, and insure industrial peace based on social justice. "It took effect six
months from its promulgation on November 1, 1974.

Construction in favor of labor makes it explicit that all doubts in the implementation and interpretation
of the provisions of the Labor Code, including its implementing rules and regulations, shall be resolved
in favor of labor which further strengthened protection of workers.
The provisions of the 1935 Constitution on social justice and on the promotion of the employees were
also found inadequate. It was only in the plebiscite held on January 17, 1973 when the provisions of the
1973 Constitution on the protection of labor were made broader and more explicit.

After the EDSA Revolution that ushered the administration of President Corazon Aquino, a new
constitution was drafted, wherein a full section was devoted to the protection of labor. It also enjoins
the workers and employers to observe the principle of shared responsibility in running the enterprise.

From then on, the fundamental law of the land sets the broad policies regarding labor protection and.
Employment. Legislations have been enacted to translate these policies into specific terms. Most of
these find expression in amendments to the Labor Code and its implementing rules and guidelines.
Gradually, the wage earners secured social sanction for the right to organize.

THREE CATEGORIES OF EMPLOYEES

1. Managerial Employees
2. Supervisory Employees
3. Rank-and-file employees

DISTINCTION BETWEEN MANAGERIAL EMPLOYEES AND SUPERVISORY EMPLOYEES

The principal distinction between managerial employees and supervisory employees is that the former
have the "power to decide" and do managerial acts, while the latter have the power only "to
recommend" managerial acts such as laying down policy, hiring or dismissal of employees, and the like.

DISTINCTION BETWEEN A LABOR ORGANIZATION AND A WORKERS' ASSOCIATION

A labor organization is established principally for collective bargaining purposes, while a workers'
association is organized for the mutual aid and protection of its members but not for collective
bargaining purposes.
DEFINITION OF TERMS

a. Labor Relations-refer to that part of labor law which regulates the relations between employers and
workers. Example Book V of the Labor Code which deals with labor organizations, collective
bargaining, grievance machinery, voluntary arbitration, conciliation and mediation, unfair labor
practices, strikes, picketing, and lockout

b. Labor Standards-refer to that part of labor law which prescribes the minimum terms and conditions
of employment which the employer is required to grant to its employees.

c. Labor Organization-means any union or association of employees which exists in whole or in part for
the purpose of collective bargaining or of dealing with employers concerning terms and conditions of
employment.

d. Legitimate Labor Organization-any labor organization duly registered with the Department of
Labor and Employment (DOLE).

e. National Union or Federation-an alliance of a group of unions in one industry in any area, region, or
country.

g. Collective Bargaining-is the decision-making process where management and the union set the
terms and conditions of employment and the rules and procedures in the employee-Employer
relationship.

h. Collective Bargaining Agreement-the end result of collective bargaining refers to the negotiated
contract between a legitimate labor organization and the employer concerning wages, hours of work,
and all other terms and conditions of employment in a bargaining unit, including mandatory provisions
for grievances and arbitration machineries.

i. Labor Disputes-refer to questions or controversies regarding terms and conditions of employment,

including the ways by which such terms and conditions are negotiated,

j. Arbitration-represents the final stage in the dispute resolution process.

The grievance does not always result in an acceptable solution because when a deadlock occurs, labor
contracts call for arbitration. It has two kinds: voluntary and compulsory.

k. Strike-any temporary stoppage of work by the concerted action of employees as a result of an

industrial or labor dispute.

l. Lockout-the temporary refusal of any employer to furnish work as a result of an industrial dispute.

m. Labor Arbiter-the hearing officer of the National Labor Relations Commission

(M RC) and his decision is appealable to NLRC.

n. Union Security Agreement-a contractual agreement, usually part of a collective bargaining

agreement, in which union agree on the extent to which the union may compel employees to join the'
union, and/or whether the employer will collect dues, fees, and assessments on behalf of the union.
TYPES OF LABOR DISPUTES

 Rights Disputes-involves alleged violation of a right recognized by law, collective bargaining

agreement (CBA), contracts, or company policy.
 Interest Disputes-economic or bargaining dispute where the issues involved are not mandated
by law and could be negotiated.
 Labor Standards Disputes-include nonpayment or underpayment of wages and wage-related
benefits and violations of health and safety standards.
 Labor Relations Disputes-involves employee discipline, unfair labor practice, deadlocks, strikes,
etc.
 Welfare and Social Legislation Disputes-refer to claims arising from the failure of the employer
to comply with the social and welfare obligations under the law.

NATIONAL POLICY ON LABOR DISPUTE SETTLEMENT

The present national policy on labor dispute settlement is enunciated in the following instruments:
1. 1987 Constitution
Sec. 3, Article XIII provides
'The State shall promote the principle of shared responsibility between workers and
employers and the preferential use of voluntary modes in settling disputes, including conciliation, and,
shall enforce their mutual compliance therewith to foster industrial peace.

2. Labor Code, as amended by Republic Act 6716

Article 211 of the Code provides, among others
a. "... It is the policy of the State... To promote and emphasize the primacy arbitration,
mediation, and conciliation, as modes of settling labor of industrial disputes."
b. “”To provide adequate administrative machinery for the expeditious settlement of
labor or industrial disputes.””

EARLY POLICIES ADOPTED BY THE GOVERNMENT ON SETTLING LABOR DISPUTES

Philippine labor policy may be said to have evolved over four periods:
A. Commonwealth Period (1936-1953)
Commonwealth Act No. 103 established our first labor dispute settlement system by creating. The
Court of Industrial Relations and vesting it with compulsory arbitration powers over labor disputes
involving both workers in the private sector and in government-owned or controlled corporations.
B. Industrial Peace Act Period (1953-1972)
In 1953, Republic Act No. 875 was enacted fundamentally changing the framework of labor
relations policies from that of compulsory arbitration to collective bargaining. The 'Act
severely restricted the compulsory arbitration powers of the Court of Industrial Relations (CIR).
The latter was divested of the power to set wages, rates of pay, hours of work, other terms or
conditions of employment, or otherwise regulate the relation between employers and
employees, as a compulsory arbitration body, except in labor disputes involving industries
indispensable to the national interest.
C. Martial Law Period (1972-1986)
 It was during the period of martial law that voluntary arbitration became an integral part of the
Philippine labor relations policy. This period was also marked by the banning of strikes in the
so-called vital industries." To cushion the impact of the strike ban, presidential Decree No. 21
was issued creating the National Labor Relations Commission, which exercised original
jurisdiction over practically all kinds of labor disputes.
D. Post-Martial Law Period (1986-present)
There was emphasis on the promotion of voluntary modes of dispute settlement. By virtue of
Executive Order No. 126, which reorganized the Department of Labor and Employment, the
National Conciliation and Mediation Board (NCMB) was created to oversee the
implementation of the constitutional policy of promoting the preferential use of the voluntary
modes of dispute settlement, including conciliation.
Republic Act 6715 introduced amendments to the Labor Code which strengthened trade
unionism and collective bargaining as essential elements of an effective labor dispute
settlement system.

DIFFERENT MODES OF SETTLING LABOR DISPUTES

1. Negotiation
a. Parties control the process.
b. Parties engaged in verbal interaction completely in their own terms
c. Decision is made by the two conflicting parties.
d. Outcome is whatever the parties agree to.
e. Applied to the nonunionized or unorganized group of workers in the private and government
sectors
2. Collective Bargaining
a. Decision-making process between union and management
b. Aims to set the terms and conditions of employment and procedures in the employer-
Employee relationship
c. Aims to ensure that the agreement is enforced through the grievance machinery with
voluntary arbitration as the last step in the process
3. Grievance Machinery
a. Internal rules of procedures intended to resolve all issues arising from the implementation and
interpretation of the collective bargaining agreement
b. Part of the continuous process of the collective bargaining. Intended to promote friendly
dialogue between labor and management as a means of maintaining industrial peace
4. Mediation
a. Similar to conciliation although the mediator is expected to put forward settlement proposals
b. Parties fully participate in deciding issues and in creating, evaluating, and solving the conflict to
come up with a win-win solution.

When is Mediation Useful?

a. When parties want to resolve the conflict.
b. When parties are able to verbalize the cause of their distress.
c. When they need to continue or maintain a relationship
d. When they have issues that are complicated by strong emotions
e. When they feel uncomfortable confronting the other
f. When they are able to live up to their promises
Benefits of Mediation

a. It is time saving.
b. It costs a fraction of 10% of litigation.
c. It is private and confidential
d. It restores relationships.
e. It improves understanding of underlying issues.
f. It does not close doors to other options if the parties are not satisfied.
g. It is proven to be more successful in the Philippines.

5. Conciliation
a. Occurs when a conciliator-mediator intervenes in a negotiation
b. Conciliator cannot decide upon the dispute.
c. Can only reconcile the dispute by facilitating the meeting of the minds
d. In the meeting with the conciliator, the disputing parties are given the chance of state their
demands and position with the aim of reaching a variable agreement.

ROLE OF CONCILIATOR-MEDIATOR

An officer of the NCMB has the principal function to assist in the settlement of labor disputes through
conciliation and preventive mediation, including the promotion and encouragement of voluntary
approaches to labor disputes prevention and settlement.

6. Arbitration
a. Process where a third party, the arbitrator, decides upon the agreement or award in a labor
dispute
b. A quasi-judicial process in which the parties agree to submit an unresolved dispute to a third
neutral party for binding settlement
c. Represents the final stage in the dispute resolution process. The grievance does not always
result in an acceptable solution because when a deadlock occurs,. Iabor contracts call for
arbitration.

TWO KINDS OF ARBITRATION

a. Voluntary Arbitration-the parties agree to submit themselves to arbitration.
b. Compulsory Arbitration-parties are compelled or ordered to submit themselves to arbitration in
case there is deadlock during collective bargaining.

AUTHORITY OF AN ARBITRATOR
a. Investigate and hear the ease upon notice of the parties
b. Render an award (decision) based on the contract and record of the case
c. Set and conduct hearing, attendance of witnesses and proof documents
d. Conduct fact-Ending and other modes of discovery
 e. Conduct reopening of hearing
f. Modify any provision of existing agreement upon which a proposed change is submitted for
arbitration

UNIONISM IN THE PHILIPPINES

Unionization and labor action have dwindled. According to the Bureau of Labor and Employment
Statistics, one of the department bureaus of DOLE if one will look at the percentage of labor union
members to total wage and salary workers, there is a notable decline from 30. 7% in 1982 to 29. 5 in
1993 down to 10. 6% in 2009.

But for labor leaders and those who are active in the labor movement, they claim that the prevalent
practice of contractualization has been the main culprit in the reduction of union membership on a
national scale. Remollino cited the case of I1aw at Buklod ng Manggagawa (IBM), the union of workers
of the San Miguel Corporation (SMC) conglomerate, the country’s largest food and beverage
corporation. According to Remollino, it used to be a showcase of what being a strong union was all
about. During the early 1990s, majority of San Miguel’s then 39,000 strong workforce were members of
IBM. Remollino mentioned that out of 26,000 employees, only 1,100 remained as regular employees
and members of the union at the same time. This was based, on the interview with Ka Neri, a full-time
KMU organizer working with the IBM union who is also a former contractual employee at SMC. This,
according to him, was brought about by contractualization in the workplace. There were several
employees who were laid-off, got dismissed, or had availed early retirement and then they were
replaced with contractual employees with lower wages.

Added to this, certain processes are already contracted out by big companies.
This paved the way for the growth of business process outsourcing here in the Philippines. For example,
in the case of PLDT, installations of new telephone lines are now being done by contractuals who are
hired by agencies. These contractual are paid by piecemeal where their pay depends on the number of
telephone lines they installed ; no installation, no pay.

CONTRACTUALIZATION AND UNIONISM

Based on the data from the Bureau of Labor Relations (BLR), there was a sharp slide in union
membership from 2001 during the presidency of Gloria Macapagal-
Arroyo. Union membership decreased from 3. 85 million in 2001 to only 1. 47 million in 2002. The
number of union members decreased by almost half.

The sorry state of unionism in the Philippines is further emphasized when one looks' at the total
number of the labor force. As of January 2012, only 64. 3% of the 40. 316-million labor force is
employed. The total union membership as of January 2012 is only 5. 7 percent of the country's
employed labor force.

This, according to Remollino, was brought about by contractualization.

Based on Department Order (DO) No. 10 issued by DOLE, contracting and subcontracting
arrangements are expressly allowed by law. With this DO issued by DOLE, big companies started to
outsource rather than hire employees. As claimed by experts, the business process outsourcing industry
is considered as one of the fastest business sectors in the world including the Philippines. On the other
side of the fence, this practice has led in the reduction of union membership on a national scale.
Another culprit to this decline is the issue on globalization. What came alongside globalization was the
practice of most companies to focus more on market efficiency,. Increase of return of investments
(ROis), low-cost procedures, among others. According to Guerrero, a clear manifestation of this trend is
the growing incidence of labor contractualization, casual, and temporary employment not only by large
and multinational companies, but also by medium- sized ones. These labor practices enabled
companies to have a clear edge over less competitive ones that eventually just fade out inevitably
displacing quite a number of employees 107, 439 companies not renewing registration in 2003, nearly a
million workers were dispatched. 82 This is another reason why there is continuous decline when it
comes to union membership in the Philippines. Although the provisions in the labor code are very
specific when it comes to workers 'protection, these usually cover only regular employees.

As pointed out by Guerrero, with the massive trend toward contractualized labor characterized by less
benefits, fragile security and tenure, and lower overhead, occurrences of high attrition are all
detrimental to non-regular employees. It is now easy to remove contractual employees be it in the
enterprise level or macroeconomic level. In the case of Shoe Mart (SM), for example, it is difficult to
organize and maintain a labor union considering employees change every now and then. With all these
developments, it is no longer surprising to note the weakening of labor movement in the country.

UNIONS' CONTRIBUTIONS AND EFFECTS

1. To the Employee
a. Improvement of working rules, protection from the employer, and increase in job
security
b. The grievance procedure negotiated by the union assures an employee full and just
consideration of his/her complaint.
c. Better terms and conditions of employment through bargaining collectively with
management

2. To the Employer
a. Lost the power to set wages without prior discussion with the union
b. Limited power to terminate or discipline employees
c. Union may provide management with useful information about the status of employee
morale
d. Cooperation in the grievance procedure can prevent minor complaints from growing
into major issues.

LABOR ORGANIZATIONS IN THE PHILIPPINES

1. The Trade Union Congress of the Philippines (TUCP), with 1. 2 million members, is the biggest
confederation of labor federations in the Philippines. It was founded on December 14, 1975 by
23 labor federations which saw the necessity and importance of, uniting themselves into a
strong and dynamic labor center. Today, the TUCP, as the most representative labor center in
the country is composed of almost 30 federations with members in all sectors and industries
 (from agriculture to manufacturing to services) including government employees. It also has
members coming from associations/organizations of groups from the OFWs, informal sector,
drivers, urban poor, youth groups, cooperatives, alliances, coalitions, and other civil society
groups.
2. The Partido ng Manggagawa (PM) was born on the very day the late labor leader Filemon "Ka
popoy" Lagman was laid to rest (February 2001) in the very place where the working class
champion was treacherously slain. The triumphant formation of the Partido ng Manggagawa
amidst the trying times marks the assumption of the working class to the center stage of the
country's
3. The Alliance of progressive Labor (APL) is a "national labor center." APL was formally organized
on November 1996 through a National Founding Congress. It is committed to the advancement
of social movement unionism-a strategy directed at recognizing, organizing, and mobilizing all
types of workers and unions for engagements in different arenas of struggle. It recognizes the
broadness of workers' interests and the diversity and complexity of work arrangements. As
such, it is geared toward the struggle for 'workers' rights in all aspects-economic, political, and
socio-cultural-and at all levels local, national, and global. In short, the strategic objective of
social movement unionism is nothing less than social transformation.
4. The Bukluran ng Manggagawang Pilipino (BMP) is a labor organization comprised of militant,
socialist, and democratic workers and unions. More than 200 local unions nationwide with mass
membership of over t00, 000 make up BMP. It also influences 800 independent unions with
mass membership of over 200, 000 through the Kapatiran ng mga PanguIo ng Unyon sa
Pilipinas (KPUP), a fraternal organization of local union presidents in the Philippines. BMP
unions are organized in manufacturing and service industries, chemicals and mines, agriculture,
construction, and transport sectors.

WHO MAY JOIN UNIONS?

The Labor Code has enunciated, among others, the policy of the State- to promote free trade unionism
as an agent of democracy, social justice, and development and to rationalize and restructure the labor
movement in order to minimize or avoid conflicts. The employees covered by this provision include all
persons employed in commercial, industrial, and agricultural enterprises, including religious, charitable,
medical, or educational institutions operating for profit.

Ambulant, intermittent, and itinerant workers, self-employed people, rural workers, and those without
any definite employers may form labor organizations for their mutual aid and protection.

EMPLOYEES RIGHT TO SELF-ORGANIZATION

Right of employees in the public service. Employees of government corporations established under the
Corporation Code shall have the right to organize and to bargain collectively with their respective
employers. All other employees in the civil service shall have the right to form associations for purposes
not contrary to law.

Exempted from this Provision:

1. Security guards and other personnel employed for the protection and security of the person,
properties, and premises of the employer
 2. Managerial employees
3. Employees of religious, charitable, medical, and educational institutions not operating for
profit provided the latter do not have existing collective agreements or recognized unions at
the time of the effectivity of the Code nor have voluntarily waived their exemption.

FORMS OR UNION SECURITY

 Closed shop- The employer agrees to hire only union members.

 Union shop- The employer may hire anyone regardless of union membership status, but the
employee must join the union within a set time period (such as 30 days) if the employee wants
to retain his/her job in the organization. Agency shop. The employer may hire anyone
regardless of their union membership status, and the employee need not join the union.
However, all non-union employees must pay a fee (known as the" agency fee") to the union to
cover the costs of collective bargaining.
 Open shop- The employer may hire anyone regardless of their union voluntary membership
status, and the employee need not join the union. Membership is voluntary.
 Dues check off- A contract between the employer and union where the employer agrees to
collect the dues, fees, assessments, and other monies from union members and/or
nonmembers directly from each worker's paycheck and transmit those funds to the union on a
regular basis.

REQUIREMENTS IN THE REGISTRATION OF LABOR ORGANIZATION

a. Fifty pesos (P50. 00) registration fee

b. The names of its officers, their addresses, the principal address of the labor organization, the
minutes of the organizational meetings, and the list of the workers who participated in such
meetings
c. The names of all its members comprising at least twenty percent (20%) of all the employees in
the bargaining unit where it seeks to operate (as amended by Executive Order No. 111,
December 24, 1986)
d. If the applicant union has been in existence for one or more years, copies of its annual financial
reports and
e. Four (4) copies of the constitution and bylaws of the applicant union, minutes its adoption or
ratification, and the list of the members who participated in it.

RIGHTS OF A LEGITIMATE LABOR ORGANIZATION

a. To act as the representative of its members for the purpose of collective bargaining
b. To be certified as the exclusive representative of all the employees in an appropriate bargaining
unit for purposes of collective bargaining
c. To be furnished by the employer, upon written request, with its annual audited financial
statements, including the balance sheet and the profit and loss statement, within thirty (30)
calendar days from the date of receipt of the request, after. The union has been duly recognized
by the employer or certified as the sole and exclusive bargaining representative of the
 employees in the bargaining unit, or within sixty (60) calendar days before the expiration of the
existing collective bargaining agreement, or during the collective bargaining negotiation
d. To own property, real or personal, for the use and benefit of the labor organization and its
members
e. To sue and be sued h its registered name; and
f. To undertake all other activities designed to benefit the organization and its members,
including cooperative, housing, welfare, and other projects not contrary.
UNFAIR LABOR PRACTICES OF EMPLOYERS (PRACTICES PROHIBITED BY LAW)

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/the 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.
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 attorney’s fees to the union or its officers or &gents as part of the
settlement of any issue in collective bargaining or any other dispute or
i. To violate a collective bargaining agreement.

CONTENTS OF THE CONTRACT AGREEMENT

1. Recognition and Union Security

2. Management Rights
3. Grievance Procedure
4. Arbitration of Grievance
5. Disciplinary Procedure
6. Compensation and Benefits Provisions
7. Hours of Work
8. Layoff Procedure
9. Health and Safety Provision
10. Employee Security and Seniority Provisions
11. Contract Expiration Date

COLLECTIVE BARGAINING PROCESS

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 hay request for a
conference which shall begin no 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
that 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.

BARGAINING IMPASSES/DEADLOCK

This takes place when neither side is willing to give in. It refers to the failure of both the employer and
the employees to arrive at the terms and a condition of the latter's employment despite previous efforts
to arrive at a compromise. When there is an impasse, any of the following might take place:
1. Strikes-occur when employees refuse to work to make greater concessions at the bargaining
table.
2. Injunction-the employer obtaining a court order or restraining order to prevent the workers
from engaging in strikes in specified situations.
3. Lockout-the employer refuses to furnish work to their workers by getting non-union members
as substitutes for the plant's continuous operation.
4. Picketing-when a union calls a strike, it usually establishes picket lines to advertise the strike
and discourage the employer from continuous operations. It is the act of strikers where they
patrol back and forth, carry placards or banners with statements relating to the dispute, and
distribute literatures at the entrance of the company's gate.
5. Third party intervention-both parties have to agree to use, any of the third party interventions
a. Mediation and conciliation
b. Fact-finding
c. Arbitration

GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION

The parties to a collective bargaining agreement shall establish machinery for the adjustment and
resolution of grievances arising fk6m 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.

PROCEDURAL BUT MANDATORY REQUISITES OF A LAWFUL STRIKE OR LOCKOUT

There are seven (7) mandatory requisites, namely:

First requisite: Valid and factual ground
a. Valid grounds:
1. CBA deadlock
2. Unfair labor practice (ULP)
b. No other grounds are allowed except the two mentioned above.

The following grounds, therefore, may not be properly cited as valid grounds for a strike or lockout in
view of the pertinent provisions of the Labor Code, authoritative labor issuances and jurisprudence:
1. Violation of collective bargaining agreements\ except those which are gross in character.
Under Article 261, simple violation of the CBA is no longer treated as unfair labor practice but
as mere grievance which should be processed through the grievance machinery in the CBA. It
becomes all unfair labor practice only when it is gross in nature which means that there is
flagrant and/or malicious refusal to comply with the economic provision s of such agreement
by either the employer or the union.
2. Inter-union or intra-union disputes. The reason is that these issues are resolved following the
mediation-arbitration procedures prescribed by law and not through the staging of a
strike/lockout.
3. Issues already assumed by the DOLE Secretary or certified by him to the NLRC for compulsory
arbitration. Once the Secretary of Labor and Employment assumes jurisdiction over a labor
dispute affecting national interest or certifies the same to the NLRC for compulsory
arbitration, the issues involved in said labor dispute can no longer be invoked by the union in
staging a strike or by management in conducting a lockout.
4. Issues already brought before grievance machinery or voluntary arbitration.
5. Issues already brought before compulsory arbitration.
6. Issues involving labor standards.
7. Issues involving legislated wage orders. Under Republic Act No. 6727, otherwise known as the
Wage Rationalization Act, a strike is illegal if based on alleged salary distortion. Solution to the
problem of wage distortions shall be sought by voluntary negotiation or arbitration, and not by
strikes, lockouts, or other concerted activities of the employees or management.

Second requisite: Notice of strike or notice of lockout

a. Med to file notice

1. In case of ULP 15 days from intended date of strike/lockout
2. In case of CBA deadlock 30 days from intended date thereof
b. Parties who may E1e notice
1. Certified union, in case of strike
2. Employer in case of lockout
c. Where to 61e notice National Conciliation and Mediation Board or NCMB

Third requisite: A notice must be served to the NCMB-DOLE at least twenty-four (24) hours prior to the
taking of the strike/lockout vote by secret balloting, informing said office of the decision to conduct a
strike vote/lockout vote, and the date, place, and time thereof.

This requisite is designed to:

a. Inform the NCMB of the intent of the union to conduct a strike vote
 b. Give the NCMB ample time to decide on whether or not there is a need to supervise the
conduct of the strike vote to prevent any acts of violence and/ or irregularities attendant
thereto ; and
c. should the NCMB decide on its own initiative or upon the request of an interested party
including the employer, to supervise the strike vote, to give it' ample time to prepare for the
deployment of the requisite personnel, including peace officers if need be.

Fourth requisite: Strike vote or lockout vote

a. Majority approval of strike or lockout is required.

b. Strike vote still necessary even in case of union-busting.

Fifth requisite: Strike vote report or lockout vote report

a. When to submit strike or lockout vote report : at least 7 days prior to strike or lockout, as the
case may be
b. Effect of non-submission of strike vote to NCMB, DOLE : strike or lockout is illegal

Sixth requisite: Cooling-off period

General rule:
1. In case of CBA deadlock 30 days
2. In ease of ULP 15 days

Seventh requisite: 7-day waiting period or strike ban

a. Cooling-off period and waiting period, distinguished Waiting period is counted from the time of
submission of strike vote report to NCMB Cooling· off period is counted from the filing of the
Notice of Strike/Lockout with NCMB.
b. Purpose of the 7-day waiting period: To ensure that the strike vote was indeed taken and that
the majority of the members approved of it.
c. Deficiency of even one day of the 7-day strike ban or cooling-off period) makes the strike illegal.