Wage Distortion
Wage Distortion
Wage Distortion
Labor Standards
Its causes; resolution; Contents of CBA; and Definition of Organized
and Unorganized.
A newly government-decreed
increase in minimum wage
(wage order) .
Merging of two companies, with
differing classification of
employees and different wage
rates) and the surviving
company absorbs ALL the
employees of the dissolved
corporation.
Both resulted to an
elimination
or
severe
contraction of intentional
quantitative difference in
wage or salary rates
between
and
among
employee groups in an
the establishment as to
effectively obliterate the
distinction existed prior to
the decreed wage order or
merger.
Passage of Wage
Rationalization Act (RA 6727) .
Both
resulted
to
an
elimination
or
severe
contraction of intentional
quantitative difference in
wage or salary rates between
and among employee groups
in an the establishment as to
effectively
obliterate
the
distinction existed prior to the
decreed wage order or
merger.
4th Concept:
Should a wage distortion exist, there is no legal requirement that, in the rectification of
that distortion by re-adjustment of the wage rates of the differing classes of employees,
the gap which had previously or historically existed be restored in precisely the same
amount. In other words, correction of a wage distortion may be done by re-establishing
a substantial or significant gap (as distinguished from the historical gap) between the
wage rates of the differing classes of employees.
Reference: (Prubankers Association vs. Prudential Bank and Trust Co. 302 SCRA 74, reiterated
in Bankard Employees Union-Workers Alliance Trade Unions vs. NLRC, G.R. No. 140689,
Feb. 17, 2004)
Organized establishment
Refers to an establishment where there exists a recognized or
certified sole and exclusive bargaining agent.
Unorganized establishment
Refers to an establishment where there exists no recognized
union or collective bargaining agreement.
Wages;
Hours of Work;
Compulsory Arbitration
A process of settlment of labor disputes
by a government agency which has the
authority to investigate and make
award
which is binding to all parties.
The Regional Arbitration Branch of the
NLRC has the original and exclusive
Jurisdiction to hear and decide the
issue.
Voluntary Arbitration
Voluntary Arbitrators must be those named in the
CBA. (Permanent Arbitrators)
If not named, the selection must be done in
accordance with the procedure for selection of VAs
provided in the CBA. (ad hoc Arbitrators)
If both parties fail to select a VA or panel of VAs, the
NCMB shall designate a VA pursuant to the
procedure for selection of VAs in the CBA. (ad hoc
Arbitrators)
Grievance Procedure
Grievance Machinery or Procedure (Article 266 of Labor Code)
The parties to a collective bargaining agreement shall establish a machinery for
the adjustment and resolution of grievances arising from:
If not
granted
or
Voluntary Arbitration
Voluntary Arbitration
If one/both fail to
Submit for VA
Court of Appeals
NLRC-RAB For
Compulsory Arbitration
Mandatory Conference
Amicable Settlement
ORDER
Position
Papers
Supreme
Court
Decision after evaluation
Of the case
Conciliation
-
Mediation
-
Conciliator Mediator
-
Service of copy
or request to
other party
Parties may
appear in their
own behalf or by
representatives
In case of bargaining
Who may file:
deadlocks, the notice shall as
a.Any certified or duly
far as practicable, further
recognized
bargaining
Contents:
state
representative
may
fileaddresses
a
a.names
and
of the
a.the unresolved issues in the
notice oremployer
declare aand
strike
orunionto file:
Where
the
bargaining negotiations and
request for
preventive a.shall be filed with the
involved,
be accompanied by the written
mediation
in cases
ofof regional
branch
b.the
nature
the industry
to having
bargaining
deadlocks
and
jurisdiction
over the workplaceproposals of the union,
which
the employer
belongs,
b.the counterproposals of the
unfair labor
practices.
the union members.
c.the
number ofofunion
b.The employer
may
- Where two or more employer and
members
andfile
ofathe workers
Cooling
off period:
c.the proof
of a request
for
notice orindeclare
lockoutregional
or
the bargaining
unit, branches have
a.Bargaining
deadlock
30
conference
to
settle
the
request for
preventive
jurisdiction
over the
d.and
such other
relevant data
days
differences.
mediation
the facilitate
same cases.
workplace,
the Branch that
asinmay
the
b.Unfair labor practice 15
c.In the absence
of of
certified
or
shall
first received the notice
settlement
the
dispute
days, except:
duly recognized bargaining
shall acquire jurisdiction over
a. Dismissal from
representative, any legitimate
the dispute to the exclusion of
employment of union
labor organization in thethe other/s.
officers
In
cases
of
unfair
labor
establishment may file a
- By written agreement
notice, request preventive
of both parties the venue of practices, the notice shall, as
mediation or declare a strike
the dispute shall be deemed far as practicable, state
a.the acts complained of and
but only on grounds of unfair
waived.
the efforts taken to resolve the
labor practice.
dispute amicably.
Preparation of
the Agreement
- Extra care must be taken in drafting the Agreement in order to
minimize doubtful or vague interpretation that might result to further
disagreement or worsening of the problem.
- The Conciliator must see to it that the agreement must be clear and
concise and must contain all points of the parties' understanding.
Implementation
and Compliance
- The conclusion of an agreement does not per se terminate the
responsibility of the Conciliator over the case.
- He must monitor the implementation and compliance therewith to
ensure that the parties have indeed normalized their relationship.
Submission of
Reports
- All Conciliators must regularly submit the necessary progress
reports to the NCMB Central Office through the Directors II for
cases of labor standard laws or wage distortions, copy furnished
the Regional Director or Executive Labor Arbiter concerned,
utilizing, the form prescribed for the purpose.
- The Final Conciliator's Report shall be submitted to the Office of the
NCMB Executive Director IV utilizing the outline prescribed by the
Board
If unsettled by CM
Any or both parties involved in the dispute may preterminate the conciliation-mediation proceedings and
request referral or endorsement to the appropriate
DOLE agency or office which has jurisdiction over the
dispute, or if both parties so agree, refer the
unresolved issues to voluntary arbitration
Art 228 (b) by RA 10396
Voluntary Arbitrator
Initial Conference
- Parties
encouraged to
explore all
possible means
of effecting a
settlement of the
dispute
Should parties
arrive at any
agreement as to
the whole or any
part of the
dispute, the same
shall be reduced
in writing and
signed by the
parties before the
Voluntary
Arbitrator
VA shall direct parties to submit verified position papers and other pleadings
on the dates agreed upon during the initial conference
These papers shall cover only issues and causes of action raised in the
submission agreement, notice to arbitrate or appointments of VA, and
stipulation of facts, as simplified and clarified during the initial conference
These shall be accompanied by supporting evidence including affidavits of
witnesses which shall take form if direct testimonies
Determination of Necessity of a
Formal Hearing
Hearing Proper
Arbitration Conference
Immediately after the submission of the position papers and other pleadings,
the voluntary arbitrator shall determine the need for holding a formal hearing
where at his discretion, clarificatory questions may be asked from witnesses
to further elicit information material to the case.
1. Presentation of witnesses
2. Direct and cross examination
3. Redirect and re-cross examination
VA shall
- provide the parties adequate opportunities to be heard
- Control the proceedings and see to it that proper decorum is observed
- Must treat all significant aspects of the proceedings as confidential in
nature unless waived
Decision
Writ of execution
- In instances of non-compliance ,
a motion to enforce/execute
award may be filed with the VA
- In case of absence of VA, motion
shall be filed with Labor arbiter in
the region having jurisdiction
over the workplace
Venue:
-All cases which Labor Arbiters have authority to hear and decide
may be filed in the Regional Arbitration Branch having jurisdiction
over the workplace of the complainant or petitioner.
non-litigious in nature
the technicalities of law and procedure and the
rules obtaining in the courts of law shall not strictly
apply thereto.
Issuance of Summons
Consolidation of Cases
Objection to consolidation shall be
resolved by the Executive Labor Arbiter
Service of Summons
Service of Summons
Motion to dismiss
Before the date set for the mandatory
conciliation and mediation conference
Grounds
-lack of jurisdiction over
the subject matter,
-improper venue,
-res judicata,
-prescription and
-forum shopping
Purpose:
1.amicably settling the case upon a fair compromise;
2.determining the real parties in interest;
3.determining the necessity of amending the complaint and
including all causes of action;
4.defining and simplifying the issues in the case;
5.entering into admissions or stipulations of facts; and
6.threshing out all other preliminary matters.
non-appearance of the
complainant or petitioner
during the two (2) settings,
shall be a ground for the
dismissal of the case without
prejudice
non-appearance of the
respondent during 2 settings,
considered to have waived
right to file position paper
LA terminate CM proceedings
and direct petitioner to file
verified position paper
- No postponement shall
be allowed, except upon
meritorious grounds and
subject to the
requirement of
expeditious disposition of
cases.
The conference shall be
terminated within thirty
(30) calendar days from
the initial conference.
non-appearance of any of
the parties during the
conference, despite due
notice, proceedings shall
be conducted ex-parte.
Thereafter, the case shall
be deemed submitted for
decision.
In case of reinstatement,
1.a statement that the
reinstatement aspect is
immediately executory;
and
2.a directive for the
employer to submit a
report of compliance
within ten (10) calendar
days from receipt of the
said decision
PERIODS of APPEAL
Appeal to NLRC
Filed with RAB or Regional Office where
case was heard and decided
- Decisions, awards, or orders of the Labor Arbiter shall be final and executory
unless appealed to the Commission by any or both parties within ten (10)
calendar days from receipt thereof
Grounds:
1.If there is prima facie evidence of abuse of discretion on the part of the
Labor Arbiter or Regional Director;
2.If the decision, award or order was secured through fraud or coercion,
including graft and corruption;
3.If made purely on questions of law; and/or
4.If serious errors in the findings of facts are raised which, if not corrected,
would cause grave or irreparable damage or injury to the appellant.
Requisites:
1.filed within the reglementary period
2.verified by the appellant himself/herself
3.in the form of a memorandum of appeal which shall state the grounds
relied upon and the arguments in support thereof, the relief prayed for, and
with a statement of the date the appellant received the appealed decision,
award or order;
4.in three (3) legibly typewritten or printed copies; and
5.accompanied by:
a) proof of payment of the required appeal fee and legal research fee;
b) posting of a cash or surety bond as provided in Section 6 of this
Rule; and
c) proof of service upon the other parties.
The appellee may file with the Regional Arbitration Branch or Regional Office
where the appeal was filed, his/her answer or reply to appellant's
memorandum of appeal, not later than ten (10) calendar days from receipt
thereof. Failure on the part of the appellee who was properly furnished with a
copy of the appeal to file his/her answer or reply within the said period may be
construed as a waiver on his/her part to file the same. .
COMMISSION
24 members
Public sector
(Presiding
Commissioner)
EN BANC
Presence of Majority
shall constitute a quorum
Majority of quorum shall
be decision en banc
8 Divisions
Worker Sector
Employer
Presence of 2
commissioner shall
constitute a quorum
concurrence of two (2)
Commissioners shall be
necessary for the
pronouncement of a
judgment or resolution
conclusions of a
Division on any case or
matter submitted to it for
decision shall be
reached in consultation
before the case is
assigned to a member
for the writing of the
opinion - mandatory
In case of inhibition,
Chairman may designate a
Special Division or assign
the case to another
Division
Should any member of a
Division indicate his/her
intention to write a
dissenting opinion, he/she
may file the same within
the period prescribed for
deciding or resolving the
appeal
Conciliation and
Mediation
FORM OF
DECISION,
RESOLUTION
AND ORDER
FINALITY OF
DECISION OF
THE
COMMISSION
AND ENTRY OF
JUDGMENT