Alternative Dispute Resolution - Philippine settings

1. LABOR
DISPUTE
RESOLUTION
SYSTEMS
NATIONAL CONCILIATION AND MEDIATION BOARDDepartment of Labor and Employment
1

2. Outline of Discussion
I.
Introduction
II.
Tiers of Dispute Resolution
Constitution & State Policies on
Labor Relations
III. Overview of Alternative Dispute
Resolution Systems
2

3. Book V (Labor Relations)
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Title I
Chapter I
Chapter II
Title II
Title III
Title IV
Title V
Title VI
Title VII
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Policy and Definitions
Policy
Definitions
National Labor Relations Commission
Bureau of Labor Relations
Labor Organizations
Coverage (Self-Organization)
Unfair Labor Practices
Collective Bargaining and Administration of
Agreements
Title VII-A – Grievance Machinery and VA
Title VIII – Strikes and Lockouts
Title IX
– Special Provisions
(incl. Miscellaneous Provisions)
3

4. Mistaken Notions
1. Compulsory Arbitration is the primordial option to
dispute resolution
2. Plant-level grievance resolution and voluntary
arbitration are exclusively attached to unionization
and collective bargaining
3. That less confrontational approaches to dispute
resolution such as conciliation and mediation
transpire only in a strike or lockout scenario
4. Workplace cooperation arrangements are peripheral
to the contours of Philippine labor relations law
4

5. Historical Overview
a)
Commonwealth Act 103 or First Labor Relations Law
(1936) – the State laid its “hands-off” plant-level labormanagement relations & a took compulsory arbitration
approach to dispute resolution with the creation of the
CIR
b)
RA 875 or Industrial Peace Act (1953) – abandoned
compulsory arbitration and introduced collective
bargaining
c)
PD 442 (1974 Labor Code) – development of grievance
handling, voluntary arbitration, workplace cooperation
and conciliation-mediation
d)
The 1987 Constitution and RA 6715
5

6. Tiers of Resolution
S/L
COMPULSORY
ARBITRATION
(NLRC/BLR)
ADR/VMSD
CONCILIATION-MEDIATION; PLANT-LEVEL GRIEVANCE RESOLUTION
AND VOLUNTARY ARBITRATION
6

7. Constitutional Basis
“. . . The state shall promote the principle of
shared responsibility between workers and
employers and the preferential use of
voluntary modes of settling disputes,
including conciliation, and shall enforce their
mutual compliance therewith to foster
industrial peace. . .” (Sec. 3, Art. 13 of the 1987
Philippine Constitution)
7

8. State Policies on Labor Relations
Article 211, Labor Code
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Primacy of collective bargaining
Provision of an adequate administrative
machinery for the expeditious settlement
of labor or industrial peace
Ensuring a stable but dynamic and just
industrial peace
Ensuring the participation of workers in
decision and policy-making processes
affecting their rights, duties and welfare
8

9. Alternative Dispute Resolution
(Voluntary Modes of Settling Disputes)

1987 Constitution and RA 6715 –
A shift of thrust in dispute resolution from
compulsory to voluntary arbitration in line
with the principle of shared
responsibility between workers and
employers and the preferential use of
voluntary modes of settling disputes.
9

10. Alternative Dispute Resolution
(Voluntary Modes of Settling Disputes)

The Secretary’s Directive –
Promotion of the principle of shared
responsibility between workers and
employers and the preferential use of
voluntary modes of settling disputes.
10

11. ADR/VMSD Framework
(under current Labor Laws)
ConciliationMediation
Grievance
Machinery/
Voluntary
Arbitration
LMCs/
EI/EP
Collective
Bargaining
11

12. Modes of Labor Dispute
Settlement

Bipartite/Plant-Level Mechanisms
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Collective Bargaining
Grievance Machinery
Labor-Management Committee/Council
Third-Party Level Mechanisms
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Conciliation-Mediation (NCMB)
Voluntary Arbitration (NCMB)
Compulsory Arbitration (NLRC)
Assumption of Jurisdiction (OSec)
Med-Arbitration (BLR/DOLE Regional Office)
12

13. Plant-Level
Mechanisms
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Collective Bargaining
Grievance Machinery
Labor-Management
Committees/Council
13

14. All these plant-level
mechanisms are
venue for
Negotiation
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Collective Bargaining
Grievance Machinery
Labor-Management Committees/Council
14

15. Collective Bargaining

Free collective bargaining is the primary mode of
settling labor and industrial disputes.

It is a process for labor and management to settle issues
respecting terms and conditions of employment.

This economic relationship could only exist between a
duly-selected or designated labor union or association
“dealing with” with the employer.

For this purpose, interference with the right to selforganization was considered an “unfair labor practice”,
the prevention of which was placed under the
jurisdiction of the NLRC.
15

16. Workplace Cooperation
Art. 255
 Upholds the rights of workers to participate in
policy and decision-making processes of the
establishment
Art. 277 (g)

DOLE is mandated to promote and develop LMC
programs at appropriate levels
16

17. Labor Management
Committees/Councils
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
In organized establishments, workers’ rep
shall be nominated by the exclusive
bargaining reps
In establishments w/ no legit labor
organization, workers’ rep shall be elected
directly by the employees at large
Rule XXI, DO 40-03
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18. LMCs
1.
Labor Management Council/Committees
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2.
Conflict Management
Joint-Problem Solving
Labor Management Cooperation
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Productivity
Occupational health and safety
Improvement of quality of work life
Product quality improvement
Other similar schemes
Rule XXI, DO 40-03
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19. Labor Management
Committees/Council
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
Venue for labor and management to
resolve issues of common concern
Both parties talk and listen to each
other in order to find mutually
acceptable ways of dealing with
common problems and issues
19

20. Labor-Management Cooperation

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LMC is defined as a proactive approach towards labor
dispute settlement at the shopfloor.
Its objectives are to foster better relations between labor
and management, to supplement the grievance process
when necessary and to supplement the CBA.
Benefits to be gained thru LMC are information sharing,
labor and management relate without being bogged down
in labor relations issues, a means to tap large reservoir of
know-how and creativeness of employees and enhances
organizational effectiveness
20

21. LMCs:Characterstics
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A voluntary body composed jointly of
representatives from workers and management
who meet to identify and resolve issues of
common interest. These issues, if there is a union
are normally outside the collective bargaining
agreement.
A non-adversarial relationship between labor and
management for resolving common problems and
reaching common goals.
21

22. LMCs:Characterstics
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A forum for discussion of problems that
might otherwise develop into disputes.
Another dimension to the employeremployee relationship and a significant
instrument for improving labor relations.
22

23. Subjects for Labor
Management Cooperation
A partial list of issues that may be discussed by the LMC are:
Improving communications
2. Training
3. Absenteeism
4. Safety and health issues
5. Productivity quality control
6. Elimination of excessive
waste
7. Emphasize morale
1.
8.
9.
10.
11.
12.
13.
14.
Productivity
Improvement of employee
knowledge and skill
Suggestion systems
Policies, rules and
regulations
Supervisor/ Employee
relationship
Job satisfaction
Causes of grievance
23

24. Grievance Machinery
Art. 260
 Parties to a CBA shall include provisions that
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 the
CBA and those arising from the interpretation or
enforcement of company personnel policies.
24

25. Grievance Machinery


This is the mechanism established under
the CBA for the adjustment and resolution
of grievances arising from the
interpretation or implementation of a CBA
or company personnel policies.
It is an appeal process and is a “must”
provision in every collective bargaining
agreement.
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26. Grievance Procedures

All grievances submitted to the GM but not
settled w/in 7-calendar days from date of
its submission shall be automatically
referred to voluntary arbitration.
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27. Grievance Machinery
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Resolution of disputes without resort to strikes
or lockouts
Successive steps should be clear
Adaptable procedure
Timely resolution of disputes
Sound and fair settlement, and not “winning”
cases
Discover causes of discontent
Support only right decisions of supervisors
Knowledge of CBA provisions
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28. LMC and Grievance Machinery
LMC
Grievance Machinery
It is a proactive process where
participants work on issues of mutual
interest as freely as possible to come up
with creative solutions.
It is a reactive process but offers the
parties multiple opportunities to resolve
the grievance at successfully higher
levels of the organization’s hierarchy
It is set up as a means for dialogue on
employee as well as employers concerns
It intends to promote friendly dialogue
between labor and management as a
means of maintaining industrial peace.
It is created
It is created
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To address employee and employer
concerns in a positive way, meaning to
resolve them now before they get bigger
To solve employee/employer problems in
proactive way, meaning to prevent them
through active dialogue, consultation,
communication, etc.
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To peacefully and systematically resolve
disputes through fact finding
To keep lines of communication open and
allow employees to voice concerns
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29. Default Grievance Procedure
Rule XIX, Sec. 2, DO 40-03
Applies to:
(a) CBAs with no specific procedures for
handling grievances; and
(b) Management personnel policies in
unorganized establishments that do not
prescribe such procedures.
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30. Default Grievance Procedure
Rule XIX, Sec. 2, DO 40-03
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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.
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.
30

31. Default Grievance Procedure
Rule XIX, Sec. 2, DO 40-03
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
If no settlement is reached, the grievance shall
be referred to the grievance committee which
have 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.
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32. Voluntary Arbitration

The terminal step in the parties’ grievance
machineries

A mode of settling labor-management
disputes by which the parties select a
competent, trained and impartial person
who decides on the merits of the case and
whose decision is final, executory and
binding
32

33. Voluntary Arbitration
Exclusive and Original Jurisdiction.
1. All unresolved grievances arising from the
interpretation or implementation of the collective
bargaining agreement.
2. All unresolved grievances arising from the
implementation or enforcement of company
personnel policies.
3. All wage distortion issues arising from the application
of any wage orders in organized establishments
4. All unresolved grievances arising from the
interpretation and implementation of the productivity
incentive programs under RA 6971.
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34. Voluntary Arbitration
Concurrent Jurisdiction.

Upon agreement of the parties, all other
labor disputes including unfair labor
practice and bargaining deadlocks
34

35. Voluntary Arbitration
The arbitrator acts in quasi-judicial capacity
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His/her decisions are w/in the ambit of judicial review by
the Court of Appeals or the Supreme Court (where there
is a question of law or where there is abuse of authority
or discretion).
His/her decision may be elevated to Court of Appeals
through Rule 43 appeals w/in the 15 days from notice of
decision/award.
From the Court of Appeals, the mode of appeal shall be
Rule 45 for review on certiorari to the Supreme Court.
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36. Voluntary Arbitration

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VA decisions are afforded highest respect
and as a general rule must be accorded a
certain agreements to and authority to
interpret measure of finality.
VAs have the plenary jurisdiction arbitrate
and determine his/her authority.
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37. Conciliation and Mediation
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The most widely accepted form of third party
assistance in labor dispute settlement in our
country
Available to parties when collective bargaining
negotiations reach a deadlock, and settlement
between parties has become remote.
Available to the union and management in the
settlement of unfair labor practice (ULP) acts
committed by management against the union and
vice-versa.
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38. Conciliation and Mediation

Conciliation
Limited to encouraging the parties to
discuss their differences and to helping
them develop their own proposed
solutions.

Mediation
A stronger form or intervention where a
mediator offers to the parties proposal for
settlement.
38

39. Conciliation and Mediation

Conciliation and mediation are used
interchangeably in the Philippines to
refer to the same kind of third party
intervention in promoting the voluntary
settlement of disputes.
39

40. Conciliation of LaborManagement Disputes
The Board provides conciliation-mediation
services to labor and management:
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Upon filing of Notices of Strike/lockout;
Upon request of either or both parties;
Upon its own initiative;
When a strike or lockout is declared
40

41. Compulsory Arbitration
In instances where a labor dispute is likely
to cause a strike or lockout in an industry
indispensable to national interest cases,
the President or the Secretary of Labor
and Employment are given the authority
to assume jurisdiction over a dispute or
certify it to the National Labor Relations
Commission (NLRC).
41

42. Compulsory Arbitration
Under the NLRC, compulsory arbitration is
available for types of cases such:
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Strikes and lockouts
Termination disputes
Unfair labor practices
Damages, in relation to cases under NLRC
jurisdiction
Reinstatement claims
Other money claims above 5,000 arising
from employer-employee relations
42

43. NLRC Jurisdiction
(Commission Proper)

Original – petitions for injunction
or temporary restraining order

Appellate – decisions of the
Labor Arbiters in the RABs
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44. DOLE Regional Offices
Jurisdiction
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Money claims 5,000 below (no claim for
reinstatement)
Inspections (even if employer liable for above
5,000 per employee)
Union and CBA Registration, voluntary
recognition matters (application, cancellation)
Med-arbitration cases (certification elections,
intra-union disputes)
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45. Med-Arbitration
Deals with intra and inter-union disputes

Representation is the most commonly raised
issue for purposes of collective bargaining

Representation process is litigious that it takes
time before a labor organization can
commence bargaining negotiations

The process is often mired in appeals that can
reach up to the Supreme Court.
45

46. BLR Jurisdiction

Original – cases involving federations
(registration, intra-federation disputes,
disaffiliation)

Appellate – decisions of ROs on union and
CBA registration concerns, voluntary
recognition, intra-union disputes
46

47. Office of the Secretary of
Labor

Art. 263 (g) of the Labor Code vests in
the Secretary of Labor and the President
of the Republic, in their discretion, the
power to assume jurisdiction in an
industry indispensable to the national
interest, or to certify it for compulsory
arbitration
47

48. SecLab Jurisdiction
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Original – assumption of jurisdiction
(notices of strike/actual strikes in
industries indispensable to the national
interest)
Appellate – inspections, certification
elections
Voluntary arbitration
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49. Labor Dispute Settlement
Processes
SETTLEMENT
ADJUDICATION
ENFORCEMENT
NCMB
 Labor-management
cooperation
 Grievance Machinery
 Conciliation-mediation
(PM, NS/L, AS)
Voluntary Arbitration (thru NCMB)
 CBA interpretation/ implementation
 CPP interpretation/ implementation
 All others defined as grievance by CBA
 Wage distortion issues
 Productivity incentive schemes
Office of the
Secretary (thru
BWC)
 Policy formulation
NLRC/DOLE ROs
 Compulsory Settlement
 Agreement on money
claims
Compulsory Arbitration (NLRC)
 ULP
 Termination cases
 Labor standards enforcement exceeding
P5000
 Damages arising from E-E relations
 Violations of compromise agreement
 Execution of VA awards
 Overseas employment
 Legality of strikes
DOLE ROs
 Labor standards
enforcement
49

50. Labor Dispute Settlement
Processes
SETTLEMENT
ADJUDICATION
ENFORCEMENT
Office of the Secretary
 Assumed Notice or Actual Strike cases involving
national interest
 Voluntary Arbitration cases
BLR
 Inter-intra-union disputes
 Election of officers
 CBA Registration
 Registration, revocation & cancellation cases of
federation, national, trade centers and public
sector unions
DOLE ROs
 Occupational safety and health violations
 Money claims from labor standard violations not
exceeding P5000 and w/out claim for
reinstatement
 Cancellation of POEA registration
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51. Labor Dispute Settlement
THRUST –
- All disputes arising from employment
shall be processed through conciliationmediation.
-
Compulsory arbitration/adjudication
comes in only after failure of
conciliation efforts.
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52. SALAMAT!
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