Strikes and Lockout

1. What is alternative dispute resolution (ADR)?

Alternative Dispute Resolution means any process or procedure used to
resolve a labor dispute through conciliation, mediation, voluntary arbitration,
or plant-level bipartite mechanisms, such as labor-management cooperation
(LMC) and grievance machinery.
2. What is conciliation-mediation?
Conciliation-mediation is a non-litigious, non-adversarial, less expensive and
expeditious mechanism in assisting the parties towards voluntarily reaching
their own mutually acceptable settlement to the labor dispute. Under this
informal set-up, the parties arrive at an amicable settlement without going
through legal procedures.
3. Who can avail of conciliation and mediation services?
Any party to a labor dispute, whether an individual, union or management,
can avail of the conciliation mediation services at the National Conciliation
and Mediation Board (NCMB) and its Regional Branches thru a request for
assistance, notice of preventive mediation or notice of strike/lockout.
4. What are the issues that may be the subject of preventive
mediation?
A preventive mediation may be filed by an individual, union or management
on any issue arising from violation of the right to self-organization, including
issues for notice of strike or lockout, to avoid the occurrence of actual labor
disputes.
5. Suppose the issue on preventive mediation is not settled, what
action may be taken?
The individual, union or management may file a notice of strike/lockout.
6. Who can file a notice of strike?
Unions that are certified as the sole and exclusive bargaining agent (SEBA)
may file a notice of strike at the NCMB Regional Branch. In the absence of a
SEBA, a legitimate labor organization may file but only on grounds of ULPs.

7. What are the valid issues/grounds that may be the subject of a

notice of strike/lockout?
A notice of strike or lockout may be filed on grounds of unfair labor practice
(ULP) or deadlock in collective bargaining (CB).
8. May the union or management bring the case to voluntary
arbitration?
Yes. Upon agreement, the parties may bring the matter for resolution before
an accredited voluntary arbitrator of their own choice, in which case the
Notice is deemed automatically withdrawn and dropped from the dockets.
9. What happens in case no settlement is reached?
The union/management may go on strike/lockout provided the following are
complied with:
a) A request to the concerned NCMB regional branch to observe the conduct
of the strike/lockout vote;
b) Actual conduct of strike/lockout vote must be approved through secret
ballot by the majority of the union members/board of directors of the
corporation or association or of the partners in a partnership;
c) The result of the strike or lockout VOTE shall be submitted to the
concerned NCMB-Regional Branch;
d) The union must wait for the lapse of the 7-day mandatory strike ban
period from the submission of the strike/lockout vote results to give NCMB
last ditch effort to effect settlement.
10. What are the periods to be observed before going on strike?
If the ground of the notice of strike is CB deadlock, the cooling-off period is
30 days. If ULP, 15 days. During these periods, the NCMB shall exert all
efforts at the mediation and conciliation to effect voluntary settlement. If
Union Busting, the cooling-off period is dispensed with but the mandatory 7day Strike Ban period must be complied with.
11. When may a strike or lockout be declared illegal?
A strike or lockout may be declared illegal if any of the requirements for a
valid strike or lockout is not complied with. It may also be declared illegal if it
is based on non-strikeable issues or if the issues involved are already the
subject of arbitration. During a strike or lockout, when either of the parties

commits prohibited acts or practices, the strike or lockout may be declared

illegal.
12. Who has jurisdiction to determine the legality of strike or
lockout?
In general, the Labor Arbiter in the appropriate Arbitration Branch of the
NLRC has the power to determine questions involving the legality or illegality
of a strike or lockout upon the filing of a proper complaint and after due
hearing.
Where the matter of legality or illegality of a strike is raised in the dispute
over which the Secretary assumed jurisdiction or in compulsory arbitration,
the same may be resolved by the Secretary or the Commission, respectively.
(IPI vs. Sec. of Labor and Associated Labor Unions, G.R. No. 92981-83,
January 9, 1992.)
13. Is conciliation-mediation still possible during actual strike or
actual lockout?
Yes. Conciliation-mediation can still continue even during an actual strike or
lockout to exhaust all possible remedies and explore solutions mutually
acceptable to both parties in resolving the labor dispute.
14. What may the union do if the ground for notice of strike is ULP
that involves dismissal of union officers?
In case of dismissal of union officers, the 15-day cooling-off period shall not
apply and the union may declare a strike after observing the 7-day
mandatory strike ban period which starts after submission of the strike vote
results.
15. What may happen if the dispute is considered to be imbued with
national interest?
The Secretary of Labor and Employment may assume jurisdiction over the
dispute or certify it to the NLRC for compulsory arbitration.
16. Is conciliation-mediation still possible even if the dispute has
already been assumed or certified?
Yes. The duty to bargain collectively continues until all issues involved in the
dispute have been resolved and at any point during the pendency of the
case at the Office of the Secretary or at the NLRC, the parties can still submit
the dispute to voluntary arbitration.

17. What is the effect of assumption of jurisdiction or certification

for compulsory arbitration?
The strike is enjoined and the striking workers after due notice are ordered to
return to work and the management to accept them while the Secretary of
Labor or the NLRC resolves the dispute.
18. What is the effect if the strikers refuse to obey the
assumption/certification order?
The strike becomes a prohibited activity and the strike becomes illegal. The
union officers or members will be deemed dismissed from employment.
19. Can the employer file a petition to declare the strike illegal?
Yes. An employer may file a petition to declare the strike illegal at the NLRCRAB where the employer is located.
20. What is the consequence of an illegal strike?
When the strike is held illegal, only the union officers who knowingly
participated will be considered to have lost their employment status. The
union members who knowingly participated in the commission of illegal acts
during the strike may be held liable.
21. What is a grievance?
A grievance is any question by either the employer or the union regarding
the interpretation or implementation of the collective bargaining agreement
or interpretation or implementation of company personnel policies or
interpretation or implementation of the productivity incentive programs or
wage distortion issues or any claim by either party that the other party is in
violation of any provision of the CBA or company personnel policies.
22. What are the sources of a grievance?
a. Contract (Collective Bargaining Agreement)
b. Company Personnel Policies and Company Rules and Regulations
c. Company Productivity Incentive Programs
d. Law
e. Past practice

23. What are the types of grievances?

a. Rights disputes pertain to any violations arising from rights established
under collective agreements, laws, rules and regulations and customary
practices.
b. Interests disputes are often referred to as bargaining deadlock issues
which may also be submitted to voluntary arbitration upon agreement of the
parties.
c. Discipline cases refer to violators of the usual norms or personnel
conduct or behaviour of employees.
24. What are the grounds for a grievance to exist?
a. There is a violation of the CBA provisions. (It arises out of interpretation or
implementation of CBA)
b. A worker has been treated unfairly by some decision or policy of the
company. (It involves a disciplinary action of management)
c. There is violation of law or health and safety regulation.
d. There is violation of a past practice.
e. There is a violation of employer responsibility.
f. Wage distortion issues.
g. Issues arising from the interpretation or implementation of the productivity
incentive programs.
25. Who can file/initiate a Grievance?
a. Aggrieved (individual) employee
b. Group of employees
c. The Union
d. Management or Employer
26. How is a grievance resolved?

The grievance is resolved through the grievance machinery or committee as

provided for in the CBA. The procedure may vary from CBA to CBA, but the
ideal procedure shall be as follows:
a) An employee shall present the grievance or complaint orally or in writing
to the shop steward;
b) If the grievance is valid, the shop steward shall immediately bring the
complaint to the employees immediate supervisor;
c) If no settlement is reached, the grievance shall be referred to the
grievance committee which shall have ten (10) days to decide the case.
(Rule 19, Sec. 2. D.O. 40-03)
27. What happens if a grievance is not resolved?
The unresolved issue/s in the grievance shall be submitted to voluntary
arbitration.
28. What is Voluntary Arbitration?
Voluntary Arbitration is a mode of settling labor-management dispute 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. It is the terminal step after the parties have exhausted their
grievance machineries.
29. Who is a voluntary arbitrator?
Any person who has been accredited by the Board as such, or any person
named or designated in the collective bargaining agreement by the parties
as their voluntary arbitrator, or one chosen by the parties with or without the
assistance of the Board, pursuant to a selection procedure agreed upon in
the CBA or one appointed by the Board in case either of the parties to the
CBA refuses to submit to voluntary arbitration. The term includes panel of
voluntary arbitrators.
30. What are the kinds of a voluntary arbitrator?
a. Permanent Arbitrator the voluntary arbitrator specifically named or
designated in the collective bargaining agreement by the parties as their
voluntary arbitrator.
b. Ad-hoc-arbitrator the voluntary arbitrator chosen by the parties in
accordance with the established procedures in the CBA or the one appointed

by the Board in case there is failure in the selection or in case either of the
parties to the CBA refuses to submit to voluntary arbitration.
31. What are the disputes/issues that may be submitted to
voluntary arbitration?
a. All unresolved grievances arising from the interpretation or
implementation of the collective bargaining agreement. (Art. 261, Labor
Code)
b. All unresolved grievances arising from the implementation or enforcement
of company personnel policies. (Art. 261, LC)
c. All wage distortion issues arising from the application of any wage orders
in organized establishments. (Art. 124, LC)
d. All unresolved grievances arising from the interpretation and
implementation of the productivity incentive programs RA 6971.
e. All other labor disputes including unfair labor practices. (Art. 262, LC)
f. Bargaining deadlocks (Art. 262,LC)
g. Assumed or certified national interest cases before or any stage of the
compulsory arbitration process (Art. 263[h], LC)
h. Illegal dismissal cases under Policy Instruction No. 56 dated April 6, 1993.
32. How does a voluntary Arbitrator or panel of Voluntary
Arbitrators acquire jurisdiction over a case?
Pursuant to DO 40-03 and Revised Procedural Guidelines on VA, a Voluntary
Arbitrator or panel of Voluntary Arbitrators acquire jurisdiction over a specific
dispute upon receipt of the following:
a. submission agreement signed by the parties;
b. notice to arbitrate signed by a party to a CBA with an agreement to
arbitrate; or
c. appointment/designation as VA by the National Conciliation and Mediation
Board (NCMB) in either of the following circumstances:

In the event the parties fail to select an arbitrator; or

In the event that: a) a NTA is served; b) the CBA does not name in
advance an arbitrator; and c) the other party upon whom the notice is

served does not reply favorably within seven (7) days from receipt of
such notice.
33. What is a Submission Agreement?
It is written agreement by the parties submitting their case for arbitration
containing the issues, the chosen arbitrator and stipulation to abide by and
comply with the resolution, including the cost of arbitration.
34. What is the remedy of a party who wants to submit to a
Voluntary Arbitration despite the refusal of the other party after
exhaustion of grievance procedure but the grievance remains
unresolved?
Submit the case through a procedure called the Notice to Arbitrate.
35. What is a Notice to Arbitrate?
It is a formal demand made by one party to the other for the arbitration of a
particular dispute in case of refusal of one party to a CBA to submit to
arbitration.
36. What is the procedure to a Notice to Arbitrate?
1. The Notice is served upon the unwilling party, copy furnished the
permanent arbitrator and the NCMB Regional Branch having
jurisdiction over the workplace;
2. Upon receipt of a notice to arbitrate after the lapse of the seventh-day
period within which to respond, the permanent arbitrator/s shall
immediately commence arbitration proceedings.
3. In the absence of a permanent arbitrator in the CBA, the Board/Branch
appoints a voluntary arbitrator who shall immediately commence
arbitration proceedings upon receipt of such appointment.
37. What is the period required of a voluntary arbitrator or panel of
voluntary arbitrators to render an award or decision?
Unless the parties agree otherwise, a Voluntary Arbitrator or panel of
voluntary arbitrators are mandated to render an award or decision within 20
calendar days from date of submission for decision.
38. May the parties to a case enter into an amicable settlement of
their dispute pending resolution by the arbitrator?

Yes. In the event that the parties finally settle their dispute during the
pendency of the arbitration proceedings, the terms of settlement shall be
reduced into writing and shall be adopted as the DECISION of the arbitrator.
39. What are the advantages of resorting to voluntary arbitration in
the resolution of a dispute?
a. Speedy
b. Fair
c. Finality of decisions
d. Economical for both in terms of time, money and resources
e. Alternative to Industrial Action
f. Non-litigious, non-adversarial, non-technical
g. Arbitrable issues are not strikeable as mandated by law
40. What is labor-management cooperation?
Labor-management cooperation is a state of relations where labor and
management work hand in hand to accomplish certain goals using mutually
acceptable means. It provides schemes of workers' participation in decision
making process through information sharing, discussion, consultation and
negotiations.
41. Is there a need for labor-management cooperation?
Yes, because labor and management are social partners sharing a common
interest in the success and growth of the enterprise and the economy to
promote workers' participation in decision-making processes, create a labor
relations climate conducive to productivity improvement, improve the quality
of working life and achieve and sustain economic growth.
42. What are the mechanisms to promote labor-management
cooperation?
The following are the mechanisms:
a. direct participation mechanisms through small group activities like quality
control circles or productivity improvement circles;

b. indirect participation mechanisms through joint consultative bodies like

labor-management councils or committees;
combination of direct and indirect participation mechanisms like joint bodies
and small group activities.