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Philtread Workers Union V Confesor


May 27, 1994 Union filed a notice of strike.

May 30 Philtread filed a notice of lockout and petition to declare the work slowdown as illegal.

Several conciliation meetings were conducted but failed. June 15, Philtread declared a company
wide lockout, which continued until August. 80 union members were dismissed, prompting the
Union to file a notice of strike.

NLRC declared the slowdown illegal noting that the significant decrease in productivity occurred
whenever there was a labor dispute. Several named union members (not mentioned in the case)
were terminated.

August 31 Philtread requested the SOLE to assume jurisdiction. Sec. Confessor assumed
jurisdiction and certified the labor dispute to NLRC for compulsory arbitration.


1. WON A263 Labor Code is unconstitutional consti

2. WON the SOLE acted with grave abuse in issuing the order No


1. The Union claims that A263 LC is unconstitutional because the SOLE order, which enjoins
the strike, is an utter interference of the workers right to self organization, and is likewise
contrary to A3 ILO, public authorities shall refrain from any interference which would
restrict their freedom to organize.

A263 (g),

when in his opinion, there exists a labor dispute causing or like to cause a strike or lockout in an
industry indispensable to the national interest, the SOLE may assume jurisdiction over the dispute
and decide to certify it to the NLRC for compulsory arbitraton

The Court said that this issue has already been passed on in previous cases. A263 is not
unconstitutional for the following reasons:

A263 (g) and 264 of the LC have been enacted pursuant to the police power of the State,
which is the inherent power to enact laws, within constitutional limits, to promote order,
safety, health, morals, and general welfare of society. As an inherent power, this does not
need to be expressly conferred by the Constitution. Said article does not interfere with the
workers right but merely regulates it.
The LC vests upon the SOLE the discretion to determine what industries are indispensable
to national interest. Upon such determination, the SOLE will assume jurisdiction over the
labor dispute. Said assumption is in the nature of police power and is done for the
promotion of the common good considering that a prolonged strike or lockout can be
inimical to the national economy.

Thus, the certification for compulsory arbitration is not intended to impede the workers right
to strike but to obtain a speedy settlement of the dispute.

2. SOLE did not act with grave abuse of discretion. The Union went on strike and PhilTread is
indispensable to national interest. Therefore, the intervention of the SOLE was necessary to
settle the labor dispute affecting both the employer and employee.
a. The NLRC found that the work slowdown conducted by the Union amounted to
illegal strikes. It was shown that every time the Company failed to accede to the
Unions demands, production always declined. The work slowdowns, which were
in effect strikes on installment basis, were apparently a pattern of
manipulating production depending on whether the Unions demands were
b. PhilTread supplies 22% or the tire products in the country and employs about 700
people. Any work disruption as a result of labor dispute will certainly prejudice the
employment and livelihood of its workers and their dependents.