Labor dispute resolution systems

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LABOR

DISPUTE

RESOLUTION SYSTEMS

NATIONAL CONCILIATION AND MEDIATION BOARD-Department of Labor and Employment

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Outline of Discussion

I. Introduction

II. Tiers of Dispute ResolutionConstitution & State Policies on Labor Relations

III. Overview of Alternative Dispute Resolution Systems

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Book V (Labor Relations) Title I – Policy and Definitions Chapter I – Policy Chapter II - Definitions Title II – National Labor Relations Commission Title III – Bureau of Labor Relations Title IV – Labor Organizations Title V – Coverage (Self-Organization) Title VI – Unfair Labor Practices Title VII – 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)

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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

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Historical Overviewa) Commonwealth Act 103 or First Labor Relations

Law (1936) – the State laid its “hands-off” plant-level labor-management 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

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Tiers of Resolution

ADR/VMSD

COMPULSORY ARBITRATION (NLRC/BLR)

S/L

CONCILIATION-MEDIATION; PLANT-LEVEL GRIEVANCE RESOLUTION AND VOLUNTARY ARBITRATION

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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)

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State Policies on Labor Relations

Article 211, Labor Code 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

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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.

Alternative Dispute Resolution(Voluntary Modes of Settling

Disputes)

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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.

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ADR/VMSD Framework(under current Labor Laws)

Grievance Machinery/ Voluntary Arbitration

Conciliation-Mediation

LMCs/EI/EP

CollectiveBargaining

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Modes of Labor Dispute Settlement

Bipartite/Plant-Level Mechanisms Collective Bargaining Grievance Machinery Labor-Management Committee/Council

Third-Party Level Mechanisms Conciliation-Mediation (NCMB) Voluntary Arbitration (NCMB) Compulsory Arbitration (NLRC) Assumption of Jurisdiction (OSec) Med-Arbitration (BLR/DOLE Regional Office)

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Plant-Level Mechanisms

Collective Bargaining Grievance Machinery Labor-Management

Committees/Council

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All these plant-level mechanisms

are venue for Negotiation

Collective Bargaining Grievance Machinery Labor-Management

Committees/Council

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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 self-organization was considered an “unfair labor practice”, the prevention of which was placed under the jurisdiction of the NLRC.

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Workplace Cooperation

Upholds the rights of workers to participate in policy and decision-making processes of the establishment

DOLE is mandated to promote and develop LMC programs at appropriate levels

Art. 255

Art. 277 (g)

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Labor Management Committees/Councils

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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LMCs1. Labor Management

Council/Committees Conflict Management Joint-Problem Solving

2. Labor Management Cooperation 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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Labor Management Committees/Council

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

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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

Labor-Management Cooperation

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LMCs:Characterstics

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.

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LMCs:Characterstics

A forum for discussion of problems that might otherwise develop into disputes.

Another dimension to the employer-employee relationship and a significant instrument for improving labor relations.

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Subjects for Labor Management Cooperation

A partial list of issues that may be discussed by the LMC are:

1. Improving communications

2. Training3. Absenteeism4. Safety and health issues5. Productivity quality

control6. Elimination of excessive

waste7. Emphasize morale

8. Productivity9. Improvement of

employee knowledge and skill

10. Suggestion systems11. Policies, rules and

regulations12. Supervisor/ Employee

relationship13. Job satisfaction14. Causes of grievance

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Grievance Machinery

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.

Art. 260

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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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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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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

Grievance Machinery

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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 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.

It is created 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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Default Grievance Procedure

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.

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.


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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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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

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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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Concurrent Jurisdiction.

Upon agreement of the parties, all other labor disputes including unfair labor practice and bargaining deadlocks


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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.

The arbitrator acts in quasi-judicial capacity


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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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Conciliation and Mediation

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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Conciliation Limited to encouraging the parties to discuss their differences and to helping them develop their own proposed solutions.

MediationA stronger form or intervention where a mediator offers to the parties proposal for settlement.


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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.


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Conciliation of Labor-Management Disputes

The Board provides conciliation-mediation services to labor and management:

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

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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).

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Under the NLRC, compulsory arbitration is available for types of cases such:

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

Compulsory Arbitration

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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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DOLE Regional Offices Jurisdiction

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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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.

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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

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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

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SecLab Jurisdiction

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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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

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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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Labor Dispute Settlement

THRUST – - All disputes arising from employment shall be processed through conciliation- mediation.

- Compulsory arbitration/adjudication

comes in only after failure of conciliation efforts.

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SALAMAT!

Education

Labor dispute resolution systems