ILAW AT BUKLOD vs.

NLRC

There was a wage order that caused a wage distortion within SMC.
Union proposed that the wage distortion be corrected by implementing a 25php wage
increase, the Company only effected a 7php wage increase.
The union decided to work only for 8 hours per day (originally 10-14hrs).
This caused the company, SMC losses, due to diminished productivity, prompting it to file a
complaint with the NLRC.

ISSUE: WON the unions actions to correct the wage distortion is proper.

RULING: NO. Section 3 of Republic Act No. 6727 the employer and the union shall negotiate to
correct the distort-ions. Any dispute arising from wage distortions shall be resolved through the
grievance procedure under their collective bargaining agreement and, if it remains unresolved,
through voluntary arbitration.

Implicitly, it excluded strikes or lockouts or other concerted activities as modes of settlement of

the issue.