LABOR RELATIONS Finals Reviewer – 2nd Semester, AY 2017-2018
JURISDICTION & POWERS OF THE NLRC
1. Original Jurisdiction
a. Injunction in labor disputes to enjoin/ restrain any actual/
threatened commission of any/all prohibited/ unlawful acts
or to require the performance of a particular act in any
labor dispute, which if not restrained/ performed forthwith,
may cause grave/ irreparable damage to any party;
b. Injunction in strikes/ lockouts (Art. 264, LC);
c. Labor disputes causing/ likely to cause a strike/ lockout in
an industry indispensable to the national interest, certified
to it by the SOLE for compulsory arbitration
2. Exclusive Appellate Jurisdiction
a. All cases decided by LA including contempt cases; and
b. Cases decided by RDs/ duly authorized Hearing Officers (Art.
129, LC) involving recovery of wages, simple money claims,
and other benefits not exceeding P5,000 and not
accompanied by a claim for reinstatement
What is the power to assume jurisdiction or certify “national interest”
labor disputes to NLRC?
When, in his opinion, there exists a labor dispute causing or likely to
cause a strike or lockout in an industry indispensable to the national
interest, the SOLE may assume jurisdiction or certify the same to the NLRC
for compulsory arbitration.
Procedure for Filing a Criminal Case for Illegal Acts Committed in a Strike
- In order for the criminal case to prosper, a complaint must first be
filed with the LA/NLRC with final judgment of ULP/IA
- Damages may be prayed for in the filing with LA/NLRC
- A positive determination that ULP/IA was committed will not be
prejudicial to the criminal proceeding filed in regular courts
- A negative finding with LA/NLRC does not bar filing of criminal case
Paula Francesca A. Bariuan, 1B-LLB
Cagayan State University – College of Law
- Under BP 70, the civil aspects of all cases involving ULP, which may
include claims for damages & other affirmative relief, shall be under
the jurisdiction of the Labor Arbiters
- Also under BP 70, recovery of civil liability in the administrative
proceedings shall bar recovery under the Civil Code
- During the pendency of the administrative proceeding, the running
of the period of prescription of the criminal offense is considered
interrupted; provided, that the final judgment therein shall not be
binding in the criminal case nor be considered as evidence of guilt
but merely as proof of compliance of the requirements
- Art. 247 of the LC vests jurisdiction upon the LA over the civil
aspects of ULP cases including damages, attorneys’ fees, and other
affirmative relief.
- Art. 241 of the LC gives jurisdiction to ordinary courts both criminal
and civil liabilities arising from violations of the rights and conditions
of membership in a labor organization.
REQUISITES OF A VALID STRIKE/ LOCK-OUT
1. Valid and factual ground
Lawful purpose – economic/ CBA deadlock or ULP only
Invalid – CBA violations not gross in nature; intra/inter-union
disputes; issues assumed by SOLE/ certified to NLRC; issues
before grievance machinery/ voluntary arbitration; issues
before compulsory arbitration; issues involving labor standards;
issues involving implementation of wage orders
2. Notice of Strike or Lockout
1. Bargaining deadlocks - CEBA to file notice of strike at least
30 days before the intended date with NCMB
2. ULP – at least 15 days before intended date
3. If no CEBA, any LLO may file on behalf of its members
4. Union-busting – 15-day cooling-off period inapplicable,
union may act immediately (strike vote needs to be
submitted)
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 LABOR RELATIONS Finals Reviewer – 2nd Semester, AY 2017-2018
3. Third Requisite – Notice to Hold Strike/ Lockout Vote
Notice to NCMB of the time, date, and place of voting, at
least 24 hours before (Capitol Medical Center case)
4. Fourth Requisite – Strike or Lockout vote
a. The strike/lockout shall be supported by a majority vote
thru a secret ballot in a meeting called for that purpose
b. In case of union-busting, strike vote is still required
5. Fifth Requisite – Strike/ Lockout Vote Report
a. A strike/lockout vote shall be reported to DOLE at least
7 days before the intended strike
6. Sixth Requisite – Cooling-Off Period
a. CBA deadlock – 30 days
b. ULP – 15 days
c. Union busting – none
d. Counted from the time of filing of notice
7. Seventh Requisite – Waiting Period: 7-Day Strike Ban
a. Counted from the time the strike/lockout vote was
submitted to the NCMB
Cases Re: Definition of Industries Vital to the National Interest When the
SOLE may Assume Jurisdiction under Art. 263 (g) of the Labor Code or
Certify the Same to the NLRC for Compulsory Arbitration
1. Phimco case: The labor dispute must seriously and deleteriously
affect the national interest for the SOLE to assume jurisdiction. The
power is to be used sparingly and only if national interest demands
it because he must also respect labor’s right to concerted acts.
2. PSBA v. Noriel: The administration of a school is of national interest
because it is engaged in the promotion of the physical, intellectual
and emotional well-being of the country’s youth. Work stoppage at
Paula Francesca A. Bariuan, 1B-LLB
Cagayan State University – College of Law
a school unduly prejudices the students and entails great loss to all
concerned in terms of time, effort, and money.
3. Sarmiento v. Tuico: An enterprise exporting 90% of its production
and generating more than USD12M/year was declared to be of
national interest. Any disruption of operations would have caused
the delay of shipments of export consisting of finished products
previously committed to customers abroad, a delay that would have
hampered the economic recovery program pursued by the
government.
4. Int’l. Pharmaceuticals v. SOLE: The manufacture of drugs and
pharmaceuticals has been declared to belong to the same
classification.
5. PAL v. SOLE: The operation of an airline that services domestic
routes has been deemed to be imbued with national interest.
6. Philtread Workers Union: Company was considered to be
indispensable to national interest as it was responsible for 22% of
the tire production in the Philippines and disruption would not have
only aggravated the already worsening underemployment situation
but also discouraged foreign and domestic entrepreneurs from
further investing in the country.
7. GTE Directories Corp.: The SOLE used his assumption powers
impudently when it took over a labor dispute involving a company
producing telephone directories.
8. PHIMCO case, manufacturer of matches: While the case appears on
its face not to fall within the strict categorization of cases imbued
with national interest, the SOLE believed that circumstances
warrant exercise of powers under Art. 263 (g) of the LC, since the
prolonged work disruption has adversely affected the workers and
the Company but also those directly and indirectly dependent upon
the operations of the Company for their means of livelihood and
existence; the community where the plant is situated has also been
placed in jeopardy. If the dispute remains unabated, possible loss of
employment and consequent social problems might result,
compounding the unemployment problem of the country.
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 LABOR RELATIONS Finals Reviewer – 2nd Semester, AY 2017-2018
Assumption of Jurisdiction of the SOLE
- Automatic enjoinment of impending strikes or lifting of lockouts
- Co-exists with order for workers to return to work immediately and
for employers to readmit all workers under the same T&C prevailing
before the strike or lockout
- Other powers including jurisdiction over all incidents arising from
the labor dispute to avoid the undesirable result of diametrically
opposed rulings being issued by SOLE & the LA (i.e. Triumph case
where SOLE refused to rule on the legality of the dismissal of the
union officers, etc. saying that this was to be decided by the LA)
- When GO No. 5 was repealed by the LC, there was no more listing of
industries indispensable to the national interest, the SOLE was given
the discretion in determining which industries would qualify as such
but subject to judicial review
- Sec. 16 of DO 40-H-13 enumerates industries indispensable to
national interest: hospital sector, electric power industry, water
supplies services (excluding small water supply services i.e. bottling
& refilling stations), air traffic control, and other industries
recommended by the Nat’l Tripartite Ind’l Peace Council (NTIPC)
- The above does not diminish the power of the President of the
Philippines to determine the industries indispensable to the national
interest and from intervening anytime and assuming jurisdiction
over any such labor dispute to settle or terminate the same
No Strike, No Lockout Clause – Its Validity and When Applicable
1. Samahan ng mga Manggagawa ng Greenfield case: A “no-strike, no
lockout clause” in the CBA is valid but may only be invoked by an
employer when the strike is economic in nature or one which is
conducted to force wage or other concessions from the employer
that are not mandated to be granted by the law itself. Such no strike
provision only bars strikes economic in nature but not those
grounded on unfair labor practice.
Paula Francesca A. Bariuan, 1B-LLB
Cagayan State University – College of Law
2. Panay Electric Company, Inc. case: When ULP is alleged, it is not
essential that the act has been in fact committed; it suffices that the
striking workers have acted honestly on an impression that the
company has committed such ULP and the surrounding
circumstances could warrant such belief in good faith.
3. Interphil Lab. Case: The overtime boycott and work slowdown are
constitutive of illegal strike and in violation of the CBA which
prohibits the union or employee to stage a strike or engage in
slowdown or interruption of work during the existence of the CBA.
4. Filcon Mftg. Corp. case: A strike is illegal if in violation of a NSNL
clause especially when the CBA provided for conclusive arbitration
clause.
Effect of the Decision of the Voluntary Arbitrator – Is it compulsory &
immediately executory that parties are compelled to follow?
1. The VA has original and exclusive jurisdiction over the following:
a. Grievances arising from interpretation & implementation of
CBA after exhaustion of grievance procedure;
b. Grievances arising from implementation & interpretation of
company personnel policies;
c. All other labor disputes, including unfair labor practices and
bargaining deadlocks upon agreement of the parties.
2. The VA’s decision is appealable by ordinary appeal under Rule 43
directly to the CA. From the CA, the case may be elevated to SC by
way of ordinary appeal by Rule 45.
3. IRR of Arts. 260-262 (b) of the LC, states that awards/ decisions of
VA become final and executory after 10 days from receipt of the
decision by the parties, hence, compulsory.
4. In enforcement of awards, both parties should comply voluntarily
and faithfully with the decision. In case of non-compliance, a motion
to enforce/ execute may be filed with the VA who may issue a writ
of execution.
5. A motion for reconsideration must be filed with the VA before the
lapse of the 10-day reglementary period. Likewise, an ordinary
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 LABOR RELATIONS Finals Reviewer – 2nd Semester, AY 2017-2018
appeal under Rule 43 should be filed with the CA within the 10-day
period even if the rule provides for 15 days in which to file the
appeal. (PHILEC Case, 2004)
Check-Offs Re: Union Dues, Special Assessment, & Agency Fee
1. Holy Cross of Davao College case: A check-off is a process where Er
on agreement with the union deducts union dues and other fees
from the Ee-member’s wages and remits this directly to the union
2. Written authorization is needed for the deduction of union dues and
special assessment fees to fund the union’s activities. However, a
resolution adopted by a majority of the union members, an
agreement signed in the union membership form, and a provision
contained in the CBA, will suffice for Er to deduct the corresponding
amount.
3. An agency fee is an amount equivalent to union dues and fees
which is collected from Ees who are not union members. No
requirement of written authorization is imposed for non-union
employees to effect the deduction. The Ee’s acceptance of benefits
resulting from CBA justifies this as they may not unjustly enrich
themselves by benefitting from employment conditions negotiated
by the bargaining union without payment of corresponding dues.
Substitutionary Doctrine
1. Benguet Consolidated Inc. Case: even during the effectivity of a
CBA, Ees may change bargaining agent but the CBA continues to
bind them up to its expiration date
2. Ees cannot revoke a validly executed CBA by the simple expedient
of changing bargaining agent but may negotiate with management
the shortening of the period of the CBA.
New Pacific Timber Case (GR 124224 – March 2000)
1. The CBA remains in full force and effect even beyond the stipulated
term, in the absence of a new CBA. The economic provisions
continue to have legal effect.
Paula Francesca A. Bariuan, 1B-LLB
Cagayan State University – College of Law
2. The benefits under the CBA should be extended to Ees hired after
1984 or after the CBA’s stipulated term. To exclude them will result
in undue discrimination and deprive them of monetary benefits
they would otherwise be entitled to under a new CBA.
3. T&C of a CBA continue to have force and effect beyond the
stipulated term when no new agreement is executed… to avoid the
situation where no CBA at all would govern between the company
and its Ees.
4. Int’l Oil Factory Workers case: Even non-member Ees are entitled to
the benefits of the CBA. To accord its benefits only to members of
the Union without any valid reason would constitute undue
discrimination against non-members.
Procedural Requirements for Inter/Intra-Union Disputes
Re: Decisions of the RD/MA/BLR
1. The BLR has exclusive & original jurisdiction over:
a. Inter-union disputes or representation disputes i.e. petition
for certification election filed by a duly registered LO
seeking to be recognized as the SEBA of the R&F Ees in the
appropriate bargaining unit of a company
b. Intra-union disputes or internal union disputes i.e. violations
of/ disagreements over CBL of the union, violation of rights
and conditions of union membership provided by the LC
c. All disputes, grievances, or problems arising from or
affecting labor management relations in all workplaces,
except those arising from the interpretation of the CBA
which are subject of grievance procedure and/or voluntary
arbitration
2. The BLR has the following administrative functions:
a. Registration of labor unions
b. Keeping of registry of labor unions
c. Maintenance and custody of CBAs
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 LABOR RELATIONS Finals Reviewer – 2nd Semester, AY 2017-2018
3. Dept. Order 40-30, Series of 2003(IRR of Book V, LC)
a. Complaints involving LU with independent registrations/
chartered locals/workers’ associations shall be filed with the
Reg’l Office which issued certificate of registration/creation
of chartered local
b. Complaints involving federations, national unions, &
industry unions shall be filed with the BLR
c. Petitions for cancellation of registration and for
deregistration of CBA shall be resolved by the RD or an
appointed hearing officer.
d. Other inter/intra-union disputes and related labor relations
disputes shall be resolved by the MA.
e. When two or more petitions involving the same parties and
the same causes of action are filed, the same shall be
automatically consolidated.
f. The complaint or petition shall be in writing, verified under
oath, containing the following:
i. Names & addresses of complainants & respondents
ii. Nature of complaint/ petition
iii. Facts & circumstances surrounding the complaint
iv. Cause/s of action or specific violation/s committed
v. A statement that all administrative remedies have
been exhausted, or such remedies are not readily
available to the petitioner thru no fault of his own,
or compliance with such remedies does not apply
vi. Reliefs prayed for
vii. Certificate of non-forum shopping
viii. Other relevant matters
g. Preliminary conferences and hearings will be conducted and
pleadings to be submitted and decision shall be rendered 20
days after the last hearing.
h. Pleadings and position papers shall be submitted within 25
days. No other pleading shall be considered after the case is
submitted for decision.
Paula Francesca A. Bariuan, 1B-LLB
Cagayan State University – College of Law
i. Decision of the MA/ RD shall be appealed to the BLR within
10 days from receipt, copy furnished the opposing party.
j. The decision of the BLR Director in the exercise of his
original jurisdiction may be appealed to the SOLE also
within 10 days from receipt of decision.
k. When no appeal is filed within the 10-day period, the
MA/RD decision become final and executor and shall cause
the immediate implementation
l. Decision of the SOLE shall also become final and executor
10 days after receipt unless an MR is filed. Only one MR is
allowed for the decision of the BLR or SOLE.
m. When decision of SOLE obtains finality, it shall be relayed to
the RO of origin for immediate implementation.
n. The decision of RD/MA shall be automatically stayed
pending appeal with the BLR.
o. The decision of the BLR in its appellate jurisdiction shall be
immediately executor upon issuance of entry of final
judgment.
p. The decision of the BLR in the exercise of its original
jurisdiction shall automatically be stayed pending appeal
with the SOLE.
q. The decision of the SOLE shall be immediately executory
upon issuance of entry of final judgment.
Effect of Merger/Corporate Sale on the CBA
1. BPI case re: merger of FEBTC & BPI- SC ruled that the closed shop
clause of the existing CBA of BPI applied to the FEBTC Ees who were
absorbed by BPI (maintained employment status, security of tenure,
etc.); all assets & liabilities of FEBTC were transferred to BPI as the
surviving and successor corporation
2. In the dissent, there are levels of transfer of corporations:
a. Assets only level – affects only raw assets & properties;
company as juridical entity and employer remains
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 LABOR RELATIONS Finals Reviewer – 2nd Semester, AY 2017-2018
b. Business enterprise level – interest extends beyond assets
and into the whole business and earning capability; whole
business is sold and purchased but the parties retain
respective juridical personalities; Er-Ee relations now pass
to the purchasing party
c. Equity level – the purchasing party buys underlying equity;
control of business transferred to purchasing corporation
(like SME Bank case); selling corporation continues to run
the business
d. Total merger or consolidation – the merged corporation
transfers everything to the surviving corporation; the
employment contracts of the FEBTC Ees should be held as
continuing, unless rejected by the parties themselves, since
BPI stepped into the shoes of FEBTC as Er. There was only
an internal change in the personality of the principal and
not a new party which would have novated the contract
When can a walkout be considered a stike? (PINA Case – Escario v. NLRC)
1. Union officers and 200 members walked out of PINA premises and
proceeded to the brgy. hall to support a union officer charged with
oral defamation by PINA’s personnel manager. The issue was settled
and they all returned to work thereafter. PINA suspended the union
officers and terminated them a month after. PINA then filed ULP
against the union for the walkout as illegal strike. NLRC ruled the
strike as illegal.
2. Art. 212 of the LC define strike as “any temporary stoppage of work
by the concerted action of the Ees as a result of an industrial or
labor dispute.
3. Art. 212 of the LC defines labor dispute as any controversy
concerning T&C of employment or any association of persons
negotiating the same.
Paula Francesca A. Bariuan, 1B-LLB
Cagayan State University – College of Law
Effect of Illegal Strike to Union Officers & Members
1. The mere declaration of the illegality of strike would result in the
termination of the union officers and deemed to have lost their
employment status.
2. This adverse consequence does not apply to ordinary union
members except when they participated in the commission of illegal
acts in the course of the strike, in which case, they shall be deemed
to have also lost their employment status.
Limitations on the Disciplinary Authority of the Employer Re: Illegal Strikes
1. The LC gives Ers the option to terminate union officers who
participated in an illegal strike and union members who committed
illegal acts in an illegal strike.
2. Almira case: The Er cannot just declare the “wholesale termination”
of all union officers and union members who participated in the
illegal strike. They must prove that the officers were serving as
officers during the duration of the strike and their presence therein.
As for ordinary union members, Er must identify the union
members who committed illegal acts during the illegal strike.
3. The declaration of the illegality of a strike does or the mere filing of
charges against an EE for illegal acts during a strike (Telefunken
case) does not give Er the right to immediately dismiss them from
employment. Due process must still be followed by the Er in
dismissing the erring Ee following the twin-notice rule.
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