Labor Relations Notes (FINALS)

 What is a Grievance
o In Strictest Sense – Any questions either by EE or ER regarding the interpretation or
application of the CBA or the Company Personnel Policies.
o In General Sense – Any dispute arising from terms and conditions of employment, even
without a union or CBA, similar to dealing with an employer.
 What is Grievance Machinery
o a mandatory provision of the CBA whereby it sets the procedure of the resolution of any
grievances arising from the interpretation and implementation of the CBA and any claims by
either parties that the other party violates the provision of CBA
o What is the effect when it is not part of a CBA, on the count it is a mandatory provision of
the CBA?
 Regional Office will remand it back to the union ordering them to include a
grievance machinery, non-compliance will result in non-registration of the CBA
which leads to the non-applicability of the Contract Bar Rule.
 Contract Bar Rule – No PCE may be filed during the life of the CBA.
o Process of Grievance Machinery
 As provided under Section 2, DO No. 40-03 (USUAL PROCESS);
 Attempt to resolve with shop steward
 Failure, resolution with supervisory level
 Failure, submission from grievance committee/ next level
 Failure, Voluntary Arbitration
 Every CBA may include specific provisions such as time limit, procedure.
 Example of cases that show the procedure of grievance machinery
 CONTINENTAL STEEL MANUFACTURING CO. VS. MONTANO
(BOOK)
 HOLY CROSS OF DAVAO COLLEGE VS. HOLY CROSS OF
DAVAO FACULTY UNION (BOOK)
 What is the effect of successor rule with respect to the CBA
o Test : Whether the successor ER assumes the obligations, liabilities of the previous ER
 Purchase of Assets – Generally, does not assume all. However, Expressly agreed by
the successor to assume all the liability and obligation (Lock Stock and Barrel) or
the ER is Bad Faith which triggers the applicability of the pierce of the veil
corporation
 Merger / Consolidation – Generally, does not assume. However, their exist a
substantial continuity of the business operation of the predecessor ER by the
successor ER (Wiley Doctrine)
 Purchase of Stocks – Similar to Merger and Consolidation
 SUNDOWNER DEV. CO. VS. DRILON DECEMBER 6,1989 (BOOK)
 What is Zipper Clause
o A device to forestall negotiation proposal after the CBA has been signed. Anything outside
the CBA cannot be enforced and implemented. Any issues that could have been raised but
 was not included in the final draft of the CBA is not enforceable, and cannot be raised
during the life of the CBA
 Example of case
 SMTFM-UWP vs. NLRC SEPTEMBER 7, 1998(BOOK)
 Manager entitled to CBA Benefits?
o Generally, the prohibition against the managerial ee to unionize for bargaining purposes
includes the prohibition to claim benefits contained under the CBA negotiated by the rank
and file EEs.
 Rationale – Conflict of interest
o Exceptions; First, when the CBA allows them to claim under the CBA. Second, voluntary
grant by the ER to managerial ee of benefits equal or higher than the benefits provided
under CBA.
 Cases falling under Voluntary Arbitration Art. 274-275
o Unresolved grievances pertaining to the interpretation and implementation of CBA and
those arising from interpretation and enforcement of company policies
 Unresolved because it is the last resort under the procedure given under DO 40-03
 Being unresolved is not limited in this situation, any labor dispute that is unresolved
can be resolved via voluntary arbitration
o All other labor disputes including ULP and bargaining deadlocks, provided agreed by parties
 Hence, called as master procedure, any cases whether it falls into the jurisdiction of
other tribunals, regardless of stage, for as long as the parties agreed they can submit
it to a voluntary arbitration
 In the absence of the mutual agreement, the normal rule on jurisdiction applies.
 Must still be unresolved
o Violation of CBA provision not considered as gross
 What is the extent of the authority of the VA?
o Limited on the issues contained in the submission agreement by the parties
 Jurisprudence – Plenary power, in order to avoid multiplicity of suits and resolving a
piecemeal resolution
 SIME DARBY PHIL VS. MAGSALIN (BOOK)
o Notice to invoke the CBA provision
 Appealing the decision of VA?
o Motion for reconsideration with VA of its decision is valid.
 COCA-COLA BOTTLERS vs. COCA-COLA JULY 28. 2005 (BOOK)
o Followed by an ordinary appeal under rule 43 of the rules of court, petition for certiorari
(Rule 65) will no lie because the existence of former remedy. However, certiorari will be
valid if there exist grave abuse of discretion
o Appealing the decision of CA, review on certiorari (Rule 45) to SC
 Who shares the cost of voluntary arbitration and fee?
o Practicality – the management due to the resources
o Technicality – Art. 277
 Management Prerogative
o Basis founded in the constitution – Right to property which includes every right granted to
management, i.e. right to return of investments, to expansion, etc.
 Downsizing the workforce without using retrenchment, and redundancy as ground to severe
employment relation
o Via early retirement program, upheld by jurisprudence as a common practice of businesses.
One time big time is beneficial in the long run.
o No legal repercussion as compared to the aforementioned grounds, as ERP is voluntary
while the former is unilateral compulsion.