Labor dispute resolution systems


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Alternative Dispute Resolution - Philippine settings

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Labor dispute resolution systems

  2. 2. Outline of Discussion I. Introduction II. Tiers of Dispute Resolution Constitution & State Policies on Labor Relations III. Overview of Alternative Dispute Resolution Systems 2
  3. 3. Book V (Labor Relations)           Title I Chapter I Chapter II Title II Title III Title IV Title V Title VI Title VII – – – – – – – – Policy and Definitions Policy Definitions National Labor Relations Commission Bureau of Labor Relations Labor Organizations Coverage (Self-Organization) Unfair Labor Practices 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) 3
  4. 4. 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 4
  5. 5. Historical Overview a) Commonwealth Act 103 or First Labor Relations Law (1936) – the State laid its “hands-off” plant-level labormanagement 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 5
  7. 7. 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) 7
  8. 8. 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 8
  9. 9. Alternative Dispute Resolution (Voluntary Modes of Settling Disputes)  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. 9
  10. 10. 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. 10
  11. 11. ADR/VMSD Framework (under current Labor Laws) ConciliationMediation Grievance Machinery/ Voluntary Arbitration LMCs/ EI/EP Collective Bargaining 11
  12. 12. 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) 12
  13. 13. Plant-Level Mechanisms    Collective Bargaining Grievance Machinery Labor-Management Committees/Council 13
  14. 14. All these plant-level mechanisms are venue for Negotiation    Collective Bargaining Grievance Machinery Labor-Management Committees/Council 14
  15. 15. 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 selforganization was considered an “unfair labor practice”, the prevention of which was placed under the jurisdiction of the NLRC. 15
  16. 16. Workplace Cooperation Art. 255  Upholds the rights of workers to participate in policy and decision-making processes of the establishment Art. 277 (g)  DOLE is mandated to promote and develop LMC programs at appropriate levels 16
  17. 17. 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 17
  18. 18. LMCs 1. Labor Management Council/Committees   2. Conflict Management Joint-Problem Solving 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 18
  19. 19. 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 19
  20. 20. Labor-Management Cooperation    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 20
  21. 21. 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. 21
  22. 22. LMCs:Characterstics   A forum for discussion of problems that might otherwise develop into disputes. Another dimension to the employeremployee relationship and a significant instrument for improving labor relations. 22
  23. 23. Subjects for Labor Management Cooperation A partial list of issues that may be discussed by the LMC are: Improving communications 2. Training 3. Absenteeism 4. Safety and health issues 5. Productivity quality control 6. Elimination of excessive waste 7. Emphasize morale 1. 8. 9. 10. 11. 12. 13. 14. Productivity Improvement of employee knowledge and skill Suggestion systems Policies, rules and regulations Supervisor/ Employee relationship Job satisfaction Causes of grievance 23
  24. 24. Grievance Machinery Art. 260  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. 24
  25. 25. 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. 25
  26. 26. 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. 26
  27. 27. Grievance Machinery         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 27
  28. 28. 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 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.   To peacefully and systematically resolve disputes through fact finding To keep lines of communication open and allow employees to voice concerns 28
  29. 29. Default Grievance Procedure Rule XIX, Sec. 2, DO 40-03 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. 29
  30. 30. Default Grievance Procedure Rule XIX, Sec. 2, DO 40-03   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. 30
  31. 31. Default Grievance Procedure Rule XIX, Sec. 2, DO 40-03   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. 31
  32. 32. 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 32
  33. 33. Voluntary Arbitration 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. 33
  34. 34. Voluntary Arbitration Concurrent Jurisdiction.  Upon agreement of the parties, all other labor disputes including unfair labor practice and bargaining deadlocks 34
  35. 35. Voluntary Arbitration The arbitrator acts in quasi-judicial capacity    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. 35
  36. 36. Voluntary Arbitration   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. 36
  37. 37. 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. 37
  38. 38. Conciliation and Mediation  Conciliation Limited to encouraging the parties to discuss their differences and to helping them develop their own proposed solutions.  Mediation A stronger form or intervention where a mediator offers to the parties proposal for settlement. 38
  39. 39. Conciliation and Mediation  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. 39
  40. 40. Conciliation of LaborManagement 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 40
  41. 41. 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). 41
  42. 42. Compulsory Arbitration 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 42
  43. 43. NLRC Jurisdiction (Commission Proper)  Original – petitions for injunction or temporary restraining order  Appellate – decisions of the Labor Arbiters in the RABs 43
  44. 44. 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) 44
  45. 45. 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. 45
  46. 46. 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 46
  47. 47. 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 47
  48. 48. SecLab Jurisdiction    Original – assumption of jurisdiction (notices of strike/actual strikes in industries indispensable to the national interest) Appellate – inspections, certification elections Voluntary arbitration 48
  49. 49. 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 49
  50. 50. 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 50
  51. 51. Labor Dispute Settlement THRUST – - All disputes arising from employment shall be processed through conciliationmediation. - Compulsory arbitration/adjudication comes in only after failure of conciliation efforts. 51
  52. 52. SALAMAT! 52