Strikes and LockoutsISIDOR
Strikes and LockoutsISIDOR
Lockouts
BY: DIANNE MARIE A. ISIDOR
Strike
- Any temporary stoppage of work by the concerted action of employees as a result of an
industrial dispute or labor dispute (IRR, Book V, Rule 1, Sec. 1).
Lockout
- the temporary refusal of an employer to furnish work as a result of and industrial or labor
dispute [Art. 219 (p)].
Employees of GOCCS organized under the Possess and enjoy the rights to self-organization
Corporation Code (without original charters) and to strike just like any employees in the
and are, therefore, covered by the Labor Code. private sector.
Employees of the government and its political Possess and enjoy only the right to self-
subdivisions or instrumentalities, including organization but not the right to strike.
GOCCs (with original charters) and are
therefore, covered by the Civil Service Law,
rules and regulations.
Jacinto vs CA (GR 124540, Nov. 14, 1997)
➢ As regards the right to strike, the Constitution itself qualifies its exercise with the proviso "in
accordance with law." This is a clear manifestation that the state may, by law, regulate the use of this
right, or even deny certain sectors such right. Executive Order 180 which provides guidelines for the
exercise of the right of government workers to organize, for instance, implicitly endorsed an earlier CSC
circular which "enjoins under pain of administrative sanctions, all government officers and employees
from staging strikes, demonstrations, mass leaves, walkouts and other forms of mass action which will
result in temporary stoppage or disruption of public service," by stating that the Civil Service law and
rules governing concerted activities and strikes in the government service shall be observed.
Alliance of Government Workers vs. Minister of Labor and Employment (124 SCRA 1, August 3,
1983)
➢ The general rule in the past and up to the present is that the "terms and conditions of employment in
the Government, including any political subdivision or instrumentality thereof are governed by law." . . .
Since the terms and conditions of government employment are fixed by law, government workers
cannot use the same weapons employed by the workers in the private sector to secure concessions
from their employers.
2nd: PURPOSE OR GROUND
Grounds for declaring a strike/lockout:
Collective Bargaining Deadlock (Economic/Bargaining)
- It is intended to force wage and other concessions from the employer, which he is not required by law to grant.
ULP act (Political /ULP)
- It is held against the unfair labor practices of the employer, usually for the purpose of making him desist from
further committing them.
- Employer’s acts of ULP (Art. 259 of the LC)
- Gross violation of the CBA (Art. 274 of the LC)
- Union Busting (Art. 278 of the LC)
-Inter-union and intra-union disputes and violation of labor standards laws are not valid grounds for strike or lockout.
Illustrative case:
- Initially, the strike staged by the union was meant to compel the company to grant it certain economic benefits
set forth in its proposal for collective bargaining.
▪ Economic strike >>> The striking employees would have a right to be reinstated if, in the interim, the employer
had not hired other permanent workers to replace them.
- But later, the strike changed its characters from the time the company refused to reinstate the strikers because of
their union activities after it had offered to admit all the strikers and in fact did readmit the others.
✓ Period to file:
a. ULP – At least 15 days before the intended strike or lockout
b. Bargaining deadlock – At least 30 days before the intended date thereof.
✓ Who:
In establishments with certified bargaining agent – Any certified or duly recognized
bargaining representative in cases of ULP.
For bargaining deadlock : Only the bargaining union
In establishments with no certified bargaining agent – Any LLO but only on grounds of
ULP.
Action taken by the NCMB
Contents of Notice of Strike
1. Name and addresses of employer UPON RECEIPT:
2. Union involved a)Shall exert efforts at UPON AGREEMENT OF
3. Nature of the industry to which the mediation and THE PARTIES:
employer belongs conciliation
4. Number of union members Treat a notice as a
b)Shall also encourage preventive mediation
5. Workers in the bargaining unit the parties to submit the
6. Other relevant dates case.
dispute to voluntary
7. In case of bargaining deadlock: arbitration
- Unresolved issues, written proposals of
the union, counter-proposals of the employer
and proof of request to settle differences DURING THE
NON-STRIKABLE ISSUE:
8. In case of ULP: PROCEEDINGS:
- The acts complained of and the efforts Shall dismiss motu proprio
Parties shall not do any the notice without
taken to resolve the dispute act which may disrupt or prejudice to further
impede the early conciliation
*The NCMB shall inform the concerned party in case settlement of the dispute.
notice does not conform to the requirements.
▪ Any notice that does not conform with the Preventive Mediation Case
foregoing requirements shall be deemed as not • Sought by either or both parties or upon the initiative of
having been filed. the NCMB
• Should safeguard confidentiality.
2nd requirement: Strike or Lockout Vote
➢ Strike vote
- Must be approved by a majority vote of the total union membership in the bargaining unit
concerned, obtained by secret ballot in a meeting called for that purpose.
➢ Lockout Vote
- Must be approved by a majority vote of the members of the Board of Directors of the Corporation
or Association.
▪ Participation of the NCMB in the taking of the strike/lockout vote:
✓ In its own initiative; or
✓ Upon request of any affected party.
- Must give notice at least 24 hours prior to the conduct of the voting to give the NCMB sufficient
time to decide if it will supervise the voting and in the event it does, to prepare.
XPN to the observance of the cooling-off period: In cases of UNION BUSTING (a form of ULP)
Elements:
1) A dismissal from employment of union officers duly elected in accordance with the union’s
constitution and by-laws; and
2) The existence of the union is threatened by such dismissal.
➢ The union may completely disregard the 15-day cooling-off period but the requirement on the 7-
day waiting or strike ban, together with the other requirements.
Start of Cooling-off Period: From the time the notice of strike or lockout is filed with the NCMB.
4th requirement: Observance of the 7-day waiting period or Strike Ban
Purpose: To give the DOLE an opportunity to verify whether the projected strike really carries the approval
of the majority of the union members in addition to the cooling-off period before the actual strike.
Reckoning period: From the time the strike vote report is submitted to the NCMB.
▪ NFSW vs Ovejera G.R. No. L-59743 May 31, 1982
“ It must be stressed that the requirements of cooling-off period and 7-day strike ban must both be
complied with, although the labor union may take a strike vote and report the same within the statutory
cooling-off period.”
Effect on reckoning of 7-day waiting period if strike vote is taken and reported within the cooling period.
- It should be counted not from the date of submission of the report but from the day following the expiration
of the cooling-off period.
4th: Means and Methods
PICKETING (Right to Picket)
➢ it is part of the right guaranteed under the law “to engage in concerted activities for purposes of
collective bargaining or for their mutual benefit and protection”.
➢ It is also duly guaranteed under the freedom of speech principle in the Constitution.
➢ The procedural but mandatory requisites that must be complied with before a valid strike may be
staged are not applicable to picketing.
As to Striking Workers:
Article 279:
a) No labor organization or employer shall declare a strike or lockout without first having
bargained collectively in accordance with Title VII of this Book or without first having filed
the notice required in the preceding Article or without the necessary strike or lockout vote
first having been obtained and reported to the Ministry.
No strike or lockout shall be declared after assumption of jurisdiction by the President or the
Minister or after certification or submission of the dispute to compulsory or voluntary arbitration
or during the pendency of cases involving the same grounds for the strike or lockout.
c) No employer shall use or employ any strike-breaker, nor shall any person be employed as
strike-breaker.
The police force shall keep out of the picket lines unless actual violence or other criminal acts
occur therein; Provided, That nothing herein shall be interpreted to prevent any public officer
from taking any measure necessary to maintain peace and order, protect life and property,
and/or enforce the law and legal order.
Any ex parte restraining order issued by the Commission, or its Chairman or Vice-Chairman when the
Commission is not in session and as prescribed by its rules, shall be valid for a period not exceeding 20
days.”
- Under this rule, the third-party employers or innocent bystanders who have no employer-employee
relationship with the picketing strikers, may apply for injunction with the REGULAR COURTS to enjoin the
conduct of the picket. Because of the absence of the employer-employee relationship, the NLRC
cannot entertain such application for injunction from “innocent bystanders”.
Liability for participation in legal strike
The declaration or actual conduct of a strike does not result in the
severance of the employment relationship nor renunciation thereof. The
employment relationship is merely suspended during the period of work
stoppage.
➢ Otherwise stated, the services of a participating union officer may be terminated not only when he actually
commits an illegal act during a strike, but also if he KNOWINGLY PARTICIPATES in the conduct and staging of an
illegal strike.
➢ for a union member to suffer the consequence of loss of employment, it must be shown by substantial evidence
that he has KNOWINGLY PARTICIPATED in the commission of illegal acts during the strike.
The law, in using the word may, grants the employer the option of declaring a union officer who participated in an
illegal strike as having lost his employment (Gold City Integrated Port vs NLRC, July 6,1995).
Employer’s right to hire replacements during strike
ECONOMIC STRIKE
Consolidated Labor Association vs Marsman and Co. (July 31, 1964)
➢ “For it is recognized that during the pendency of an economic strike an employer may take
steps to continue and protect his business by supplying places left vacant by the strikers, and is
not bound to discharge those hired for that purpose upon election of the strikers to resume their
employment.”
ULP STRIKE
Insular Life Assurance Employees Association vs Insular Life Assurance Co. (January 30,1971)
➢ While replacements may also be hired by the employer to take the places left vacant by
employees engaged in an unfair labor practice strike, such replacements are not permanent
and the employer is under a duty to dismiss them as soon as the strikers request reinstatement to
their previous position.
BACKWAGES
General rule: “No work,no pay”.
❑ Economic strike – Strikers are not entitled to backwages.
❑ Unfair Labor Practice Strike
1. Those who were discriminatorily dismissed for union activities
- They receive backpay from the date of the act of discrimination, that is, from the day of their illegal
discharge. (the law on dismissal applies)
2. Those who voluntarily went on strike even if it is in protest of an unfair labor practice
- They are not entitled to backwages. The stoppage of their work was not the direct consequence of
the company’s unfair labor practice. Hence, their economic loss should not be shifted to the
employer.
Consequences of illegality of lockout
3rd paragraph,Art. 279(a)
“Any worker whose employment has been terminated as a consequence of any unlawful
lockout shall be entitled to reinstatement with full backwages.”
When in the opinion of the DOLE Secretary, the labor dispute causes or will likely to cause a
strike or lockout in an industry indispensable to the national interest, he is empowered to do
either 2 things:
1. He may assume jurisdiction over the labor dispute and decide it himself; or
2. He may certify it to the NLRC for compulsory arbitration, in which case, it will be the NLRC which
shall hear and decide it.
a) Hospital sector;
b) Electric power industry;
c) Water supply services, to exclude small water supply services such as bottling and refilling stations;
d) Air traffic control; and
e) Such other industries as may be recommended by the National Tripartite Industrial Peace Council (TIPC).
➢ The above enumeration is not exclusive as other companies or firms or industries may be considered indispensable to
the national interest based on the appreciation and discretion of the DOLE Secretary, or as may be recommended
by TIPC, or because they have already been judicially adjudged as being indispensable to the national interest.
Section 22. Strikes and Lockouts. - The banking industry is hereby declared as indispensable to the national interest and,
notwithstanding the provisions of any law to the contrary, any strike or lockout involving banks, if unsettled after seven (7)
calendar days shall be reported by the Bangko Sentral to the secretary of Labor who may assume jurisdiction over the
dispute or decide it or certify the sane to the National Labor Relations Commission for compulsory arbitration. However,
the President of the Philippines may at any time intervene and assume jurisdiction over such labor dispute in order to
settle or terminate the same.
Art. 278 (g) grants extraordinary and preemptive
power
Not limited to the grounds cited in the notice of strike or lockout.
It gives the SOLE the full authority to resolve all matters arising from or related to the
dispute, including cases over which the NLRC’s labor arbiter has exclusive jurisdiction.
- Having been certified to it, it becomes the proper forum for the full and
complete settlement or adjudication of all labor disputes between the
parties , as well as issues that are relevant to or incidents of the certified
case.
Return-to-work order
Assumption or certification over a labor dispute always co-exists with an order for
workers to return to work immediately and for employers to readmit all of them under
the same terms and conditions prevailing before the strike or lockout.
Instances when return-to-work order is issued SEPARATELY from assumption/certification
order:
1) No strike/lockout has yet been conducted;
2) A separate return-to-work order is necessary in order to emphasize the need for the
strikers to lift their pickets and return immediately to work;
3) When another return-to-work order is issued in the light of the defiance by the strikers
of the first return-to-work order.
Nature: “A return-to-work order is interlocutory in nature, and is merely meant to maintain
status quo while the main issue is being threshed out in the proper forum(Manggagawa
ng Komunikasyon sa Pilpinas vs PLDT Company Inc.,April 19,2017 ).
- It is immediately executory.
GENERAL RULE: Actual Reinstatement
Art. 278 (g)
“ all striking or locked out employees shall immediately return-to-work and the
employer shall immediately resume operations and readmit all workers under
the same terms and conditions prevailing before the strike or lockout.”
In the alternative, the President may create a body to discharge his mandate under the law.
FASAP vs PAL
➢ Former President Estrada intervened by issuing Administrative Order No. 16 creating an Inter-
Agency Task Force to aid PAL and its employees in solving the problem.
Voluntary Arbitration
Article 278 (h)
“Before or at any stage of the compulsory arbitration process, the parties
may opt to submit their dispute to voluntary arbitration.”
➢ Decision of the SOLE, the NLRC or the voluntary arbitrator or panel of voluntary arbitrators
- Shall be rendered within 30 calendar days from submission of the case for resolution.
➢ Final and executory
Article 278 (i)
“The decision of the President, the Secretary of Labor and Employment, the Commission or the
voluntary arbitrator shall be final and executory ten (10) calendar days after receipt thereof
by the parties.”
Art. 280 Improved Offer Balloting
Action of the DOLE (Regional branch of the NCMB)
➢ Shall at its own initiative or upon the request of any affected party, conduct a referendum
by secret balloting on the:
1. Improved offer of the employer(in case of a strike); or
2. reduced offer of the union (in case of a lockout).
When: On or before the 30th day of strike or lockout.
➢ When at least a majority of the board of directors or trustees or the partners holding the
controlling interest in the case of a partnership vote to accept the reduced offer or when
at least a majority of the union members vote to accept the improved offer the striking
workers:
1. the striking workers shall immediately return to work;and
2. the employer shall thereupon readmit them upon the signing of the agreement.
6th:Agreement of the Parties
1. NO-STRIKE CLAUSE in a CBA
- Applicable only to ECONOMIC STRIKES.