GROUP 4 - LABOR RELATIONS

REVIEWER (Amoranto, Dante, Pamatmat)

employment or the association or
V. LABOR RELATIONS representation of persons in negotiations,
fixing, maintaining, changing, or arranging
PEACEFUL CONCERTED ACTIVITIES the terms and conditions of employment,
regardless of whether or not the disputants
Concerted Action: An activity undertaken stand in the proximate relation of employers
by two or more employees; by one on and employees (Labor Code, Art. 219(l);
behalf of others. It is the policy of the State Gold City Integrated Port Services v. NLRC,
to encourage free trade unionism and free G.R. No. 103560 & 103599, 1995)
collective bargaining. Workers shall have
the right to engage in concerted activities for Characteristics of a Strike
purposes of collective bargaining or for their 1. There must be an employer-
mutual benefit and protection. (Labor Code, employee relationship
Art. 278) 2. Existence of a dispute
3. Employment relation is deemed to
Forms of Concerted Activities (Labor continue although in a state of
Code, Art. 278) belligerent suspension
1. Strike; 4. There is temporary work stoppage
2. Lockout; and 5. Work stoppage is done through
3. Picketing concerted action
6. The striking group is a legitimate
I. BY LABOR ORGANIZATION labor organization. In case of
bargaining deadlock, it must be the
a. STRIKE employee’s sole bargaining
- Any temporary stoppage of representative.
work by the concerted action
of the employees as a result Internal union dispute: Includes all
of an industrial or labor disputes or grievances arising from any
dispute. (Labor Code, Art. violation of or disagreement over any
219 (o)) provision of the constitution and by – laws of
a union, including any violation of the rights
Note: The term “strike” has been elucidated and conditions of union membership
to encompass not only concerted work provided for in this Code (Ilaw at Buklod ng
stoppage, but also slowdowns, mass Manggagawa (IBM) v. NLRC), G.R. Nos.
leaves, sit downs, attempts to damage, 81852-53, 1993).
destroy or sabotage plant equipment and
facilities, and similar activities. (Toyota Grounds for Strike or Lockout
Motor Phils. Corp Workers Assoc. v. NLRC, 1. Unfair Labor Practice (ULP) of the
G.R. Nos. 158798-99, October 19, 2007) Employer and the Union
2. Collective Bargaining Deadlock
Labor Dispute includes any controversy or (CBD)
matters concerning terms and conditions of
NOTE: Violations of CBA must be gross to violence, coercion, threats, or intimidation
be considered as ULP any peaceful picketing affecting wages,
hours or conditions of work or in the
Conversion Doctrine: A strike may start as exercise of the right of self organization or
economic and, as it progresses, becomes collective bargaining (Labor Code, Art.
ULP, or vice-versa. 219(r))

Different Kinds of Strike Strike Area: Establishments, warehouses,

1. LEGAL STRIKE – one called for a depots, plants or offices, including the sites
valid purpose and conducted or premises used as runaway shops, of the
through means allowed by law; employer struck against, as well as the
2. ILLEGAL STRIKE – one staged for immediate vicinity actually used by picketing
a purpose not recognized by law, or strikers in moving to and fro before all points
if for a valid purpose, conducted of entrance to and exit from said
through means not sanctioned by establishment (Labor Code, Art. 219 (s))
law, or one that did not follow the
procedural requirements; Boycott: A combination of many to cause a
3. ECONOMIC STRIKE – one staged loss to one person by causing others,
by workers to force wage or other against their will, to withdraw from him their
economic concessions from the beneficial business intercourse through
employer which he is not required by threats that unless others do so, the many
law to grant (Consolidated Labor will cause similar loss to him or them. (31
Association of the Phil. vs. Marsman Am Jur., Sec. 250, p. 956)
and Company, G.R. No. L-17038,
1964); Slowdown: A method by which one’s
4. ULP STRIKE – one called to protest employees, without seeking a complete
against the employer’s acts of unfair stoppage of work, retard production and
labor practice enumerated in the distribution in an effort to compel
Labor Code; compliance by the employer with the labor
5. SLOWDOWN STRIKE – one staged demands made upon him. (Rothenberg, p.
without the workers quitting their 101)
work but merely slackening or by
reducing their normal work output; Unlike other forms of strike, the employees
6. WILD-CAT STRIKE – one declared involved in a slowdown do not walk out of
and staged without filing the required their jobs to hurt the company. They need
notice of strike and without the only to stop work or reduce the rate of their
majority approval of the recognized work while generally remaining in their
bargaining agent; assigned post. (Fadriquelan v. Monterey
7. SIT DOWN STRIKE – one where Foods Corp., G.R. Nos. 178409 & 178434,
the workers stop working but do not 2011)
leave their place.
Note: Such slowdown is generally
Strike-breaker: Any person who obstructs, condemned as inherently illicit and
impedes, or interferes with by force, unjustifiable, because while the employees
continue to work and remain at their
positions and accept the wages due them, Who can declare a strike or lockout
they at the same time select what part of 1. Any certified or duly recognized
their allocated task they care to perform of bargaining representative on the
their own volition or refuse openly or grounds of bargaining deadlock and
secretly to the employer’s damage, to do ULP;
other work. They work on their own terms. 2. Employer; or
But whether or not the workers’ activity in 3. In the absence of #1, any legitimate
question—their concerted adoption of a labor organization in the
different work schedule than that prescribed establishment (only for ULP) (IRR
by management and adhered to for several Labor Code, Sec. 2, Rule XII, Book
years—constitutes a slowdown need not be V)
gone into. The activity is contrary to RA6727
and the parties’ CBA (Ilaw at Buklod v. VALID VERSUS ILLEGAL STRIKES
NLRC, G.R. No. 91980, June 27, 1991) An Illegal Strike is one which:
1. Is contrary to a specific Prohibition of
Non-Strikeable Issues (NCMB, Manual of law, such as strike by employees
Procedures in Settlement and Disposition of performing governmental functions
Conciliation and Preventive Mediation 2. Violates a specific requirement of
Cases, Rule VI, Sec. 6(c)(i); see University law (as to Procedure)
of San Agustin Employees’ Union-FFW v. 3. Is declared for an unlawful Purpose,
CA, G.R. No. 169632, 2006). such as inducing the employer to
1. Labor Standards Cases; commit an unfair labor practice
2. Wage Distortion; against nonunion employees
3. Inter-Union or Intra-Union Disputes; 4. Employs unlawful Means in the
4. Physical Re-arrangement of the pursuit of its objective, such as
Office (Reliance Surety and widespread terrorism of non-strikers
Insurance Co., v. NLRC, G.R. Nos. 5. Violates an existing Injunction
86917-18, 1991); 6. Contrary to an existing Agreement,
5. Execution and Enforcement of Final such as a no-strike clause or
Orders, Decisions, Resolutions, or conclusive arbitration clause (Toyota
Awards in the Cases Mentioned in # Motor Phil. Workers Association v.
6; NLRC, G.R. No. 158789, 2007)
6. Cases pending at the DOLE
Regional Offices, BLR, NLRC, FIRST FACTOR: STATUTORY
DOLE Secretary, Voluntary and PROHIBITION
Compulsory Arbitrators, CA, and SC; Employees in the public service may not
7. Violations of CBA which are engage in strikes. While the Constitution
resolved via Grievance Machinery; recognizes the right of government
8. Company’s Sales Evaluation Policy employees to organize, they are prohibited
(GTE Directories v. Hon. Sanchez, from staging strikes, demonstrations, mass
G.R. No. 76219, 1991); and leaves, walk-outs and other forms of mass
9. Issues covered by a No-Strike action which will result in temporary
Commitment in the CBA stoppage or disruption of public service. The
right of government employees to organize accompanied by the written
is limited only to the formation of unions or proposals of the union, the counter-
associations, without including the right to proposals of the employer and the
strike. (Bangalisan, et al. v. CA, G.R. No. proof of a request for conference to
124687, 1997) settle the differences.
- ULP: Notice shall, as far as
SECOND FACTOR: PROCEDURAL practicable, state the acts
REQUIREMENTS complained of and the efforts taken
to resolve the dispute amicably.
PROCEDURAL REQUIREMENTS (Labor
Code, Art. 278) NOTE: In case notice does not conform with
1. Notice of Strike requirements of this and foregoing
2. Cooling-off Period section/s, the Regional branch of the Board
3. Strike Vote shall inform the concerned party of such
4. Strike Vote Report fact. (Club Filipino, Inc. v. Bautista, G.R.
5. 7-day strike/lockout ban No. 168406, 2015)

These requirements are mandatory, COOLING-OFF PERIOD

meaning, non-compliance therewith makes - Bargaining Deadlock: 30 Days
the strike illegal. (Azucena Vol. II-A, 9th ed., - ULP: 15 Days
p. 594).
The NCMB, upon receipt of the notice of
NOTICE OF STRIKE strike and during the cooling-off period,
mediates and conciliates the parties. The
WHERE FILED: Regional Branch of the Regional branch of the Board may, upon
National Conciliation and Mediation board, agreement of the parties, treat a notice as a
copy furnished the employer or the union, preventive mediation case. It shall also
as the case may be. encourage the parties to submit the dispute
to voluntary arbitration.
WHEN FILED: At least 30 days, in case of
CBD, and at least 15 days, in case of ULP, In cases of ULP strike, the cooling-off period
before the intended date of strike. need not be observed when union-busting is
present. (Labor Code, Art. 278)
WHO FILES NOTICE OF STRIKE:
- Bargaining Deadlock: Only Exclusive Elements of Union Busting: (Labor Code,
Bargaining Representative Art. 278(c))
- ULP: Duly certified bargaining agent 1. The union officers are being
If none, any legitimate labor union dismissed
2. Those officers are duly elected in
CONTENTS OF NOTICE accordance with the union
- Bargaining Deadlock: Notice shall, constitution and by-laws
as far as practicable, further state 3. The existence of the union is
the unresolved issues in the threatened
bargaining negotiations and be
STRIKE VOTE (Labor Code, Art. 278(f)) Center Inc. v. National Labor Relations
A strike/lockout vote should be taken by Commission, G.R. No. 147080, 2005)
secret balloting, in meetings or referenda
specially called for the purpose. NUMBER OF VOTES REQUIRED for
strike/ lockout: Majority of the total UNION
The regional branch of the Board may, at its MEMBERSHIP OR OF THE DIRECTORS
own initiative or upon request of any OR PARTNERS, as the case may be.
affected party, supervise the conduct of the
secret balloting. Strike or lockout vote
1. Approved by majority of total union
NOTE: The requirement of giving notice of membership or by majority of the
the conduct of a strike vote to the NCMB at BOD or partners
least 24 hours before the meeting for the 2. By a secret ballot
said purpose is designed to: 3. In a meeting called for that purpose
a. inform the NCMB of the intent of the
union to conduct a strike vote; STRIKE VOTE REPORT
b. give the NCMB ample time to decide The result of the strike/lockout vote should
on whether or not there is a need to be reported to the NCMB at least 7 days
supervise the conduct of the strike before the intended strike or lockout, subject
vote to prevent any acts of violence to the cooling off period. (Labor Code, Art.
and/or irregularities attendant 278 (f))
thereto; and
c. should the NCMB decide on its own If the strike vote is filed within the cooling-off
initiative or upon the request of an period, the 7-day requirement shall be
interested party including the counted from the day following the
employer, to supervise the strike expiration of the cooling-off period.
vote, to give it ample time to prepare (NCMB’s Primer on Strike, Picketing and
for the deployment of the requisite Lockout)
personnel, including peace officers if
need be. Note: There is no law or Supreme Court
decision that supports this formula. If the
Unless and until the NCMB is notified at union is being busted, there is no need to
least 24 hours of the union's decision to observe the cooling-off period but the
conduct a strike vote, and the date, place, unions must still file a notice of strike, take a
and time thereof, the NCMB cannot strike vote and submit the strike vote report.
determine for itself whether to supervise a
strike vote meeting or not and insure its What is being excused in case of union
peaceful and regular conduct. The failure of busting is only the observance of the 15-day
a union to comply with the requirement of cooling-off period. (Sec. 7, D.O. 40-G-03,
the giving of notice to the NCMB at least 24 2010)
hours prior to the holding of a strike vote
meeting will render the subsequent strike No strike or lockout can be declared while a
staged by the union illegal. (Capitol Medical case is pending involving the same grounds
for strike or lockout. (Bulletin v. Sanchez,
G.R. No. 74425, 1986) Procedural Requirements in Lockouts:
The submission of the report gives (Same as those required in Strikes)
assurance that a strike vote has been taken (Labor Code, Art. 278)
and that, if the report concerning it is false, 1. Notice of Lockout
the majority of the members can take 2. Cooling-off Period
appropriate remedy before it is too late.' The 3. Strike/Lockout Vote
seven (7)-day waiting period is intended to 4. Strike/Lockout Vote Report
give the Department of Labor and 5. 7-day strike/lockout ban
Employment an opportunity to verify
whether the projected strike really carries Art. 279 prohibits the employer from
the imprimatur of the majority of the union doing the following acts:
members. The need for assurance that the 1. Declare a lockout without first having
majority of the union members support the bargained collectively or without first
strike cannot be gainsaid. (Lapanday having filed the notice required or
Workers Union v. National Labor Relations without the necessary lockout vote
Commission, G.R. Nos. 95494-97, 1995) first having been obtained and
reported to the DOLE
Legal and Enforceable Dismissal of 2. Declare a lockout after assumption
Employees during Conciliation of jurisdiction by the President or the
When the strike notice was filed by the Secretary or after certification or
union, the chain of events which culminated submission of the dispute to
in the termination of the 14 salespersons’ compulsory or voluntary arbitration
employment was already taking place; the or during the pendency of cases
series of defiant refusals by said sales involving the same grounds for the
representatives to comply with GTE’s strike or lockout
requirement to submit individual reports was 3. Obstruct, impede, or interfere with,
already in progress. At that time, no less by force, violence, coercion, threats
than 3 of the ultimate 6 direct orders of the or intimidation, any peaceful
employer for the submission of the reports picketing by employees during any
had already been disobeyed. The filing of labor controversy or in the exercise
the strike notice, and the commencement of of the right to self organization or
conciliation activities by the BLR did not collective bargaining, or shall aid or
operate to make GTE’s orders illegal and abet such obstruction or
unenforceable so as to excuse continued interference.
noncompliance therewith. (GTE Directories 4. Use or employ any strike-breaker,
v. Sanchez, G.R. No. 76219, 1991) nor be employed as a strike-breaker.

II. BY THE EMPLOYER Lockouts have been held valid in the

following situations:
LOCKOUT 1. In anticipation of a threatened strike,
Temporary refusal of any employer to where motivated by economic
furnish work as a result of an industrial or considerations
labor dispute
 2. In response to unprotected strike or 1. Violations of CBA which are not
walkout gross.
3. In response to a whipsaw strike 2. Grounds involving inter/intra union
disputes.
Lockouts have been held unlawful in the 3. When there is no notice of strike or
ff. circumstances: lockout or without the strike or
1. To discourage and dissipate lockout vote.
membership in a labor organization 4. After assumption of jurisdiction by
2. To aid a particular union by the Secretary.
preventing further work of its rival 5. After certification or submission of
3. To avoid bargaining dispute to compulsory or voluntary
arbitration or during the pendency of
PROCEDURE FOR DECLARING A cases involving the same grounds
STRIKE OR LOCKOUT for strike or lockout.

WHO MAY DECLARE (Sec. 6, D.O. 40-G- When Notice Must be Filed: Cooling –
03, 2010) off period
- Strike - Any LLO or any certified or 1. In case of bargaining deadlocks: at
duly recognized bargaining least 30 days before the intended
representative in cases of bargaining date of strike
deadlocks and ULPs 2. In case of unfair labor practice: at
- Lockout - Employer in cases of least 15 days before the intended
bargaining deadlocks and ULPs date of strike
3. In case of ULP involving the
Note: If there is no certified or duly dismissal of duly elected union
recognized bargaining representative, any officer/s which may constitute union-
legitimate labor organization may declare a busting: union may take action
strike but only on grounds of unfair labor immediately after the strike vote and
practice. the submission of the results of the
strike vote to the regional branch of
Grounds for Lockout or Strike Collective the Board
Bargaining Deadlock Unfair Labor
Practice Strike or lockout vote
1. Approved by majority of total union
NOTE: Violations of CBA must be gross to membership or by majority of the
be considered as ULP BOD or partners
2. By a secret ballot
Conversion Doctrine: A strike may start as 3. In a meeting called for that purpose
economic and, as it progresses, becomes
ULP, or vice-versa. The regional branch may supervise the
conduct of the secret balloting at its own
When strike or lockout cannot be initiative or upon request of any party.
declared
Notice of the meeting must be given at least for conference to settle differences
24 hours before such meeting, and the 8. In case of unfair labor practice:
results of the voting must be given at least 7 the acts complained of, and the
days before the intended strike or lockout to efforts taken to resolve the dispute
the regional branch of the Board. This is (Sec 8, D.O. 40-G-03, Series of
subject to the cooling-off period. (Labor 2010)
Code, Art. 278(f))
Note: Board shall inform the concerned
Strike/Lockout Vote Report party in case notice does not conform with
The result of the strike (or lockout voting) the requirements. (Sec 8, D.O. 40-G-03,
should be reported to the NCMB at least 7 Series of 2010)
days before the intended strike or
lockout, subject to the cooling off period. Action on notice of strike or lockout (Sec
This means that after the strike vote is taken 9, D.O. 40-G-03, Series of 2010)
and the result reported to NCMB, seven 1. Upon receipt of the notice, the
days must pass before the union can regional branch of the Board shall
actually commence the strike. This seven- exert all efforts at mediation and
day reporting period is intended to give the conciliation to enable the parties to
Dept. of Labor and Employment an settle the dispute amicably. It shall
opportunity to verify whether the projected also encourage the parties to submit
strike really carries the imprimatur of the the dispute to voluntary arbitration.
majority of the union members. (Lapanday 2. The Regional Branch of the Board
Workers’ Union, et. al. v. NLRC, G.R. Nos. may, upon agreement of the parties,
95494-97, September 7, 1995) treat a notice as a preventive
mediation case. It shall also
A strike tagged without the submission of encourage the parties to submit the
the result of the strike vote is illegal. dispute to voluntary arbitration.
(Samahan ng Manggagawa in Moldex 3. During the proceedings, the parties
Products, et. al. v. NLRC, et.al., G.R. No. shall not do any act which may
119467, February 1, 2000) disrupt or impede the early
settlement of the dispute. They are
Contents of the notice of strike or obliged, as part of their duty, to
lockout bargain collectively in good faith and
1. Names and addresses of employer to participate fully and promptly in
2. Union involved the conciliation meetings called by
3. Nature of industry to which the the regional branch of the Board.
employer belongs 4. A notice, upon agreement of the
4. Number of union members parties, may be referred to
5. Workers in the bargaining unit alternative modes of dispute
6. Other relevant data resolution, including voluntary
7. In case of bargaining deadlocks: the arbitration.
unresolved issues, written proposals
of the union, counter-proposals of Procedural Requirements of a Valid
the employer and proof of request Strike or Lockout
 1. Notice of Strike or Lockout 5. Obstruct, impede, or interfere with
2. Cooling Off Period by force, violence, coercion, threats,
3. Notice of meeting for Strike or or intimidation any peaceful
Lockout vote at least 24 hours picketing by employees during any
before the conduct of said meeting labor controversy or shall abet or aid
4. Conduct AND results of Strike or such obstruction or interference.
Lockout vote reported 6. Employment or use of any
5. 7-day strike ban observed strikebreaker/ employed as a strike
breaker.
Preventive Mediation 7. Bringing in, introducing, or escorting
The regional branch may treat the notice as by any public officer or employee,
a preventive mediation case upon including officers and personnel of
agreement of the parties. the AFP or PNP, or any armed
person in any manner of any
When labor may strike or when the individual who seeks to replace
employer may lockout its workers strikers in entering or leaving the
If the dispute remains unsettled after the premises of a strike area or work in
lapse of the requisite number of days from place of strikers.
the filing of the notice of strike or lockout 8. Commit any act of violence, coercion
and of the results of the election but the or intimidation while engaged in
regional branch of the Board shall continue picketing or obstruct the ingress or
mediating and conciliating. egress from the employer's premises
for lawful purposes or obstruct public
Prohibited activities during strikes and thoroughfares (must be pervasive
lockouts (Labor Code, Art. 279) and widespread/consistently and
1. Strike or lockout without first having deliberately resorted to as a matter
bargained collectively of policy
2. Strike or lockout without the
necessary vote first having been III. ASSUMPTION OF JURISDICTION
obtained and reported to the DOLE. BY THE SECRETARY OF LABOR
3. Strike or lockout after DOLE has AND EMPLOYMENT (Dante)
assumed jurisdiction or the
President or after certification or A. NATURE
submission of dispute to the
compulsory arbitration/voluntary Art. 278(g) is both an extraordinary and a
arbitration or during the pendency of preemptive power to address an
cases involving the same grounds extraordinary situation — a strike or lockout
for the strike or lockout. in an industry indispensable to the national
4. Knowingly participating in an illegal interest. The secretary of Labor is
strike or knowingly participating in empowered to:
the commission of illegal acts during 1. Assume jurisdiction over the dispute
a strike (ground for termination of and decide it, or
employment).
 2. Certify the dispute to the NLRC for said industry. (Philtread Workers Union v.
compulsory arbitration, in which Confesor, G.R. No. 117169, 1997)
case, NLRC shall here and decide
A Police Power Measure
The intent of the law is to give the Labor The assumption of jurisdiction is in the
Secretary full authority to resolve all matters nature of police power measure. This is
within the dispute that gave rise to or which done for the promotion of the common good
arose out of the strike or lockout; it includes considering that a prolonged strike or
and extends to all questions and lockout can be inimical to the national
controversies arising from or related to the economy. The Secretary of Labor acts to
dispute, including cases over which the maintain industrial peace. Thus, his
labor arbiter has exclusive jurisdiction. certification for compulsory arbitration is not
intended to impede the workers right to
The authority of the Secretary to assume strike but to obtain a speedy settlement of
jurisdiction over a labor dispute causing or the dispute. (Philtread Workers Union v.
likely to cause a strike or lockout in an Confesor, G.R. No. 117169, 1997)
industry indispensable to national interest
includes and extends to all questions and B. EFFECTS OF ASSUMPTION OF
controversies arising from such labor JURISDICTION
dispute. The power is plenary and
discretionary in nature to enable him to 1. On intended or impending strike or
effectively and efficiently dispose of the lockout — Automatically enjoined
dispute. (Philcom Employees Union v. (Labor Code, Art. 278(g))
Philippine Global Communications, G.R. 2. On actual strike or lockout (already
No. 144315, 2006) taken place) — all striking or locked-
out employees shall immediately
As held in International Pharmaceuticals, return to work and the employer
Inc. v. Secretary of Labor, the Labor shall immediately resume operations
Secretary has jurisdiction over all questions and readmit all workers under the
and controversies arising from an assumed same terms and conditions
dispute, including cases over which the prevailing before the strike or lockout
labor arbiter has exclusive jurisdiction. (Labor code, Art. 278(g))
(G.R. Nos. 92981-83, 1992) 3. On cases already filed and may be
filed — considered subsumed or
What Constitutes a National Interest absorbed by assumed or certified
Case case, except where certification or
The Labor Code vests upon the Secretary assumption order states otherwise
of Labor the discretion to determine what (Guagua National Colleges v.
industries are indispensable to national Guagua National Colleges Faculty
interest. Thus, upon the determination of the Labor Union, G.R. No. 204693,
Secretary of Labor that such industry is 2016)
indispensable to the national interest, it will 4. On other pending cases — Parties
assume jurisdiction over the labor dispute of are required to inform their counsels
and the DOLE Secretary/ NLRC
 Division concerned of all pending Thus, in one case, the Court held the layoff
cases that are related or incident to of 94 EEs pending the resolution of the
the assumed/certified case. (Par 2, dispute illegal as it was violative of the
Sec. 3(b), Rule VIII, 2011 NLRC assumption order. (Metrolab v. Roldan-
Rules of Procedure) Confesor, G.R. No. 108855, 1996)

Such assumption or certification has the When May the Secretary Assume
effect of automatically enjoining the Jurisdiction Over a Case or Certify it to
intended or impending strike or lockout as the NLRC
specified in the assumption or certification Under the law, when in his opinion there
order. exists a labor dispute causing or likely to
cause a strike or lockout in an industry
If one has already taken place at the time of indispensable to the national interest, the
the assumption or certification, all striking or Secretary [of Labor] may:
locked out employees shall immediately 1. Assume jurisdiction over the dispute
return to work and the employer shall and decide it, or
immediately resume operations and readmit 2. Certify the same to the NLRC for
all workers under the same terms and compulsory arbitration
conditions prevailing before the strike or
lockout. In such case, the Note: Power of DOLE Secretary to assume
assumption/certification results to a return- jurisdiction over a labor dispute is limited to
to-work of all striking workers even if the strikes or lockouts adversely affecting the
Secretary has not issued a Return to Work national interest. (Free Telephone Workers
Order (RTWO). (Labor code, Art. 278 (g)) Union v. Hon. Minister ofLabor and
Employment, G.R. L-58184, 1981)
This is an example of an automatic
injunction. But this is strictly limited to What are Considered "National Interest"
"national interest" cases, and even in these Cases
cases, the parties retain the option to submit The NLRC vests the President of the
the dispute to voluntary arbitration. Philippines and the Secretary of Labor
almost unlimited discretion to determine
Upon assumption or certification, the parties what industries may be considered as
should revert to the status quo ante litem indispensable to the national interest.
which refers to the state of things as it was
before the labor dispute or the state affairs Industries Indispensable to the National
existing at the time of the filing of the case. Interest
(Overseas Workers' Welfare Administration 1. Hospital Sector
v. Chavez, G.R. No. 169802, 2007) 2. Electric Power Industry
3. Water Supply Services, to exclude
The assumption or certification also has the small water supply such as bottling
effect of regulating the management and refilling stations
prerogative of determining the assignment 4. Air traffic control
or movement of EEs. 5. Such other industries as maybe
recommended by the National
 Tripartite Peace Council (TIPC) (DO 2. DOLE Secretary shall immediately
No.40-H-13) assume, within 24 hrs from
knowledge of the occurrence of the
Examples of "National interest" strike/lockout, jurisdiction over the
disputes: same or certify it to NLRC for
1. Nestle Philippines, Inc. is engaged in compulsory arbitration
an undertaking affected with public
interest being one of the largest Assumption of Jurisdiction: Prior Notice
manufacturers of food products. Not Required
(Union of Filipro v. NLRC,G.R. No. The discretion to assume jurisdiction may
91025, 1990) be exercised by the Secretary without the
2. Academic institutions (Philippine necessity of prior notice or hearing given to
School of BusinessAdministration v. any of the parties. The rationale for his
Noriel, G.R. No. 80648, 1988) primary assumption of jurisdiction can
3. A company supplying the sulfate justifiably rest on his own consideration of
requirements of MWSS the exigency of the situation in relation to
4. Banking is expressly classified by the national interests. (Capitol Medical
the General Banking Law as an Center v. Trajano, G.R. No. 155690, 2005)
industry indispensable to the
national interest Return-to-Work-Order (RTWO)
5. However, the Court ruled that the The moment the Secretary of Labor
production of telephone directories is assumes jurisdiction over a labor dispute in
not an industry affecting the national an industry indispensable to national
interest. (GTE Directories Corp v. interest, such assumption shall have the
Sanchez, G.R. No. 76219, 1991) effect of automatically enjoining the
intended or impending strike. It was not
Rule on Strikes and Lockouts in even necessary for the Secretary of Labor
Hospitals, Clinics and Medical to issue another order directing a return to
Institutions (Labor code, Article 278(g) work. The mere issuance of an assumption
(par.2)) order by the Secretary of Labor
General Rule: Strikes and lockouts in these automatically carries with it a return-to-work
institutions must be avoided order, even if the directive to return to work
is not expressly stated in the assumption
But in case a strike or lockout is staged: order. (Steel Corporation of the Philippines
1. It shall be the duty of the striking v. SCPEmployees Union, G.R. 169829-30,
union or locking-out employer to 2008)
provide and maintain an effective
skeletal workforce of medical/ other Note:
health personnel whose services ● It is always part of the
shall be unhampered and assumption/certification order even if
unrestricted to insure the proper and not expressly stated.
adequate protection of life and ● RTWO is compulsory in character
health of its patients for the duration
of the strike/lockout Certification to NLRC
"Certified labor disputes" are cases certified Any defiance thereof is a valid ground for
[or referred] to the NLRC for compulsory the loss of employment status regardless of
arbitration. whether the defiant worker is an officer or
an ordinary member of the union Defiance
A "national interest" dispute may be certified of the assumption order or a return-to work
to the NLRC even before a strike is order by a striking employee, whether a
declared since the Labor Code does not union officer or a member, is an illegal act
require the existence of a strike, but only of and, therefore, a valid ground for loss of
an industrial dispute. employment status. (Manila Hotel
Employees Association v. Manila Hotel
When sitting in a compulsory arbitration Corp., G.R. No. 154591, 2007)
certified to by the DOLE Secretary, the
NLRC is not sitting as a judicial court but as Certification to the NLRC makes the
an administrative body charged with the continuation of the strike illegal, provided
duty to implement the order of the that the parties are duly notified of the
Secretary. In such a case, the NLRC does certification order. Notice is a prerequisite
not have the power to amend the even if the order states that it is
Secretary's order. (GSISEA v. C1R, G.R. "immediately executory."
No. L-18734, 1961)
Refusal to Receive the Assumption of
Effects of Defiance of Assumption or Jurisdiction Order Amounts to Defiance
Certification Refusal to receive the Assumption of
Jurisdiction Order (AJO) amounts to
Noncompliance with the certification order defiance of the order, which makes the
of the Secretary shall be considered an continuation of the strike an illegal act, thus
illegal act committed in the course of the subjecting the strikers to possible
strike or lockout, and shall authorize the termination of employment.
NLRC to enforce the same under pain of
immediate disciplinary action, including loss The strikers should resume work
of employment status or payment by the immediately upon receipt or constructive
locking-out ER of backwages or damages, receipt of the order. A grace period may be
even criminal prosecution against the liable given but that is not required by the law.
parties. (Azucena Vol. II-A, 9th ed., 2016, p. 646)

Defiant Strikers, Whether Officer or Effects of Defying the RTWO

Ordinary Members of the Striking Union, The mere issuance of an assumption order
are Deemed Dismissed - automatically carries with it a return-to-work
Once DOLE Sec assumes jurisdiction over order. (Steel Corporation of the Philippines
a labor dispute or certifies it to NLRC for V. SCP Employees Union, G.R. Nos.
compulsory arbitration, such jurisdiction 169829-30, 2008)
should not be interfered with by the
application of coercive processes of a strike From the moment a worker defies a RTWO,
or lockout. he is deemed to have abandoned his job.
(St. Scholastica's College v. Torres, G.R. EEs' positions. (Azucena Vol. II-A, 9th ed.,
No. 100158, 1992) 2016, p. 655)

Those workers who refuse to obey the With respect to the Secretary's Order
RTWO are not entitled to be paid for work allowing payroll reinstatement instead of
not done or to reinstatement to the positions actual reinstatement for the individual
they have abandoned by their refusal to respondents herein, an amendment to the
return thereto as ordered. (Asian previous Orders issued by her office, the
Transmission Corporation v. NLRC, G.R. same is usually not allowed. Article 263(g)
No. 88725, 1989) of the Labor Code aforementioned states
that all workers must immediately return to
Where the RTWO is issued pending the work and all employers must readmit all of
determination of the legality of the strike, it them under the same terms and conditions
is not correct to say that it may be enforced prevailing before the strike or lockout. The
only if the strike is legal and may be phrase "under the same terms and
disregarded if the strike is illegal. Precisely, conditions" makes it clear that the norm is
the purpose of the RTWO is to maintain the actual reinstatement. This is consistent with
status quo while the determination is being the idea that any work stoppage or
made. (Union of Filipro Emplees v. Nestle slowdown in that particular industry can be
Philippines, G.R. No. 88710-13, 1990) detrimental to the national interest.
(University of Immaculate Concepcion, Inc.
Not only union officers but also union v. Secretary ofLabor, G.R. No. 151379,
members who defy an RTWO are subject to 2005)
dismissal.
Thus, placing the striking employees to
But to justify the dismissal, the defiance of substantially equivalent positions could not
the RTWO must be clearly proven. be considered reinstatement "under the
(Batangas Laguna Tayabas Bus Company same terms and conditions prevailing before
v. NLRC, G.R. No. 101858, 1992) the strike."(University ofSto. Tomas v.
Thus, the alleged or perceived defiance of NLRC, G.R. No. 89920, 1990)
the RTWO does not mean automatic
dismissal of the defying employees. Due Appeal of Secretary's Order
process must be observed. The employees In "national interest" cases, the Secretary's
must be given the chance to explain and Order may be appealed to the Office of the
prove that there was no defiance at all. President.
(Azucena Vol. II-A, 9th ed., 2016, p. 652)
In "non-national interest" cases, the Order
Actual, Not Payroll, Reinstatement may be appealed via a Petition for Certiorari
Under the law, "the striking or locked out (Rule 65).
employees shall return to work and the
employer shall readmit them." The Court The parties may at any stage withdraw the
has interpreted this to mean, as a general case from compulsory arbitration to bring it
rule, actual, not payroll, readmission to the instead to a voluntary arbitrator. (Labor
Code, Art. 278(1,).
Arrest and Detention (Labor code, Art.
281)
General Rule: No Union members or union
organizers may be arrested or detained for
union activities without previous
consultation with the Secretary of Labor.

Exception: On grounds of national security

and public peace.