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Aug 18, 2008

Grievance Machinery and Voluntary Arbitration – machinery for the adjustment and resolution of grievances arising from the interpretation and implementation of the Collective Bargaining Agreement and those arising from the interpretation or enforcement of company personnel policies (Art. 260)

Grievance – a feeling of discontent before it is manifested into verbal or written complaint

Collective Bargaining Agreement (CBA) – contract between legitimate labor union and the employer concerning wages, hours of work, and all other terms and conditions of employment in a bargaining unit

1. grievances arising from the interpretation and implementation of CBA
  • parties shall name and designate in advance a voluntary arbitrator or a procedure for the selection of voluntary arbitrators
  • organized establishments only since there is a CBA
  • GRIEVANCE COMMITTEE: if parties don’t agree; created within 10d from signing of CBA
2. grievances arising from the interpretation or enforcement of company personnel policies

PROCEDURE (organized establishments):
  1. Grievance machinery as agreed in the CBA
  2. if the grievance remains unresolved, automatic referral to voluntary arbitration within 7 calendar days as prescribed in the CBA
  3. if CBA does not provide VA or procedure for selection of VA, the NCMB shall designate the VA

NOTA BENE: The CBA is the law between the parties so if there is a grievance, the parties may be compelled to submit the case to voluntary arbitration, pursuant to the contract stipulation. There is no inconsistency.

Zipper Clause – a stipulation in a CBA indicating that issues that could have been negotiated upon but not contained in the CBA cannot be raised for negotiation when the CBA is already in effect; the CBA is complete agreement

Substitutionary Doctrine – employees cannot revoke the validly executed CBA with their employer by the simple expedient of changing their bargaining agent

Benguet Consolidated, Inc. vs. Employees & Workers Union-PAFLU, G.R. No. L-24711, April 30, 1968

SUBSTITUTIONARY DOCTRINE: The doctrine only provides that the employees cannot revoke the validly executed collective bargaining contract with their employer by the simple expedient of changing their bargaining agent. And it is in the light of this that the phrase “said new agent would have to respect said contract” must be understood. It only means that the employees, thru their new bargaining agent, cannot renege on their collective bargaining contract, except of course to negotiate with management for the shortening thereof.

Voluntary Arbitration

  1. to orderly dispose of disputes
  2. to provide a foundation for stable labor-management relations

  1. Filipino citizen residing in the Philippines
  2. Bachelor’s Degree
  3. at least 5 yrs. experience in labor-management relations
  4. completion of a training course on voluntary arbitration conducted by the Board
  5. good moral character, noted for impartiality, probity and has not been civilly, criminally and administratively adjudged guilty of any offense involving moral turpitude as evidenced by a duly sworn affidavit

1. EOJ (Art. 261) – all unresolved grievance arising from the interpretation or implementation of the CBA and those arising from the interpretation or enforcement of company personnel policies

  • if both parties don’t submit to the VA
  • members of minority union
  • religious objectors
  • non-union members
  • those excluded by the closed-shop agreement

2. OTHER (Art. 262) – upon agreement of parties, all other labor disputes, including ULP and bargaining deadlocks

NOTA BENE: Violations of the CBA, except those gross in character, are not ULP. “Gross violations of CBA” mean flagrant and/or malicious refusal to comply with the economic provisions of such agreement.

ADDENDUM: Termination disputes are under the jurisdiction of the LA. However, termination disputes related to the interpretation/implementation of the CBA (e.g. closed-shop agreement) or company personnel policies are cognizable by the VA.

PROCEDURE (Art. 262-A):
  1. 20 calendar days to decide from submission of dispute to voluntary arbitration
  2. 10 calendar days from receipt of copy of award, decision is final and executory
  3. writ of execution upon motion of any interested party
  4. no motion for recon, but may be appealed by certiorari to CA within 60d under Rule 65 (grave abuse of discretion)

  1. nature of the case
  2. time consumed in hearing the case
  3. professional standing of the VA
  4. capacity to pay of the parties
  5. fees provided for in the Revised Rules of Court


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