Labor Law and Social Legislation › Labor Relations › Peaceful Concerted Activities

1. Strike, Picketing, and Lockout

6. Illegal Strike

a. Procedure - Labor Code, Art. 278 [263], and Book V implementing rules b. Quitclaim

D. Peaceful Concerted Activities

  • Strikes, Picketing, and Lockouts – Labor Code, art. 278; Omnibus Rules Implementing the Labor Code, Book V, Rule XIII
  • Assumption of Jurisdiction by Secretary of Labor and Employment – Labor Code, art. 278 (g); DOLE D.O. No. 40-H-13

Concerted Action: An activity undertaken by two or more employees; by one on behalf of others.

It is the policy of the State to encourage free trade unionism and free collective bargaining. Workers shall have the right to engage in concerted activities for purposes of collective bargaining or for their mutual benefit and protection. (Labor Code, Art. 278)

Forms of Concerted Activities (Labor Code, Art. 278)

  • Strike;
  • Lockout; and
  • Picketing

a. STRIKE

Any temporary stoppage of work by the concerted action of the employees as a result of an industrial or labor dispute. (Labor code, Art. 219 (o))

Note: The term “strike” has been elucidated to encompass not only concerted work stoppage, but also slowdowns, mass leaves, sit downs, attempts to damage, destroy or sabotage plant equipment and facilities, and similar activities. (Toyota Motor Phils. Corp Workers Assoc. v. NLRC, G.R. Nos. 158798-99, October 19, 2007)

Labor Dispute includes any controversy or matters concerning terms and conditions of employment or the association or representation of persons in negotiations, fixing, maintaining, changing, or arranging the terms and conditions of employment, regardless of whether or not the disputants stand in the proximate relation of employers and employees (Labor code, Art. 219(l); Gold City Integrated Port Services v. NLRC, G.R. No. 103560 & 103599, 1995)

Characteristics of a Strike

  • There must be an employer-employee relationship
  • Existence of a dispute
  • Employment relation is deemed to continue although in a state of belligerent suspension
  • There is temporary work stoppage
  • Work stoppage is done through concerted action
  • For a lawful union strike, the declaring union must be a legitimate labor organization. In case of bargaining deadlock, it must be the employee’s sole bargaining representative.

Internal union dispute: Includes all disputes or grievances arising from any violation of or disagreement over any provision of the constitution and by – laws of a union, including any violation of the rights and conditions of union membership provided for in this Code (Ilaw at Buklod ng Manggagawa (IBM) v. NLRC), G.R. Nos. 81852-53, 1993).

Grounds for Strike or Lockout

  • Unfair Labor Practice (ULP) of the Employer and the Union
  • Collective Bargaining Deadlock (CBD)

NOTE: Violations of CBA must be gross to be considered as ULP

Conversion Doctrine: A strike may start as economic and, as it progresses, becomes ULP, or vice-versa.

Different Kinds of Strike

  • LEGAL STRIKE – one called for a valid purpose and conducted through means allowed by law;
  • ILLEGAL STRIKE – one staged for a purpose not recognized by law, or if for a valid purpose, conducted through means not sanctioned by law, or one that did not follow the procedural requirements;
  • ECONOMIC STRIKE – one staged by workers to force wage or other economic concessions from the employer which he is not required by law to grant (Consolidated Labor Association of the Phil. vs. Marsman and Company, G.R. No. L-17038, 1964);
  • ULP STRIKE – one called to protest against the employer’s acts of unfair labor practice enumerated in the Labor Code;
  • SLOWDOWN STRIKE – one staged without the workers quitting their work but merely slackening or by reducing their normal work output;
  • WILD-CAT STRIKE – one declared and staged without filing the required notice of strike and without the majority approval of the recognized bargaining agent;
  • SIT DOWN STRIKE – one where the workers stop working but do not leave their place.

Strike-breaker: Any person who obstructs, impedes, or interferes with by force, violence, coercion, threats, or intimidation any peaceful picketing affecting wages, hours or conditions of work or in the exercise of the right of self-organization or collective bargaining (Labor Code, Art. 219(r))

Strike Area: Establishments, warehouses, depots, plants or offices, including the sites or premises used as runaway shops, of the employer struck against, as well as the immediate vicinity actually used by picketing strikers in moving to and from before all points of entrance to and exit from said establishment (Labor Code, Art. 219 (s))

Boycott: A combination of many to cause a loss to one person by causing others, against their will, to withdraw from him their beneficial business intercourse through threats that unless others do so, the many will cause similar loss to him or them. (31 Am Jur., Sec. 250, p. 956)

Slowdown: A method by which one’s employees, without seeking a complete stoppage of work, retard production and distribution in an effort to compel compliance by the employer with the labor demands made upon him. (Rothenberg, p. 101)

Unlike other forms of strike, the employees involved in a slowdown do not walk out of their jobs to hurt the company. They need only to stop work or reduce the rate of their work while generally remaining in their assigned post. (Fadriquelan v. Monterey Foods Corp., G.R. Nos. 178409 & 178434, 2011)

Note: Such slowdown is generally condemned as inherently illicit and unjustifiable, because while the employees continue to work and remain at their positions and accept the wages due them, they at the same time select what part of their allocated task they care to perform of their own volition or refuse openly or secretly to the employer’s damage, to do other work. They work on their own terms. But whether or not the workers’ activity in question—their concerted adoption of a different work schedule than that prescribed by management and adhered to for several years—constitutes a slowdown need not be gone into. The activity is contrary to RA6727 and the parties’ CBA (Ilaw at Buklod v. NLRC, G.R. No. 91980, June 27, 1991)

Non-Strikeable Issues (NCMB, Manual of Procedures in Settlement and Disposition of Conciliation and Preventive Mediation Cases, Rule VI, Sec. 6(c)(i); see University of San Agustin Employees’ Union-FFW v. CA, G.R. No. 169632, 2006).

  • Labor Standards Cases;
  • Wage Distortion;
  • Inter-Union or Intra-Union Disputes;
  • Physical Re-arrangement of the Office (Reliance Surety and Insurance Co., v. NLRC, G.R. Nos. 86917-18, 1991);
  • Execution and Enforcement of Final Orders, Decisions, Resolutions, or Awards in the Cases Mentioned in # 6;
  • Cases pending at the DOLE Regional Offices, BLR, NLRC, DOLE Secretary, Voluntary and Compulsory Arbitrators, CA, and SC;
  • Violations of CBA which are resolved via Grievance Machinery;
  • Company’s Sales Evaluation Policy (GTE Directories v. Hon. Sanchez, G.R. No. 76219, 1991); and
  • Issues covered by an applicable no-strike clause, generally economic or arbitrable disputes; a no-strike clause does not ordinarily bar a strike against the employer’s unfair labor practice.

Who can declare a strike or lockout

  • Any certified or duly recognized bargaining representative on the grounds of bargaining deadlock and ULP;
  • Employer; or
  • In the absence of #1, any legitimate labor organization in the establishment (only for ULP) (IRR Labor Code, Sec. 2, Rule XII, Book V)

VALID VERSUS ILLEGAL STRIKES

An Illegal Strike is one which: PPP-MIA

  • Is contrary to a specific Prohibition of law, such as strike by employees performing governmental functions
  • Violates a specific requirement of law (as to Procedure)
  • Is declared for an unlawful Purpose, such as inducing the employer to commit an unfair labor practice against nonunion employees
  • Employs unlawful Means in the pursuit of its objective, such as widespread terrorism of non-strikers
  • Violates an existing Injunction
  • Violates an applicable no-strike or arbitration Agreement covering the dispute; a no-strike clause generally does not bar a strike against the employer’s unfair labor practice (Toyota Motor Phil. Workers Association v. NLRC, G.R. No. 158789, October 19, 2007)

SECOND FACTOR: PROCEDURAL REQUIREMENTS

PROCEDURAL REQUIREMENTS (Labor Code, Art. 278)

  • Notice of Strike
  • Cooling-off Period
  • Strike Vote
  • Strike Vote Report
  • 7-day strike/lockout ban

These procedural requirements generally apply. In a union-busting case involving the dismissal of duly elected union officers that threatens the union’s existence, the cooling-off period does not apply; the union must still take a strike vote and report its results subject to the statutory seven-day period. (Labor Code, Art. 278 [263](c) and (f); Azucena Vol. II-A, 9th ed., p. 594).

1. NOTICE OF STRIKE

WHERE FILED: Regional Branch of the National Conciliation and Mediation board, copy furnished the employer or the union, as the case may be.

WHEN FILED: At least 30 days, in case of CBD, and at least 15 days, in case of ULP, before the intended date of strike.

WHO FILES NOTICE OF STRIKE
BARGAINING DEADLOCK ULP
ONLY EXCLUSIVE BARGAINING REPRESENTATIVE Duly certified bargaining agent. If none, any legitimate labor union
WHO FILES NOTICE OF STRIKE
BARGAINING DEADLOCK ULP
Notice shall, as far as practicable, further state the unresolved issues in the bargaining negotiations and be accompanied by the written proposals of the union, the counter-proposals of the employer and the proof of a request for conference to settle the differences. Notice shall, as far as practicable, state the acts complained of and the efforts taken to resolve the dispute amicably.

NOTE: In case notice does not conform with requirements of this and foregoing section/s, the Regional branch of the Board shall inform the concerned party of such fact. (Club Filipino, Inc. v. Bautista, G.R. No. 168406, 2015)

Strike or lockout vote

  • A strike vote requires approval by a majority of the union’s total membership. A lockout vote requires approval by a majority of the corporation’s board of directors or the partnership’s partners, as applicable.
  • By a secret ballot
  • In a meeting called for that purpose

4. STRIKE VOTE REPORT

The result of the strike/lockout vote should be reported to the NCMB at least 7 days before the intended strike or lockout, subject to the cooling-off period. Labor code, Art. 278 (f))

If the strike vote is filed within the cooling-off period, the strike or lockout may proceed only after both the applicable cooling-off period and the seven-day period following submission of the strike-vote report have expired. (Labor Code, Art. 278(f) [263(f)])

Note: There is no law or Supreme Court decision that supports counting the seven-day period only from the expiration of the cooling-off period.

If the union is being busted, there is no need to observe the cooling-off period but the unions must still file a notice of strike, take a strike vote and submit the strike vote report. What is being excused in case of union busting is only the observance of the 15-day cooling-off period.) (Sec. 7, D.O. 40-G-03, 2010)

The mere pendency of a case involving the same grounds for strike or lockout does not, by itself, prohibit a strike or lockout. (Bulletin v. Sanchez, G.R. No. 74425, 1986) The Secretary of Labor’s assumption of jurisdiction or certification of the dispute for compulsory arbitration automatically enjoins an intended or ongoing strike or lockout. (Labor Code, Art. 278(g) [263(g)]; Philippine Airlines, Inc. v. Secretary of Labor and Employment, G.R. No. 88210, January 23, 1991)

The submission of the report gives assurance that a strike vote has been taken and that, if the report concerning it is false, the majority of the members can take appropriate remedy before it is too late.' The seven (7)-day waiting period is intended to give the Department of Labor and Employment an opportunity to verify whether the projected strike really carries the imprimatur of the majority of the union members. The need for assurance that majority of the union members support the strike cannot be gainsaid||| (Lapanday Workers Union v. National Labor Relations Commission, G.R. Nos. 95494-97, 1995)

II. BY THE EMPLOYER

a. LOCKOUT

Temporary refusal of any employer to furnish work as a result of an industrial or labor dispute

Procedural Requirements in Lockouts: (Same as those required in Strikes) (Labor Code, Art. 278)

  • Notice of Lockout
  • Cooling-off Period
  • Strike/Lockout Vote
  • Strike/Lockout Vote Report
  • 7-day strike/lockout ban

Art. 279 prohibits the employer from doing the following acts:

Art. 279 prohibits the employer from doing the following acts:

  • Declare a lockout without first having bargained collectively or without first having filed the notice required or without the necessary lockout vote first having been obtained and reported to the DOLE
  • Declare a lockout after assumption of jurisdiction by the President or the Secretary 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
  • Obstruct, impede, or interfere with, by force, violence, coercion, threats or intimidation, any peaceful picketing by employees during any labor controversy or in the exercise of the right to self-organization or collective bargaining, or shall aid or abet such obstruction or interference.
  • Use or employ any strike-breaker.

No person may be employed as a strike-breaker.

Lockouts have been held valid in the following situations:

  • A lockout may be declared on grounds of a bargaining deadlock or unfair labor practice, subject to the required notice, cooling-off period, lockout vote, and vote report (Art. 278 [263])
  • In response to unprotected strike or walkout, provided the lockout is based on a bargaining deadlock or unfair labor practice and declared in compliance with the Labor Code’s lockout requirements (Art. 278 [263])
  • In response to a whipsaw strike, provided the lockout is based on a bargaining deadlock or unfair labor practice and declared in compliance with the Labor Code’s lockout requirements (Art. 278 [263])

Lockouts have been held unlawful in the ff. circumstances:

  • To discourage and dissipate membership in a labor organization
  • To aid a particular union by preventing further work of its rival
  • To avoid bargaining

Procedure for Declaring a Strike or Lockout

WHO MAY DECLARE? (Sec. 6, D.O. 40-G-03, 2010)
STRIKE LOCKOUT
For a bargaining deadlock, the certified or duly recognized bargaining representative; for an unfair labor practice, any legitimate labor organization, even without a certified or duly recognized bargaining representative Employer in cases of bargaining deadlocks and ULPs

Note: If there is no certified or duly recognized bargaining representative, any legitimate labor organization may declare a strike but only on grounds of unfair labor practice.

Grounds for Lockout or Strike

Collective Bargaining Deadlock Unfair Labor Practice

NOTE: A CBA violation constitutes an unfair labor practice when it is gross—that is, a flagrant and/or malicious refusal to comply with the CBA’s economic provisions (Labor Code, Art. 274 [261]).

Conversion Doctrine: A strike may start as economic and, as it progresses, becomes ULP, or vice-versa.

When strike or lockout cannot be declared

  • Violations of CBA which are not gross.
  • Grounds involving inter/intra union disputes.
  • When there is no notice of strike or lockout or without the strike or lockout vote.
  • After assumption of jurisdiction by the Secretary.
  • After certification or submission of dispute to compulsory or voluntary arbitration or during the pendency of cases involving the same grounds for strike or lockout.

When Notice Must be Filed: Cooling – off period

  • In case of bargaining deadlocks: at least 30 days before the intended date of strike
  • In case of unfair labor practice: at least 15 days before the intended date of strike
  • In case of ULP involving the dismissal of duly elected union officer/s which may constitute union-busting: the union need not observe the 15-day cooling-off period, but it must take a strike vote, submit the strike-vote report, and observe the seven-day waiting period after submission before striking (Labor Code, Art. 278(f) [263(f)])

Strike or lockout vote

  • Approved by majority of total union membership or by majority of the BOD or partners
  • By a secret ballot
  • In a meeting called for that purpose

The regional branch may supervise the conduct of the secret balloting at its own initiative or upon request of any party.

Notice of the meeting must be given at least 24 hours before such meeting, and the results of the voting must be given at least 7 days before the intended strike or lockout to the regional branch of the Board. This is subject to the cooling-off period. (Labor Code, Art. 278(f))

Strike/Lockout Vote Report

The result of the strike (or lockout voting) should be reported to the NCMB at least 7 days before the intended strike or lockout, subject to the cooling off period. This means that after the strike vote is taken and the result reported to NCMB, seven days must pass before the union can actually commence the strike. This seven-day reporting period is intended to give the Dept. of Labor and Employment an opportunity to verify whether the projected strike really carries the imprimatur of the majority of the union members. (Lapanday Workers’ Union, et. al. v. NLRC, G.R. Nos. 95494-97, September 7, 1995)

A strike staged without the submission of the result of the strike vote is illegal. (Samahan ng Manggagawa in Moldex Products, et. al. v. NLRC, et.al., G.R. No. 119467, February 1, 2000)

Contents of the notice of strike or lockout

  • Names and addresses of employer
  • Union involved
  • Nature of industry to which the employer belongs
  • Number of union members
  • Workers in the bargaining unit
  • Other relevant data
  • In case of bargaining deadlocks: the unresolved issues, written proposals of the union, counter-proposals of the employer and proof of request for conference to settle differences
  • In case of unfair labor practice: the acts complained of, and the efforts taken to resolve the dispute (Sec 8, D.O. 40-G-03, Series of 2010)

Note: Board shall inform the concerned party in case notice does not conform with the requirements. (Sec 8, D.O. 40-G-03, Series of 2010)

Action on notice of strike or lockout (Sec 9, D.O. 40-G-03, Series of 2010)

  • Upon receipt of the notice, the regional branch of the Board shall exert all efforts at mediation and conciliation to enable the parties to settle the dispute amicably. It shall also encourage the parties to submit the dispute to voluntary arbitration.
  • The Regional Branch of the Board may, upon agreement of the parties, treat a notice as a preventive mediation case. It shall also encourage the parties to submit the dispute to voluntary arbitration.
  • During the proceedings, the parties shall not do any act which may disrupt or impede the early settlement of the dispute. They are obliged, as part of their duty to bargain collectively in good faith and to participate fully and promptly in the conciliation meetings called by the regional branch of the Board.
  • A notice, upon agreement of the parties, may be referred to alternative modes of dispute resolution, including voluntary arbitration.

Procedural Requirements of a Valid Strike or Lockout

  • Notice of Strike or Lockout
  • Cooling Off Period
  • Notice of meeting for Strike or Lockout vote at least 24 hours before the conduct of said meeting
  • Conduct AND results of Strike or Lockout vote reported
  • 7-day strike ban observed

When labor may strike or when the employer may lockout its workers

If the dispute remains unsettled after the lapse of the requisite number of days from the filing of the notice of strike or lockout and of the results of the election but the regional branch of the Board shall continue mediating and conciliating.

Prohibited activities during strikes and lockouts (Labor Code, Art. 279)

  • Strike or lockout without first having bargained collectively
  • Strike or lockout without the necessary vote first having been obtained and reported to the DOLE.
  • Strike or lockout after the Secretary of Labor and Employment has assumed jurisdiction, or after the dispute has been certified or submitted to compulsory or voluntary arbitration, or during the pendency of cases involving the same grounds for the strike or lockout.
  • Knowingly participating in illegal strike or knowingly participating in the commission of illegal acts during a strike (ground for termination of employment).
  • Obstruct, impede, or interfere with by force, violence, coercion, threats, or intimidation any peaceful picketing by employees during any labor controversy or shall abet or aid such obstruction or interference.
  • Employment or use of any strikebreaker/ employed as a strike breaker.
  • Bringing in, introducing, or escorting by any public officer or employee, including officers and personnel of the AFP or PNP, or any armed person in any manner of any individual who seeks to replace strikers in entering or leaving the premises of a strike area or work in place of strikers.
  • Commit any act of violence, coercion or intimidation while engaged in picketing or obstruct the ingress or egress from the employer's premises for lawful purposes or obstruct public thoroughfares
IMPROVED OFFER BALLOTING (Labor code, Art. 280; Sec 9, D.O. 40-G-03, Series of 2010)
IN CASE OF STRIKE IN CASE OF LOCKOUT
1. Regional branch of the Board shall, conduct a referendum by secret balloting on the improved offer of the employer.
2. On or before the 30th day of strike.
3. At its own (regional board) initiative or upon the request of any affected party.
4. When at least a majority of the union members vote to accept the improved offer, the striking workers shall immediately return to work and the employer shall thereupon re-admit them upon the signing of the agreement.
1. The regional branch of the Board shall also conduct a referendum by secret balloting on the reduced offer of the union.
2. On or before the 30th day of the lockout.
3. When at least a majority of the board of directors or trustees or the partners holding the controlling interest in the case of partnership vote to accept the reduced offer, the workers shall immediately return to work and the employer shall thereupon re-admit them upon the signing of the agreement.

Valid Stipulation – No Strike No Lockout

A “no strike, no lockout” provision in the CBA is a valid stipulation, although the clause may be invoked by an employer only when the strike is economic in nature or one which is conducted to force wage or other concessions from the employer that are not mandated to be granted by the law itself. Such provision CANNOT be used to assail the legality of a strike which is grounded on ULP. In this situation, it is not essential that the ULP act has, in fact, been committed; it suffices that the striking workers are shown to have acted honestly on an impression that the company has committed ULP and the surrounding circumstances could warrant such belief in good faith (Panay Electric v. NLRC, G.R. No. 102672, Oct. 4, 1995); (Malayang Samahan ng mga Manggagawa sa Greenfield v. Ramos, G.R. No. 113907, 2000).

In the case of (Nuwhrain-Dusit v. NLRC, G.R. No. 163942, 2008; G.R. No. 166295), the Union’s concerted violation of the Hotel’s Grooming Standard by deliberately shaving their heads which resulted in the disruption of the Hotel’s operations clearly violated the CBA’s “No Strike, No Lockout” provision which states that “The Union agrees that there shall be no strikes, walkouts, stoppage or slowdown of work, boycott, or any other form of interference and/or interruptions with any of the normal operations of the Hotel during the life of the Agreement”. The strike arose out of a bargaining deadlock in the CBA negotiations with the Hotel. The concerted action is an economic strike upon which the aforequoted “no strike/work stoppage and lockout” prohibition is squarely applicable.

Freedom Period

CBA Duration (Labor Code, Art. 265)

The CBA’s representation aspect has a five-year term; the parties must renegotiate its other provisions not later than three years after execution (Labor Code, Art. 265 [253-A]).

Refers to the rest of CBA, economic as well as non-economic other than representational.

Other Just Causes under other Labor Code provisions

  • Union officers who, with knowledge, participate in an illegal strike.
  • Any employee who knowingly participates in the commission of illegal acts during a strike may be declared to have lost employment status
  • Strikers who violate orders, prohibitions or injunctions issued by the NLRC, the Secretary of Labor and Employment or the President
  • Violation of union security clause in the CBA

Effects of Defying the RTWO

The mere issuance of an assumption order automatically carries with it a return-to-work order. (Steel Corporation of the Philippines v. SCP Employees Union, G.R. Nos. 169829-30, 2008)

From the moment a worker defies a RTWO, he is deemed to have abandoned his job. (St. Scholastica's College v. Torres, G.R. No. 100158, 1992)

Those workers who refuse to obey the RTWO are not entitled to be paid for work not done or to reinstatement to the positions they have abandoned by their refusal to return thereto as ordered. (Asian Transmission Corporation v. NLRC, G.R. No. 88725, 1989)

Where the RTWO is issued pending the determination of the legality of the strike, it is not correct to say that it may be enforced only if the strike is legal and may be disregarded if the strike is illegal. Precisely, the purpose of the RTWO is to maintain the status quo while the determination is being made. (Union of Filipro Emplees v. Nestle Philippines, G.R. No. 88710-13, 1990)

Not only union officers but also union members who defy an RTWO are subject to dismissal.

But to justify the dismissal, the defiance of the RTWO must be clearly proven. (Batangas Laguna Tayabas Bus Company v. NLRC, G.R. No. 101858, 1992)

Thus, the alleged or perceived defiance of the RTWO does not mean automatic dismissal of the defying employees. Due process must be observed. The employees must be given the chance to explain and prove that there was no defiance at all. (Azucena Vol. II-A, 9th ed., 2016, p. 652)

Consequences

Generally, the effects of employment are merely suspended while on strike, the workers do not work and do not get paid.

Mere participation of a worker in a lawful strike shall not be a sufficient ground for termination of his employment, even if a replacement had been hired during the strike. (Labor Code, Art. 279(a) [264(a)])

Art. 279(e) [264(e)] sets out when union officers and workers may be declared to have lost employment status for these acts.

The penalty imposable is not always be termination but maybe suspension. The Court used its judicial prerogative in the case of PAL v. Brillantes, G.R. 119360, 1990, where it found that both employers and employees contributed to the volatile atmosphere.

What are Illegal Acts?

  • Violation of Art. 279(c) of the Labor Code
  • Commission of crimes and other unlawful acts in carrying out the strike
  • Violation of any order, prohibition, or injunction issued by the DOLE Secretary or NLRC in connection with the assumption of jurisdiction/certification order under Art. 278(g) of the Labor Code

This enumeration is not exclusive and may cover other breaches of existing laws.

  • LIABILITY OF UNION OFFICERS

Any union officer who knowingly participates in an illegal strike and any union officer who knowingly participates in the commission of illegal acts during a strike may be declared to have lost his employment. (Labor Code, Art. 279[e])

Illegal Acts are:

  • Violence, coercion, intimidation, or obstruction of lawful ingress to or egress from the employer's premises or of public thoroughfares during picketing (Labor Code, Art. 279(c) [264(c)])
  • Commission of crimes and other unlawful acts in carrying out the strike
  • Violation of any order, prohibition, or injunction issued by the DOLE Secretary or NLRC in connection with the assumption of jurisdiction/certification order under Art. 278(g) of the Labor Code (Toyota Motor Phil. Workers Association v. NLRC, G.R. No. 158789, 2007)

Union officer may not be vicariously held liable for illegal acts of strikers. The rule is, for an LO and/or its officer and members to be liable, there must be proof of actual participation in, authorization or ratification of, the illegal acts.

Labor Organizations (LOs) are not liable for unauthorized or unratified acts of its officers. Nor is it liable for the unlawful acts of its members which neither its officer nor committees have directed, aided, or approved.

Shop stewards appointed by the Union, in a shop, department or plant serves as representative of the Union, charged with negotiating and adjustment of grievances of employees with the supervisor of the employer, is considered an officer. Hence, shop stewards were similarly dismissed from employment in the conduct of an illegal strike. (Santa Rosa Coca-Cola v. CocaCola, G.R. 164302-03, 2007)

  • LIABILITY OF ORDINARY WORKERS

Any worker who knowingly participates in the commission of illegal acts during a strike may be declared to have lost his employment status. (Labor Code, Art. 279(e) [264(e)])

The individual strikers committing the illegal acts must be identified. Proof beyond reasonable doubt is not required, only substantial evidence.

Declaration of Loss of Employment Status

The law grants the employer the option of declaring a union officer who knowingly participated in an illegal strike as having lost his employment. Filing a petition to declare a strike illegal is not a pre-requisite for the ER to terminate the employment of EEs who commit illegal acts in the course of the strike. In terminating the employee, the ER must observe due process.

Summary: Consequences of Actions in Strike Participation in Strike

DISMISSABLE?
LEGAL STRIKE ILLEGAL STRIKE
Union Officer
No Yes
Union Member
No No

Commission of Illegal Act in a Strike

DISMISSABLE?
LEGAL STRIKE ILLEGAL STRIKE
Union Officer
Yes Yes
Union Member
Yes Yes
  • LIABILITY OF EMPLOYERS

Any worker whose employment has been terminated as a consequence of an unlawful lockout shall be entitled to reinstatement with full backwages. (Labor Code, Art. 279[a])

In Pari Delicto

If the employer committed illegal lockout and the employees staged illegal strike, they are both at fault. The court will restore their respective positions before the strike. The dismissed strikers will be reinstated without backwages (Automative Engine Rebuilders v. Progresibong Unyon ng mga Manggagawa sa AER, G.R. No. 16138, 2011)

Inflexible Demands and Strike Amid Negotiation – Bad Faith Bargaining

The parties had a total of (5) conferences for purposes of collective bargaining. The first strike was staged less than a week after the fourth CBA conference and without any benefit of any previous strike notice. Thus, from these stated facts, it can be inferred that the first strike was held while the parties were in the process of negotiating. There is reason to believe that the first strike was staged only for the purpose of compelling the respondent companies to accede to the inflexible demands of the complainant LAKAS. (Lakas ng Manggagawang Makabayan v. Marcelo Enterprises, G.R. Nos. L-38258 & 38260, 1982)

Authorities

  • D.O. 40-G-03, Series of 2010, Sec. 8
  • D.O. 40-G-03, Series of 2010, Sec. 9
  • Labor Code, Sec. 279
  • Labor Code, Sec. 280