d. Voluntary Arbitrators

Issues/ controversies which may be the subject of voluntary arbitration

• Art. 273 [261] of the Labor Code provides that VA shall have original and exclusive jurisdiction over unresolved grievances arising from the interpretation or implementation of the CBA and those arising from the interpretation or enforcement of company personnel policies
• Violations of the CBA which are not gross in character if not resolved through the grievance machinery.
• All other labor disputes including ULP and bargaining deadlock upon agreement of the parties (Labor Code, Art. 274 [262])

Submission agreement

Note: It is mandatory for parties to refer their controversy to a grievance machinery and voluntary arbitrators for the adjustment or resolution of grievances arising from the interpretation or implementation of their CBA and those arising from the interpretation or enforcement of company personnel policies. (Sanyo Philippines Workers Union-PSSLU v. Canizares, G.R. No. 101619, 1992)

A VA may resolve grievances involving the interpretation or implementation of the CBA, grievances involving the interpretation or enforcement of company personnel policies, and other labor disputes the parties agree to submit to voluntary arbitration. (Labor Code, Arts. 273 [261] and 274 [262]) He does not sit to dispense his own brand of industrial justice and, when interpreting a CBA, his award is legitimate only insofar as it draws its essence form the CBA.

In resolving an issue involving the interpretation or application of the CBA submitted for his resolution, the VA is not expected to merely rely on the cold and cryptic words on the face of the CBA. He is mandated to discover the intentions of the parties and gaps may likewise be filled by reference to the practices of the industry, such that the parties’ contemporaneous and subsequent acts should be considered. (Veloso, Labor Reviewer, pp 415-416 (2011))

A dispute settled through voluntary arbitration IS NOT inconsistent with Article 217 of the Labor Code

The SC in The University of Immaculate Concepcion vs. NLRC (G.R. 181146, 2011), stated that Art. 274 [262] provides of an exception, and “for the exception to apply, there must be agreement between the parties clearly conferring jurisdiction to the voluntary arbitrator. Such agreement may be stipulated in a collective bargaining agreement. However, in the absence of a collective bargaining agreement, it is enough that there is evidence on record showing the parties have agreed to resort to voluntary arbitration.”

Resolving Questions of Jurisdiction Between Labor Arbiter and Voluntary Arbitrator

General Rule: Complaints for illegal dismissal are within the original and exclusive jurisdiction of the LA.

Exception: The parties may submit the question of termination to voluntary arbitration by a clear agreement, including an unequivocal CBA provision or a separate submission agreement. (Ace Navigation Co. v. Fernandez, G.R. No. 197309, 2012)

REMEDIES

VA or panel of VAs may grant the same reliefs and remedies granted by Labor Arbiters under

Art. 300 [279] of the Labor Code, such as:

• In illegal dismissal cases:
• Actual reinstatement;
• Separation pay in lieu of reinstatement, in case reinstatement becomes impossible, non-feasible or impractical;
• Full backwages;
• Moral and exemplary damages; and
• Attorney’s fees.
• Monetary awards in monetary claims cases in which case, the decision should specify the amount granted and the formula used in the computation thereof.

Rule 43, §1, Rules of Court.

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The decision of a Voluntary Arbitrator or panel of Voluntary Arbitrators may be appealed by petition for review under Rule 43 of the Rules of Court directly to the Court of Appeals.

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“Exclusive and Original” Jurisdiction subject to Articles 274 and 275

Note: Subject to Assumption of Jurisdiction A case under Art 224 may be lodged with the VA. The policy of the law is to give primacy to voluntary modes of settling dispute.

For the VA to have jurisdiction over a subject matter under the LA’s jurisdiction (such as termination disputes), the parties must clearly agree to voluntary arbitration, whether in their CBA or a separate submission agreement. (see Ace Navigation Co. v. Fernandez, G.R. No. 197309, 2012)