Labor Relations

Strikes and Lockouts

I. Concerted activity – one undertaken by two or more EEs or by one on behalf of others.
II. Nature of strike
1. Strike – temporary stoppage of work by the concerted action of EEs as a result of an
industrial or labor dispute
1. Bargaining deadlock
2. Unfair labor practice
2. Characteristics
1. Established relationship between strikers and the person or persons against
whom the strike is called
2. EE-ER relationship
3. Existence of dispute between parties and use of concerted refusal to work to
persuade or coerce compliance with worker’s demands
4. Employment relation is deemed to continue
5. Stoppage is temporary
6. Stoppage is done through concerted action of EEs
7. Striking group is legitimate labor organization or in case of bargaining
deadlock, EEs’ sole bargaining representative
3. Basic Objective – to enforce demands
4. Lockout – temporary refusal of any ER to furnish work as a result of an industrial or
labor dispute
III. Grounds for strike or lockout
1. Notice of intention to declare a strike/lockout filed with DOLE
2. At least 30 days has elapsed since filing of notice before strike/lockout is declared (15
days for ULP) – cool off period
3. Impasse has resulted in the negotiations
4. Strike/lockout is not discriminatory
 Lockout held legal:
1. Anticipation of threatened strike, where motivated by economic considerations
2. In response to unprotected strike or walkout
3. In response to a whipsaw strike
 Lockout held illegal:
1. Discourage and dissipate membership in labor org or kill union
2. Aid a particular union
3. Avoid bargaining
IV. Kinds of Strike
o Extent
 General – extends over a whole community, province, state or country
 Local – undertaken by workers in one particular enterprise, locality or occupation
o Nature of the Act
 Strike proper
  Sit-down strike – strike plus refusal of the strikers to leave the plant and machines
and refusal to permit the latter to be operated
 Partial or quickie strike – intermittent, unannounced work stoppage, including
slowdowns, unauthorized extension of rest periods and walkouts for portions of a
shift or entire shift
 Slowdown – willful reduction in the rate of work by a group of EEs for the purpose
of restricting the output of the ER.
o Degree of Employee interest
 Primary – by EEs who have a direct and immediate interest in the subject of the
dispute (whether economic or otherwise) which exists between them and the ER.
 Secondary – not because of a complaint over their labor standards but because ER
persists in dealing with a third person against whom EEs have a grievance
 Sympathetic – striking EEs have no demands or grievances of their own byt strike for
the purpose of directly or indirectly aiding others, without direct relation to the
advancement of interest of strikers. (not valid)
o Purpose or Nature of EE interest
 Economic – to force wage and other concessions from the ER which he is not
required by law to grant
 Unfair labor practice – to make ER desist from further committing such practices
V. Labor dispute – includes any controversy or matter concerning terms and conditions of
employment or the association and representation of persons in negotiating, fixing, maintaining,
changing or arranging the terms and conditions of employment, regardless of whether the
disputants stand in the proximate relation of ER and EE.
1. National Union of Workers in Hotels etc. vs. NLRC and Peninsula Hotel
 Dismissal of striking officers were upheld as alleged acts of discrimination of hotel
were not ULP, hence not “strikeable”.
2. Welga ng Bayan (People’s strike) – in a nature of a general strike which is but an
extended sympathetic strike. Work stoppage affecting numerous ERs who have no
dispute with their EEs regarding their terms and conditions of employment. (illegal)
VI. Avoidance of strike
1. Conciliation, Mediation, Compromise
1. No legal strike in case of ongoing arbitration
2. Information / statements given in confidence in conciliation proceedings shall
be treated as privileged communication
3. Compromise settlement voluntarily agreed upon by parties with assistance of
NCMB shall be final and binding
4. NLRC can only assume jurisdiction in case of non-compliance or prima facie
evidence of fraud, misrepresentation, or coercion.
5. LA may issue writ of execution
2. Premature Strike
1. Declared w/o giving BOD reasonable time to act on demands of union
2. Knowing that demands cannot be acted upon by treasurer as President was in
U.S.
3. Without waiting for Fiscal’s investigation of the case
 3. Exhaustion of pacific means
1. Until all the remedies and negotiations looking toward the adjustment or
settlement of labor disputes have been exhausted, the law does not look with
favor upon resort to radical measures, the pernicious consequences of which
transcend the rights of immediate parties.
VII. Protection of Strike
1. Generally not subject to labor injunction or restraining order
2. EEs may not be discriminated against merely because they have exercised their right to
strike
3. Use of strike breakers is prohibited
4. Mere participation does not sever Employment relationship

 Role of police
o Limited to maintenance of peace and order, enforcement of laws and legal orders of
duly constituted authorities and the performance of specific functions as maybe
provided by law
o Should be in uniform
o Shall observe strict neutrality
o Shall maintain themselves outside a 50-meter radius from the picket line
o Shall not bring in, introduce, or escort any individual who seeks to replace strikers in
entering or leaving the premises of a strike area or work in place of strikers.
VIII. Status of strikers
o Employment status remains but effects of employment are merely suspended
o EE not entitled to wage
IX. Legality of strike
1. Illegal strike
1. Contrary to specific prohibition of law
2. Violates a specific requirement of law
3. Declared for an unlawful purpose
4. Employs unlawful means
5. Violates an existing injunction
6. Contrary to an existing agreement
X. First Factor – Statutory Prohibition
 SSS v. CA
o Employees in the civil service may not resort to strikes, walkouts or other temporary
work stoppages.
o They may petition the congress for betterment of terms and conditions of employment
through their unions or associations.
 Bangalisan v CA
o The fact that the conventional term strike was not used by striking public teachers is
inconsequential. The substance, not the appearance will be deemed controlling.
XI. Second Factor – Procedural Requirements
1. Notice of Strike – to DOLE, specifically regional branch of NCMB, cc ER or Union
1. Filed by legitimate labor organization
 2. If ULP, by CEBA
3. If no CEBA, unrecognized labor union which is registered
4. If bargaining deadlock – CEBA only
5. Instead of filing a notice of strike, union may request NCMB to do a preventive
mediation
6. Bargaining deadlock - Should state unresolved issues, written proposals of
union, counter proposal of ER and proof of request for conference to settle the
differences
7. ULP – acts complained of, and efforts taken to resolve dispute
2. Cooling off period – time gap to cool off tempers between filing of notice and actual
execution of strike or lockout
1. Bargaining deadlock – 30 days
2. ULP – 15 days
3. Union busting – no need to observe
4. During this period, parties shall not do any act
3. Strike Vote
1. Union or ER shall furnish NCMB notice of meetings at least 24 hours before
such meeting as well as the results of the voting at least 7 days before the
intended strike or lockout, otherwise, it will render subsequent strike illegal
4. Strike Vote report
1. 7 days is counted in 15 days or 30 day-cooling off period
 After lapse of cooling off period and 7 day reporting period, strike or lockout maybe done
 National Federation of Sugar Workers (NFSW) v. Ovejera
o Cooling off and seven-day strike ban are mandatory requirements and both must be
complied with.
 Gold City Integrated Port Service Inc v. NLRC
o Illegal strike due to : existing CBA, not observed : strike vote by secret ballot, cooling off
period and reporting requirements
 Union of Filipino Employers v. Nestle Philippines
o Illegal Strike due to “no strike, no lockout clause” in existing CBA, did not exhaust all
steps provided for in grievance machinery, mandatory periods were not observed,
unlawful acts were committed by striking EEs
 Strike on installment – work slowdown and overtime boycott
o Violates CBA
 In case of Union busting
o Exists when
1) union officers are being dismissed
2) who were elected in accordance with union constitution and by laws
3) existence of union is threatened
o No need to observe cooling off period but notice to strike, strike vote and strike vote
report must still be observed
 Strike during arbitration is illegal
 Strike despite preventive mediation is illegal (PAL v. Secretary of Labor and Employment)
 Violation of valid order illegal strike
  Grievance procedure bypassed – illegal strike
 Dismissal of EEs during conciliation, when legal and enforceable
 GTE Directories Corp. v. Sanchez
o Dismissal held valid despite conciliation proceedings.
o When the strike notice was filed, chain of events which culminated in the
termination of the salespersons employment was already taking place; the series of
defiant refusals by said sales rep to comply with GTE’s requirement to submit
individual sales report was already in progress
XII. Third Factor – Purpose : Economic and ULP Strike
1. Non strikeable issues
1. Inter union or intra union disputes
2. Violation of labor standards law (unless Article 258 , c, f or I is violated
3. Involving wage distortion
4. Cases pending at DOLE regional offices, BLR, NLRC or its regional branches,
NWPC, and its regional wage boards, office of the Secretary, Voluntary
Arbitrator, CA or SC
5. Execution and enforcement of final orders, decisions, resolutions or awards in
no. 4
6. Covered by no strike commitment in CBA
2. Conversion doctrine
 Strike is initiated over bargaining demands but during the course of the strike,
the ER commits ULP
3. Lawful Purpose - Strike incident to collective bargaining
4. Legality of strike not dependent upon ability of management to grant demands. The
consequence is rejection and not punishment of workers
5. Lawful purpose - Strike against ER’s ULP
 Davao Free Workers Front v. CIR
Management sponsored a new union instead of responding to demands of EEs.
Strike was held legal. ER committed ULP
 Phil Steam Navigational Co v. Phil Marine Officers Guild
Strike held legal. ER committed ULP by subjecting EEs to series of questioning
regarding membership in union
6. Two tests in determining ULP
1. Strike is declared in protest of ULP, which is found to have been actually
committed
2. Strike is declared in protest of what the union believed to be ULP and
circumstance warrant such belief in good faith, although found subsequently
not committed.
 Ferrer v. CIR
Union security clause not included in proposed CBA. ER circularized that union
was not willing to sign CBA which prompted to a number of resignations. Court
held that ULP was not committed, but strikers were reinstated without backpay
since union believed in good faith that ULP was in fact committed.
  People’s Industrial and Commercial Employees and Workers Org. v. People’s
Industrial and Commercial Corp
Pepito ruling adopted where strikers were held entitled to reinstatement AND
backwages due to honest belief that ER had committed ULP.
 Tiu and Hayuhay v. NLRC and Republic Broadcasting System
Management issued guidelines to minimize OT expenses but union did not
comment. Strike was held illegal. Circumstances negate a prima facie showing of
belief in good faith.
7. Procedural requirements apply even to a ULP strike in good faith
8. Lawful purpose – Strike to compel recognition of and bargaining with the majority
Union
9. Unlawful purpose – Strike for Union recognition without having proven majority status
10. Minority Union cannot strike but can engage in peaceful concerted activity short of
strike and it can file a ULP complaint
11. Unlawful purpose – Trivial, unjust or unreasonable
12. Illegal Strike – Shaven- head strikers in a tourist class hotel (National Union of Workers
in the Hotel Restaurant and Allied Industries Dusit Hotel Nikko Chapter v. CA)
13. Strike to compel removal of an employee – illegal; implied assertion of Union infallibility
is unacceptable
14. Unlawful purpose – Strike on Non strikeable purpose
1. Physical Rearrangement of office (Reliance Surety and Insurance Co. Inc. v.
NLRC)
2. Company sales evaluation policy (GTE Directories Corp v. Sanchez)
3. Salary distortion under the wage rationalization act ( Ilaw at Buklod ng
Manggagawa v. NLRC)
4. Inter Union or intra union dispute
XIII. Fourth Factor – Means and Methods
1. Commit any act of violence, coercion, intimidation
 but mere filing of charges against an EE for alleged illegal acts does not by itself
justify his dismissal. Charges must be proved in an investigation
 Violence committed on both parties will not be a ground to declare strike illegal
 But Force which is pervasive, widespread, consistently and deliberately resorted
to will make a strike illegal (First City Interlink Transportation Co. v. Confesor)
 Minor disorders will not deprive a striker of possibility of reinstatement
 Officials’ inability to leave premises was not illegal detention as there was no
criminal intent (People v. Barba)
2. Obstruct the free ingress to or egress from the ER’s premises for lawful purposes
3. Obstruct public thoroughfares
XIV. Fifth Factor – Injunction
1. National interest cases – results to automatic injunction and return-to-work order
2. What are national interest cases?
- Nestle case
- PSBA case
- Company supplying sulfate requirements to MWSS
 - Banks
- Hospitals
- Export oriented industries
- Electric power
- Water supply services
- Air traffic control
- As recommended by National Tripartite Industrial Peace Council (NTIPC)
3. Assumption of jurisdiction - prior notice or hearing given to any of the parties is not
required
4. Bargaining disputes even without bargaining deadlock justifies assumption of
jurisdiction
5. Existence of deadlock is a question of fact
- Deadlock is defined as counterclaim of things producing entire stoppage
- Synonymous to impasse
6. Certification to NLRC for compulsory arbitration
- NLRC sits as an administrative body and not a judicial court
7. Effects of defiance – considered illegal act. Disciplinary action such as dismissal or loss of
employment status, payment by the locking out ER of backwages, damages and or other
affirmative relief, even criminal prosecution
8. Assumption or Certification order immediately effective even without return-to-work
order; strike becomes illegal activity – but parties must be notified of the certification
order. Both parties and the counsel must be duly served their separate copies.
9. Refusal to receive RTWO will hold strike illegal (University of San Agustin v. CA)
10. Mere issuance of assumption order by the Secretary automatically carried with it a
RTWO (Telefunken Semiconductors Employees Union-FFW et al v. CA)
11. Defying the RTWO – no entitlement to pay for work not done or to reinstatement to
positions they have abandoned (Sarmiento v. Tuico)
12. Defiance to RTWO constitutes an illegal act which validates dismissal of union officers
and EEs (St. Scholastica’s College v. Torres)
13. Defiance must nevertheless be proved – due process
14. Slowdown in defiance of assumption order is illegal strike
15. No intention to abandon work is required in abandonment in case of strike. But
Secretary of Labor may temper consequence by merely suspending EEs rather than
dismissing them.
16. ER may be compelled to accept back to work the strikers with pending criminal charges
(Telefunken Semiconductors Employees Union-FFW v. Secretary of Labor)
17. Actual not payroll readmission
18.