TITLE VII. 1.

Possession of the status of majority representation of the employees’

COLLECTIVE BARGAINING AND ADMINSITRATION OF AGREEMENT representative in accordance with any of the means of selection or
designation provided for by the Labor Code
2. Proof of majority representation
COLLECTIVE BARGAINING AGREEMENT 3. Demand to bargain
o Refers to the agreement or contract executed upon request of either
the employer or the exclusive bargaining representative of the
employees incorporating the agreement reached after the negotiations
with respect to wages, hours of work, and all other terms and IDENTIFICATION OF
IDENTIFICATION OF BARGAINING
BARGAINING UNION
UNION by
by the
the Bargaining
Bargaining Unit
Unit
conditions of employment

certification
certification year
year -- within
within 12
12 months, COMMENCEMENT OF
months, COMMENCEMENT OF the
the collective
collective
Art. 260. Procedure in collective bargaining. The following procedures shall bargaining
be observed in collective bargaining:

a. When a party desires to negotiate an agreement, it shall serve a written notice

upon the other party with a statement of its proposals. The other party shall
make a reply thereto not later than ten (10) calendar days from receipt of such negotiation (which can
negotiation (which can take
take as
as long as the
long as the parties
parties need)
need)
notice;

b. Should differences arise on the basis of such notice and reply, either party
may request for a conference which shall begin not later than ten (10) calendar
days from the date of request. ratification
ratification by
by the
the majority
majority of
of the
the workers
workers in
in the
the bargaining
bargaining unit
unit and
and not
not of
of
the union
the union
c. If the dispute is not settled, the Board shall intervene upon request of either
or both parties or at its own initiative and immediately call the parties to
conciliation meetings. The Board shall have the power to issue subpoenas
requiring the attendance of the parties to such meetings. It shall be the duty of registration with the
registration with DOLE Regional
the DOLE office where
Regional office where the
the bargaining
bargaining union is
union is
the parties to participate fully and promptly in the conciliation meetings the registered or
registered where it
or where it principally operates within
principally operates 30 days
within 30 days from
from execution
execution
of bargaining agreement
Board may call;

d. During the conciliation proceedings in the Board, the parties are prohibited
from doing any act which may disrupt or impede the early settlement of the
disputes; and if denied, the
if denied, union has
the union has 10
10 days to appeal
days to appeal to
to the
the Bureau
Bureau or the Secretary
or the Secretary

e. The Board shall exert all efforts to settle disputes amicably and encourage the
parties to submit their case to a voluntary arbitrator.

Art. 261. Duty to bargain collectively in the absence of collective

bargaining agreements. In the absence of an agreement or other voluntary
arrangement providing for a more expeditious manner of collective bargaining, it
shall be the duty of employer and the representatives of the employees to
bargain collectively in accordance with the provisions of this Code.
Jurisdictional Preconditions of collective Bargaining
IV. ARANETA. LABOR II
Art. 261. Meaning of duty to bargain collectively. The duty to bargain
collectively means the performance of a mutual obligation to meet and convene
promptly and expeditiously in good faith for the purpose of negotiating an
agreement with respect to wages, hours of work and all other terms and
conditions of employment including proposals for adjusting any grievances or
questions arising under such agreement and executing a contract incorporating
such agreements if requested by either party but such duty does not compel any
party to agree to a proposal or to make any concession.
1
 a. The CBA is a result of the arbitral award
Art. 262. Duty to bargain collectively when there exists a collective b. The CBA was already implemented and the employees have
bargaining agreement. When there is a collective bargaining agreement, the received the benefits from the same.
duty to bargain collectively shall also mean that neither party shall terminate nor c. Signature of both parties may be waived
modify such agreement during its lifetime. However, either party can serve a
written notice to terminate or modify the agreement at least sixty (60)
days prior to its expiration date. It shall be the duty of both parties to keep
the status quo and to continue in full force and effect the terms and conditions Registration requirements:
of the existing agreement during the 60-day period and/or until a new A. original and 2 duplicate copies of the following:
agreement is reached by the parties. a. the CBA
b. statement that at least the CBA was posed in at least 2
conspicuous places in the establishment or establishments
Four Forms of ULP in Bargaining concerned for at least 5 days before its ratification
1. failure or refusal to meet and convene c. statement that the CBA was ratified by the majority of the
collective bargaining unit and of the employer concerned
2. evading the mandatory subjects of bargaining
o wages and other types of compensation, including merit if denied, appealable within 10 days.
increases
o working hours and working days, including work shifts Art. 264. Terms of a collective bargaining agreement. Any Collective
o vacations and holidays Bargaining Agreement that the parties may enter into shall, insofar as the
o Bonuses representation aspect is concerned, be for a term of five (5) years. No
o Pensions and retirement plans petition questioning the majority status of the incumbent bargaining agent shall
o Seniority be entertained and no certification election shall be conducted by the
Department of Labor and Employment outside of the sixty-day period
o Transfer
immediately before the date of expiry of such five-year term of the
o Lay offs
Collective Bargaining Agreement. All other provisions of the Collective
o Employee workloads Bargaining Agreement shall be renegotiated not later than three (3) years
o Work rules and regulations after its execution.
o Rent of company houses
o Union security agreements Any agreement on such other provisions of the Collective Bargaining Agreement
entered into within six (6) months from the date of expiry of the term of such
3. Bad faith in bargaining other provisions as fixed in such Collective Bargaining Agreement, shall retroact
o Boulwarism to the day immediately following such date. If any such agreement is entered
o Take- it –or-leave-it approach into beyond six months, the parties shall agree on the duration of retroactivity
thereof. In case of a deadlock in the renegotiation of the Collective Bargaining
4. Gross violation of the CBA Agreement, the parties may exercise their rights under this Code.

Effectivity:
How is ratification done?
1. CBA is the first ever agreed upon- effective upon the date agreed
1. Posting of the CBA in 2 conspicuous places for at least 5 days upon
2. Sworn statement by the secretary of the union 2. CBA renegotiated within 6 months from the expiry of the old
3. Attestation by the president CBA- retroact to the day following such expiry date
4. Ratification by the majority of the workers of the bargaining unit 3. CBA renegotiated after 6 months from the expiry of the old
CBA- no automatic retroactivity but parties would agree on how far the
retroactivity shall take effect
o Note that ratification is no longer necessary when:

IV. ARANETA. LABOR II 2

 4. During the period when there yet no conclusion of the new CBA
after the expiration of the old, the principle of holdover must
govern and the parties must maintain the status quo until a new one is
agreed upon
Duration of the CBA:
5 years for the representation aspect referring tot the identity and the
majority status of the union.
o Questions on such may only be raised after 5 years.
o No outside union can enter and challenge the status of the incumbent
union.
Within 3 years, the all other provisions, including the economic and
non-economic provisions other than representational
o Case of San Miguel Employees vs Confesor: the decision as to the
effectivity of the renegotiated economic provisions shall be left with the
agreement of the parties (whether 2 years to coincide with the 5 year
term of the CBA or 3 years to extend with the new; still binding as to
either)
Art. 265. Injunction prohibited. No temporary or permanent injunction or
restraining order in any case involving or growing out of labor disputes shall be
issued by any court or other entity, except as otherwise provided in
Articles 218 and 264 of this Code.
Art. 255. Exclusive bargaining representation and workers’
participation in policy and decision-making. The labor organization
designated or selected by the majority of the employees in an appropriate
collective bargaining unit shall be the exclusive representative of the employees
in such unit for the purpose of collective bargaining. However, an individual
employee or group of employees shall have the right at any time to present
grievances to their employer.
Any provision of law to the contrary notwithstanding, workers shall have the
right, subject to such rules and regulations as the Secretary of Labor and
Employment may promulgate, to participate in policy and decision-making
processes of the establishment where they are employed insofar as said
processes will directly affect their rights, benefits and welfare. For this purpose,
workers and employers may form labor management councils: Provided, That
the representatives of the workers in such labor management councils shall be
elected by at least the majority of all employees in said establishment.
IV. ARANETA. LABOR II
The Collective Bargaining Unit
o Refers to the group of employees sharing mutual interests within a
given employer unit, comprised of all or less than all of the entire body
of employees in the employer unit, or any specific occupational or
geographical grouping within such employer unit
o There may be several unions within one bargaining unit
o It must be the “appropriate” bargaining unit who must choose
the majority union who will be the bargaining agent.
Note that it is important to determine who are the members of the
Bargaining unit because:
1. they are the employees who will vote in the certification election
2. employees who will be represented in the bargaining with the employer
3. they will be the employees who will be covered by the resulting CBA
the Union and the CBU is also different:
(1) in the CE, members of CBU vote, whether union or non-union
(2) CBA ratification is done by the CBU and not just members of the union
(3) Strike voting—union members only
How does one determine appropriateness?
Determination if there is community of interest
o And to determine if there is community of interests, the
following may be considered by the Bureau who has such
primary function:
(1) Similarity in scale and manner of determining earnings
(2) Similarity in benefits, hours of work, and other terms and
conditions of employment
(3) similarity in the kinds of work performed
(4) Similarity in the qualifications, skills, and training
(5) Frequency of contact or interchange among the employees
(6) Geographic proximity
(7) Continuity or integration of the production process
(8) Common supervision and determination of labor-relations
policy
(9) History of the collective bargaining
(10) Desires of the affected employees
(11) Extent of the union organization
There is no hard and fast rule. Hence in the following cases:
UP vs Calleja Ferrer: where all the non-academic rank and file personal of the
UP in QC, Manila, Los Banos, and the Visayas were allowed to participate as one
barganining unit.
San Miguel Supervisors vs Laguesma: the fact that the plants are located in
different areas would not require that there be separate bargaining units for
them.
3
Generally, the one unit- one company policy is preferred.
Exceptions: Barbizon vs Nagkakaisang Supervios ng Barbizon: if giving way
to several units would assure the employees of the fullest freedom to
form unions. (Barbizon has several units i.e., craft unit, plant unit)

Indophil Textile Mills Workers Union vs Calica: two corporations cannot be

treated as a single bargaining unit even if the businesses are related.

San Miguel Corporation Employees Union vs Confessor: subsidiaries or

corporations formed out of former divisions of a mother company following a
bona fide reorganization may constitute separate bargaining units.

IV. ARANETA. LABOR II 4

 DETERMINATION OF THE BARGAINING UNION
o The identification of the union who will be considered as the
EXCLUSIVE BARGAINING REPRESENTATIVE that will represent
the employees in bargaining with the employer
o Until this issue of representation is resolved, no CBA may be entered
into.
HOW IS THIS DONE?
o THERE ARE THREE WAYS BY WHICH UNION AS THE EBR MAY
BE DETERMINED:
Why? Because the Labor Code requires that in an organized
establishment, the employer must continue to recognize and deal
with the incumbent union until it is replaced by another union.
Second: there is only one union asking for recognition
 If there are two or more unions asking for recognition, Certification
Election is necessary to resolve the rivalry
Third: the union recognized is the majority union of the collective
bargaining unit as indicated by the fact that the members of the said
unit did not object.
 If there are objections raised, the recognition is barred. A
certification election or consent election will have to take place.
PROCEDURE AND REQUIREMENTS OF VR UNDER DO NO. 40-03:

The union and the employer in the unorganized establishment

By VOLUNTARY By CERTIFICATION BY CONSENT must file 1 original and 2 duplicate copies which are certified under oath by the employer and the
RECOGNITION (VR) ELECTION ELECTION president of the union of the ff: (a) a joint statement under oath of voluntary recognition; (b)
certificate of posting of VR for fifteen (15) consecutive days in at least two (2) conspicuous places in
When the employer when the bargaining unit is One that is not the establishment or bargaining unit where the union seeks to operate; (c) the number of employees
in the bargaining unit, accompanied by the names of those who support the voluntary recognition
voluntarily recognizes a allowed to elect which ordered by the WHO
WHO AND
AND WHAT
WHAT TO
TO comprising at least a majority of the members of the bargaining unit; and (d) a statement that the
FILE
union to represent the among the unions within the Department and FILE labor union is the only legitimate labor organization operating within the bargaining unit.

bargaining unit said bargaining unit will instead, voluntarily

become the EBR upon the agreed upon by
order of the Department the parties with or
without the
intervention of the when: within 30 days from the VR
where: Regional Office who issued the certificate of registration of the labor union or certificate of
Department creation of a chartered local
possible only in May be done in both May be done in WHEN
WHEN AND
AND WHERE
WHERE TO
FILE
FILE
TO

unorganized establishment organized and unorganized both organized and

establishment unorganized
establishment

within 10 days from receipt of the notice and submission of requirements either:
What is an unorganized establishment? record the fact of VR if requirements are sufficient or
notify of the non-compliance
o Refers to an enterprise where no union has yet been duly recognized or DECISION
DECISION by
by the Regional if within 30 days, from receipts of notice of non-compliance, the applicant fails to complete, the
the Regional
certified as a bargaining representative Office through the
Office through
Relations
the Labor
Labor requirements submitted must be returned to the applicant without prejudice
Relations Division
Division
What is an organized establishment?
o Refers to an enterprise where there exists a recognized or
certified sole and exclusive bargaining agent

From the time of the recordiing of the VR, the recognized labor union shall enjoy all the rights, powers,
and obligations as the exclusive bargaining representative
FIRST METHOD: VOLUNTARY RECOGNITION (VR) note that the 12 month rule of certification year shall also apply. hence, the union shall commence the
bargaining within 12 months after the entry in the records
It is when the union is able to convince the employer to voluntarily recognize and EFFECT
EFFECT OF
OF RECORDING
RECORDING
subsequently bargain with them.

CONCURRENT CONDITIONS for VR:

First: it is possible only in an unorganized establishment.
IV. ARANETA. LABOR II 5
 Second Method: Certification Election The Bureau shall conduct a certification election within twenty (20) days in
"Certification Election" or "Consent Election" refers to the process of accordance with the rules and regulations prescribed by the Secretary of Labor.
determining through secret ballot the sole and exclusive representative of the
Art. 259. Appeal from certification election orders. Any party to an election may appeal
employees in an appropriate bargaining unit for purposes of collective
the order or results of the election as determined by the Med-Arbiter directly to the Secretary
bargaining or negotiation. A certification election is ordered by the of Labor and Employment on the ground that the rules and regulations or parts thereof
Department, while a consent election is voluntarily agreed upon by the established by the Secretary of Labor and Employment for the conduct of the election have
parties, with or without the intervention by the Department. been violated. Such appeal shall be decided within fifteen (15) calendar days.

Applicable when: there are two or more unions intending to represent the Procedure under 40-03 Series of 2003 (In General)
bargaining unit; there is already an incumbent union and another union is
intending to take such position

Art. 267. Representation issue in organized establishments. In organized

establishments, when a verified petition questioning the majority status of the
incumbent bargaining agent is filed before the Department of Labor and
Employment within the sixty-day period before the expiration of the collective
bargaining agreement, the Med-Arbiter shall automatically order an election by
secret ballot when the verified petition is supported by the written consent of at
least twenty-five percent (25%) of all the employees in the bargaining unit to
ascertain the will of the employees in the appropriate bargaining unit. To have a
valid election, at least a majority of all eligible voters in the unit must have cast
their votes. The labor union receiving the majority of the valid votes cast shall be
certified as the exclusive bargaining agent of all the workers in the unit. When an
election which provides for three or more choices results in no choice receiving a
majority of the valid votes cast, a run-off election shall be conducted between
the labor unions receiving the two highest number of votes: Provided, that the
total number of votes for all contending unions is at least fifty percent (50%) of
the number of votes cast.

At the expiration of the freedom period, the employer shall continue to recognize
the majority status of the incumbent bargaining agent where no petition for
certification election is filed.

Art. 257. Petitions in unorganized establishments. In any establishment

where there is no certified bargaining agent, a certification election shall
automatically be conducted by the Med-Arbiter upon the filing of a petition by a
legitimate labor organization.

Art. 258. When an employer may file petition. When requested to bargain
collectively, an employer may petition the Bureau for an election. If there is no
existing certified collective bargaining agreement in the unit, the Bureau shall,
after hearing, order a certification election.

All certification cases shall be decided within twenty (20) working days.

IV. ARANETA. LABOR II 6

 Who: registered union/ any legitimate labor organization (inlcuding federation, national
union) or the employer 1. The Employer is not a party but only a by-stander even if he
where: Regional Office who issued the petitioning union's certificate of registration filed the PCE. His rights and participation are limited to notice and
when: IF THERE IS ALREADY A CBA, ONLY WITHIN OR AFTER THE 60 DAY FREEDOM
Filing
Filing of
of the
the PETITION
PETITION PERIOD; IF THERE IS NO CBA YET, ANYTIME EXCEPT DURING THE 12 MONTH BAR updates to the PCE as well as the submission of the list of employees
FOR
FOR CERTIFICATION
CERTIFICATION (SEE BELOW)
ELECTION
ELECTION
during the pre-election conference by the Med-Arbiter. Hence, he
cannot oppose except on the ground of non-existence of employer-
employee relationship.

THE MED-ARBITER is assigned through raffle or if there is only one mid arbiter, no raffle 2. Who are the parties?
med arbiter must send a notice of preliminary conference within 10 days from receipt of a) The other unions, aside from the union who filed the PCE, may
notice by the med arbiter
posting of the notice of preliminary conference wtihin 3 days in at least 2 conspicuous file a motion for intervention
AFTER
AFTER THE
THE FILING
FILING places in the establishment b) The incumbent union automatically and necessarily becomes a
party
c) An individual employee may also file an intervention to protect
his individual right
preliminary conference and hearings with the parties (within 15 days after the
preliminary conference) as many as the Med Arbiter would deems as
3. WHEN TO FILE:
necessary to determine if the unions may instead just agree to hold a consent a) IF THERE IS A REGISTERED CBA (OLD)
preliminary
preliminary conference
conference election  It can only be filed during the last 60 days of the
and
and hearings
hearings
fifth year of the CBA
b) IF THERE IS NO CBA EFFECTIVE YET, PCE MAY BE
FILED ANYTIME EXCEPT:
10 days after the last hearing, the Med Arbiter must issue a formal order (a) 12 month bar: when a fact of voluntary recognition has
denying (based on the 8 grounds, see below) or granting the petition to hold been entered or a valid certification, consent or run-off
the certification election
election has been conducted within the bargaining unit
the decision IS APPEALABLE WITH THE SECRETARY OF DOLE within 15
decision
decision of
of the
the Med
Med days from receipt of notice except when the decision is approval of the within one (1) year prior to the filing of the petition for
Arbiter
Arbiter PCE of an unorganized bargaining unit (to unionize the ununionized) certification election. Where an appeal has been filed from
the order of the Med-Arbiter certifying the results of the
election, the running of the one year period shall be
suspended until the decision on the appeal has become
final and executory;
pre-election conference to agree on the date and mechanics of the election;
qualification of voters who are members of the bargaining unit; watchers, etc. (b) negotiations: when the duly certified union has
Conduct
Conduct of
of the
the conduct of the election by secret ballot commenced and sustained negotiations in good faith with
certifcation election
certifcation election if
approved
if the employer in accordance with Article 250 of the Labor
approved
Code within the one year period referred to in the
immediately preceding paragraph;
in order to have valid election: at least majority of all eligible voters in the
(c) deadlock or negotiations: when a bargaining deadlock
unit must have cast their vote to which an incumbent or certified bargaining agent is a
proclamation: the union who obtained the majority of the valid votes cast is party had been submitted to conciliation or arbitration or
the EBR had become the subject of a valid notice of strike or
Proclamation
certificationpending : when: (1) no protest within 5 days is perfected and/ or lockout—note that even if more than one year—legitimacy
Proclamation and
and (2) no challenge as to the eligibility was raised and if there was, no change in
Certification
Certification the election of the EBU may not be challenged—PROVIDED THAT THE
NEGOTIATIONS IS IN GOOD FAITH
(d) when a collective bargaining agreement between the
employer and a duly recognized or certified bargaining
agent has been registered in accordance with
Article 231 of the Labor Code.
Important Points:
IV. ARANETA. LABOR II 7

4. There are only eight grounds to deny a PCE:
a) Non- appearance of the petitioner of the PCE for 2
consecutive hearings
b) Illegitimacy: the petitioner is an unregistered union
 only a legitimate labor organization may file a
PCE unless the filing is done by the employer
 pending case, even on appeal, questioning the
legitimacy of the union will not prejudice the PCE
until and unless there is a final decision on such
illegitimacy.
c) Illegitimacy: the petitioner has no charter
d) No Employment relationship
 this is the only ground which the employer may
invoke
e) Election Bar: the 12 month bar mentioned above
f) Election Bar: negotiation or deadlock mentioned
 The deadlock rule is not applicable if there is only
an artificial deadlock, contrary to those discussed
above
g) Election Bar: lack of support
 in an organized establishment, failure to submit the
25% signature requirement to support the filing of
the petition for certification election (See Art. 267
above)
h) Election Bar: Existing CBA or the Contract Bar Rule
 when the PCE is filed at a period prior to the 60-
day freedom period.
 Not applicable when there is a defective CBA; when
there is a referendum to register an independent
union; when the CBA was signed before or within
the freedom period
 What happens when during the freedom
period, there exists a renegotiation of the
CBA and a petition for CE? If the renegotiated
CBA is concluded, its life/effectivity is subject to the
results of the certification election.
IV. ARANETA. LABOR II
5. the following are not grounds for denial of PCE:
a) commingling
b) question on the validity of the registration that is still pending
c) question on existence of employer-employee relationship may
be decided by the Med- Arbiter
6. Who are qualified to vote during the CE?
a) all employees who are members of the appropriate bargaining
unit sought to be represented by the petitioner union
 union members or not
 including religious objectors (Iglesia ni Kristo)
b) list should be based on the employer certified list of employees
or the pay rolls; if there is no such list, the union may submit
their own or other reliable lists
c) dismissed employee who had been improperly laid off until a
final decision on such exists
7. Failure of Election: where the number of votes cast is less than
the majority of the number of eligible voters
a) Effect: motion to immediate holding of a remedial election
after the declaration by the Election officer of such failure of
election
b) Action: election officer must immediately, within 24 hours
from receipt, schedule an election to be held within 15 days
from the receipt of the motion
c) Run- Off Elections: the remedy when the election provided
three or more choices and none of the parties garnered
majority of the total votes cast. In which case, the two leading
unions will be the only choices for the 2 nd election. “no union”
option should not be available in the 2nd election.
THIRD METHOD: CONSENT ELECTION
 During the petition for the certification election, the contending unions
may agree to a consent election
What is the effect?
Section 10. Consent Election; Agreement. - In case the contending
unions agree to a consent election, the Med-Arbiter shall not issue a
formal order calling for the conduct of certification election, but shall
enter the fact of the agreement in the minutes of the hearing. The
minutes of the hearing shall be signed by the parties and attested to by
the Med-Arbiter. The Med-Arbiter shall, immediately thereafter,
forward the records of the petition to the Regional Director or his/her
authorized representative for the determination of the Election Officer
by the contending unions through raffle. The first pre-election
8
conference shall be scheduled within ten (10) days from the date of
entry of agreement to conduct consent election.
Section 23. Effects of consent election. - Where a petition for certification
election had been filed, and upon the intercession of the Med-Arbiter, the parties
agree to hold a consent election, the results thereof shall constitute a bar to the
holding of a certification election for one (1) year from the holding of such
consent election. Where an appeal has been filed from the results of the consent
election, the running of the one-year period shall be suspended until the decision
on appeal has become final and executory.
Where no petition for certification election was filed but the parties themselves
agreed to hold a consent election with the intercession of the Regional Office,
the results thereof shall constitute a bar to another petition for certification
election.
Title VII-A GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION
Art. 260. Grievance machinery and voluntary arbitration. The parties to a
Collective Bargaining Agreement shall include therein provisions that will ensure
the mutual observance of its terms and conditions. They shall establish a
machinery for the adjustment and resolution of grievances arising from the
interpretation or implementation of their Collective Bargaining Agreement and
those arising from the interpretation or enforcement of company personnel
policies.
All grievances submitted to the grievance machinery which are not settled within
seven (7) calendar days from the date of its submission shall automatically be
referred to voluntary arbitration prescribed in the Collective Bargaining
Agreement.
For this purpose, parties to a Collective Bargaining Agreement shall name and
designate in advance a Voluntary Arbitrator or panel of Voluntary Arbitrators, or
include in the agreement a procedure for the selection of such Voluntary
Arbitrator or panel of Voluntary Arbitrators, preferably from the listing of
qualified Voluntary Arbitrators duly accredited by the Board. In case the parties
fail to select a Voluntary Arbitrator or panel of Voluntary Arbitrators, the Board
shall designate the Voluntary Arbitrator or panel of Voluntary Arbitrators, as may
be necessary, pursuant to the selection procedure agreed upon in the Collective
Bargaining Agreement, which shall act with the same force and effect as if the
Arbitrator or panel of Arbitrators has been selected by the parties as described
above.
Art. 261. Jurisdiction of Voluntary Arbitrators or panel of Voluntary Arbitrators.
The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have original and
exclusive jurisdiction to hear and decide all unresolved grievances arising from
the interpretation or implementation of the Collective Bargaining Agreement and
IV. ARANETA. LABOR II
those arising from the interpretation or enforcement of company personnel
policies referred to in the immediately preceding article. Accordingly, violations of
a Collective Bargaining Agreement, except those which are gross in character,
shall no longer be treated as unfair labor practice and shall be resolved as
grievances under the Collective Bargaining Agreement. For purposes of this
article, gross violations of Collective Bargaining Agreement shall mean flagrant
and/or malicious refusal to comply with the economic provisions of such
agreement.
The Commission, its Regional Offices and the Regional Directors of the
Department of Labor and Employment shall not entertain disputes, grievances or
matters under the exclusive and original jurisdiction of the Voluntary Arbitrator
or panel of Voluntary Arbitrators and shall immediately dispose and refer the
same to the Grievance Machinery or Voluntary Arbitration provided in the
Collective Bargaining Agreement.
Art. 262. Jurisdiction over other labor disputes. The Voluntary Arbitrator or panel
of Voluntary Arbitrators, upon agreement of the parties, shall also hear and
decide all other labor disputes including unfair labor practices and bargaining
deadlocks.
Art. 262-A. Procedures. The Voluntary Arbitrator or panel of Voluntary Arbitrators
shall have the power to hold hearings, receive evidences and take whatever
action is necessary to resolve the issue or issues subject of the dispute, including
efforts to effect a voluntary settlement between parties. All parties to the dispute
shall be entitled to attend the arbitration proceedings. The attendance of any
third party or the exclusion of any witness from the proceedings shall be
determined by the Voluntary Arbitrator or panel of Voluntary Arbitrators. Hearing
may be adjourned for cause or upon agreement by the parties.
Unless the parties agree otherwise, it shall be mandatory for the Voluntary
Arbitrator or panel of Voluntary Arbitrators to render an award or decision within
twenty (20) calendar days from the date of submission of the dispute to
voluntary arbitration.
The award or decision of the Voluntary Arbitrator or panel of Voluntary
Arbitrators shall contain the facts and the law on which it is based. It shall be
final and executory after ten (10) calendar days from receipt of the copy of the
award or decision by the parties.
Upon motion of any interested party, the Voluntary Arbitrator or panel of
Voluntary Arbitrators or the Labor Arbiter in the region where the movant
resides, in case of the absence or incapacity of the Voluntary Arbitrator or panel
of Voluntary Arbitrators, for any reason, may issue a writ of execution requiring
either the sheriff of the Commission or regular courts or any public official whom
the parties may designate in the submission agreement to execute the final
decision, order or award.
9
Art. 262-B. Cost of voluntary arbitration and Voluntary Arbitrator’s fee.
The parties to a Collective Bargaining Agreement shall provide therein a
proportionate sharing scheme on the cost of voluntary arbitration including the
Voluntary Arbitrator’s fee. The fixing of fee of Voluntary Arbitrators, whether
shouldered wholly by the parties or subsidized by the Special Voluntary
Arbitration Fund, shall take into account the following factors:
a. Nature of the case;
b. Time consumed in hearing the case;
c. Professional standing of the Voluntary Arbitrator;
d. Capacity to pay of the parties; and
e. Fees provided for in the Revised Rules of Court.

Notes:
 Decision of the Voluntary Arbitrators are not subject to motion for
reconsideration
 May be reviewed via certiorari under Rule 43 and not Special Civil
Action under Rule 65

IV. ARANETA. LABOR II 10