LABOR RELATIONS
ATTY. JMM | A.Y. 2020 – 2021
MODULE 11 – REVISED GUIDELINES IN THE
CONDUCT OF VOLUNTARY ARBITRATION
PROCEEDINGS
PART 1
When you studied LabStan, the agency which exercises
compulsory arbitration include the Arbitration Branch of
the NLRC referring to the LA and the RD of the DOLE
when it comes to simple money claims.
When you initially studied LabRel, you came across the
jurisdiction of the Arbitration Branch of the NLRC
referring to the LA, as well as of the RD of the DOLE, the
authority and power of the BLR, jurisdiction of the SOLE
in labor disputes causing or likely to cause a strike or
lockout in an industry indispensable to national interest.
Another agency that exercises jurisdiction is the Office of
the Voluntary Arbitrator.
The LC contemplates of compulsory arbitration.
However, that’s not really favored because in
compulsory arbitration, the parties are left with no choice
but to submit their dispute to a person who will have to
try, hear and resolve that dispute; and that dispute will
have to undergo a mechanism where it may be appealed
to a higher tribunal and eventually brought up to the
appellate court and to the SC. In compulsory arbitration,
you will notice that the process is quite long and rigid.
Are there other alternative dispute resolution mechanisms for
dispute prevention? You have to ask yourself, aside from
compulsory arbitration, is there an ADR mechanism for dispute
prevention where the parties may resort to avoid a dispute or
put an end to a dispute? YES!
FRAMEWORKS OF ADR FOR DISPUTE
PREVENTION
I. CONCILIATION AND MEDIATION. We’ve
discussed this thoroughly when we were on the topic of
SEnA; on the topic of proceedings before the LA; and on
the topic of conciliation and mediation before the NCMB.
IOW, conciliation and mediation are ADR mechanism to
prevent or terminate a dispute.
II. VOLUNTARY ARBITRATION. We’ll tackle the
provisions of the LC on grievance machinery and
voluntary arbitration.
III. GRIEVANCE HANDLING.
University of San Carlos – School of Law and Governance | CUARTEROS • CUYOS • MOLINA
IV. WORKPLACE COOPERATION (LABOR-
MANAGEMENT COUNCIL) OR EE INVOLVEMENT
(EI) AND EE PARTICIPATION (EP) SCHEMES.
Why do we include itong workplace cooperation? Workplace
cooperation, particularly on the creation of the Labor-
Management Council (LMC) is an ADR because if an ER
has in place, together with the workers, a LMC – which is
composed of equal representatives from the mgmt. as
well as the workers and the latter’s representatives are
nominated directly by majority of the EEs, then that’s a
mechanism that may also prevent dispute. It is at this
level where the ER and the workers may freely discuss
issues or concerns. If they are amicably resolved, then
there’s no more dispute. We can therefore, safely say that
it’s an ADR mechanism to prevent or terminate existing
disputes. Together with that would be EE involvement
(EI) and EE participation (EP) schemes.
REVISED GUIDELINES IN THE CONDUCT OF
VOLUNTARY ARBITRATION PROCEEDINGS.
Earlier on, we have the NLRC Rules of Procedure, as
amended – which applies to proceedings before the LA
and proceedings before the NLRC.
When you speak of Voluntary Arbitration, the NCMB
came up with a separate Rules of Procedure entitled:
REVISED GUIDELINES IN THE CONDUCT OF
VOLUNTARY ARBITRATION PROCEEDINGS.
TESTIMONY: I was able to personally handle a voluntary
arbitration case involving a softdrinks manufacturer and
a CBU. In that particular case, which eventually reached
the SC and in fact there’s a SC decision on that, you will
note, if you read that case, on how the case was brought
to voluntary arbitration and eventually ended with the
SC.
For now, we’ll try to discuss the fundamental principles
revolving around grievance machinery and voluntary
arbitration.
ARTS. 273, 274, 275, 276 and 277 of the LC are all about
grievance machinery and voluntary arbitration. Since we
are still in LabRel, we have to know the statutory
provisions and then we will discuss briefly fundamental
principles involved and eventually the rules of
procedure.
1
 LABOR RELATIONS
ATTY. JMM | A.Y. 2020 – 2021
ART. 273 GRIEVANCE MACHINERY AND
VOLUNTARY ARBITRATION
The parties to a CBA 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
CBA and those arising from the interpretation or
enforcement of company personnel policies.
All grievances submitted to the grievance machinery
which are not settled within 7 calendar days from the
date of its submission shall automatically be referred
to voluntary arbitration prescribed in the CBA.
For this purpose, parties to a CBA 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 CBA, 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.
Doon palang sa Art. 278, it will involve an interplay of
various principles:
1. When you have a CBA, it presupposes that there
is an ER and a CBU or a SEBA, on the other hand.
The latter represents ALL the EEs who are
members of the BU. Instead of the workers
individually negotiating with the mgmt., they
will be represented by a SEBA
Sentence 1 (par. 1): It’s very natural that when parties
negotiate and conclude a CBA, they will include there a
provision that the parties agree to be bound to the terms
and conditions of the CBA; that the parties commit to
hold themselves liable and accountable in case of
violation of the CBA. That’s a very common stipulation in
a CBA.
University of San Carlos – School of Law and Governance | CUARTEROS • CUYOS • MOLINA
Sentence 2 (par. 1): This is what’s important. When the law
says “they” that is the ER and the CBU. When they
negotiate, bargain, and conclude the CBA, they are
mandated by law to establish a machinery for the
adjustment and resolution of grievances arising from the
interpretation or implementation of their CBA and those
arising from the interpretation or enforcement of
company personnel policies.
The law is, in effect, saying that if you – the ER and the
CBU – have issues arising from the interpretation of the
CBA (as you cannot agree on how to interpret it); have issues
regarding the implementation of the CBA (as you do not
know when to implement it and when the other party breaches
the implementation), then the law is telling the parties that
you have to resolve that dispute through a machinery
otherwise known as the GRIEVANCE MACHINERY.
Same thing is true whenever there are issues arising from
the interpretation or enforcement of company personnel
policies.
COMPANY PERSONNEL POLICIES. Do not
necessarily refer to the Code of Conduct. They are long-
term provisions that underscore the philosophy of the
mgmt. They may refer to long-term provisions on
compensation, benefits, promotion, advancement and
job opportunities and so on. But the parties in the CBA
may include the company’s Code of Conduct as a
company policy if they stipulate that in the CBA. In the
absence of such stipulation, it does not necessarily follow
that it shall include the company’s Code of Conduct or
Code of Discipline.
EXAMPLE: Kung included yung Code of Discipline,
smoking by an EE which is sanctioned by a suspension
for how many days without pay – can be subject to
grievance. Kapag hindi ma resolve sa grievance, to voluntary
arbitration. Do you see how absurd it is? It will put too
much congestion on cases that will be handled by the
grievance machinery. It will cause too much issues that
will affect the relation between labor & mgmt.
Company personnel policies should only be confined on
those long-term provisions that underscore mgmt.’s
philosophy, compensation, benefits, promotion,
advancement and job opportunities and so on.
Take a look at a SC case on what is really meant by
Company personnel policies para you will not be
confused and will have a full understanding.
2
 LABOR RELATIONS
ATTY. JMM | A.Y. 2020 – 2021
1996 case of SAN MIGUEL CORP. V. NATIONAL
LABOR RELATIONS COMMISSION,
G.R. No. 108001
Company personnel policies are guiding principles
stated in broad, long-range terms that express the
philosophy or beliefs of an organization's top authority
regarding personnel matters. They deal with matters
affecting efficiency and well-being of employees and
include, among others, the procedure in the
administration of wages, benefits, promotions, transfer
and other personnel movements which are usually not
spelled out in the collective agreement.
GRIEVANCE MACHINERY. How will the parties
establish a grievance machinery? It‘s up to them! They can
create a grievance machinery composed of equal
representatives from the management and the union.
In this grievance machinery, there will be a committee.
The committee will be the one to resolve disputes
between the parties arising from interpretation and
implementation of CBA, and that of company personnel
policies.
Doon muna idadala yung mga dispute. Usually, if the
complaint or grievance originates from the union. The
person who brings it up to the grievance machinery will
be the shop steward.
If the grievance comes from the employer, it’s usually
brought by the employer representatives to the grievance
machinery.
The law says, establish a grievance machinery if the
problem is interpretation or implementation of CBA;
interpretation or enforcement of company policy. Don’t
go on strike and lockout. Submit your dispute to the
grievance machinery.
Allow the grievance machinery to resolve the dispute.
That’s what Art. 273, first paragraph is in effect saying.
VOLUNTARY ARBITRATION. It also mandates, “All
grievances submitted to the grievance machinery which
are not settled within 7 calendar days from the date of
its submission shall automatically be referred to
voluntary arbitration prescribed in the CBA. “
Aside from a grievance machinery, the parties to a CBA
must also include the mechanism on voluntary
University of San Carlos – School of Law and Governance | CUARTEROS • CUYOS • MOLINA
arbitration. Where there could be a voluntary arbitrator
or panel of voluntary arbitrators.
In the absence of stipulation, the rules provide that there
will be a single arbitrator. If you can’t settle you dispute
in the grievance machinery within 7 calendar days, the
law automatically refers it to voluntary arbitration
which is embodied in the CBA.
IOW, when you negotiate, bargain and conclude a CBA-
you must provide a voluntary arbitration provision. By
the way, if you don’t know how to establish a grievance
machinery, look at DO 40-03. It provides the mechanism
of the creation of a grievance machinery.
DO 40-03 GRIEVANCE MACHINERY AND
VOLUNTARY ARBITRATION
Section 2. Procedure in handling grievances. – In the
absence of a specific provision in the collective
bargaining agreement or existing company practice
prescribing for the procedures in handling grievance,
the following shall apply:
(a) An employee shall present this grievance or
complaint orally or in writing to the shop steward.
Upon receipt thereof, the shop steward shall verify the
facts and determine whether or not the grievance is
valid.
(b) If the grievance is valid, the shop steward shall
immediately bring the complaint to the employee’s
immediate supervisor. The shop steward, the
employee and his immediate supervisor shall exert
efforts to settle the grievance at their level.
(c) If no settlement is reached, the grievance shall be
referred to the grievance committee which shall have
ten (10) days to decide the case.
It’s not a perfect rules of procedure. I noticed that the
grievance contemplated in the IRR, is the grievance
coming from the union. It did not consider that an
employer may also have a grievance or complaint
against the union. The problem could be the
interpretation or implementation of the CBA; or
interpretation or enforcement of company personnel
policies.
The grievance may come from either the employer or
CBU. It’s not always the CBU, although it’s common
because it represents the workers. It does not foreclose a
3
 LABOR RELATIONS
ATTY. JMM | A.Y. 2020 – 2021
situation where it’s the employer this time who has a
complaint to the grievance machinery. If unresolved,
voluntary arbitration.
What does the law say about voluntary arbitration?
“For this purpose, parties to a CBA 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.
If you look at the revised procedural guideline, it speaks
of a permanent arbitrator or ad hoc arbitrator.
TESTIMONY: In my practice of law, I seldom see in the
CBA naming and designating in advance the voluntary
arbitrator.
You will never know. The CBA may outlive an individual
who is designated as a voluntary arbitrator. Baka mamatay
na yun, andiyan pa yung CBA or an issue may arise after
the death of the person designated as the VA.
The parties can designate in advance or eventually
choose after an issue has risen the VA or members of
panel of voluntary arbitrators from the list of accredited
voluntary arbitrators of the NCMB.
In fact, as law students if you have the necessary
qualifications, you can go to NCMB and apply as VA and
I’ll be the person most proud if you’re designated as an
accredited VA by the NCMB. I will exempt you to some
major examinations, if you can show me proof. (Luh oys)
If you’re the VA, you may be chosen by the parties to
resolve the issues. Malalagay ka sa SC case, I will cite it to
my law students. (proud papa♡)
Your VA could be a single arbitrator or panel of
voluntary arbitrators. This is dependent on the
agreement of the parties. The law only provides the
designation, mechanics and set up of voluntary
arbitration.
In one SC case, it says that there’s no particular set up in
establishing voluntary arbitration. It’s up to the parties
to stipulate one.
University of San Carlos – School of Law and Governance | CUARTEROS • CUYOS • MOLINA
Art. 274 JURISDICTION OF VOLUNTARY
ARBITRATORS AND 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 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.
JURIDICTION OF VOLUNTARY ARBITRATORS
AND PANEL OF VOLUNATRY ARBITRATORS.
Art. 274 speaks of the jurisdiction of the VA or panel of
voluntary arbitrators. The jurisdiction is original and
exclusive on unresolved grievances on the interpretation
or enforcement of a CBA; or interpretation or
enforcement of company personnel policies. These are the
two major items that fall under the jurisdiction.
If the grievance can’t be resolved in the grievance
machinery, it will be referred to voluntary arbitration.
It also says here, “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
4
 LABOR RELATIONS
ATTY. JMM | A.Y. 2020 – 2021
Agreement shall mean flagrant and/or malicious refusal
to comply with the economic provisions of such
agreement.”
Art. 274, not only defines the original and exclusive
jurisdiction of the VA. It also tells us that not all
violations of the CBA on the flagrant or malicious
refusal to comply with the economic provisions of the
CBA will be considered ULP.
If it’s not ULP, those grievances will have to be resolved
through the grievance machinery and if unresolved,
through voluntary arbitration.
First step, grievance machinery. If grievance not
resolved, next step will be is voluntary arbitration, NOT
compulsory arbitration.
By the way, can the parties, employer and CBU, designate a
LA to be their VA? Look for the answer. (YES. See pg. 9
discussion.)
“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.”
You see how powerful this provision is. If a party, an
employer or CBU files a complaint with the LA but the
issue involved is unresolved grievance arising from the
interpretation of the CBA or implementation of company
personnel policies, the law says, the LA shall not entertain
the dispute. It should immediately dispose and refer the
same to the grievance machinery or voluntary
arbitration prescribed in the CBA.
Pag ikaw yung LA, you should know which issue belongs
to your original and exclusive jurisdiction. If it belongs
to the grievance machinery, don’t entertain.
This directive of the LC, is addressed not only to the LA
but also the commission, the NLRC. It’s also directed to
the RD of DOLE. That’s how the issue arising from the
interpretation or implementation of the CBA; issues
arising from the enforcement company personnel policies
will have to be addressed under the LC.
University of San Carlos – School of Law and Governance | CUARTEROS • CUYOS • MOLINA
As I’ve said, voluntary arbitration is considered an
alternative dispute resolution. It’s more favored than
compulsory arbitration. When we’re discussing the right
to strike, the NCMB for example may convince the parties
to submit to voluntary arbitration.
Art. 275 JURISDICTION OVER 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.
JURIDICTION OF VOLUNTARY ARBITRATORS
OVER LABOR DISPUTES
The law says the “original and exclusive jurisdiction” of the
VA or panel of voluntary arbitrators. However, is it
possible for the VA to try, hear and resolve other labor disputes?
The answer is found on Art. 275.
The jurisdiction of the VA may also cover all cases
falling within the original and exclusive jurisdiction of
the labor arbiter, as long as there’s agreement by the
parties to submit those issues to the grievance
machinery and eventually to voluntary arbitration.
More or less, the jurisdiction of the VA is concurrent
with the LA. But, only if there’s agreement by the
parties.
The essence of voluntary arbitration is consent and
agreement. Without the agreement, the jurisdiction of the
VA will have to be confined on grievances arising from
the interpretation or enforcement of the CBA;
interpretation or enforcement of company personnel
policies.
How can you agree? You can stipulate in the CBA, stating
that the following labor dispute fall within the
jurisdiction of the VA. If the parties don’t agree, don’t put
it in the CBA.
Art. 276 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
5
 LABOR RELATIONS
ATTY. JMM | A.Y. 2020 – 2021
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
If you want to take a look at the detailed revised
procedural guidelines in the conduct of voluntary
arbitration, it’s spelled out there the details of power and
authority of the VA.
The VA performs a quasi-judicial function. He has the
power to try, hear and decide on a labor dispute.
It has the power under the LC to issue a writ of execution
requiring either the sheriff or regular courts whom the
parties may designate in the submission agreement to
execute the final decision, order or award.
It’s like being a judge. He’s just like a LA, only that he
performs voluntary arbitration proceedings.
How is it to be designated as the VA? Is the VA designated
under the LC considered a public officer? Does he need to
University of San Carlos – School of Law and Governance | CUARTEROS • CUYOS • MOLINA
submit statement of assets and liabilities? Kasi delikado rin,
kasi kung public officer and then you are governed by anti-
graft and corrupt practices law, then you have to be aware
of your liability in case you commit violations of anti-
graft and corrupt practices law.
EXAMPLE: You accepted a bribe from a party.
ASSIGNMENT: Find out whether he is a public officer
and whether he is subject to accountability under the
laws on public officers.
ARTICLE 277. [262-B] COST OF VOLUNTARY
ARBITRATION AND VOLUNTRARY
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, or panel 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.
May bayad yung VA = voluntary arbitrator’s fee. So pwede
kayong mag sideline as a voluntary arbitrator bc you get a
voluntray arbitrator’s fee and may schedule of fees yung
VA sa NCMB, you get your money there.
EXPERIENCE: We were charged P25,000 per issue before
the voluntary arbitrator. Initially, we placed in our
submission agreements so many issues and when the
voluntary arbitrator told us that “hey, my arbitrator’s fee is
P25,000 per issue.” So, we started to narrow down our
issues into one. You see how funny it is LMAO. Nagtipid
kami bc normally in a CBA, we stipulate there equal
sharing between the union and ER for the cost of VA. So,
if we submit an issue to VA, this is the arrangement that
you make on the share of the voluntary arbitrator’s fee.
Usually, you stipulate that in the CBA but the amount
6
 LABOR RELATIONS
ATTY. JMM | A.Y. 2020 – 2021
will ofc depend on the voluntary arbitrator. So, you can
dictate how much would be your voluntary arbitrator’s
fee, as long as it is not unconscionable.
In fact, the experience that I had before the VA, sigurista
eh before the VA agreed to release his decision, he asked
the parties to show proof of payment of his fees. So,
nagpadala kami ng deposit slip na nabayaran na siya bago
niya ni release yung decision. Sigurista no?
I lost that case before the VA but I brought it up to the CA
under a petition for review under Rule 43 and eventually
I won before the CA. Before the CA, it was the union who
brought it up to the SC and the rest was history.
Check on that SC case involving our law firm that
emanated in Cebu. (Sorry but I couldn’t find it T_T)
It is so nice to handle a voluntary arbitration case kasi
yung VA, when he renders a decision, the decision
becomes final and executory after 10 calendar days. While
the law does not prohibit a MR before the VA, kapag na
deny yung MR, then decision of the VA becomes final and
executory. Your only hope is to bring it up to the CA
under petition for review provided in Rule 43 of your
RoC. Tignan niyo yung SC case there – bringing up a
decision of the VA to the CA, is it 10 calendar days? Or is it
15 days as prescribed by the RoC? There is a SC case on that.
So, you better watch out on the right answer (pa thrilling
ka atty no? :3).
GUAGUA NATIONAL COLLEGE v CA [ G.R. No.
188492, August 28, 2018 ]
There was no grave abuse of discretion because no
definite rule as to the reglementary period clearly
established. Certiorari will not lie in this case. CA
cannot be faulted for grave abuse of discretion in
applying the equitable rule on construction in favor
of labor.
Further, even if the decision of the VA is immediately
executory it remains subject to judicial review through
certiorari. However, in this case certiorari will not run
because only when the denial of the motion to
dismiss is tainted with grave abuse of discretion can
the grant of the extraordinary remedy of certiorari be
justified. A voluntary arbitrator by the nature of her
functions acts in a quasi-judicial capacity. There is no
University of San Carlos – School of Law and Governance | CUARTEROS • CUYOS • MOLINA
reason why her decisions involving interpretation of
law should be beyond this Court's review.
The petition for review was filed in time, and cannot be
dismissed just because the decision of the VA is final
and executory.
The petition for review shall be filed within 15 days
pursuant to Section 4, Rules 43 of the Rules of Court;
the 10-day period under Article 276 of the Labor
Code refers to the filing of a motion for
reconsideration vis-à-vis the Voluntary Arbitrator's
decision or award.
The rule, therefore, is that a Voluntary Arbitrator's
award or decision shall be appealed before the Court
of Appeals within 10 days from receipt of the award or
decision. Should the aggrieved party choose to file a
motion for reconsideration with the Voluntary
Arbitrator, the motion must be filed within the same
10-day period since a motion for reconsideration is
filed "within the period for taking an appeal."
REVISED PROCEDURAL GUIDELINES IN THE
CONDUCT OF VOLUNTARY ARBITRATION
PROCEEDINGS
NOTE: The definition of terms. What is meant by Voluntary
Arbitration, Permanent Arbitrator, Ad hoc Arbitrator,
Submission Agreement, Notice to Arbitrate and Grievance
Procedure.
RULE II
Section 1. DEFNITION OF TERMS
(d) “Voluntary Arbitration” — refers to the mode of
settling labor-management disputes by which the
parties select a competent, trained and impartial third
person who shall decide on the merits of the case and
whose decision is final AND executory.’
(e) 1) PERMANENT ARBITRATOR — THE
VOLUNTARY ARBITRATOR SPECIFICALLY
NAMED OR DESIGNATED IN THE COLLECTIVE
BARGAINING AGREEMENT BY THE PARTIES AS
THEIR VOLUNTARY ARBITRATOR.
2) AD-HOC ARBITRATOR — THE VOLUNTARY
ARBITRATOR CHOSEN BY THE PARTIES IN
7
 LABOR RELATIONS
ATTY. JMM | A.Y. 2020 – 2021
ACCORDANCE WITH THE ESTABLISHED
PROCEDURES IN THE CBA OR THE ONE
APPOINTED BY THE BOARD IN CASE THERE IS
FAILURE IN THE SELECTION OR IN CASE EITHER
OF THE PARTIES TO THE CBA REFUSES TO SUBMIT
TO VOLUNTARY ARBITRATION.
(h) “Grievance Procedure” — refers to the system of
grievance settlement as provided FOR in the collective
bargaining agreement. It usually consists of successive
steps starting at the level of complainant and his
immediate supervisor and ending, when necessary, at
VOLUNTARY ARBITRATION.
(i) “SUBMISSION AGREEMENT” — REFERS TO A
WRITTEN AGREEMENT BY THE PARTIES
SUBMITTING THEIR CASE FOR ARBITRATION
CONTAINING THE ISSUES, THE CHOSEN
ARBITRATOR AND STIPULATION TO ABIDE BY
AND COMPLY WITH THE RESOLUTION
INCLUDING THE COST OF ARBITRATION.
(j) “NOTICE TO ARBITRATE” — REFERS TO A
FORMAL DEMAND MADE BY ONE PARTY TO THE
OTHER FOR THE ARBITRATION. OF A
PARTICULAR DISPUTE IN CASE OF REFUSAL OF
ONE PARTY IN A CBA TO SUBMIT TO
ARBITRATION.
EXPERIENCE: In the case that I personally handled, there
was a company that I am representing and there was a
CBU and they had a CBA. In the CBA, there is a setup on
grievance machinery and VA. When there was an issue
involving the interpretation or enforcement of a CBA;
when there was an issue involving the interpretation or
enforcement of the company’s personnel policy; when
there was an issue involving other labor disputes, the
parties to the CBA agreed to submit it to the grievance
machinery.
First step is may issue yung labor union then we submit
the issue to the grievance machinery. Who submitted it? It
was the shop steward bringing the issue to the grievance
machinery. The grievance machinery was composed of a
grievance committee with representatives from
management and representatives from the CBU. They
thrived their best to resolve the dispute but they were not
successful. So, when we look at the CBA, it says there “if
it is not resolve at the grievance committee then you will
have to be referred to the VA.” When we look at VA, it
University of San Carlos – School of Law and Governance | CUARTEROS • CUYOS • MOLINA
says there “this is the VA setup, you have to choose a
voluntary arbitrator from the list of accredited voluntary
arbitrators from the NCMB.”
What we did is we submit a notice to arbitrate with the
NCMB and the NCMB immediately acted on it by
requiring the parties to appear before the NCMB. The
NCMB says, “okay since your CBA contemplates of a
selection of a voluntary arbitrator, here is our list of
accredited voluntary arbitrators.” The union was there,
the management was there, we selected a voluntary
arbitrator.
After selection, the NCMB notified the selected voluntary
arbitrator whether he will accept the designation or not.
The first voluntary arbitrator declined, the voluntary
arbitrator designated replied to the NCMB saying, “I’m
sorry I cannot accept the designation.” What the NCMB
did was again to ask the parties to “okay, you designate a
voluntary arbitrator” and we were successful to designate
another voluntary arbitrator.
What the designated voluntary arbitrator did was to
accept the appointment and schedule a mandatory
conciliation and mediation conferences. Both parties, the
ER and the CBU appeared before the designated
voluntary arbitrator. The voluntary arbitrator tried to
explore what’s the problem between the parties, “these
are my solutions, do you accept it or not?” and eventually
the parties ofc agreed to accept any settlement of the
issue. To submit to the voluntary arbitrator in that case
then you have to submit your respective position papers.
When we submitted our respective position papers then
the voluntary arbitrator decided to render his decision
and ofc, btw, before he rendered his decision, there was a
discussion on the amount of his arbitrator’s fees so on and
so forth, mga ground rules.
Nagkaroon ng decision, the decision was rendered and
served to the parties and I lost the case. The voluntary
arbitrator sided with the CBU. I lost the case T_T. I
explained to the client that the remedy available is to
bring up the decision to the CA under Rule 43 of the
RoC within 15 calendar days.
I brought it up within 10 calendar days because the
decision of the voluntary arbitrator becomes final and
executory after 10 calendar days.
8
 LABOR RELATIONS
ATTY. JMM | A.Y. 2020 – 2021
On my own freewill, I decided to bring it up before the
15-day kasi pag naging final and executory yun, it could be
subject of a writ of execution and I don’t want that to
happen so I brought it within 10 days to the CA and in
the CA, by way of petition for review, I also asked for the
issuance of a TRO to enjoin the enforcement of the
decision of the voluntary arbitrator which I know
becomes final and executory after 10 calendar days. So,
umakyat sa CA.
The CA did not issue a TRO. So, again I was afraid that
the voluntary arbitrator would execute a decision, so
what I did was I filed a motion to resolve the petition for
review because time is of the essence and luckily, this
time the CA found merit on the petition and set aside the
decision of the voluntary arbitrator. The person
aggrieved is no longer the ER but this time it was the
CBU.
They brought up the case to the SC under Rule 45 of the
RoC after their motion for reconsideration was denied by
the CA. In the SC, there were so many issues that were
brought up including the procedure of bringing up the
decision of the voluntary arbitrator to the CA, the rest was
history.
Basically, that is a summary of the Revised Procedural
Guidelines in the Conduct of Voluntary Arbitration
Proceedings.
I’d like to mention that while it is true that under the LC,
there are 2 items that fall within the original and exclusive
jurisdiction of the voluntary arbitrator, if you look at the
Revised Procedural Guidelines, there are other cases that
the voluntary arbitrator may try, hear and decide. It says
here, “all wage distortion issues arising from the
application of any wage orders in organized
establishment.”
Remember in LabStan, we discussed wage distortion, if
there is a wage distortion involving an organized
establishment, that issue arising from the wage
distortion is within the jurisdiction of the voluntary
arbitrator.
Another case that falls under the jurisdiction of the
voluntary arbitrator will be all unresolved grievances
arising from the interpretation and implementation of
the productivity incentive programs under RA 6971
because we have the Productivity Incentive Act. Kapag
merong unresolved issues arising from the
University of San Carlos – School of Law and Governance | CUARTEROS • CUYOS • MOLINA
implementation of the productivity incentive program,
that is also another case that falls within the jurisdiction
of the voluntary arbitrator.
How is that so? Because it is the law themselves that say
so. What law? On the wage distortion, it’s the Wage
Rationalization Act that says so. In the case of
productivity incentive program, it is the Productivity
Incentive Act that says so that it must be referred to VA.
If I ask the question: What are other cases that fall within the
jurisdiction of the voluntary arbitrator? Be sure to take note
of the wage distortion issue and issue involving the
productivity incentive program.
The power of the voluntary arbitrator is more or less quite
similar, not exactly the same but quite similar to the
power and authority of a LA. If the LA is the one
designated as the voluntary arbitrator, that is VALID.
If it is the LA conducting the proceeding, he will have to
be governed by the Revised Procedural Guidelines in
the Conduct of Voluntary Arbitration Proceedings, not
the NLRC rules because in my example he was
designated as the voluntary arbitrator, but if he were to
act in his capacity as a LA, what rules do you apply? It is
the NLRC RoP as amended.
There is one provision here that is quiet notable: “MR –
the decision of the voluntary arbitrator is not subject of
a MR.” This provision has been declared VOID by the
SC in one labor case. I want you to find what labor case is
that. (Kung mo hatag nalang diay ka atty? Wag mo na kami
pahirapan maghanap enebe)
GUAGUA NATIONAL COLLEGE v CA [ G.R. No.
188492, August 28, 2018 ]
The Court notes that despite the clarification made
in Teng v. Pagahac, the Department of Labor and
Employment (DOLE) and the National Conciliation
and Mediation Board (NCMB) have not revised or
amended the Revised Procedural Guidelines in the
Conduct of Voluntary Arbitration Proceedings insofar as
its Section 7 of Rule VII is concerned. This inaction has
obviously sown confusion, particularly in regard to the
filing of the motion for reconsideration as a condition
precedent to the filing of the petition for review in the
CA. Consequently, we need to direct the DOLE and the
NCMB to cause the revision or amendment of Section
7 of Rule VII of the Revised Procedural Guidelines in the
9
 LABOR RELATIONS
ATTY. JMM | A.Y. 2020 – 2021
Conduct of Voluntary Arbitration Proceedings in order to
allow the filing of motions for reconsideration in line
with Article 276 of the Labor Code.

The principle of exhaustion of administrative remedies

equally applies to proceeding before the voluntary
arbitrator and a MR is considered plain, speed and
adequate remedy in the ordinary course of law. The
parties should not be prevented to file a MR with the
voluntary arbitrator notwithstanding the expression
prohibition kasi itong express prohibition, was declared
void by the SC in one labor case.

I will not tell you what labor case is that, you have to
find that for me. *rolls eyes*

ooOoo

University of San Carlos – School of Law and Governance | CUARTEROS • CUYOS • MOLINA 10