GROUP 4 - LABOR RELATIONS
REVIEWER (Amoranto, Dante, Pamatmat)
V. LABOR RELATIONS
PEACEFUL CONCERTED ACTIVITIES
Concerted Action: An activity undertaken
by two or more employees; by one on
behalf of others. It is the policy of the State
to encourage free trade unionism and free
collective bargaining. Workers shall have
the right to engage in concerted activities for
purposes of collective bargaining or for their
mutual benefit and protection. (Labor Code,
Art. 278)
Forms of Concerted Activities (Labor
Code, Art. 278)
1. Strike;
2. Lockout; and
3. Picketing
I. BY LABOR ORGANIZATION
a. STRIKE
- Any temporary stoppage of
work by the concerted action
of the employees as a result
of an industrial or labor
dispute. (Labor Code, Art.
219 (o))
Note: The term “strike” has been elucidated
to encompass not only concerted work
stoppage, but also slowdowns, mass
leaves, sit downs, attempts to damage,
destroy or sabotage plant equipment and
facilities, and similar activities. (Toyota
Motor Phils. Corp Workers Assoc. v. NLRC,
G.R. Nos. 158798-99, October 19, 2007)
Labor Dispute includes any controversy or
matters concerning terms and conditions of
employment or the association or
representation of persons in negotiations,
fixing, maintaining, changing, or arranging
the terms and conditions of employment,
regardless of whether or not the disputants
stand in the proximate relation of employers
and employees (Labor Code, Art. 219(l);
Gold City Integrated Port Services v. NLRC,
G.R. No. 103560 & 103599, 1995)
Characteristics of a Strike
1. There must be an employer-
employee relationship
2. Existence of a dispute
3. Employment relation is deemed to
continue although in a state of
belligerent suspension
4. There is temporary work stoppage
5. Work stoppage is done through
concerted action
6. The striking group is a legitimate
labor organization. In case of
bargaining deadlock, it must be the
employee’s sole bargaining
representative.
Internal union dispute: Includes all
disputes or grievances arising from any
violation of or disagreement over any
provision of the constitution and by – laws of
a union, including any violation of the rights
and conditions of union membership
provided for in this Code (Ilaw at Buklod ng
Manggagawa (IBM) v. NLRC), G.R. Nos.
81852-53, 1993).
Grounds for Strike or Lockout
1. Unfair Labor Practice (ULP) of the
Employer and the Union
2. Collective Bargaining Deadlock
(CBD)
NOTE: Violations of CBA must be gross to
be considered as ULP
Conversion Doctrine: A strike may start as
economic and, as it progresses, becomes
ULP, or vice-versa.
Different Kinds of Strike
1. LEGAL STRIKE – one called for a
valid purpose and conducted
through means allowed by law;
2. ILLEGAL STRIKE – one staged for
a purpose not recognized by law, or
if for a valid purpose, conducted
through means not sanctioned by
law, or one that did not follow the
procedural requirements;
3. ECONOMIC STRIKE – one staged
by workers to force wage or other
economic concessions from the
employer which he is not required by
law to grant (Consolidated Labor
Association of the Phil. vs. Marsman
and Company, G.R. No. L-17038,
1964);
4. ULP STRIKE – one called to protest
against the employer’s acts of unfair
labor practice enumerated in the
Labor Code;
5. SLOWDOWN STRIKE – one staged
without the workers quitting their
work but merely slackening or by
reducing their normal work output;
6. WILD-CAT STRIKE – one declared
and staged without filing the required
notice of strike and without the
majority approval of the recognized
bargaining agent;
7. SIT DOWN STRIKE – one where
the workers stop working but do not
leave their place.
Strike-breaker: Any person who obstructs,
impedes, or interferes with by force,
violence, coercion, threats, or intimidation
any peaceful picketing affecting wages,
hours or conditions of work or in the
exercise of the right of self organization or
collective bargaining (Labor Code, Art.
219(r))
Strike Area: Establishments, warehouses,
depots, plants or offices, including the sites
or premises used as runaway shops, of the
employer struck against, as well as the
immediate vicinity actually used by picketing
strikers in moving to and fro before all points
of entrance to and exit from said
establishment (Labor Code, Art. 219 (s))
Boycott: A combination of many to cause a
loss to one person by causing others,
against their will, to withdraw from him their
beneficial business intercourse through
threats that unless others do so, the many
will cause similar loss to him or them. (31
Am Jur., Sec. 250, p. 956)
Slowdown: A method by which one’s
employees, without seeking a complete
stoppage of work, retard production and
distribution in an effort to compel
compliance by the employer with the labor
demands made upon him. (Rothenberg, p.
101)
Unlike other forms of strike, the employees
involved in a slowdown do not walk out of
their jobs to hurt the company. They need
only to stop work or reduce the rate of their
work while generally remaining in their
assigned post. (Fadriquelan v. Monterey
Foods Corp., G.R. Nos. 178409 & 178434,
2011)
Note: Such slowdown is generally
condemned as inherently illicit and
unjustifiable, because while the employees
continue to work and remain at their
positions and accept the wages due them,
they at the same time select what part of
their allocated task they care to perform of
their own volition or refuse openly or
secretly to the employer’s damage, to do
other work. They work on their own terms.
But whether or not the workers’ activity in
question—their concerted adoption of a
different work schedule than that prescribed
by management and adhered to for several
years—constitutes a slowdown need not be
gone into. The activity is contrary to RA6727
and the parties’ CBA (Ilaw at Buklod v.
NLRC, G.R. No. 91980, June 27, 1991)
Non-Strikeable Issues (NCMB, Manual of
Procedures in Settlement and Disposition of
Conciliation and Preventive Mediation
Cases, Rule VI, Sec. 6(c)(i); see University
of San Agustin Employees’ Union-FFW v.
CA, G.R. No. 169632, 2006).
1. Labor Standards Cases;
2. Wage Distortion;
3. Inter-Union or Intra-Union Disputes;
4. Physical Re-arrangement of the
Office (Reliance Surety and
Insurance Co., v. NLRC, G.R. Nos.
86917-18, 1991);
5. Execution and Enforcement of Final
Orders, Decisions, Resolutions, or
Awards in the Cases Mentioned in #
6;
6. Cases pending at the DOLE
Regional Offices, BLR, NLRC,
DOLE Secretary, Voluntary and
Compulsory Arbitrators, CA, and SC;
7. Violations of CBA which are
resolved via Grievance Machinery;
8. Company’s Sales Evaluation Policy
(GTE Directories v. Hon. Sanchez,
G.R. No. 76219, 1991); and
9. Issues covered by a No-Strike
Commitment in the CBA
Who can declare a strike or lockout
1. Any certified or duly recognized
bargaining representative on the
grounds of bargaining deadlock and
ULP;
2. Employer; or
3. In the absence of #1, any legitimate
labor organization in the
establishment (only for ULP) (IRR
Labor Code, Sec. 2, Rule XII, Book
V)
VALID VERSUS ILLEGAL STRIKES
An Illegal Strike is one which:
1. Is contrary to a specific Prohibition of
law, such as strike by employees
performing governmental functions
2. Violates a specific requirement of
law (as to Procedure)
3. Is declared for an unlawful Purpose,
such as inducing the employer to
commit an unfair labor practice
against nonunion employees
4. Employs unlawful Means in the
pursuit of its objective, such as
widespread terrorism of non-strikers
5. Violates an existing Injunction
6. Contrary to an existing Agreement,
such as a no-strike clause or
conclusive arbitration clause (Toyota
Motor Phil. Workers Association v.
NLRC, G.R. No. 158789, 2007)
FIRST FACTOR: STATUTORY
PROHIBITION
Employees in the public service may not
engage in strikes. While the Constitution
recognizes the right of government
employees to organize, they are prohibited
from staging strikes, demonstrations, mass
leaves, walk-outs and other forms of mass
action which will result in temporary
stoppage or disruption of public service. The
right of government employees to organize
is limited only to the formation of unions or
associations, without including the right to
strike. (Bangalisan, et al. v. CA, G.R. No.
124687, 1997)
SECOND FACTOR: PROCEDURAL
REQUIREMENTS
PROCEDURAL REQUIREMENTS (Labor
Code, Art. 278)
1. Notice of Strike
2. Cooling-off Period
3. Strike Vote
4. Strike Vote Report
5. 7-day strike/lockout ban
These requirements are mandatory,
meaning, non-compliance therewith makes
the strike illegal. (Azucena Vol. II-A, 9th ed.,
p. 594).
NOTICE OF STRIKE
WHERE FILED: Regional Branch of the
National Conciliation and Mediation board,
copy furnished the employer or the union,
as the case may be.
WHEN FILED: At least 30 days, in case of
CBD, and at least 15 days, in case of ULP,
before the intended date of strike.
WHO FILES NOTICE OF STRIKE:
- Bargaining Deadlock: Only Exclusive
Bargaining Representative
- ULP: Duly certified bargaining agent
If none, any legitimate labor union
CONTENTS OF NOTICE
- Bargaining Deadlock: Notice shall,
as far as practicable, further state
the unresolved issues in the
bargaining negotiations and be
accompanied by the written
proposals of the union, the counter-
proposals of the employer and the
proof of a request for conference to
settle the differences.
- ULP: Notice shall, as far as
practicable, state the acts
complained of and the efforts taken
to resolve the dispute amicably.
NOTE: In case notice does not conform with
requirements of this and foregoing
section/s, the Regional branch of the Board
shall inform the concerned party of such
fact. (Club Filipino, Inc. v. Bautista, G.R.
No. 168406, 2015)
COOLING-OFF PERIOD
- Bargaining Deadlock: 30 Days
- ULP: 15 Days
The NCMB, upon receipt of the notice of
strike and during the cooling-off period,
mediates and conciliates the parties. The
Regional branch of the Board may, upon
agreement of the parties, treat a notice as a
preventive mediation case. It shall also
encourage the parties to submit the dispute
to voluntary arbitration.
In cases of ULP strike, the cooling-off period
need not be observed when union-busting is
present. (Labor Code, Art. 278)
Elements of Union Busting: (Labor Code,
Art. 278(c))
1. The union officers are being
dismissed
2. Those officers are duly elected in
accordance with the union
constitution and by-laws
3. The existence of the union is
threatened
STRIKE VOTE (Labor Code, Art. 278(f))
A strike/lockout vote should be taken by
secret balloting, in meetings or referenda
specially called for the purpose.
The regional branch of the Board may, at its
own initiative or upon request of any
affected party, supervise the conduct of the
secret balloting.
NOTE: The requirement of giving notice of
the conduct of a strike vote to the NCMB at
least 24 hours before the meeting for the
said purpose is designed to:
a. inform the NCMB of the intent of the
union to conduct a strike vote;
b. give the NCMB ample time to decide
on whether or not there is a need to
supervise the conduct of the strike
vote to prevent any acts of violence
and/or irregularities attendant
thereto; and
c. should the NCMB decide on its own
initiative or upon the request of an
interested party including the
employer, to supervise the strike
vote, to give it ample time to prepare
for the deployment of the requisite
personnel, including peace officers if
need be.
Unless and until the NCMB is notified at
least 24 hours of the union's decision to
conduct a strike vote, and the date, place,
and time thereof, the NCMB cannot
determine for itself whether to supervise a
strike vote meeting or not and insure its
peaceful and regular conduct. The failure of
a union to comply with the requirement of
the giving of notice to the NCMB at least 24
hours prior to the holding of a strike vote
meeting will render the subsequent strike
staged by the union illegal. (Capitol Medical
Center Inc. v. National Labor Relations
Commission, G.R. No. 147080, 2005)
NUMBER OF VOTES REQUIRED for
strike/ lockout: Majority of the total UNION
MEMBERSHIP OR OF THE DIRECTORS
OR PARTNERS, as the case may be.
Strike or lockout vote
1. Approved by majority of total union
membership or by majority of the
BOD or partners
2. By a secret ballot
3. In a meeting called for that purpose
STRIKE VOTE REPORT
The result of the strike/lockout vote should
be reported to the NCMB at least 7 days
before the intended strike or lockout, subject
to the cooling off period. (Labor Code, Art.
278 (f))
If the strike vote is filed within the cooling-off
period, the 7-day requirement shall be
counted from the day following the
expiration of the cooling-off period.
(NCMB’s Primer on Strike, Picketing and
Lockout)
Note: There is no law or Supreme Court
decision that supports this formula. If the
union is being busted, there is no need to
observe the cooling-off period but the
unions must still file a notice of strike, take a
strike vote and submit the strike vote report.
What is being excused in case of union
busting is only the observance of the 15-day
cooling-off period. (Sec. 7, D.O. 40-G-03,
2010)
No strike or lockout can be declared while a
case is pending involving the same grounds
for strike or lockout. (Bulletin v. Sanchez,
G.R. No. 74425, 1986)
The submission of the report gives
assurance that a strike vote has been taken
and that, if the report concerning it is false,
the majority of the members can take
appropriate remedy before it is too late.' The
seven (7)-day waiting period is intended to
give the Department of Labor and
Employment an opportunity to verify
whether the projected strike really carries
the imprimatur of the majority of the union
members. The need for assurance that the
majority of the union members support the
strike cannot be gainsaid. (Lapanday
Workers Union v. National Labor Relations
Commission, G.R. Nos. 95494-97, 1995)
Legal and Enforceable Dismissal of
Employees during Conciliation
When the strike notice was filed by the
union, the chain of events which culminated
in the termination of the 14 salespersons’
employment was already taking place; the
series of defiant refusals by said sales
representatives to comply with GTE’s
requirement to submit individual reports was
already in progress. At that time, no less
than 3 of the ultimate 6 direct orders of the
employer for the submission of the reports
had already been disobeyed. The filing of
the strike notice, and the commencement of
conciliation activities by the BLR did not
operate to make GTE’s orders illegal and
unenforceable so as to excuse continued
noncompliance therewith. (GTE Directories
v. Sanchez, G.R. No. 76219, 1991)
II. BY THE EMPLOYER
LOCKOUT
Temporary refusal of any employer to
furnish work as a result of an industrial or
labor dispute
Procedural Requirements in Lockouts:
(Same as those required in Strikes)
(Labor Code, Art. 278)
1. Notice of Lockout
2. Cooling-off Period
3. Strike/Lockout Vote
4. Strike/Lockout Vote Report
5. 7-day strike/lockout ban
Art. 279 prohibits the employer from
doing the following acts:
1. Declare a lockout without first having
bargained collectively or without first
having filed the notice required or
without the necessary lockout vote
first having been obtained and
reported to the DOLE
2. Declare a lockout after assumption
of jurisdiction by the President or the
Secretary or after certification or
submission of the dispute to
compulsory or voluntary arbitration
or during the pendency of cases
involving the same grounds for the
strike or lockout
3. Obstruct, impede, or interfere with,
by force, violence, coercion, threats
or intimidation, any peaceful
picketing by employees during any
labor controversy or in the exercise
of the right to self organization or
collective bargaining, or shall aid or
abet such obstruction or
interference.
4. Use or employ any strike-breaker,
nor be employed as a strike-breaker.
Lockouts have been held valid in the
following situations:
1. In anticipation of a threatened strike,
where motivated by economic
considerations
 2. In response to unprotected strike or 1. Violations of CBA which are not
walkout gross.
3. In response to a whipsaw strike 2. Grounds involving inter/intra union
disputes.
Lockouts have been held unlawful in the 3. When there is no notice of strike or
ff. circumstances: lockout or without the strike or
1. To discourage and dissipate lockout vote.
membership in a labor organization 4. After assumption of jurisdiction by
2. To aid a particular union by the Secretary.
preventing further work of its rival 5. After certification or submission of
3. To avoid bargaining dispute to compulsory or voluntary
arbitration or during the pendency of
PROCEDURE FOR DECLARING A cases involving the same grounds
STRIKE OR LOCKOUT for strike or lockout.

WHO MAY DECLARE (Sec. 6, D.O. 40-G-
03, 2010)
- Strike - Any LLO or any certified or
duly recognized bargaining
representative in cases of bargaining
deadlocks and ULPs
- Lockout - Employer in cases of
bargaining deadlocks and ULPs
Note: If there is no certified or duly
recognized bargaining representative, any
legitimate labor organization may declare a
strike but only on grounds of unfair labor
practice.
Grounds for Lockout or Strike Collective
Bargaining Deadlock Unfair Labor
Practice
NOTE: Violations of CBA must be gross to
be considered as ULP
Conversion Doctrine: A strike may start as
economic and, as it progresses, becomes
ULP, or vice-versa.
When strike or lockout cannot
declared
When Notice Must be Filed: Cooling –
off period
1. In case of bargaining deadlocks: at
least 30 days before the intended
date of strike
2. In case of unfair labor practice: at
least 15 days before the intended
date of strike
3. In case of ULP involving the
dismissal of duly elected union
officer/s which may constitute union-
busting: union may take action
immediately after the strike vote and
the submission of the results of the
strike vote to the regional branch of
the Board
Strike or lockout vote
1. Approved by majority of total union
membership or by majority of the
BOD or partners
2. By a secret ballot
3. In a meeting called for that purpose
The regional branch may supervise the
conduct of the secret balloting at its own
be initiative or upon request of any party.
Notice of the meeting must be given at least
24 hours before such meeting, and the
results of the voting must be given at least 7
days before the intended strike or lockout to
the regional branch of the Board. This is
subject to the cooling-off period. (Labor
Code, Art. 278(f))
Strike/Lockout Vote Report
The result of the strike (or lockout voting)
should be reported to the NCMB at least 7
days before the intended strike or
lockout, subject to the cooling off period.
This means that after the strike vote is taken
and the result reported to NCMB, seven
days must pass before the union can
actually commence the strike. This seven-
day reporting period is intended to give the
Dept. of Labor and Employment an
opportunity to verify whether the projected
strike really carries the imprimatur of the
majority of the union members. (Lapanday
Workers’ Union, et. al. v. NLRC, G.R. Nos.
95494-97, September 7, 1995)
A strike tagged without the submission of
the result of the strike vote is illegal.
(Samahan ng Manggagawa in Moldex
Products, et. al. v. NLRC, et.al., G.R. No.
119467, February 1, 2000)
Contents of the notice of strike or
lockout
1. Names and addresses of employer
2. Union involved
3. Nature of industry to which the
employer belongs
4. Number of union members
5. Workers in the bargaining unit
6. Other relevant data
7. In case of bargaining deadlocks: the
unresolved issues, written proposals
of the union, counter-proposals of
the employer and proof of request
for conference to settle differences
8. In case of unfair labor practice:
the acts complained of, and the
efforts taken to resolve the dispute
(Sec 8, D.O. 40-G-03, Series of
2010)
Note: Board shall inform the concerned
party in case notice does not conform with
the requirements. (Sec 8, D.O. 40-G-03,
Series of 2010)
Action on notice of strike or lockout (Sec
9, D.O. 40-G-03, Series of 2010)
1. Upon receipt of the notice, the
regional branch of the Board shall
exert all efforts at mediation and
conciliation to enable the parties to
settle the dispute amicably. It shall
also encourage the parties to submit
the dispute to voluntary arbitration.
2. The Regional Branch of the Board
may, upon agreement of the parties,
treat a notice as a preventive
mediation case. It shall also
encourage the parties to submit the
dispute to voluntary arbitration.
3. During the proceedings, the parties
shall not do any act which may
disrupt or impede the early
settlement of the dispute. They are
obliged, as part of their duty, to
bargain collectively in good faith and
to participate fully and promptly in
the conciliation meetings called by
the regional branch of the Board.
4. A notice, upon agreement of the
parties, may be referred to
alternative modes of dispute
resolution, including voluntary
arbitration.
Procedural Requirements of a Valid
Strike or Lockout
 1. Notice of Strike or Lockout
2. Cooling Off Period
3. Notice of meeting for Strike or
Lockout vote at least 24 hours
before the conduct of said meeting
4. Conduct AND results of Strike or
Lockout vote reported
5. 7-day strike ban observed
Preventive Mediation
The regional branch may treat the notice as
a preventive mediation case upon
agreement of the parties.
When labor may strike or when the
employer may lockout its workers
If the dispute remains unsettled after the
lapse of the requisite number of days from
the filing of the notice of strike or lockout
and of the results of the election but the
regional branch of the Board shall continue
mediating and conciliating.
Prohibited activities during strikes and
lockouts (Labor Code, Art. 279)
1. Strike or lockout without first having
bargained collectively
2. Strike or lockout without the
necessary vote first having been
obtained and reported to the DOLE.
3. Strike or lockout after DOLE has
assumed jurisdiction or the
President or after certification or
submission of dispute to the
compulsory arbitration/voluntary
arbitration or during the pendency of
cases involving the same grounds
for the strike or lockout.
4. Knowingly participating in an illegal
strike or knowingly participating in
the commission of illegal acts during
a strike (ground for termination of
employment).
5. Obstruct, impede, or interfere with
by force, violence, coercion, threats,
or intimidation any peaceful
picketing by employees during any
labor controversy or shall abet or aid
such obstruction or interference.
6. Employment or use of any
strikebreaker/ employed as a strike
breaker.
7. Bringing in, introducing, or escorting
by any public officer or employee,
including officers and personnel of
the AFP or PNP, or any armed
person in any manner of any
individual who seeks to replace
strikers in entering or leaving the
premises of a strike area or work in
place of strikers.
8. Commit any act of violence, coercion
or intimidation while engaged in
picketing or obstruct the ingress or
egress from the employer's premises
for lawful purposes or obstruct public
thoroughfares (must be pervasive
and widespread/consistently and
deliberately resorted to as a matter
of policy
III. ASSUMPTION OF JURISDICTION
BY THE SECRETARY OF LABOR
AND EMPLOYMENT (Dante)
A. NATURE
Art. 278(g) is both an extraordinary and a
preemptive power to address an
extraordinary situation — a strike or lockout
in an industry indispensable to the national
interest. The secretary of Labor is
empowered to:
1. Assume jurisdiction over the dispute
and decide it, or
 2. Certify the dispute to the NLRC for
compulsory arbitration, in which
case, NLRC shall here and decide
The intent of the law is to give the Labor
Secretary full authority to resolve all matters
within the dispute that gave rise to or which
arose out of the strike or lockout; it includes
and extends to all questions and
controversies arising from or related to the
dispute, including cases over which the
labor arbiter has exclusive jurisdiction.
The authority of the Secretary to assume
jurisdiction over a labor dispute causing or
likely to cause a strike or lockout in an
industry indispensable to national interest
includes and extends to all questions and
controversies arising from such labor
dispute. The power is plenary and
discretionary in nature to enable him to
effectively and efficiently dispose of the
dispute. (Philcom Employees Union v.
Philippine Global Communications, G.R.
No. 144315, 2006)
As held in International Pharmaceuticals,
Inc. v. Secretary of Labor, the Labor
Secretary has jurisdiction over all questions
and controversies arising from an assumed
dispute, including cases over which the
labor arbiter has exclusive jurisdiction.
(G.R. Nos. 92981-83, 1992)
What Constitutes a National Interest
Case
The Labor Code vests upon the Secretary
of Labor the discretion to determine what
industries are indispensable to national
interest. Thus, upon the determination of the
Secretary of Labor that such industry is
indispensable to the national interest, it will
assume jurisdiction over the labor dispute of
said industry. (Philtread Workers Union v.
Confesor, G.R. No. 117169, 1997)
A Police Power Measure
The assumption of jurisdiction is in the
nature of police power measure. This is
done for the promotion of the common good
considering that a prolonged strike or
lockout can be inimical to the national
economy. The Secretary of Labor acts to
maintain industrial peace. Thus, his
certification for compulsory arbitration is not
intended to impede the workers right to
strike but to obtain a speedy settlement of
the dispute. (Philtread Workers Union v.
Confesor, G.R. No. 117169, 1997)
B. EFFECTS OF ASSUMPTION OF
JURISDICTION
1. On intended or impending strike or
lockout — Automatically enjoined
(Labor Code, Art. 278(g))
2. On actual strike or lockout (already
taken place) — all striking or locked-
out employees shall immediately
return to work and the employer
shall immediately resume operations
and readmit all workers under the
same terms and conditions
prevailing before the strike or lockout
(Labor code, Art. 278(g))
3. On cases already filed and may be
filed — considered subsumed or
absorbed by assumed or certified
case, except where certification or
assumption order states otherwise
(Guagua National Colleges v.
Guagua National Colleges Faculty
Labor Union, G.R. No. 204693,
2016)
4. On other pending cases — Parties
are required to inform their counsels
and the DOLE Secretary/ NLRC
 Division concerned of all pending
cases that are related or incident to
the assumed/certified case. (Par 2,
Sec. 3(b), Rule VIII, 2011 NLRC
Rules of Procedure)
Such assumption or certification has the
effect of automatically enjoining the
intended or impending strike or lockout as
specified in the assumption or certification
order.
If one has already taken place at the time of
the assumption or certification, all striking or
locked out employees shall immediately
return to work and the employer shall
immediately resume operations and readmit
all workers under the same terms and
conditions prevailing before the strike or
lockout. In such case, the
assumption/certification results to a return-
to-work of all striking workers even if the
Secretary has not issued a Return to Work
Order (RTWO). (Labor code, Art. 278 (g))
This is an example of an automatic
injunction. But this is strictly limited to
"national interest" cases, and even in these
cases, the parties retain the option to submit
the dispute to voluntary arbitration.
Upon assumption or certification, the parties
should revert to the status quo ante litem
which refers to the state of things as it was
before the labor dispute or the state affairs
existing at the time of the filing of the case.
(Overseas Workers' Welfare Administration
v. Chavez, G.R. No. 169802, 2007)
The assumption or certification also has the
effect of regulating the management
prerogative of determining the assignment
or movement of EEs.
Thus, in one case, the Court held the layoff
of 94 EEs pending the resolution of the
dispute illegal as it was violative of the
assumption order. (Metrolab v. Roldan-
Confesor, G.R. No. 108855, 1996)
When May the Secretary Assume
Jurisdiction Over a Case or Certify it to
the NLRC
Under the law, when in his opinion there
exists a labor dispute causing or likely to
cause a strike or lockout in an industry
indispensable to the national interest, the
Secretary [of Labor] may:
1. Assume jurisdiction over the dispute
and decide it, or
2. Certify the same to the NLRC for
compulsory arbitration
Note: Power of DOLE Secretary to assume
jurisdiction over a labor dispute is limited to
strikes or lockouts adversely affecting the
national interest. (Free Telephone Workers
Union v. Hon. Minister ofLabor and
Employment, G.R. L-58184, 1981)
What are Considered "National Interest"
Cases
The NLRC vests the President of the
Philippines and the Secretary of Labor
almost unlimited discretion to determine
what industries may be considered as
indispensable to the national interest.
Industries Indispensable to the National
Interest
1. Hospital Sector
2. Electric Power Industry
3. Water Supply Services, to exclude
small water supply such as bottling
and refilling stations
4. Air traffic control
5. Such other industries as maybe
recommended by the National
 Tripartite Peace Council (TIPC) (DO
No.40-H-13)
Examples of "National interest"
disputes:
1. Nestle Philippines, Inc. is engaged in
an undertaking affected with public
interest being one of the largest
manufacturers of food products.
(Union of Filipro v. NLRC,G.R. No.
91025, 1990)
2. Academic institutions (Philippine
School of BusinessAdministration v.
Noriel, G.R. No. 80648, 1988)
3. A company supplying the sulfate
requirements of MWSS
4. Banking is expressly classified by
the General Banking Law as an
industry indispensable to the
national interest
5. However, the Court ruled that the
production of telephone directories is
not an industry affecting the national
interest. (GTE Directories Corp v.
Sanchez, G.R. No. 76219, 1991)
Rule on Strikes and Lockouts in
Hospitals, Clinics and Medical
Institutions (Labor code, Article 278(g)
(par.2))
General Rule: Strikes and lockouts in these
institutions must be avoided
But in case a strike or lockout is staged:
1. It shall be the duty of the striking
union or locking-out employer to
provide and maintain an effective
skeletal workforce of medical/ other
health personnel whose services
shall be unhampered and
unrestricted to insure the proper and
adequate protection of life and
health of its patients for the duration
of the strike/lockout
2. DOLE Secretary shall immediately
assume, within 24 hrs from
knowledge of the occurrence of the
strike/lockout, jurisdiction over the
same or certify it to NLRC for
compulsory arbitration
Assumption of Jurisdiction: Prior Notice
Not Required
The discretion to assume jurisdiction may
be exercised by the Secretary without the
necessity of prior notice or hearing given to
any of the parties. The rationale for his
primary assumption of jurisdiction can
justifiably rest on his own consideration of
the exigency of the situation in relation to
the national interests. (Capitol Medical
Center v. Trajano, G.R. No. 155690, 2005)
Return-to-Work-Order (RTWO)
The moment the Secretary of Labor
assumes jurisdiction over a labor dispute in
an industry indispensable to national
interest, such assumption shall have the
effect of automatically enjoining the
intended or impending strike. It was not
even necessary for the Secretary of Labor
to issue another order directing a return to
work. The mere issuance of an assumption
order by the Secretary of Labor
automatically carries with it a return-to-work
order, even if the directive to return to work
is not expressly stated in the assumption
order. (Steel Corporation of the Philippines
v. SCPEmployees Union, G.R. 169829-30,
2008)
Note:
● It is always part of the
assumption/certification order even if
not expressly stated.
● RTWO is compulsory in character
Certification to NLRC
"Certified labor disputes" are cases certified
[or referred] to the NLRC for compulsory
arbitration.
A "national interest" dispute may be certified
to the NLRC even before a strike is
declared since the Labor Code does not
require the existence of a strike, but only of
an industrial dispute.
When sitting in a compulsory arbitration
certified to by the DOLE Secretary, the
NLRC is not sitting as a judicial court but as
an administrative body charged with the
duty to implement the order of the
Secretary. In such a case, the NLRC does
not have the power to amend the
Secretary's order. (GSISEA v. C1R, G.R.
No. L-18734, 1961)
Effects of Defiance of Assumption or
Certification
Noncompliance with the certification order
of the Secretary shall be considered an
illegal act committed in the course of the
strike or lockout, and shall authorize the
NLRC to enforce the same under pain of
immediate disciplinary action, including loss
of employment status or payment by the
locking-out ER of backwages or damages,
even criminal prosecution against the liable
parties.
Defiant Strikers, Whether Officer or
Ordinary Members of the Striking Union,
are Deemed Dismissed -
Once DOLE Sec assumes jurisdiction over
a labor dispute or certifies it to NLRC for
compulsory arbitration, such jurisdiction
should not be interfered with by the
application of coercive processes of a strike
or lockout.
Any defiance thereof is a valid ground for
the loss of employment status regardless of
whether the defiant worker is an officer or
an ordinary member of the union Defiance
of the assumption order or a return-to work
order by a striking employee, whether a
union officer or a member, is an illegal act
and, therefore, a valid ground for loss of
employment status. (Manila Hotel
Employees Association v. Manila Hotel
Corp., G.R. No. 154591, 2007)
Certification to the NLRC makes the
continuation of the strike illegal, provided
that the parties are duly notified of the
certification order. Notice is a prerequisite
even if the order states that it is
"immediately executory."
Refusal to Receive the Assumption of
Jurisdiction Order Amounts to Defiance
Refusal to receive the Assumption of
Jurisdiction Order (AJO) amounts to
defiance of the order, which makes the
continuation of the strike an illegal act, thus
subjecting the strikers to possible
termination of employment.
The strikers should resume work
immediately upon receipt or constructive
receipt of the order. A grace period may be
given but that is not required by the law.
(Azucena Vol. II-A, 9th ed., 2016, p. 646)
Effects of Defying the RTWO
The mere issuance of an assumption order
automatically carries with it a return-to-work
order. (Steel Corporation of the Philippines
V. SCP Employees Union, G.R. Nos.
169829-30, 2008)
From the moment a worker defies a RTWO,
he is deemed to have abandoned his job.
(St. Scholastica's College v. Torres, G.R.
No. 100158, 1992)
Those workers who refuse to obey the
RTWO are not entitled to be paid for work
not done or to reinstatement to the positions
they have abandoned by their refusal to
return thereto as ordered. (Asian
Transmission Corporation v. NLRC, G.R.
No. 88725, 1989)
Where the RTWO is issued pending the
determination of the legality of the strike, it
is not correct to say that it may be enforced
only if the strike is legal and may be
disregarded if the strike is illegal. Precisely,
the purpose of the RTWO is to maintain the
status quo while the determination is being
made. (Union of Filipro Emplees v. Nestle
Philippines, G.R. No. 88710-13, 1990)
Not only union officers but also union
members who defy an RTWO are subject to
dismissal.
But to justify the dismissal, the defiance of
the RTWO must be clearly proven.
(Batangas Laguna Tayabas Bus Company
v. NLRC, G.R. No. 101858, 1992)
Thus, the alleged or perceived defiance of
the RTWO does not mean automatic
dismissal of the defying employees. Due
process must be observed. The employees
must be given the chance to explain and
prove that there was no defiance at all.
(Azucena Vol. II-A, 9th ed., 2016, p. 652)
Actual, Not Payroll, Reinstatement
Under the law, "the striking or locked out
employees shall return to work and the
employer shall readmit them." The Court
has interpreted this to mean, as a general
rule, actual, not payroll, readmission to the
EEs' positions. (Azucena Vol. II-A, 9th ed.,
2016, p. 655)
With respect to the Secretary's Order
allowing payroll reinstatement instead of
actual reinstatement for the individual
respondents herein, an amendment to the
previous Orders issued by her office, the
same is usually not allowed. Article 263(g)
of the Labor Code aforementioned states
that all workers must immediately return to
work and all employers must readmit all of
them under the same terms and conditions
prevailing before the strike or lockout. The
phrase "under the same terms and
conditions" makes it clear that the norm is
actual reinstatement. This is consistent with
the idea that any work stoppage or
slowdown in that particular industry can be
detrimental to the national interest.
(University of Immaculate Concepcion, Inc.
v. Secretary ofLabor, G.R. No. 151379,
2005)
Thus, placing the striking employees to
substantially equivalent positions could not
be considered reinstatement "under the
same terms and conditions prevailing before
the strike."(University ofSto. Tomas v.
NLRC, G.R. No. 89920, 1990)
Appeal of Secretary's Order
In "national interest" cases, the Secretary's
Order may be appealed to the Office of the
President.
In "non-national interest" cases, the Order
may be appealed via a Petition for Certiorari
(Rule 65).
The parties may at any stage withdraw the
case from compulsory arbitration to bring it
instead to a voluntary arbitrator. (Labor
Code, Art. 278(1,).
Arrest and Detention (Labor code, Art.
281)
General Rule: No Union members or union
organizers may be arrested or detained for
union activities without previous
consultation with the Secretary of Labor.

Exception: On grounds of national security

and public peace.