Charmaine Lei A.

de Roma
Joanne G. Enguerra
 Article 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 form the date of its submission
shall AUTOMATICALLY be referred to VOLUNTARY ARBITRATION
prescribed in COLLECTIVE BARGAINING AGREEMENT.
- COLLECTIVE BARGAINING AGREEMENT shall NAME & 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.
Terms to Ponder
 Grievance – any question by either the employer or the
union regarding the interpretation or application if the
collective bargaining agreement or company personnel
policies or any claim by either party that the other party
is violating any provision of CBA or company personnel
policies.
 Voluntary Arbitration – is defined as a contractual
proceedings where the parties to a dispute select a judge
of their own choice and by consent submit their
controversy to him for determination
- refers to the mode of settling labor-management disputes
by which the parties select a competent, trained and
impartial person who shall decide on the merits of the
case and whose decision is final, executory and binding.
Terms to Ponder
 Arbitrator – judge in voluntary arbitration
 Labor Arbiter – judge in compulsory arbitrations
RULE XIX: Rules implementing the Labor Code
Section 1. Establishment of grievance machinery
 The parties to a collective bargaining agreement shall establish a
machinery for the expeditious resolution of grievances arising from
the interpretation or implementation of the CBA and those arising
form the interpretation and enforcement of company personnel
policies.
 A grievance committee shall be created within 10 calendar days from
the signing of the CBA in the absence of applicable provision in the
CBA.
 The committee shall be composed of at least two (2) representatives
each from the member of the bargaining bargaining unit and the
employer, unless otherwise agreed by the parties.
 Representative from among the members of the bargaining unit shall
be designated by the union.
Section 2. Procedure in Handling Grievance
a.) An employee shall present this grievance of 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 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 not settlement is reached, the grievance shall be
referred to the grievance committee which shall have
ten(10) days to decide the case.
Section 3. Submission to voluntary arbitration
- notice shall state issue or issues to be arbitrated
- failure to respond from the 7 days from receipt thereof,
voluntary arbitrators shall commence voluntary arbitration
hearings
- if parties fail to select arbitrators, the regional branch of
Board shall designate voluntary arbitrator
PROCESS AND PROCEDURE

Grievance
Machinery

Not settled in 7
Calendar days

Labor
Voluntary
Management
Arbitration
Dispute
 ARTICLE 261. JURISDICTION OF VOLUNTARY ARBITRATORS
OR PANEL OF VOLUNTARY ARBITRATORS

Exclusive and original jurisdiction to hear and decide all grievances:

1. Arising  from the implementation or interpretation of the collective

bargaining agreements;
2. Arising from the interpretation or enforcement of company personnel
policies;
3. Wage distortion issues arising from the application of any wage orders in
organized establishments Par. 4, Art. 124, RA 6727);
4. Unresolved grievances arising from the interpretation and
implementation of the productivity incentive programs under RA 6971.
 ARTICLE 261. JURISDICTION OF VOLUNTARY ARBITRATORS
OR PANEL OF VOLUNTARY ARBITRATORS

Concurrent jurisdiction

 Any other labor dispute upon agreement of the party may be submitted to
a voluntary arbitrator or panel of voluntary arbitrators.
 Before or at any stage of the compulsory arbitration process, the parties
may opt to submit to their dispute to voluntary arbitration. 
 The NLRC and its Regional Branches as well as the Regional Directors of
the DOLE are prohibited from entertaining disputes, grievances or matters
under the exclusive and original jurisdiction of the voluntary arbitrator or
panel of voluntary arbitrators. They shall immediately dispose and refer
the same to the appropriate grievance machinery or voluntary arbitration
provided in the collective bargaining agreement.
 FREQUENTLY ASKED QUESTIONS (FAQ’S)
1. Is grievance procedure vital and important?
- YES! It is actually a MUST provision in any CBA; without it the CBA IS NOT
REGISTRABLE.

2. What is the present national policy on labor dispute settlement?

A. 1987 constitution, Sec. 3 Article XIII provides:

“The State shall promote the principle of shared responsibility between

workers and employers and the preferential use of voluntary modes in
setting disputes, including conciliation, and shall enforce their mutual
compliance therewith to foster industrial peace.”
 FREQUENTLY ASKED QUESTIONS (FAQ’S)
B. Labor Code as amended by RA 6715

Article 211 of the Code provides, among others:

 (a)  “....It is the policy of the State... to promote and emphasize the
primacy of free collective bargaining and negotiations, including
voluntary arbitration, mediation and conciliation, as mode of settling
labor or industrial disputes.”
 (b) “  To provide an adequate administrative machinery for the
expeditious settlement of labor or industrial disputes”.

3. When there is grievance?

- There is a grievance when a dispute or controversy arises over the
implementation or interpretation of a collective bargaining agreement or
from the implementation or enforcement of company personnel policies
 FREQUENTLY ASKED QUESTIONS (FAQ’S)
4. Could there be a grievance without Union or CBA?
- Yes! Any dispute or controversy respecting terms and conditions of
employment which an employee or group of employees may present to
the employer can be a grievance, even without a union or CBA.

5. Are all grievance arising from the implementation or interpretation of

the collective bargaining agreement and/or interpretation and
enforcement of company personnel policies compulsorily subject to
the grievance machinery?
- Yes! This is clear in Article 260 and 261.

6. What usual provisions of a collective bargaining agreement whose

violation/s arising from interpretation and implementation, may
constitute grievance/s or the so-called rights disputes?
 FREQUENTLY ASKED QUESTIONS (FAQ’S)
- Non – economic provisions like no-strike-no-lockout, union security,
management security, check-off clauses, grievance procedures
- Economic provisions wage rates, paid vacations, pensions, health and
welfare plans, penalty  premiums and other fringe benefits. 

7. What are personnel policies and what are the matters usually covered
by such policies, whose wrong from enforcement and interpretation
may constitute grievance/s or other sources of rights disputes?
- Procedures in the administration of wages, benefits, promotions,
transfers and other personnel movements which are usually not spelled
out in the collective agreement.  The usual source of grievances ,
however, is the rules and regulations governing disciplinary actions.
 FREQUENTLY ASKED QUESTIONS (FAQ’S)

8. What violations of the usual norms of personnel conduct or behavior of

employees may constitute grievances often referred to as discipline
cases?
a. Against a Person – physical injury, assault, homicide, murder
b. Against Property – misuse of property, damage of property, theft
and robbery, negligence in the use of property
c. Orderliness and Good Conduct
d. Attendance and Punctuality – timekeeping violations, tardiness,
undertime, AWOL
e. Morality – immorality, sexual harrasment
f. Conflict of Interest – conflict of interest
g. Non performance – insurbodination, negligence of duty,
inefficiency, malingering, carelessness, poor quality,
h. Honesty and integrity
Powers of Voluntary Arbitrators or Panel of Voluntary Arbitrators

 To hold hearings;
 To receive evidence;
 To take whatever action is necessary to resolve the issue/s subject of the
dispute;
 To conciliate or mediate to aid the parties in reaching a voluntary
settlement of the dispute;
 To issue a writ of execution to enforce final decisions, orders, resolutions
or awards.
PROGRAMS AND SERVICES

1.Conciliation – Mediation Program

2.Grievance Settlement and Voluntary Arbitration
3.Workplace Relations and Enhancement (formerly LMC
Program)
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
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 to the
dispute, including efforts to effect a voluntary
settlement between the parties.
*It shall be mandatory for the Voluntary Arbitrator or
panel of Voluntary Arbitrators to render an award or
decision within 20 calendar days from the date of
submission of the dispute to voluntary arbitration.

*Arbitrator’s decision is “final and executory” after 10

days from receipt of such decision
The parties to a CBA shall provide a proportionate
sharing scheme on the cost of voluntary arbitration
including the Voluntary Arbitrator’s fee – taking 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
E.Fees provided for in the Revised Rules of Court