When is a Strike Illegal in the Philippines? Understanding Labor Law Requirements

TLDR: This case underscores the critical importance of adhering to the procedural requirements outlined in the Labor Code when staging a strike in the Philippines. Failure to comply with these requirements, even if the union believes it is acting in good faith, can render the strike illegal and expose participating employees to disciplinary action, including dismissal.

G.R. No. 113466, December 15, 1997

Introduction

Imagine a scenario where employees, driven by grievances against their employer, decide to stage a strike. But what if they fail to follow the proper legal procedures? Can their actions be deemed illegal, exposing them to potential dismissal? This is a critical question for both employers and employees in the Philippines, where labor disputes can quickly escalate. The case of National Federation of Labor (NFL) v. National Labor Relations Commission (NLRC) sheds light on this issue, emphasizing the importance of adhering to the procedural requirements outlined in the Labor Code when staging a strike.

In this case, the Supreme Court was asked to determine the legality of strikes staged by the National Federation of Labor (NFL) against PERMEX Producer and Exporter Corporation. The central legal question was whether the strikes were legal, considering the union’s alleged failure to comply with the procedural requirements outlined in Article 263 of the Labor Code.

Legal Context: The Requirements for a Legal Strike

The right to strike is a constitutionally protected right of workers in the Philippines. However, this right is not absolute and is subject to certain limitations and regulations. The Labor Code of the Philippines, specifically Article 263, outlines the procedural requirements that must be followed for a strike to be considered legal. These requirements are designed to ensure that strikes are conducted in a peaceful and orderly manner and that all parties have an opportunity to resolve their disputes before resorting to industrial action.

Key provisions of Article 263 of the Labor Code include:

• Notice of Strike: A notice of strike must be filed with the Department of Labor and Employment (DOLE), specifically the Regional Branch of the National Conciliation and Mediation Board (NCMB), copy furnished the employer of the union.
• Cooling-Off Period: A cooling-off period must be observed between the filing of the notice and the actual execution of the strike – thirty (30) days in case of bargaining deadlock and fifteen (15) days in case of unfair labor practice. However, in the case of union busting where the union’s existence is threatened, the cooling-off period need not be observed.
• Strike Vote: Before a strike is actually commenced, a strike vote should be taken by secret balloting, with a 24-hour prior notice to NCMB. The decision to declare a strike requires the secret-ballot approval of majority of the total union membership in the bargaining unit concerned.
• Strike Vote Report: The result of the strike vote should be reported to the NCMB at least seven (7) days before the intended strike or lockout, subject to the cooling-off period.

As the Court stated, “The provisions hardly leave any room for doubt that the cooling-off period in Art. 264(c) [now Art. 263] and seven-day strike ban after the strike-vote report prescribed in Art. 264(f) [now Art. 263] were meant to be, and should be deemed, mandatory.”

Case Breakdown: The NFL Strike Against PERMEX

The case revolves around the strikes staged by the National Federation of Labor (NFL) against PERMEX Producer and Exporter Corporation in Zamboanga City. The dispute began when NFL alleged that several union officials were barred from entering company premises due to their union activities. This led to a series of strikes, which PERMEX claimed were illegal due to the union’s failure to comply with the procedural requirements of the Labor Code.

Here’s a breakdown of the events:

1. January 23, 1993: NFL claims union officials were barred from company premises.
2. January 25-26, 1993: NFL stages a strike without filing a notice of strike or conducting a strike vote.
3. January 29, 1993: NFL files a Notice of Strike with the NCMB.
4. February 5, 1993: PERMEX contests the Notice of Strike. NFL files a new Notice of Strike.
5. February 11, 1993: NFL stages another strike, only six days after filing the Notice of Strike.
6. March 11, 1993: The Secretary of Labor assumes jurisdiction over the dispute and issues a Return-to-Work Order.
7. March 29, 1993: The workers finally lift their picket lines after ignoring the Return-to-Work Order.

The Labor Arbiter declared the strikes illegal and ruled that the dismissal of the striking employees was valid. The NLRC affirmed this decision, leading NFL to file a petition for certiorari with the Supreme Court.

The Supreme Court upheld the NLRC’s decision, stating:

“In the case at bar, no notice of strike, as required by Art. 263 (c) was filed by NFL prior to the strike on January 25 and 26. No prior notice of the taking of a strike vote was furnished the NCMB, nor was the seven-day strike ban after the strike vote observed. Instead, the workers immediately barricaded company premises in the afternoon of January 25, 1996, completely disregarding the procedural steps prescribed by Art. 263 (c) and (f).”

Furthermore, the Court emphasized the consequences of defying a Return-to-Work Order: “(a) strike undertaken despite the issuance by the Secretary of Labor of an assumption or certification order becomes a prohibited activity and thus illegal, pursuant to the second paragraph of art. 264 of the Labor Code, as amended x x x The union officers and members, as a result, are deemed to have lost their employment status for having knowingly participated in an illegal act.”

Practical Implications: What This Means for Employers and Employees

This case serves as a stark reminder of the importance of following the correct procedures when staging a strike. Failure to do so can have serious consequences for both the union and its members. For employers, it provides a legal basis for taking disciplinary action against employees who participate in illegal strikes. For employees and unions, it highlights the need to be fully aware of their rights and obligations under the Labor Code.

Key Lessons

• Compliance is Key: Strict compliance with the procedural requirements of Article 263 of the Labor Code is essential for a strike to be considered legal.
• Return-to-Work Orders Must Be Obeyed: Defying a Return-to-Work Order issued by the Secretary of Labor can result in the loss of employment status.
• Good Faith is Not Enough: Even if a union believes it is acting in good faith, failure to comply with the procedural requirements can render the strike illegal.

Frequently Asked Questions

Q: What is a notice of strike?

A: A notice of strike is a formal notification filed with the Department of Labor and Employment (DOLE) by a union, informing the employer and the government of its intention to stage a strike.

Q: What is the cooling-off period?

A: The cooling-off period is a mandatory waiting period between the filing of a notice of strike and the actual commencement of the strike. This period is designed to allow the parties to engage in conciliation and mediation efforts to resolve their disputes.

Q: What is a strike vote?

A: A strike vote is a secret ballot conducted among union members to determine whether they support the decision to stage a strike.

Q: What happens if a strike is declared illegal?

A: Employees who participate in an illegal strike may be subject to disciplinary action, including dismissal.

Q: What is a Return-to-Work Order?

A: A Return-to-Work Order is an order issued by the Secretary of Labor, requiring striking employees to return to work. Failure to comply with this order can result in the loss of employment status.

Q: Can a strike be legal even if the union doesn’t follow all the rules?

A: Generally, no. The Supreme Court has emphasized that the procedural requirements for a legal strike are mandatory.

Q: What should I do if I’m involved in a labor dispute?

A: It is always advisable to seek legal counsel from a qualified labor lawyer to ensure that your rights are protected.

ASG Law specializes in labor law and employment disputes. Contact us or email hello@asglawpartners.com to schedule a consultation.