The Illegality of Participating in a Welga ng Bayan: Striking a Balance Between Labor Rights and Business Interests

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TLDR: This case clarifies that employees participating in a ‘welga ng bayan’ (people’s strike) without notifying their employer can be deemed to have engaged in an illegal work stoppage, potentially leading to termination, especially for union officers. It underscores the importance of balancing labor rights with the employer’s right to reasonable returns on investment and the need for shared responsibility in maintaining industrial peace.

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G.R. NO. 155679, December 19, 2006

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Introduction

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Imagine a scenario where employees, driven by socio-economic concerns, join a widespread protest, only to find their jobs on the line. This isn’t just a hypothetical; it’s the reality faced by union officers in the case of Biflex Phils. Inc. Labor Union vs. Filflex Industrial and Manufacturing Corporation. The case revolves around the legality of a work stoppage during a ‘welga ng bayan’ and its implications for both employees and employers.

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In October 1990, members of the Biflex Phils. Inc. Labor Union and the Filflex Industrial and Manufacturing Labor Union participated in a ‘welga ng bayan’ to protest rising oil prices. The employers, Filflex Industrial and Manufacturing Corporation and Biflex (Phils.), Inc., deemed the work stoppage illegal and terminated the employment of several union officers. The central legal question: Can employees be terminated for participating in a ‘welga ng bayan’?

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Legal Context: Strikes, Lockouts, and the Labor Code

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Philippine labor law recognizes the right to strike but also sets parameters to ensure order and fairness. A strike is a temporary stoppage of work by the concerted action of employees as a result of an industrial or labor dispute. A lockout, on the other hand, is the temporary refusal of an employer to furnish work to employees as a result of an industrial or labor dispute.

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The Labor Code of the Philippines governs the legality of strikes and lockouts, outlining specific requirements that must be met. Key provisions include:

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• Article 263: Requires a notice of strike to be filed with the Department of Labor and Employment (DOLE) at least 30 days before the intended date, except in cases of unfair labor practices where only a 15-day notice is required.

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• Article 264: Specifies prohibited activities during a strike, such as obstructing free ingress to or egress from the employer’s premises.

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Crucially, Article 264(a) also addresses the consequences of an illegal strike:

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“. . . Any union officer who knowingly participates in an illegal strike and any worker or union officer who knowingly participates in the commission of illegal acts during a strike may be declared to have lost his employment status . . .”

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A ‘welga ng bayan,’ or people’s strike, is considered a general strike or extended sympathy strike that affects numerous employers, even those without a direct dispute with their employees. The Supreme Court has previously ruled on the legality of such strikes, often emphasizing the need for employees to notify their employers of their intention to participate.

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Case Breakdown: Biflex Phils. Inc. Labor Union vs. Filflex Industrial and Manufacturing Corporation

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The case unfolded as follows:

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1. October 24, 1990: Members of the petitioner-unions participated in a ‘welga ng bayan’ to protest rising oil prices.

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2. October 31, 1990: The respondent-companies filed a petition to declare the work stoppage illegal, citing a failure to comply with procedural requirements for a valid strike.

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3. November 13, 1990: The companies resumed operations, but the union officers claimed they were locked out.

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4. December 15, 1992: The Labor Arbiter ruled in favor of the companies, declaring the strike illegal and ordering the termination of the union officers.

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5. NLRC Decision: The NLRC reversed the Labor Arbiter’s decision, stating that no labor dispute existed and ordering reinstatement with backwages.

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6. Court of Appeals Decision: The Court of Appeals reversed the NLRC, reinstating the Labor Arbiter’s decision, finding the strike illegal due to non-compliance with legal requirements.

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The Supreme Court ultimately sided with the Court of Appeals, emphasizing the importance of balancing labor rights with the employer’s right to reasonable returns on investments. The Court stated:

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“Employees who have no labor dispute with their employer but who, on a day they are scheduled to work, refuse to work and instead join a welga ng bayan commit an illegal work stoppage.”

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The Court also highlighted the lack of notification to the employers regarding the employees’ intention to join the ‘welga ng bayan’. Further, the Court noted that the union officers obstructed the free ingress to and egress from the company premises, violating Article 264(e) of the Labor Code.

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As the Supreme Court explained:

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“In fine, the legality of a strike is determined not only by compliance with its legal formalities but also by the means by which it is carried out.”

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Practical Implications: Navigating Labor Rights and Employer Interests

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This case serves as a crucial reminder for both employees and employers in the Philippines. For employees, especially union officers, it underscores the importance of following proper procedures when participating in any form of work stoppage, including a ‘welga ng bayan’. Notification to the employer is paramount.

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For employers, the ruling provides a legal basis for addressing unauthorized work stoppages but also emphasizes the need for fair and consistent application of labor laws. It is critical to document any violations of the Labor Code during a strike, such as obstruction of company premises.

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Key Lessons:

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• Notify Your Employer: Employees intending to participate in a ‘welga ng bayan’ should notify their employer in advance.

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• Follow Legal Procedures: Adhere to the requirements of the Labor Code when staging a strike, including filing a notice and conducting a strike vote.

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• Avoid Obstruction: Refrain from obstructing access to company premises during any work stoppage.

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• Document Everything: Employers should meticulously document any violations of the Labor Code during a strike.

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Frequently Asked Questions (FAQs)

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Q: What is a ‘welga ng bayan’?

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A: A ‘welga ng bayan’ is a people’s strike, often a general strike or extended sympathy strike, that aims to protest socio-economic issues affecting a broad segment of the population.

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Q: Is it always illegal to participate in a ‘welga ng bayan’?

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A: Not necessarily. However, participating without notifying your employer or complying with the Labor Code’s requirements for a valid strike can be deemed an illegal work stoppage.

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Q: What are the requirements for a legal strike in the Philippines?

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A: The requirements include filing a notice of strike with the DOLE, conducting a strike vote, and submitting a report of the strike vote to the DOLE.

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Q: Can union officers be terminated for participating in an illegal strike?

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A: Yes, union officers who knowingly participate in an illegal strike may be declared to have lost their employment status.

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Q: What should an employer do if employees participate in an illegal strike?

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A: The employer should document the illegal acts, such as obstruction of company premises, and follow due process in addressing the erring employees.

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Q: What is an illegal lockout?

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A: An illegal lockout is when an employer temporarily refuses to furnish work to employees without a valid reason or without following proper procedures.

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Q: What is the effect of blocking the free ingress to and egress from the employer’s premises?

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A: It is a violation of Article 264(e) of the Labor Code which provides that