Ilaw at Buklod ng Manggagawa vs NLRC and San Miguel Corp.

G.R. No. 91980; June 27, 1991

Narvasa, J.:

FACTS:

IBM representing 4500 employees of SMC working at various plants,

offices and warehouses in NCR presented to the company a demand
for correction of the significant distortion in the workers’ wages
pursuant to the Wage Rationalization Act. The demand unheeded by
company hence the union members refused to render overtime
services until the distortion has been corrected by SMC. It appears
that the employees working hours/schedule has been freely observed
by the employees for the past 5 years and due to the abandonment of
the longstanding schedule of work and reversion to the eight-hour
shift substantial losses were incurred by SMC. SMC filed a complaint
with arbitration branch of NLRC then before the NLRC for the latter to
declare the strike illegal. The Union’s contention is that workers’
refusal to work beyond 8 hours was a legitimate means of compelling
SMC to correct distortion. However, SMC contends that the
coordinated reduction by the Union’s members of the work time in
order to compel SMC to yield to the demand was an illegal and
unprotected activity.

ISSUE: Whether or not the strike was illegal.

HELD:
Yes.
The strike invoking the issue of wage distortion is illegal. The legality
of these activities depends on the legality of the purposes sought to
be attained. These joint or coordinated activities may be forbidden or
restricted by law or contract. The legislative intent that solution of the
problem of wage distortions shall be sought by voluntary negotiation
or arbitration, and not by strikes, lockouts, or other concerted
activities of the employees or management, is made clear in the rules
implementing RA 6727 issued by the Secretary of Labor and
Employment pursuant to the authority granted by Section 13 of the
Act. Section 16, Chapter I of these implementing rules, after
reiterating the policy that wage distortions be first settled voluntarily
by the parties and eventually by compulsory arbitration, declares that,
“Any issue involving wage distortion shall not be a ground for a
strike/lockout.”

Moreover, the collective bargaining agreement between the SMC and

the Union, relevant provisions of which are quoted by the former
without the latter’s demurring to the accuracy of the quotation, also
prescribes a similar eschewal of strikes or other similar or related
concerted activities as a mode of resolving disputes or controversies,
generally, said agreement clearly stating that settlement of “all
disputes, disagreements or controversies of any kind” should be
achieved by the stipulated grievance procedure and ultimately by
arbitration.