Labor Law B Q

a. Explain the automatic renewal clause of collective bargaining agreements. (3%)

b. Explain the extent of the workers right to participate in policy and decision-making process
as provided under Article XIII, Section 3 of the Philippine Constitution. Does it include
membership in the Board of Directors of a corporation? (3%)

a. Automatic renewal clause provides that when political life of a collective bargaining
agreement (CBA) expires, all provisions will continue to be effective until a new CBA is concluded.
This rule applies to both original and renegotiated or extended CBAs.

b. The right to participate, as enshrined in Sec. 3, Art. XIII of the Constitution, is the right to be
part of the deliberative and adoptive phases of policy and decision-making on matters affecting
workers’ rights, benefits and welfare. This right does not cover purely business decisions.

II

Arnaldo, President of "Bisig" Union in Femwear Company, readied himself to leave exactly at 5:00
p.m. which was the end of his normal shift to be able to sed off his wife who was scheduled to leave
for overseas. However, the General Manager required him to render overtime work to meet the
company's export quota. Arnaldo begged off, explaining to the General Manager that he had to see
off his wife who was leaving to work abroad. The company dismissed Arnaldo for insubordination.
He filed a case for illegal dismissal. Decide (6%)

Arnaldo was illegally dismissed.

Insubordination, the ground relied upon by the company, has legal meaning; it has elements;
and it has controlling case authority. On the overall, it obtains when an employee wilfully violates a
reasonable directive pertaining to his work and his violation is characterized by wrongful and
perverse attitude. Here, the inability of Arnaldo to render work as requested by the General
Manager has a valid excuse. In other words, responsible discharge of martial or familial duty can
never be wrong or perverse. This cancels out the element of wrongful and perverse attitude. Being
insufficient in law, therefore, the company’s ground cannot justify the dismissal.
 III

Gamma Company pays its regular employees P350.00 a day, and houses them in a dormitory inside
its factory compound in Manila. Gamma Company also provides them with three full meals a day.

In the course of a routine inspection, a Department of Labor and Employment (DOLE) Inspector
noted that the workers' pay is below the prescribed minimum wage of P426.00 plus P30.00
allowance, and thus required Gamma Company to pay wage differentials.

Gamma Company denies any liability, explaining that after the market value of the company-
provided board and lodging are added to the employees' P350 cash daily wage, the employees'
effective daily rate would be way above the minimum pay required by law. The company counsel
further points out that the employees are aware that their food and lodging form part of their salary,
and have long accepted the arrangement.

Is the company's position legally correct?(8%)

No. Even assuming the board and lodging qualify as facilities, their value cannot
automatically be deducted from the prescribed pay rate. The deduction must be authorized by DOLE
Regional Director by issuing the corresponding permit which must be applied for and granted upon
satisfaction that the items are customarily provided; they are accepted by workers; their value is
reasonable; and the salary deduction is authorized in writing.

IV

Cris filed a complaint for illegal dismissal against Baker Company. The Labor Arbiter dismissed the
complaint but awarded Cris financial assistance. Only the company appealed from the Labor
Arbiter's ruling. It confined its appeal solely to the question of whether financial assistance could be
awarded. The NLRC, instead of ruling solely on the appealed issue, fully reversed the Labor Arbiter's
decision; it found Baker Company liable for illegal dismissal and ordered the payment of separation
pay and full backwages.

Through a petition for certiorari under Rule 65 of the Rules of Court, Baker Company challenged the
validity of the NLRC ruling. It argued that the NLRC acted with grave abuse of discretion when it
ruled on the illegal dismissal issue, when the only issue brought on appeal was the legal propriety of
the financial assistance award.

Cris countered that under Article 218(c) of the Labor Code, the NLRC has the authority to "correct,
amend, or waive any error, defect or irregularity whether in substance or in form" in the exercise of
its appellate jurisdiction.

Decide the case. (8%)

The NLRC exceeded its appellate jurisdiction.

Art. 225 (c) of the Labor Code unlike under old interpretations rulings, does not permit the
NLRC to resolve issues not raised on appeal for lack of appellate jurisdiction over unbrought issues.
 V

Linda was employed by Sectarian University (SU) to cook for the members of a religious order who
teach and live inside the campus. While performing her assigned task, Linda accidentally burned
herself. Because of the extent of her injuries, she went on medical leave. Meanwhile, SU engaged a
replacement cook. Linda filed a complaint for illegal dismissal, but her employer SU contended that
Linda was not a regular employee but a domestic househelp. Decide. (4%)

Linda is a regular employee, doing necessary and desirable activities to the over all
institution of her employer.

SU’s contention that Linda is a domestic helper is without basis because the latter did not
minister to the personal comfort of the members of any household as contemplated by the
Kasambahay Act. Although a cook, hence listed, she cannot be classified as a kasambahay
because she rendered services for resident religious teachers in a university which was not a
household but a necessary and desirable activity for the continuous operation of the university.

VI

Luisa was hired as a secretary by the Asian Development Bank (ADB) in Manila. Luisa’s first boss
was a Japanese national whom she got along with. But after two years, the latter was replaced by an
arrogant Indian national who did not believe her work output was in accordance with international
standards. One day, Luisa submitted a draft report filled with typographical errors to her boss. The
latter scolded her, but Luisa verbally fought back. The Indian boss decided to terminate her services
right then and there. Luisa filed a case for illegal dismissal with the Labor Arbiter claiming
arbitrariness and denial of due process. If you were the Labor Arbiter, how would you decide the
case? (4%)

I will dismiss the complaint for illegal dismissal.

Luisa committed serious misconduct. Her Indian boss, regardless of his arrogant nature, had
the clear right to reprimand her for her poor performance. Absent justification for verbally fighting
back, Luisa’s act amounted to serious misconduct. However, she was not accorded statutory due
process.

VII

TRUE OR FALSE. Explain your answer briefly.

1. Deeds of release, waivers and quitclaims are always valid and binding. (2%)

2. The relations between employer and employee are purely contractual in nature. (2%)

3. As a general rule, direct hiring of Overseas Filipino Workers (OFWs) is not allowed. (2%)
1. FALSE. Deed of release, waivers and quitclaims are not valid if they do not represent a fair
and reasonable compromise and they are not supported with substantial consideration.

2. FALSE. Art. 1700 of the New Civil code characterizes employer-employee relationship as
impressed with public interest, hence it is not purely contractual.

3. TRUE. Under the Labor Code, the diplomatic corps, international organizations and such
other employers as may be allowed by the Secretary of Labor is exempted from the prohibition on
direct-hiring.

VIII

a. Distinguish the terms “conciliation,” “mediation” and “arbitration.” (3%)

b. Differentiate “surface bargaining” from “blue-sky bargaining.” (2%)

a. In conciliation, a third party helps the disputants to meet and talk. He does not receive
evidence from them, much less render a judgment binding on them.

In Mediation, a third party who does not also render a judgment upon evidence presented to
him, helps the disputants identify their issue and proposes solutions on “take it” or “leave it” basis.

In Arbitration, the third party is a judge who receives the disputants’ evidence and renders a
judgment binding on them. It is voluntary if he has been pre-selected contractually by the disputants;
and it is compulsory if it is the law which confers on him the power to hear and resolve their dispute.

b. Surface bargaining is a bargaining attitude whereby one goes thru motions of negotiating a
CBA without an honest intent to perfect it and be bound to its provisions.

Bluesky bargaining is a bargaining attitude manifesting uncompromising bargaining

position thru unreasonable, unrealistic, impossible or difficult proposals.

IX

A, an employee of XYZ Cooperative, owns 500 shares in the cooperative. He has been asked to join
the XYZ Cooperative Employees Association. He seeks your advice on whether he can join the
association. What advice will you give him? (3%)

I will advise A not to join the association.

Cooperative members who are employees at the same time suffer a disqualification under
organizational law due to conflict of interest. At the end of the day, the association will demand to
bargain with the cooperative; hence, A would be placed in a situation wherein he would be
bargaining with himself because he co-owns the cooperative, therefore, he must be disqualified.