National Conciliation and Mediation Board(NCR)

ORIENTATION ON THE
ALTERNATIVE DISPUTE
RESOLUTION(ADR) MECHANISMS

Maria Cecille V. Ceballos

Chief Labor Employment Officer
National Capital Region
National Conciliation & Mediation Board
DOLE & ITS
ATTACHED
AGENCIES
 DOLE ORGANIZATION CHART

OFFICE OF THE SEC. PROPER

OFFICE OF THE SECRETARY
OFFS. OF THE SEC. 5 USECS
OFFS. OF THE 6 ASST. SECS

OSHC ECC NWPC OWWA TESDA PRC POEA NMP NCMB NLRC ILS

AS FMS HRDS IPS LS PS

ILAB BWSC BWC BLE BLES BLR

CAR R-1 R-2 R-3 R-4A R-4B R-5 R-6 R-7 R-8 R-9 R-10 R-11 R-12 R-13 NCR
 NCMB
ORGANIZATION
AL STRUCTURE
 OFFICE OF THE
EXECUTIVE DIRECTOR IV TRIPARTITE VOLUNTARY ARBITRATION
ADVOCY COUNCIL
============== ----------------------------------
Office of the
Deputy Executive Directors
-- Exec. Dir. --------- Chairman
1Rep – Gov’t ----- Member
2 Reps Labor ----- Members
2 Reps Mgt. ------- Members

TECHNICAL INTERNAL
SERVICES SERVICES

WORKPLACE
CONCILIATION VOLUNTARY FINANCIAL RESEARCH &
RELATIONSHIP ADMINISTRATIVE
MEDIATION ARBITRATIONDIV MANAGEMENT INFORMATION
ENHANCEMENT DIVISION
DIVISION ISION DIVISION DIVISION
DIVISION

C R
R R R N R R R R R R
RB RB RB RB B
A B B B C B4 B B B B B
A 4B 10 11 12 1
R 1 2 3 R 5 6 7 8 9 3
OUR VISION Fosters a
constructive
& productive
relationship
Respect for
basic The NCMB shall be the
freedom
center of excellence in
of workers
enhancing harmonious
relationship in every
workplace

Respect for
Founded on
rights
mutual
of employers to
trust & respect
manage
OUR MISSION

 To sustain harmonious labor and

management relations through
continuous education, mainstreaming of
alternative dispute resolution (ADR)
mechanisms, and implementation of
innovation approaches towards worker's
empowerment.
 PROGRAM THRUSTS
Labor-Management Cooperation(LMC) Program
or Workplace Relations and Enhancement
Program
Grievance Machinery or Settlement (GM)

Conciliation-Mediation Program

Voluntary Arbitration
 EXECUTIVE ORDER 126
Reorganized the DOLE and created the National Conciliation and Mediation Board

“Sec. 22. The National Conciliation and Mediation Board.

A National Conciliation and Mediation Board, herein
referred to as the “Board”, is hereby created and which
shall absorbed the conciliation, mediation and voluntary
arbitration functions of the Bureau of Labor Relations in
accordance with Section 29 © hereof. The Board shall be
composed of an Administrator and two (2) Deputy
Administrators. It shall be an attached agency under the
administrative supervision of the Minister of Labor and
Employment.”
 NCMB
is the ADR arm of the
Department of Labor
and Employment
 ALTERNATIVE DISPUTE
RESOLUTION
Generally refers to any process or
procedure used to resolve a dispute or
controversy , other than by adjudication of
a presiding judge of a court or an officer of a
government agency that is vested by law
with quasi-judicial power , in which a neutral
third party participates to assist in the
resolution of issues.
ALTERNATIVE DISPUTE RESOLUTION

ADR comprises variety of

processes that provide optional
approaches to the traditional
methods of resolving issues and
disputes at the workplace.
WHY USE THE ADR?
It allows parties to explore all
possible means to resolve
disputes at the least possible
time and cost without
damaging their relations.
 ELEMENTS OF AN EFFECTIVE ADR
MECHANISM

• Suitable Structure
• Appropriate Skills
• Right Attitude
• Adequate Resources
• Support and Commitment from
Management
• Pertinent guidelines
 1987 Constitution
Art. 13, Sec. 3
paragraph 3 “The State shall promote
the PRINCIPLE OF SHARED
RESPONSIBILITY between workers and
employers and the preferential use of
voluntary modes of settling disputes…”
 LABOR CODE OF THE
PHILIPPINES
(AS AMENDED BY RA
6715)
Art. 267(Art. 255 Paragraph 2)
“…workers shall have the right …to
participate in policy & decision-making
processes…insofar as said processes will
directly affect their rights, benefits, &
welfare.”
DISPUTE PREVENTION & SETTLEMENT THE LMC WAY
LR Situationer

4- Year Comparative Statistics of Cases Filed_ CAMANAVA

Total cases filed per area

2016 2017 2018 2019 (As of May 9)
Area (for the last 4 years)

NS PM SENA Total NS PM SENA Total NS PM SENA Total NS PM SENA Total NS PM SENA Total

CAL 3 8 63 74 2 9 82 93 5 11 70 86 3 30 33 10 31 245 286

MAL 2 6 43 51 6 36 42 5 28 33 13 13 2 17 120 139

NAV 21 21 1 40 41 27 27 1 10 11 0 2 98 100

VAL 4 22 61 87 8 24 72 104 7 14 52 73 4 7 18 29 23 67 203 293

LR
Situationer RCMB-NCR 2018 Disputes
3500
3114
3000

2500

2000

1500

1000

500
175
99
0
NCR

RFAs PM Column1
LR Situationer
2018 CAMANAVA Disputes Valenzuela Disputes: Industries Involved
200

180 177

160

140

120

100

80

60 52 Construction Manufacturing
Manpower Packaging
40 Security Agency Printing
30
Distribution Rolling Mills
20 12 14 Lumber Car Parts
7 Marketing Trucking & Transport
0 Services port
CAMANAVA Valenzuela Supermarket Real Estate
Machine Shop/Machinery Pharmaceuticals
Agriculture
RFAs PM Column1
LR Situationer
Valenzuela Disputes: Issues Involved

GLS OSH LR Dismissal Regularization

LR Situationer
2018 NCMB Stats

• 94.5% or 3,240 out of 3,428 establishments

with Labor Management were not involved in
Actual Strike, Notice of Strike, or Preventive
Mediation Cases

• 95% or 3,814 out of 4,014 establishments with

Grievance Machineries were not involved in
Actual Strike, Notice of Strike, or Preventive
Mediation Cases.
LABOR
MANAGEMENT
COOPERATION:
A WORKPLACE COOPERATION
AND PARTNERSHIP PROGRAM

Department of Labor and Employment

NATIONAL CONCILIATION AND MEDIATION BOARD
Activity: Take a look at the picture. At a first
glance, what do you see?
Activity: Take a look at the picture. At a first
glance, what do you see?
 LEARNING POINTS

People receive
We may see the the same
same object but message but
view it differently. interpret it in
different ways.
 LEARNING POINTS

Differences in
interpretation/ Sincere and
perception may effective
give rise to communication can
misunderstanding/ clear up and settle
problems/conflicts. misunderstanding.
 LEARNING POINTS

Shared
communication is
understanding is
two-way
enhanced when:

questions for
instructions/
clarifications are
directions are
asked and
complete
answered
How do all this relate to enhancing
workplace relations?

Communication
is the heart and
soul of every
and any
relationship.
Labor Management Cooperation

LMC is a state of
relations where labor
and management
work hand in hand to
accomplish certain
goals using mutually
accepted means.
Labor Management Cooperation

It is the outcome of a continuing

process of enhancing mutual
trust and respect through:
information –sharing,
discussion,
consultation, and
negotiations
as schemes of workers’
participation in decision-making
process.
LMC ORGANIZATIONAL
STRUCTURE

LMC STEERING
COMMITTEE

Secretary

Productivity Family Welfare Bipartite

Committee Committee Compliance
Committee

Safety & Health Grievance/CODI

Committee Committee
 LMC Sub-Committees
Composition Guide

Productivity
Bi-Partite Compliance Family Welfare (D.O. 56-03)
- Equal or adequate number of
- Equal or adequate number of - Management/Employers Sector, 2 or 3
management and workers
representative management and workers - Workers Sector , 2 or 3
representative
- increase productivity and - Plant Clinic Rep(Nurse or Doctor), full
competitiveness of - monitor, plan and develop time rep member – 1
enterprise(Two-Tiered Wage measures to ensure consistent
compliance of labor standards. - In-charge in the implementation of Ten
System & Gain-Sharing Program). (10) dimensions

Grievance Machinery
- Equal or adequate number of
Decorum and Investigation
(R.A. 7877-ASHL)
To handle sexual harassment cases in
Safety
and
Work-Related Environment:
management and workers
One (1) representative from the
representative management;
- Task to address conflict arising One (1) representative from the union.

Health
from terms and conditions of One (1) representative from the
employment. supervisory employees
One (1) representative from the rank and
file employees.
LMC . . .
Serves as a
channel of
communication
between
management and
labor
LMC . . .

Promotes cooperation
between partners
LMC . . .

Enhances employee
participation in company
decision-making
LMC . . .

Increases
labor-management
commitment to carry
out
their common goals
LMC . . .

Harmonizes and
strengthens
labor-management
relationship
LMC . . .

Contributes
to the progress
and stability
of the company C
LM
LMC: WHAT IT IS NOT
• a substitute to unionism
• a political arena
• a denial of the roles of
management and workers
• a forum for either party to
attack the other
• a magic wand that could
solve all problems
• a short-term program
WHY IS THERE A NEED FOR
MANAGEMENT AND WORKERS TO
COOPERATE?
Because workers
and management
are social partners
sharing a common
interest in the
success and growth
of the enterprise.
 MUTUAL BENEFITS OF LMC

LABOR MANAGEMENT

Channel of Channel of
communication to top communication to
management. employees.
 MUTUAL BENEFITS OF LMC
LABOR MANAGEMENT
Opportunity to A forum to share
participate in problem- information about
business conditions,
solving processes over
quality problems,
matters that affect product development
them. and other matters that
demonstrate the role
of employees in the
success of the
enterprise.
 MUTUAL BENEFITS OF LMC

LABOR MANAGEMENT

Means to make inputs An opportunity for

in solving operational advanced discussions
problems and of operational
management plans problems and plans
affecting workers in the like employee work
workplace. schedules, overtime,
lay-offs, transfers, etc.
 MUTUAL BENEFITS OF LMC

LABOR MANAGEMENT
Avenue for employees to Opportunity to
air complaints and demonstrate
opportunity to demonstrate responsiveness to
that they are responsible constructive
people with a constructive suggestions and valid
role to play in the growth complaints.
and development of the
company.
 MUTUAL BENEFITS OF LMC

LABOR MANAGEMENT
Opportunity for self- Means to tap the large
improvement and on- reservoir of know-how
the-job leadership and creativeness of
training. employees and
enhance the human
factor in organizational
development.
MUTUAL BENEFITS OF LMC

LABOR & MANAGEMENT

A means to relate with each

other without being bogged
down on labor relations issues.
FACTORS NECESSARY FOR
THE SUCCESS OF LMC

ATTITUDES
• Sincerity
• Mutual trust
• Commitment
• Mutual respect
• Mutual support
• Openness
• Objectivity
• Teamwork
FACTORS NECESSARY FOR
THE SUCCESS OF LMC

SKILLS
• Leadership
• Communication
• Problem solving
• Facilitation
• Planning
• Team building
FACTORS NECESSARY FOR
THE SUCCESS OF LMC
SUITABLE STRUCTURE
• Addresses identified needs and
concerns
• Can be formal or informal
• Assures adequate
representation of labor and
management
• Ensures attainment of decisions
through consensus
• Provides feedback mechanism
at all levels of the organization
LMC PITFALLS

• Irregular meetings
• Poorly conducted meetings
• Poor information dissemination
• Lack of support/commitment from either
labor or management
LMC PITFALLS

• Management representatives do not have

the authority to make binding decisions.
• Non-implementation of agreed
plans/decisions.
What are usually covered by LMC?

LMC
• Personnel policies • Productivity gain-
• Production plans sharing programs
• Business • Job security
expansion
• Improvement of
programs
quality of work life
What are usually covered by LMC?

LMC
• Introduction of new
technology & • Workers’ welfare &
machinery livelihood programs
• Retrenchment • Sports, recreation &
programs social activities
• Business mergers or
closure
What are usually covered by LMC?

LMC
• Productivity • Family welfare
improvement programs
programs • Grievance and
• Occupational Ethics
health & safety
program • Bi-partite
Compliance
 ORGANIZATION AND
STRUCTURE OF LMC

• Adequate number of representatives from

labor and management
• Labor representatives shall be elected by at
least the majority of the workers in the
establishment
• Management is represented by top level
officials
 ORGANIZATION AND
STRUCTURE OF LMC

• Two co-chairmen, one from each side,

serving concurrently or on a rotation basis
with an appointed secretary
• A third party facilitator acceptable to both
• Sub-committees may be formed to suit the
needs of the company
GUIDELINES
To ensure the orderly operations of the LMC,
it is desirable that the parties agree on basic
guidelines or principles which may include the
following:
• Objectives
• Coverage of LMC activities
• Structure and size of the committee
• Time, place, duration and frequency of meeting
• Procedure for the timing and exchange of
agenda
• Recording, maintenance, and dissemination of
minutes of meetings
• Other matters the parties may wish to include
LMC ORGANIZATIONAL
STRUCTURE

LMC STEERING
COMMITTEE

Secretary

Productivity Family Welfare Bipartite

Committee Committee Compliance
Committee

Safety & Health Grievance/CODI

Committee Committee
 Grievance is any difference or
dispute between an employee or the
union, and the employer with respect
to the interpretation, application, or
compliance with any terms and
conditions of the CBA and the company
rules and regulations.

68
Could there be a grievance without a Union or a CBA?

Any dispute or
controversy on the
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 a
CBA.
69
Grievances are taken up in the
Grievance Machinery.

Grievance Machinery

70
Grievance Machinery

A mechanism established for the

adjustment and resolution of
grievances.

71
Grounds for Grievance

VIOLATION/S ON:

C B A • Interpretation/
Implementation of CBA

• Interpretation/ Compan
y
Policy
Enforcement of
Company Personnel
Policies 72
 t for Grievance
Te s
 Violation of the Contract
(Has the contract been violated?)
 Violation of Management Responsibilities
(Has the worker been treated unfairly by
some action of the company?)
 a safe work area
 adequate lighting
 proper ventilation
 etc.
14
 t for Grievance
Te s
Violation of Company Personnel
Policies and Company Rules and
Regulations
(Is the problem covered by the
contract or personnel policies?)
discipline cases
enforcement of sanctions
and penalties
Violation of Past Practice

745
Grievance Procedure
A series of formal steps that parties to a collective
bargaining agreement or workers and
management agreed to take for the adjustment of
grievances including, voluntary arbitration as the
terminal step.

75
Grievance Procedure

 A GP consists of a series of steps to be taken

within the specified time limits;
 Small companies can be expected to have short,
simple procedures. Larger companies usually
have multi-step procedures;
 The intermediate steps are not merely a
transmission belt for passing grievances along
to the top authorities. The number of steps
provides a method of appeal to higher
authorities of a decision from a
lower/supervisory official
24
Grievance Procedure

Step 1:
SHOP FLOOR
Employee shall
present his
grievance or
complaint to the
shop steward.
The shop steward
shall verify the
facts and
determine whether WORKER  SHOP STEWARD Shop
or not the Steward to verify validity of grievance
grievance is valid SHOPFLOOR
LEVEL
77
Step 2:
PLANT LEVEL
If valid, shop
steward shall
immediately bring
Worker/Union &
the complaint to Immediate Supervisor to
the employee’s exert effort to settle the
immediate grievance
supervisor.
PLANT LEVEL
The immediate
supervisor shall
WORKER  SHOP STEWARD Shop
exert effort to settle Steward to verify validity of grievance
the grievance at
this level. SHOPFLOOR LEVEL

78
Step 3:

TOP LEVEL
If no settlement is GRIEVANCE
COMMITTEE
reached, the
grievance shall be
referred to the TOP LEVEL
grievance Worker/Union & Immediate
Supervisor to exert effort to settle
committee. the grievance
The grievance PLANT
committee has 10 LEVEL
days to decide the WORKER  SHOP STEWARD Shop Steward to
case. verify validity of grievance
SHOPFLOOR
LEVEL
79
 VOL
UNT
ARY
ARBI
TRA
TION
Step 4:
THIR
THIRD PARTY D
PAR
LEVEL Grievance
TY
Committee
LEV
All grievances not EL

settled at the TOP LEVEL

grievance Worker/Union & Immediate
machinery shall Supervisor to exert effort to settle
automatically be the grievance
referred to PLANT
voluntary LEVEL
arbitration. WORKER  SHOP STEWARD Shop Steward to
verify validity of grievance

SHOPFLOOR LEVEL
80
Who Can File/Initiate a Grievance?

 Aggrieved (individual)
employee
 Group of employees
 The Union
 Management or Employer

816
 Employee violates
company policy.
GRIEVANCE  Notice
INITIATION  Explanation
(Violation of
Management  Hearing
Company
disciplines erring  Decision
Personnel
employee through
Policies or
disciplinary action
Rules and
Regulations)
Employee
questions
disciplinary action
and files a
grievance. 827
GRIEVANCE Difference in
INITIATION interpretation or
(Interpretation of application of
Company
company policy.
Personnel
Policies or Rules
and Regulations)

Employee/Manage-ment
questions interpretation
or application and files a
grievance.

18
GRIEVANCE Management/
INITIATION Union violates
(Violation of CBA.
CBA)

Management/
Union questions
violation and files
a grievance.

849
GRIEVANCE Difference in
INITIATION interpretation or
application of
(Interpretation
CBA.
of CBA)

Union/
Management
questions
interpretation or
application and
files a grievance. 20
Reasons for Establishing Grievance Machinery

 To give employees an opportunity to voice their

concerns;
 To provide employees with the opportunity to
appeal a decision and to resolve the problem;
 To prevent minor disagreements from developing
into full blown disputes.
 To provide for peaceful resolution of disputes;

30
Reasons for Establishing Grievance Machinery

 To provide a systematic way to resolve

problems through fact finding;
 To identify causes of problems;
 To keep the lines of communication between
the parties open during the life of the
contract;

387
Reasons for Establishing Grievance Machinery

 To provide a method of interpreting the

contract;
 To protect the integrity of the contractual
agreement;
 To build an organizational climate based on
openness and trust; and
 To improve labor-management relations.

32
 Voluntary
Arbitration

89
Voluntary Arbitration

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.

90
Voluntary Arbitration

The terminal step in the parties’ grievance

machinery.
Non – litigious proceedings; less costly;
and speedy

35
VOLUNTARY ARBITRATOR

 Refers to any person who has been accredited

by the NCMB as such, or
 Any person named or designated in the
collective bargaining agreement by the parties
as their voluntary arbitrator, or
 One chosen by the parties, with or without
the assistance of the Board.

92
Voluntary Arbitration

Art. 261. Original and Exclusive Jurisdiction

 All unresolved grievances arising from the
interpretation or implementation of the
collective bargaining agreement.

 All unresolved grievances arising from the

implementation or enforcement of
company personnel policies.

93
Voluntary Arbitration

Art. 261. Original and Exclusive Jurisdiction

 All wage distortion issues arising from the

application of any wage orders in organized
establishments (RA 6727)

 All unresolved grievances arising from the

interpretation and implementation of the
productivity incentive programs under RA
6971.
94
 Voluntary Arbitration

How is jurisdiction acquired by the Arbitrator?

1. Upon receipt of a Submission

Agreement, or
2. Upon receipt of an Appointment/
Designation as VA by the NCMB

95
Voluntary Arbitration

Submission Agreement
Refers to a written agreement by the parties
submitting their case for arbitration
containing the issues, the chosen arbitrator
and stipulation to abide by and comply with
the resolution, including cost of arbitration.
ion
m iss nt
b
Su eeme
r
Ag

40
VA Subsidy

Who may avail of the VA Subsidy?

Parties to a VA case
may avail of the subsidy.

97
VA Subsidy

Amount of Subsidy

 Single issue – P25,000.00

 Two or more unrelated issues – P40,000.00

98
Advantages of Voluntary Arbitration

 Speedy resolution of the unresolved issue/s in the GM

 Technical Rules of Court are not strictly applied;

 Voluntary Arbitrators or members of the Panel of

Voluntary Arbitrators are selected by the parties
themselves;
 Failure of the parties to select common arbitrator or panel
of arbitrators, the NCMB shall designate Voluntary
Arbitrator pursuant to the selection procedure of the CBA
 Shortened appeal period:
Arbitrator – CA – SC

99
Summing up…
The basic concept of LMC is for
workers and management to work
together to be productive, produce
quality outputs, to have a common
understanding and maintain stable
relations, to grow and develop, and to
achieve common goals.
 The goal of resolving conflict
is not really to
determine who is right and who is
wrong.
It is restoring and healing
relationships.
101
 PROBLEMA SA
TRABAHO?

i-LMC at GM LANG
NATIN!!!
 Thank you !

www.ncmb.ph