A. XYZ Company and Mr. AB, a terminated employee who also happens to be the President of XYZ Employees Union, agree in writing to submit Mr. AB’s illegal dismissal case to voluntary arbitration. Is this agreement a valid one? (3%)
B. XYZ Company and XYZ Employees Union (XYZEU) reach a deadlock in their negotiation for a new collective bargaining agreement (CBA). XYZEU files a notice of strike; XYZ Company proposes to XYZEU that the deadlock be submitted instead to voluntary arbitration. If you are counsel for XYZEU, what advice would you give the union as to the: (1) propriety of the request of XYZ Company, and (2) the relative advantages/disadvantages between voluntary arbitration and compulsory arbitration? (4%)
Suggested answer only. Not an official answer and not legal advice.
[A] Yes, the submission of Mr. AB's dismissal to voluntary arbitration is valid. [B] (1) XYZ Company's proposal to arbitrate the deadlock is proper. (2) Voluntary arbitration is faster, less adversarial, and decided by a chosen judge, while
Unlock the full Labor Law answers365 days of full access. GCash, Maya and card accepted.
This is not an official scoring system and carries no weight with the Supreme Court or any bar review provider. It measures how much of the suggested answer's wording your response covers, not whether your reasoning is correct. For practice only.
Quick check
Is a written agreement between an employer and a terminated employee to submit an illegal dismissal case to voluntary arbitration legally valid?
Under Article 275 of the Labor Code, parties may validly submit illegal dismissal cases to voluntary arbitration by written agreement.
What is the legal status of an employer's proposal to submit a CBA bargaining deadlock to voluntary arbitration after a notice of strike is filed?
Submitting a bargaining deadlock to voluntary arbitration is proper as it is a preferred dispute settlement mode under the Constitution and Labor Code.
Which of the following is a key advantage of voluntary arbitration over compulsory arbitration in resolving collective bargaining deadlocks?
Voluntary arbitration allows parties to choose an impartial arbitrator, resulting in a faster and less adversarial resolution.
How does compulsory arbitration differ from voluntary arbitration in labor dispute resolution?
Choices available with full access.
What is the primary effect of submitting a labor dispute to voluntary arbitration upon written agreement of the parties?
Choices available with full access.
Learn more about these topics
1. Voluntary Arbitration Jurisdiction
Under Article 275 of the Labor Code, voluntary arbitrators possess jurisdiction to hear and decide all labor disputes, including unfair labor practices, bargaining deadlocks, and illegal dismissal cases, upon agreement of the parties. Although termination cases originally fall under the jurisdiction of the Labor Arbiter under Article 224, parties may validly submit an illegal dismissal dispute to voluntary arbitration through a written submission agreement. Voluntary arbitration is recognized and encouraged by the Constitution as a preferred consensual mode of settling industrial labor controversies.
2. CBA Deadlock Arbitration
A collective bargaining deadlock arises when the employer and the bargaining union reach an impasse in negotiations for a new collective bargaining agreement. While filing a notice of strike is a statutory remedy available to the union, proposing to submit the deadlock to voluntary arbitration is legal and highly proper under labor rules. Voluntary arbitration avoids economic disruptions caused by strikes and lockouts, providing a peaceful and binding resolution of interest disputes before a mutually selected impartial arbitrator.
3. Arbitration Modes Compared
Voluntary and compulsory arbitration differ primarily in tribunal selection and procedural nature. In voluntary arbitration, parties mutually choose their arbitrator and agree on the issues, producing an expeditious and less adversarial resolution. In contrast, compulsory arbitration involves state-mandated dispute resolution by administrative bodies such as the National Labor Relations Commission. While voluntary arbitration awards are final and binding, compulsory arbitration proceedings often involve formal litigation procedures, strict technical rules, and prolonged appellate reviews before higher courts.