2014 Labor Law, Q26

Liwanag Corporation is engaged in the power generation business. A stalemate was reached during the collective bargaining negotiations between its management and the union. After following all the requisites provided by law, the union decided to stage a strike. The management sought the assistance of the Secretary of Labor and Employment, who assumed jurisdiction over the strike and issued a return-to-work order. The union defied the latter and continued the strike. Without providing any notice, Liwanag Corporation declared everyone who participated in the strike as having lost their employment. (4%)
(A) Was Liwanag Corporation’s action valid?
(B) If, before the DOLE Secretary assumed jurisdiction, the striking union members communicated in writing their desire to return to work, which offer Liwanag Corporation refused to accept, what remedy, if any, does the union have?

Quick check

What power may the Secretary of Labor exercise when a strike occurs in an industry indispensable to national interest?

What is the legal effect of defying a return-to-work order issued by the Secretary of Labor?

Is an employer required to issue prior notice before declaring defiant strikers as having lost their employment?

What is the legal consequence if an employer refuses a union's unconditional written offer to return to work prior to assumption?

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Which remedy is available to union members who were illegally refused readmission after an unconditional offer to return?

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1. Assumption of Jurisdiction
Under Article 278(g) of the Labor Code, when a labor dispute causes or is likely to cause a strike or lockout in an industry indispensable to the national interest, the Secretary of Labor and Employment may assume jurisdiction over the dispute or certify it to the National Labor Relations Commission for compulsory arbitration. Power generation is recognized as an industry vital to national interest. The assumption of jurisdiction automatically enjoins any intended or ongoing strike, bringing the parties back to the status quo ante existing prior to the dispute.

2. Return-To-Work Order
A return-to-work order issued by the Secretary of Labor upon assumption of jurisdiction is immediately executory and mandatory upon all striking workers and management. Compliance with a return-to-work order is not a matter of choice or compromise. Striking employees are legally obligated to return to work immediately upon receipt of the order. Defiance of a return-to-work order by union officers or members renders the strike illegal and results in the forfeiture or loss of their employment status without requiring prior administrative notice.

3. Unconditional Return Offer
Prior to the Secretary's assumption of jurisdiction, striking employees have the right to make a written, unconditional offer to return to work. If striking workers communicate an unqualified willingness to resume their duties and the employer refuses to readmit them, the employer's refusal constitutes illegal dismissal. In such a situation, the union and affected workers may file a complaint for illegal dismissal before the Labor Arbiter, seeking reinstatement to their former positions along with full backwages and accrued statutory employment benefits.

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