2017 Labor Law, Q14

Pursuant to his power under Sec. 278(g) (263(g)) of the Labor Code, the Secretary of Labor assumed jurisdiction over the 3-day old strike in Armor Steel Plates, Inc., one of the country’s bigger manufacturers of steel plates, and ordered all the striking employees to return to work. The striking employees ignored the order to return to work.
(a) What conditions may justify the Secretary of Labor to assume jurisdiction? (2.5%)
(b) What are the consequences of the assumption of jurisdiction by the Secretary of Labor, and of the disobedience to the return to work? Explain your answer. (2.5%)

Quick check

What condition justifies the Secretary of Labor in assuming jurisdiction over a labor dispute under Article 278(g)?

What is the immediate legal effect of an assumption order issued by the Secretary of Labor?

How does the Labor Code treat a strike continued in defiance of a return-to-work order?

Under Article 278(g), what alternative action may the Secretary of Labor take instead of deciding the dispute directly?

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What obligation is imposed on an employer upon the issuance of an assumption of jurisdiction order?

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1. National Interest Assumption
Under Article 278(g) of the Labor Code, the Secretary of Labor and Employment possesses extraordinary statutory authority to assume jurisdiction over any labor dispute causing or likely to cause a strike or lockout in an industry indispensable to the national interest. When national interest concerns arise, the Secretary may choose to decide the dispute directly or certify it to the National Labor Relations Commission for compulsory arbitration. This power is intended to protect the national economy and public welfare from severe industrial disruptions.

2. Return-To-Work Order
An assumption order issued by the Secretary of Labor automatically carries an immediately executory return-to-work directive. Under Article 278(g), the issuance of an assumption order enjoins any ongoing or impending strike or lockout. All striking workers are legally mandated to return to work immediately under the same terms and conditions prevailing prior to the strike, while the employer is required to readmit them. Compliance with the return-to-work order is mandatory and non-negotiable for all participating employees.

3. Disobedience Consequences
Defiance of a return-to-work order issued pursuant to an assumption of jurisdiction constitutes an illegal act under Article 279 of the Labor Code. Striking employees who refuse or fail to comply with a valid return-to-work order engage in an illegal strike, resulting in the immediate forfeiture of their employment status. Moreover, participating union officers and members who actively defy the directive may be validly terminated from service by the employer without entitlement to statutory backwages or separation pay.

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