Philtread Workers Union v Confesor

Philtread Workers Union V Confesor Facts: May 27, 1994 – Union filed a notice of strike. May 30 – Philtread filed a notice of lockout and petition to declare the work slowdown as illegal. Several conciliation meetings were conducted but failed. June 15, Philtread declared a company wide lockout, which continued until August. 80 union members were dismissed, prompting the Union to file a notice of strike. NLRC declared the slowdown illegal noting that the significant decrease in productivity occurred whenever there was a labor dispute. Several named union members (not mentioned in the case) were terminated. August 31 – Philtread requested the SOLE to assume jurisdiction. Sec. Confessor assumed jurisdiction and certified the labor dispute to NLRC for compulsory arbitration. Issue: 1. WON A263 Labor Code is unconstitutional – consti 2. WON the SOLE acted with grave abuse in issuing the order – No Held: 1. The Union claims that A263 LC is unconstitutional because the SOLE order, which enjoins the strike, is an utter interference of the workers right to self –organization, and is likewise contrary to A3 ILO, “public authorities shall refrain from any interference which would restrict their freedom to organize…”. A263 (g), “when in his opinion, there exists a labor dispute causing or like to cause a strike or lockout in an industry indispensable to the national interest, the SOLE may assume jurisdiction over the dispute and decide to certify it to the NLRC for compulsory arbitraton…” The Court said that this issue has already been passed on in previous cases. A263 is not unconstitutional for the following reasons: 

A263 (g) and 264 of the LC have been enacted pursuant to the police power of the State, which is the inherent power to enact laws, within constitutional limits, to promote order, safety, health, morals, and general welfare of society. As an inherent power, this does not need to be expressly conferred by the Constitution. Said article does not interfere with the worker’s right but merely regulates it.

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The LC vests upon the SOLE the discretion to determine what industries are indispensable to national interest. Upon such determination, the SOLE will assume jurisdiction over the labor dispute. Said assumption is in the nature of police power and is done for the promotion of the common good considering that a prolonged strike or lockout can be inimical to the national economy.

Thus, the certification for compulsory arbitration is not intended to impede the worker’s right to strike but to obtain a speedy settlement of the dispute. 2. SOLE did not act with grave abuse of discretion. The Union went on strike and PhilTread is indispensable to national interest. Therefore, the intervention of the SOLE was necessary to settle the labor dispute affecting both the employer and employee. a. The NLRC found that the work slowdown conducted by the Union amounted to illegal strikes. It was shown that every time the Company failed to accede to the Union’s demands, production always declined. The work slowdowns, which were in effect strikes on installment basis, were apparently a pattern of manipulating production depending on whether the Union’s demands were met. b. PhilTread supplies 22% or the tire products in the country and employs about 700 people. Any work disruption as a result of labor dispute will certainly prejudice the employment and livelihood of its workers and their dependents.