ISSUE

10, SEPT 2010 Manila, Philippines

Strike and Assumption of Jurisdiction at the Workplace: Pathways Towards Minimal Government Intervention
The right to strike is one of the legitimate avenues utilized by workers and workers associations in demanding for economic and social benefits in the workplace. This right is vested in the Philippine Constitution as well as in the International Labour Organization (ILO) Conventions 87 and 98, on Freedom of Association and Collective Bargaining, respectively. However, there are strike situations that could adversely affect not only a particular enterprise but also a bigger part of society. It is in these situations when the State exercises its police power and intervenes through assumption of jurisdiction (AJ) meant to resolve the dispute immediately and peacefully. Assumption of jurisdiction also prevents further economic losses or violence in the picket line. As provided in Article 263(g) of the Labor Code, the Secretary of the Department of Labor and Employment (DOLE) has the power to assume jurisdiction over labor disputes if, in his opinion, an industry is of national interest. The ILO recommends limiting the power of the DOLE Secretary to assume jurisdiction over labor disputes in the hospital, electricity, water, telephone, transport, and air traffic control sectors only. While this could minimize government intervention, the limitation would deprive labor disputes in industries not included in the list but with substantial contribution to the economy of another avenue for resolution. Representatives of Union and Management in nine establishments that experienced assumption of jurisdiction in 2009 or strikes from 2006 to 2009 were interviewed with the view of providing policy recommendations aligned with international standards and current market requirements that would guide the DOLE Secretary in exercising the role of steward on industrial peace. Findings and Recommendations 1. Limiting the assumption power of the DOLE Secretary to industries essential to national interest, as defined by the ILO, is not applicable to a developing country like the Philippines. Depending on the countrys development thrusts, industries that are considered employment and growth generators should also be included. Therefore, amendments to Article 263(g) of the Labor Code should not focus on limiting the assumption power of the DOLE Secretary but on incorporating Policy Prescriptions 1. Amendments to Article 263(g) of the Labor Code should not focus on limiting the assumption power of the DOLE Secretary but on incorporating the following bases for assumption of jurisdiction: the companys employment size, the amount of earning losses for the firm and revenue losses to the government, the effect to the local economy of an eventual closure of company, the domino effect to other companies in the production chain; protection of Philippine image and prestige in a tourism business, among others. The amendment should also include a standard period of time in which the DOLE Secretary should issue a decision. Assuming jurisdiction over labor disputes in essential industries should not interfere with workers right to stage a strike or air their grievances, provided there is no disruption of services. Conciliation conferences and informal dialogues should also be exhausted before the issuance of AJ. There is a need to develop pathways that would lead to less confrontational relations at the workplace that would be instrumental in preventing or resolving labor disputes with minimum government intervention. Among these pathways are: Mandatory labor education on the part of both workers and employers to ensure mutual understanding of concepts and procedures; Integration of a) labor rights and responsibilities; b) management prerogatives and social responsibilities, and c) business and work ethics in basic education curriculum to equip students with appropriate understanding of the world of work, in preparation for their entry into the labor force; Capability-building of HR practitioners to make them more responsive to issues in the workplace. The development of a culture of transparency, mutual trust and goodwill to achieve company goals.

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This paper was written by Celia Viernes Cabadonga, research specialist at the Institute for Labor Studies.
ISSUE 10 Strike and Assumption of Jurisdiction at the Workplace

the following bases for assumption of jurisdiction: a) the companys employment size; b) the amount of earning losses for the firm and revenue losses to the government; c) the effect to the local economy of an eventual closure of company; d) the domino effect to other companies in the production chain; and e) protection of Philippine image and prestige in a tourism business, among others. The amendment should also include a standard period of time in which the DOLE Secretary should issue a decision. 2. Assuming jurisdiction over labor disputes in essential industries or those that are not yet on strike deprives workers of their right to air grievance. It would just be fair to allow them to stage a strike or conduct moving pickets, provided there is no disruption of services. Conciliation conferences and informal dialogues should also be exhausted before the issuance of AJ. Government intervention through AJ does not always succeed in resolving labor disputes because AJ could always be defied when a party thinks that it is unfair to them. There is a need, therefore, to develop pathways that would lead to less confrontational relations at the workplace that would be instrumental in preventing or resolving labor disputes with minimum government intervention. Among these pathways are: Workers and employers should undergo a mandatory labor education seminar with modules on the rights and responsibilities of both labor and management as well as procedures on union registration, certification election, strikes, and assumption of jurisdiction to ensure mutual understanding of concepts and procedures;

Labor rights and responsibilities, management prerogatives and social responsibilities, and business and work ethics should be integrated in the basic education curriculum to equip the students with appropriate knowledge and understanding of the world of work that would prepare them when they eventually enter the labor force; The capability of HR practitioners to be more responsive to issues in the workplace should be built. They should be trained to advise Management on the rights of workers as partners and not just components of production. Standards of social accountability and corporate social responsibility must form part of efforts to improve their capability. They must also be coached on basic labor rights and procedures when dealing within the context of improvement of their management capabilities; A culture of transparency, mutual trust and goodwill to achieve company goals should be developed. The more secretive, confrontational and distrustful the parties become, the more destructive and hurtful strikes become. The corporate goal to create wealth should be coupled with awareness of what is expected of labor to help create that wealth, and what rewards could they possibly get once that goal is met. Transparency is proven to be an effective deterrent to strikes. It also allows labor to know the problems the company faces, thus, preparing them to face such challenges together with management.

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ISSUE 10 Strike and Assumption of Jurisdiction at the Workplace