Voluntary Arbitration, Tripartite Voluntary Arbitration Advisory Council | Inter/Intra Union Disputes and Other related Labor Relations Disputes | JURISDICTION AND RELIEFS

Comprehensive Discussion on Voluntary Arbitration and the Tripartite Voluntary Arbitration Advisory Council in the Context of Inter/Intra-Union and Other Related Labor Relations Disputes

I. Legal Framework and Policy Context

Voluntary arbitration in the Philippines is deeply rooted in the labor relations framework established by the Labor Code (Presidential Decree No. 442, as amended), particularly under Book V governing Labor Relations. Reinforced by subsequent amendments (notably Republic Act No. 6715, also known as the Herrera Law) and by various Department of Labor and Employment (DOLE) issuances, voluntary arbitration stands as one of the cornerstone dispute resolution mechanisms intended to foster industrial peace, expedite the resolution of labor conflicts, and uphold the autonomy of collective bargaining parties.

In addition to the fundamental principles articulated in the Labor Code, the rules and guidance provided by the National Conciliation and Mediation Board (NCMB)—the DOLE-attached agency tasked with promoting voluntary modes of dispute settlement—ensure that voluntary arbitration remains a credible, efficient, and accessible forum for parties embroiled in inter/intra-union disputes and related labor controversies.

II. Inter/Intra-Union Disputes and Other Related Labor Relations Disputes

1. Nature of Inter/Intra-Union Disputes:

   • Inter-Union Disputes: These involve conflicts between or among legitimate labor organizations, commonly concerning representation issues, bargaining rights, and union affiliation matters.
   • Intra-Union Disputes: These refer to controversies within a single labor union, including leadership struggles, election protests, alleged irregularities in union funds, interpretation and enforcement of union constitutions and by-laws, and disciplinary actions against union officers or members.

   Both categories of disputes may be resolved through voluntary arbitration if the parties so agree, or if their collective bargaining agreement (CBA) provides that unresolved grievances or controversies be referred to a voluntary arbitrator.

2. Other Related Labor Relations Disputes:
   Beyond pure representation or internal union issues, voluntary arbitration may be resorted to for a broad range of labor controversies, including:

   • Questions arising from the interpretation or implementation of a CBA, where grievance machinery efforts have been exhausted;
   • Enforcement of company policies affecting employees’ tenure, welfare, or conditions of employment, if these matters are covered by an arbitration agreement;
   • Issues not readily within the jurisdiction of the National Labor Relations Commission (NLRC) or not resolved through conciliation-mediation at the NCMB.

III. Voluntary Arbitration: Concept, Process, and Legal Basis

1. Definition and Concept:
   Voluntary arbitration is a dispute resolution method wherein the parties—in the exercise of their freedom to contract and guided by the principle of voluntariness—submit their controversy to one or more chosen, neutral persons (the Voluntary Arbitrator/s) for a binding and final resolution. Unlike compulsory arbitration before the NLRC, voluntary arbitration arises by consent of the parties, often stipulated in a CBA’s grievance machinery clause.

2. Legal Basis in the Labor Code:

   • Articles 260 to 262 of the Labor Code (as renumbered by DOLE issuances): These provisions encourage parties to incorporate in their CBA a dispute resolution mechanism culminating in voluntary arbitration.
   • The law underscores that voluntary arbitration awards are final, executory, and binding on the parties. Judicial recourse is limited mainly to raising questions of law before the Court of Appeals, preserving the integrity of the arbitral process and minimizing prolonged litigation.

3. Role of the NCMB:
   The NCMB maintains a roster of accredited voluntary arbitrators who are selected based on their competence, integrity, knowledge of labor laws, and expertise in resolving labor disputes. Parties may choose an arbitrator from this roster, or they may agree on another individual possessing the requisite qualifications. The NCMB also provides administrative support, training programs, and assists in the development of the voluntary arbitration system.

4. Advantages of Voluntary Arbitration:

   • Speed and Efficiency: Decisions are typically rendered more swiftly than protracted NLRC or court proceedings.
   • Confidentiality and Informality: The arbitration environment is generally less adversarial and more conducive to preserving relationships.
   • Expert Decision-Making: Voluntary arbitrators often possess specialized knowledge in labor-management relations, ensuring well-informed and context-specific resolutions.

IV. The Tripartite Voluntary Arbitration Advisory Council (TVAAC)

1. Establishment and Composition:
   The Tripartite Voluntary Arbitration Advisory Council was created pursuant to the policy directives of the Labor Code and the initiatives introduced by R.A. No. 6715 to enhance the voluntary arbitration framework. It is a tripartite body composed of representatives from:

   • Government (DOLE/NCMB): Ensures that national labor policies are promoted and that the arbitration system aligns with the state’s objective of fostering industrial peace.
   • Labor Sector: Represents the interests of workers, ensuring that the voluntary arbitration system remains accessible, fair, and supportive of employees’ rights.
   • Management Sector: Ensures that employers’ perspectives are duly considered and that the arbitration environment remains conducive to stable business operations and sound labor-management relations.

2. Functions and Responsibilities:
   The TVAAC acts in an advisory capacity and policy-development role. Its key functions include:

   • Policy Formulation and Enhancement: Recommending policies, guidelines, and reforms to improve the voluntary arbitration system’s integrity, efficiency, and responsiveness.
   • Standards Setting and Accreditation Criteria: Developing and maintaining standards for accrediting voluntary arbitrators to uphold professional competence and ethical conduct.
   • Professionalization and Capacity-Building: Proposing training programs, seminars, and workshops to upgrade the skills and knowledge of accredited arbitrators and encourage the continuing education of practitioners.
   • Promotional Activities: Undertaking promotional efforts to raise awareness and acceptance of voluntary arbitration as a primary mode of dispute resolution, encouraging its use among unions, employers, and the general public.
   • Monitoring and Evaluation: Assessing the effectiveness of voluntary arbitration awards, tracking resolution times, adherence to ethical standards, and evaluating user satisfaction to inform continuous improvement of the system.

3. Impact on Industrial Peace and Labor Relations:
   By bringing together government, labor, and management in a collaborative advisory setting, the TVAAC contributes to building confidence in voluntary arbitration. Its efforts ensure that the process remains fair, credible, and trusted. By promoting a stable environment for settling even the most sensitive inter/intra-union disputes, the Council helps maintain industrial harmony, thereby improving the investment climate and working conditions in the country.

V. Interplay with Other Dispute Resolution Mechanisms

1. Conciliation-Mediation via NCMB:
   Before proceeding to voluntary arbitration, parties often attempt settlement through conciliation-mediation. While not mandatory for all disputes, these initial steps are encouraged as a less formal and less costly means of resolving issues before advancing to formal arbitration or litigation.

2. Compulsory Arbitration via NLRC or DOLE Secretary:
   If voluntary arbitration is not agreed upon, certain disputes—especially those involving labor standards violations or unfair labor practices—may be brought before the NLRC for compulsory arbitration. However, the law and government policy strongly encourage the use of voluntary arbitration and incorporate incentives and supportive programs to strengthen it as a preferred mode of dispute resolution.

VI. Enforceability of Voluntary Arbitration Awards

Voluntary arbitration awards are given a degree of finality and enforceability equivalent to a judgment of a court. Upon issuance, the prevailing party may seek the assistance of the appropriate court for the execution of the award should the losing party fail to comply. Judicial review is confined to questions of law—further emphasizing the respect accorded to the arbitrators’ factual findings and interpretations.

VII. Continuous Development and Reforms

The system of voluntary arbitration, under the guidance of the TVAAC, remains dynamic. As evolving workplace technologies, emerging industries, and new forms of labor engagements (e.g., gig economy workers, telecommuting arrangements) introduce fresh challenges to labor relations, the Council and the entire voluntary arbitration framework strive to adapt. The incorporation of best practices from international labor standards, learning from comparative experiences, and the professionalization of arbitrators all contribute to ensuring that voluntary arbitration remains a robust and modern solution for dispute resolution.

VIII. Summary

• Voluntary Arbitration is a cornerstone of the Philippine labor relations system, providing a mutually agreed, binding, and efficient means to resolve labor controversies, especially those arising from CBAs, union-management issues, and other related labor relations disputes.

• The Tripartite Voluntary Arbitration Advisory Council (TVAAC) plays a pivotal role in shaping policy, accrediting arbitrators, setting standards, and ensuring the credibility and growth of the voluntary arbitration mechanism. Its tripartite composition ensures that the interests of government, labor, and management are collectively advanced, fostering a balanced and holistic approach to industrial relations.

• Together, the principles and institutions supporting voluntary arbitration and the advisory guidance of the TVAAC form a cohesive framework designed to promote industrial peace, protect workers’ and employers’ rights, and offer a prompt, fair, and effective resolution of labor controversies in the Philippines.