All There Is to Know About the National Conciliation and Mediation Board (NCMB)
I. Introduction and Legal Basis
The National Conciliation and Mediation Board (NCMB) is a specialized agency of the Department of Labor and Employment (DOLE) in the Philippines, established to strengthen the country’s system of labor dispute prevention, management, and resolution through non-adversarial, party-driven processes. Its creation is grounded in the Labor Code of the Philippines (Presidential Decree No. 442, as amended), and further operationalized by Executive Order No. 126 (1987), as amended by E.O. Nos. 251 and 403, and relevant DOLE issuances. The NCMB, as an attached agency to the DOLE, enjoys a clear statutory mandate to encourage and institutionalize voluntary modes of dispute settlement, thereby relieving the heavily burdened adjudicatory bodies like the National Labor Relations Commission (NLRC).
II. Mandate and Core Functions
Conciliation-Mediation:
- The NCMB’s primary responsibility lies in facilitating amicable resolutions of labor disputes before they escalate into full-blown strikes, lockouts, or compulsory arbitration.
- Through conciliation-mediation, neutral conciliators-mediators from NCMB guide unions and management to identify issues, explore mutually beneficial solutions, and ultimately forge voluntary settlement agreements.
Preventive Mediation:
- Before a notice of strike or lockout matures into an actual dispute, the NCMB encourages the early filing of a preventive mediation (PM) case. PM attempts to resolve differences while they are still manageable and less polarized, preventing further disruption to business operations and industrial peace.
Voluntary Arbitration Support:
- The Board encourages parties to submit unresolved issues to a Voluntary Arbitrator (VA) rather than proceed to litigation.
- While the NCMB does not itself adjudicate disputes, it assists in the voluntary arbitration process by maintaining a pool of accredited arbitrators, promoting voluntary arbitration as a less adversarial and speedier means of settling rights or interpretation disputes (e.g., questions of CBA implementation).
Promotion of Labor-Management Cooperation (LMC) and Workplace Relations Enhancement:
- The NCMB fosters cooperative labor-management mechanisms through Labor-Management Councils (LMCs), grievance machinery, and productivity improvement programs.
- It provides technical assistance, capacity-building seminars, and guidance to encourage a culture of proactive problem-solving in the workplace.
III. Jurisdiction and Coverage
Scope of Parties and Disputes:
- The NCMB handles private sector labor disputes, including those involving unions and employers, bargaining deadlocks, unfair labor practice allegations, issues arising from Collective Bargaining Agreements (CBAs), and other labor-management conflicts that can be resolved by consensus.
Non-Adjudicatory Nature:
- Unlike the NLRC or the regular courts, the NCMB does not exercise adjudicatory or compulsory jurisdiction. It cannot impose judgments. Instead, it relies entirely on the willingness of parties to negotiate. This characteristic preserves industrial harmony by emphasizing collaborative solutions over contentious litigation.
Preventive Intervention Before Formal Dispute Escalation:
- The NCMB’s jurisdiction often commences upon the filing of a notice of strike or lockout by a registered labor union, or a request for assistance by either party. Upon receiving such notice, the NCMB calls the parties to a conference to explore possible settlements. If no notice of strike or lockout has been filed, a party may still request preventive mediation services at the earliest sign of conflict.
IV. Processes and Procedures
Filing a Notice or Request for Assistance:
- Labor unions, employers, or workers’ representatives may file notices of strike or lockout with the NCMB based on bargaining deadlocks or unfair labor practices. Alternatively, either party may request preventive mediation or assistance even without a strike-lockout notice.
Conciliation-Mediation Conferences:
- Once a case is docketed, the NCMB conciliator-mediator schedules conferences. These are informal, non-litigious meetings designed to narrow down issues and identify potential areas of compromise. The sessions are confidential, encouraging parties to speak openly without fear that admissions or proposals might later be used against them in litigation.
Exploring Settlement Options:
- The conciliator-mediator assists parties in clarifying their interests, generating alternatives, and formulating acceptable terms for resolution. Strategies such as joint problem-solving, rational discussion of CBA terms, wage adjustments, productivity incentives, or other creative solutions are commonly employed.
Settlement Agreements and Monitoring Compliance:
- If successful, the parties enter into a voluntary settlement agreement, which is then reduced into writing and signed by authorized representatives. While these agreements are not rendered as judicial decisions, they constitute binding contracts enforceable under general principles of contract law.
- The NCMB may monitor compliance, and parties retain the option to seek enforcement of the agreement through other legal means if one side fails to comply.
V. Voluntary Arbitration Assistance
Accreditation and Referral of Voluntary Arbitrators:
- The NCMB maintains a roster of accredited Voluntary Arbitrators who are experts in labor relations. Parties select an arbitrator from this roster if they fail to resolve disputes at the conciliation-mediation stage.
Voluntary Arbitration Proceedings:
- Although arbitration proceedings and decisions occur outside the NCMB’s direct control, the Board’s support includes informing parties of the process, assisting them in choosing an arbitrator, and providing logistical or administrative support as needed.
- Voluntary Arbitration Awards are final, executory, and not subject to appeal on the merits. Courts may review them only on very limited grounds such as serious jurisdictional or due process issues.
VI. Relationship with Other DOLE Agencies
Distinction from the National Labor Relations Commission (NLRC):
- The NLRC is a quasi-judicial body with the power to adjudicate labor cases. In contrast, the NCMB’s role is non-adjudicative, focusing on amicable settlements and voluntary arbitration as opposed to compulsory arbitration.
Linkages with the Bureau of Labor Relations (BLR):
- The NCMB coordinates with the BLR, which oversees union registration, policy formulation, and labor relations development. The synergy ensures that policies on collective bargaining, dispute prevention, and union recognition dovetail with conciliation-mediation efforts.
VII. Remedies and Relief Offered by the NCMB
Amicable Settlements and Mutual Gains:
- The core “relief” the NCMB facilitates is a mutually agreed-upon settlement that may include wage adjustments, improved benefits, clarified CBA provisions, or procedures for future problem-solving.
- These are not court-imposed remedies but consensual adjustments to terms and conditions of employment, thereby enhancing labor relations stability and productivity.
Avoidance of Economic Disruption:
- By preventing strikes, lockouts, and protracted litigation, the NCMB provides indirect relief through maintaining industrial peace, preserving jobs, and safeguarding production and business continuity.
Confidence-Building Measures:
- Settlement agreements often include mechanisms for ongoing labor-management dialogues and LMCs to address emerging conflicts before they escalate, representing a sustainable, long-term remedy to adversarial patterns in workplace relations.
VIII. Institutional Support and Capacity-Building
Training and Education:
- The NCMB conducts training programs for conciliators, mediators, union leaders, managers, and human resource practitioners to enhance negotiation skills, conflict management techniques, and knowledge of labor laws and regulations.
Research and Development:
- The NCMB engages in continuous improvement efforts, including research on best practices in dispute resolution, updating its systems, and strengthening its guidelines, all aimed at enhancing the speed, efficiency, and quality of its services.
IX. Confidentiality and Good Faith Requirements
Trust and Neutrality:
- Proceedings before the NCMB are strictly confidential, encouraging candor. Conciliators-mediators are bound by a code of conduct emphasizing impartiality, neutrality, and integrity.
Obligation of Parties to Negotiate in Good Faith:
- While not legally compelled to reach an agreement, parties are expected to participate genuinely, share information responsibly, and refrain from undermining the conciliation process. Negligence, delay tactics, or bad faith can damage future credibility and hamper harmonious labor relations.
X. Jurisprudence and Policy Guidance
Judicial Recognition of NCMB Settlements:
- Philippine jurisprudence has recognized the importance of the NCMB’s conciliatory processes. Courts generally uphold voluntarily concluded settlement agreements, applying contract law principles and giving due regard to the parties’ autonomy.
Implementing Rules and Regulations (IRR):
- DOLE periodically issues IRRs and policy guidelines guiding the NCMB’s procedural steps, administrative protocols, accreditation of arbitrators, and the continuous professional development of its staff. Compliance with these guidelines ensures that NCMB’s interventions remain fair, transparent, and aligned with the Labor Code’s policy on promoting voluntary modes of dispute resolution.
XI. Current Trends and Developments
Use of Technology and Online Dispute Resolution (ODR):
- The NCMB has explored and, in recent years, enhanced the use of online platforms and digital tools for virtual conferences, especially in the wake of mobility restrictions, ensuring uninterrupted labor dispute resolution services.
Expanded Emphasis on Workplace Cooperation:
- There is an increasing emphasis on proactive strategies, like establishing LMCs, workplace cooperation schemes, and corporate social responsibility initiatives, to minimize disputes even before they arise.
XII. Conclusion
The National Conciliation and Mediation Board plays a pivotal role in the Philippine labor relations system by promoting industrial peace through consensual, interest-based problem-solving. Its non-adjudicatory approach encourages dialogue, trust-building, and creativity in resolving disputes. By offering preventive mediation, conciliation-mediation, and support for voluntary arbitration, the NCMB fulfills its statutory mission to foster harmonious labor-management relations, protect workers’ rights, and contribute to economic stability. For parties in potential or existing disputes, the NCMB provides a path to settlement that avoids the adversarial pitfalls of litigation and cultivates long-term, mutually beneficial workplace relationships.