Voluntary Arbitrator (VA): Labor Law and Social Legislation

Voluntary arbitration is an alternative dispute resolution mechanism where disputes arising from labor and employment relationships are resolved by an impartial third party, called the Voluntary Arbitrator (VA). It is enshrined in Philippine labor laws and jurisprudence as a vital process for maintaining industrial peace.

1. Legal Framework

The provisions governing voluntary arbitration are primarily found in the following:

Labor Code of the Philippines:
- Article 260: (formerly Article 273) Designates the role and jurisdiction of Voluntary Arbitrators.
- Article 261: (formerly Article 274) Defines the jurisdiction of Voluntary Arbitrators.
- Article 262: (formerly Article 275) Grants powers to Voluntary Arbitrators to resolve disputes.
- Article 262-A: Outlines enforcement mechanisms for VA decisions.
Department of Labor and Employment (DOLE) Issuances:
- Implementing rules and guidelines for voluntary arbitration, such as DOLE Department Order No. 40-03.

2. Definition and Role of Voluntary Arbitrator

A Voluntary Arbitrator is:

A third party chosen by the disputing parties (employer and employee/union) to resolve disputes voluntarily submitted for arbitration.
Can be an individual or a panel of arbitrators.
Accredited by the National Conciliation and Mediation Board (NCMB).

Role:

Resolves disputes arising from the interpretation, enforcement, or implementation of Collective Bargaining Agreements (CBA).
Decides on grievances that the parties agree to submit for arbitration.
Provides a binding and final resolution, equivalent to a court judgment.

3. Jurisdiction of Voluntary Arbitrator

The jurisdiction of a Voluntary Arbitrator is exclusive for the following cases:

Disputes Arising from CBAs:
- Interpretation or enforcement of terms.
- Implementation of benefits agreed in the CBA.
Grievances:
- Matters referred to voluntary arbitration as agreed in the grievance machinery of the CBA.
Other Disputes Submitted by Agreement:
- Any labor-management issue voluntarily agreed to be resolved through arbitration.

4. Powers and Authority

Voluntary Arbitrators have quasi-judicial powers, including:

Conducting Hearings: They may summon witnesses, require submission of evidence, and conduct hearings similar to a judicial process.
Rendering Decisions: The decision is binding, final, and executory.
Imposing Penalties and Awards: Includes ordering the payment of monetary benefits or other remedies as necessary.
Subpoena Powers: Issue subpoenas for documents or witness testimony.

5. Remedies and Procedures

Submission of Disputes to Voluntary Arbitration

Mandatory Arbitration Clause: CBAs typically include a clause that mandates the use of voluntary arbitration for resolving disputes.
Submission Agreement: If no prior agreement exists, the parties may voluntarily sign an agreement to submit specific issues for arbitration.

Filing of a Case

The aggrieved party files a request for arbitration with the NCMB.
The NCMB facilitates the selection of a Voluntary Arbitrator.

Arbitral Proceedings

Selection of Arbitrator:
- The parties may choose an arbitrator from the NCMB-accredited list or appoint their own.
Hearing:
- Flexible procedures but must observe due process.
- Parties present evidence and arguments.
Decision:
- Must be rendered within 30 days from submission of the case or as agreed by the parties.
- Final and executory unless questioned under extraordinary remedies.

Enforcement of Decisions

Decisions have the same effect as a court decision and are enforced by the Regional Trial Court (RTC) if necessary.
Monetary awards are executed through writs of execution.

Appeal

Decisions of a Voluntary Arbitrator are not appealable to the NLRC or DOLE.
Review is available only through a petition for certiorari under Rule 65 of the Rules of Court, on grounds of grave abuse of discretion.

6. Advantages of Voluntary Arbitration

Speedy Resolution: Avoids the prolonged process of litigation.
Cost-Effective: Less expensive than formal court proceedings.
Confidentiality: Proceedings are private, unlike court hearings.
Expertise: Arbitrators are typically knowledgeable in labor law and industrial relations.

7. Key Jurisprudence

Several landmark Supreme Court decisions highlight the principles governing voluntary arbitration:

Lopez Sugar Corporation v. Federation of Free Workers (G.R. No. L-75700): VA decisions are final and executory unless a Rule 65 petition demonstrates grave abuse of discretion.
St. Scholastica’s College v. Torres (G.R. No. 100158): Emphasized the exclusivity of VA jurisdiction over CBA disputes.
San Miguel Corporation v. NLRC (G.R. No. 121992): Reinforced that VA decisions cannot be appealed to the NLRC or DOLE.

8. Challenges and Improvements

Challenges:

Lack of Awareness: Many workers and employers are unaware of voluntary arbitration as an option.
Limited Arbitrators: Shortage of accredited arbitrators in certain regions.
Implementation Issues: Delays in enforcing arbitral awards.

Suggested Improvements:

Enhanced training and accreditation for arbitrators.
Increased promotion of voluntary arbitration through DOLE programs.
Legislative amendments to provide more robust enforcement mechanisms.

9. Conclusion

Voluntary arbitration is a cornerstone of industrial relations in the Philippines. It promotes the efficient, equitable, and amicable resolution of labor disputes, contributing to industrial peace. The finality of decisions and the expertise of arbitrators underscore its importance as a preferred dispute resolution mechanism under Philippine labor law.