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28 - Tabanago Shell Vs Pilipinas Shell

1) The Tabangao Shell Refinery Employees Association filed a notice of strike against Pilipinas Shell, alleging bad faith bargaining during negotiations for a new collective bargaining agreement. 2) The Department of Labor and Employment Secretary assumed jurisdiction over the labor dispute between the union and the company. 3) The Supreme Court ruled that the Secretary's assumption of jurisdiction was proper and not limited to just the subject of the strike. It included all matters related to the negotiations for the new CBA, such as compensation and annual wage increases.

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58 views2 pages

28 - Tabanago Shell Vs Pilipinas Shell

1) The Tabangao Shell Refinery Employees Association filed a notice of strike against Pilipinas Shell, alleging bad faith bargaining during negotiations for a new collective bargaining agreement. 2) The Department of Labor and Employment Secretary assumed jurisdiction over the labor dispute between the union and the company. 3) The Supreme Court ruled that the Secretary's assumption of jurisdiction was proper and not limited to just the subject of the strike. It included all matters related to the negotiations for the new CBA, such as compensation and annual wage increases.

Uploaded by

chiwi magdaluyo
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Tabangao Shell Refinery Employees Association vs Pilipinas Shell

G.R. No. 170007


April 7, 2014

Topic: Art. 278- 279 *in this case Art. 278 is referred to as Art. 263 as in the old numbering*

DOCTRINE:

Article 263(g) is both an extraordinary and a preemptive power to address an extraordinary


situation - a strike or lockout in an industry indispensable to the national interest.

FACTS:

In anticipation of the expiration on April 30, 2004 of the 2001-2004 Collective Bargaining
Agreement (CBA) between the petitioner and the respondent Pilipinas Shell Petroleum
Corporation, the parties started negotiations for a new CBA. After several meetings on the
ground rules that would govern the negotiations and on political items, the parties started their
discussion on the economic items on July 27, 2004, their 31st meeting. The union proposed a
20o/o annual across-the-board basic salary increase for the next three years that would be
covered by the new CBA. In lieu of the annual salary increases, the company made a counter-
proposal to grant all covered employees a lump sum amount of ₱80,000.00 yearly for the three-
year period of the new CBA

On the parties’ 41st meeting, the company proposed the declaration of a deadlock and
recommended that the help of a third party be sought. The union filed a Notice of Strike in the
NCMB, alleging bad faith bargaining on the part of the company. The NCMB immediately
summoned the parties for the mandatory conciliation-mediation proceedings but the parties
failed to reach an amicable settlement. The DOLE-Sec assumed jurisdiction over the dispute of
the parties. The Secretary ruled that the company is not guilty of bargaining in bad faith and also
proceeded to decide on the matter of the wage increase and other economic issues of the new
CBA.

The union questioned the Secretary’s assumption of jurisdiction over the labor dispute between
the union and the company on the ground that the Secretary erred in assuming jurisdiction over
the CBA case when it is not the subject matter of the notice of strike because the case was all
about ULP in the form of bad faith bargaining. For the union, the DOLE-Sec should not have
touched the issue of the CBA as there was no CBA deadlock at that time, and should have
limited the assumption of jurisdiction to the charge of unfair labor practice for bargaining in bad
faith

ISSUE/S:

Whether or not the Secretary of Labor and Employments assumption of jurisdiction is limited to
the subject of strike.
Page 1

AURELIO. BACOLOD. CUARESMA. JIMENEZ. MACABUAT. MAGDALUYO. MECANO. MEDINA. MORENO. OUANO.
PAGLINAWAN. RAMOS. SY. TOLENTINO
LABREV 2020-2021
RULING:

No. The labor dispute between the union and the company concerned the unresolved matters
between the parties in relation to their negotiations for a new CBA. The power of the DOLE-Sec
to assume jurisdiction over this dispute includes and extends to all questions and controversies
arising from the said dispute, such as, but not limited to the unions allegation of bad faith
bargaining. It also includes and extends to the various unresolved provisions of the new CBA
such as compensation, particularly the matter of annual wage increase or yearly lump sum
payment in lieu of such wage increase, whether or not there was deadlock in the negotiations.

Article 263(g) is both an extraordinary and a preemptive power to address an extraordinary


situation - a strike or lockout in an industry indispensable to the national interest. This grant is
not limited to the grounds cited in the notice of strike or lockout that may have preceded the
strike or lockout; nor is it limited to the incidents of the strike or lockout that in the meanwhile
may have taken place. As the term "assume jurisdiction" connotes, the intent of the law is to give
the Labor Secretary full authority to resolve all matters within the dispute that gave rise to or
which arose out of the strike or lockout; it includes and extends to all questions and controversies
arising from or related to the dispute, including cases over which the labor arbiter has exclusive
jurisdiction. (Citation omitted.)
Everything considered, therefore, the Secretary of Labor and Employment committed no abuse
of discretion when she assumed jurisdiction over the labor dispute of the union and the company.

Page 2

AURELIO. BACOLOD. CUARESMA. JIMENEZ. MACABUAT. MAGDALUYO. MECANO. MEDINA. MORENO. OUANO.
PAGLINAWAN. RAMOS. SY. TOLENTINO
LABREV 2020-2021

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