Assumption of
Jurisdiction or
Compulsory Arbitration
Group 4
Article 278
When SOLE can assume Jurisdiction: of the
Labor Code
Labor dispute in an industry
indispensable to the national interest;
and
Such dispute is causing or is likely to
cause a strike or lockout.
Note: SOLE- Secretary of Labor and
Employment
INDUSTRIES INDISPENSABLE
TO THE NATIONAL INTERES
Other industries as may be recommended by the National Tripartite Industrial Peace Council (TIPC)
Section 16, Rule XXII, Book V, IRR as amended by Department Order No. 40-H-13)
GTE Directories Corp. v GTE Directories Corp. 197 SCRA 452
Employees Union
The production and publication of telephone directories, which is the
principal activity of GTE, can scarcely be described as an industry affecting
the national interest. GTE is a publishing firm chiefly dependent on the
marketing and sale of advertising space for its not inconsiderable revenues.
Its services, while of value, cannot be deemed to be in the same category
of such essential activities as "the generation or distribution of energy" or
those undertaken by "banks, hospitals, and export-oriented industries." It
cannot be regarded as playing as vital a role in communication as other
mass media. The small number of employees involved in the dispute, the
employer's payment of "P10 million in income tax alone to the Philippine
government," and the fact that the "top officers of the union were dismissed
during the conciliation process," obviously do not suffice to make the
dispute in the case at bar one "adversely affecting the national interest."
Philtranco Service Enterprise, Inc. v. PWU- 717 SCRA 340
AGLO
• The fact is undeniable that by referring the case to the
Secretary of Labor, Conciliator–Mediator Aglibut conceded that
the case fell within the coverage of Article 263 of the Labor
Code; the impending strike in Philtranco, a public transportation
company whose business is imbued with public interest,
required that the Secretary of Labor assume jurisdiction over
the case, which he in fact did. By assuming jurisdiction over the
case, the provisions of Article 263 became applicable, any
representation to the contrary or that he is deciding the case in
his capacity as a voluntary arbitrator notwithstanding.
Philtranco Service Enterprise, Inc. v. PWU- Continuation
AGLO
• It has long been settled that the remedy of an aggrieved party in a
decision or resolution of the Secretary of Labor is to timely file a
motion for reconsideration as a precondition for any further or
subsequent remedy, and then seasonably file a special civil action
for certiorari under Rule 65 of the 1997 Rules on Civil
Procedure.23 There is no distinction: when the Secretary of Labor
assumes jurisdiction over a labor case in an industry indispensable to
national interest, “he exercises great breadth of discretion” in
finding a solution to the parties’ dispute.24
Philtranco Service Enterprise, Inc. v. PWU- Continuation
AGLO
• “[T]he authority of the Secretary of Labor to assume
jurisdiction over a labor dispute causing or likely to cause a
strike or lockout in an industry indispensable to national
interest includes and extends to all questions and
controversies arising therefrom. The power is plenary and
discretionary in nature to enable him to effectively and
efficiently dispose of the primary dispute.”25 This wide
latitude of discretion given to the Secretary of Labor may
not be the subject of appeal.
Powers of the Secretary of Labor
(alternative)
Assumption of Jurisdiction
The SOLE will Decide the labor dispute
himself/herself
Certification for Compulsory Arbitration
The SOLE will certify the labor dispute to the
NLRC for compulsory arbitration.
Powers of the Secretary of Labor Continuation
(alternative)
The authority of the SOLE to assume jurisdiction
over a labor dispute includes and extends to all
questions and controversies arising from such
labor dispute. The power is plenary and
discretionary in nature to enable him/her to
effectively and efficiently dispose of the dispute.
(Philcom Employees Union v Philippine Global
Communications, 495 SCRA 214)
Powers of the President (Not precluded by
the powers of the SOLE)
Determine the industries indispensable
to the national interest
Assume jurisdiction over any such labor
dispute to settle or terminate such
dispute
Who Determines Industries Indispensable to Article 278
the National Interest (g)
Rationale: Maintenance & Upholding of the
Status Quo
The main rationale for the exercise of the
assumption of jurisdiction is the maintenance
and upholding of the status quo while the dispute
is being adjudicated. The directive to the parties
to refrain from performing any acts that will
exacerbate the situation is intended to ensure
that the dispute does not get out of hand,
thereby negating the direct intervention of this
office (University of Immaculate Concepcion, Inc. v Sec. of Labor)
