Creating A National Labor Relations Commission And For Other Purposes.

Case Overview and Summary

Presidential Decree No. 21

Establishes the National Labor Relations Commission (NLRC) under the Department of Labor with the following provisions:

- Composition and Membership (Section 1)
• The NLRC is composed of three members: the Undersecretary of Labor or authorized representative as Chairman, the Director of Labor Relations, and the Director of Labor Standards or their authorized representatives.
• If the Undersecretary of Labor is absent, the authorized representative shall sit as a member, and the Director of Labor Standards or the Director of Labor Relations shall act as Chairman.

- Jurisdiction (Section 2)
• The NLRC has original and exclusive jurisdiction over all matters involving employee-employer relations, including disputes and grievances that may lead to strikes and lockouts under Republic Act No. 875. (Section 2.1)
• The NLRC has jurisdiction over all strikes overtaken by Proclamation No. 1081. (Section 2.2)
• The NLRC has jurisdiction over all pending cases in the Bureau of Labor Relations. (Section 2.3)

- Grievance Procedure (Section 3)
• Parties must exhaust all steps in the grievance procedure provided in the applicable collective bargaining agreement or other mutually agreed means of dispute settlement before raising the issue to the NLRC. (Section 3)
• The complaining party must show proof of failure to settle the issue under the agreed procedure. (Section 3)

- Voluntary Arbitration (Section 4)
• Before assuming jurisdiction, the NLRC or its representative shall give the parties a chance to submit their problem for voluntary arbitration. (Section 4)
• If the parties fail to agree on the arbitrator, the NLRC may designate an arbitrator or act as the arbitrator itself. (Section 4)

- Decisions and Appeals (Section 5)
• The NLRC's decision is immediately executory unless appealed to the Secretary of Labor within five (5) days. (Section 5)
• The Secretary of Labor's decision is appealable to the President. (Section 5)
• Outside Greater Manila Area, the NLRC can designate a representative, along with representatives from the union and management, to mediate, conciliate, and conduct fact-finding investigations, submitting findings to the NLRC within five (5) days for decision. (Section 5)

- Collective Bargaining Agreements (Section 6)
• All collective bargaining agreements shall contain a provision designating a voluntary arbitrator (individual or committee) to decide disputes and grievances arising from the agreement's implementation. (Section 6)
• Existing agreements without such a provision shall be amended to include it, and the amendment shall be reported immediately to the NLRC. (Section 6)
• All lockouts are deemed illegal. (Section 6)

- Powers of the NLRC (Section 7)
• The NLRC or any member has the power to administer oaths, issue subpoenas and subpoenas duces tecum, and hold any person in contempt for refusal to comply. (Section 7)

- Support Staff (Section 8)
• On the NLRC's recommendation, the Secretary of Labor shall designate mediators, fact-finders, representation officers, and other assistants from the existing officials and personnel of the Department of Labor. (Section 8)

- Rules and Regulations (Section 9)
• The NLRC shall promulgate rules of procedure and other regulations to enable it to resolve or terminate all cases within thirty (30) days from filing. (Section 9)
• The NLRC shall promulgate rules and regulations governing collective bargaining. (Section 9)

- Contempt and Detention (Section 10)
• The President of the Philippines, on the recommendation of the NLRC and the Secretary of Labor, may order the arrest and detention of any person held in contempt by the NLRC for non-compliance, defiance of subpoenas, orders, or decisions, and for any violation of this Decree's provisions. (Section 10)

- Shutdown and Termination (Section 11)
• No employer may shut down their establishment or dismiss or terminate the services of regular employees with at least one year of service without written clearance from the Secretary of Labor. (Section 11)

- Repealing Clause (Section 12)
• All provisions of existing laws, orders, and regulations contrary to or inconsistent with this Decree are repealed. (Section 12)