Ilaw at Buklod ng Manggagawa (IBM) v.

NLRC, 198 S 586 (91)

FACTS:

IBM representing 4500 employees of SMC working at various plants, offices and
warehouses in NCR presented to the company a demand for correction of the significant
distortion in the workers wages pursuant to the Wage Rationalization Act.

Demand unheeded by company hence the union members refused to render

overtime services until the distortion has been corrected by SMC.

It appears that the employees working hours/schedule has been freely observed
by the employees for the past 5 years and due to the abandonment of the longstanding
schedule of work and reversion to the eight-hour shift substantial losses were incurred by
SMC.

SMC filed a complaint with arbitration branch of NLRC then before the NLRC for the
latter to declare the strike illegal.

Unions contention: workers refusal to work beyond 8 hours was a legitimate

means of compelling SMC to correct distortion.

SMC: The coordinated reduction by the Unions members of the work time in order
to compel SMC to yield to the demand was an illegal and unprotected activity.
ISSUE: W/N the strike was legal
HELD: ILLEGAL. The strike invoking the issue of wage distortion is illegal. The legality of
these activities depends on the legality of the purposes sought to be attained. These joint
or coordinated activities may be forbidden or restricted by law or contract.
The legislative intent that solution of the problem of wage distortions shall be
sought by voluntary negotiation or arbitration, and not by strikes, lockouts, or
other concerted activities of the employees or management, is made clear in the
rules implementing RA 6727 issued by the Secretary of Labor and Employment pursuant
to the authority granted by Section 13 of the Act. Section 16, Chapter I of these
implementing rules, after reiterating the policy that wage distortions be first settled
voluntarily by the parties and eventually by compulsory arbitration, declares that, Any
issue involving wage distortion shall not be a ground for a strike/lockout.

Moreover, the collective bargaining agreement between the SMC and the Union, relevant
provisions of which are quoted by the former without the latters demurring to the
accuracy of the quotation, also prescribes a similar eschewal of strikes or other similar or
related concerted activities as a mode of resolving disputes or controversies, generally,

said agreement clearly stating that settlement of all disputes, disagreements or

controversies of any kind should be achieved by the stipulated grievance procedure and
ultimately by arbitration.