NCMB Manual for Conciliation and Mediation

Liberal construction and objectives

Rule I, Section 2 requires the manual to be liberally construed to carry out the objectives of the Labor Code of the Philippines, as amended.
The manual’s objectives are to promote conciliation and mediation as a preferred mode of dispute settlement.
The manual treats conciliation and mediation as an integral component of the collective bargaining process.

Seal and institutional meaning

The NCMB seal represents national unity, particularly the attainment of industrial peace and prosperity, productivity, and national development under Rule II, Section 1.

Core definitions used in procedures

Bargaining Deadlock means a collective bargaining situation where parties have not reached a mutually acceptable settlement (Rule III, Section 1).
Bureau of Labor Relations refers to the Bureau of Labor Relations and/or the Labor Relations Division in the Regional Office of the Department of Labor and Employment (Rule III, Section 1).
Collective Bargaining Agreement is the negotiated contract between a legitimate labor organization and the employer on wages, hours of work, and all other terms and conditions of employment in a bargaining unit (Rule III, Section 1).
Conciliation-Mediation is the dispute-management process by a Conciliator-Mediator to facilitate amicable settlement (Rule III, Section 1).
Conciliator-Mediator is an NCMB officer whose principal function is assisting settlement and disposition of labor-management disputes through conciliation and preventive mediation, including promoting voluntary dispute-prevention and settlement (Rule III, Section 1).
National Conciliation and Mediation Board (NCMB) means the Board established under Executive Order No. 126 (Rule III, Section 1).
Labor or Industrial Dispute includes controversies concerning terms or conditions of employment or association/representation of persons in negotiating, fixing, maintaining, changing, or arranging those terms and conditions (Rule III, Section 1).
Unfair Labor Practice Act refers to unfair labor practices as acts enumerated under Articles 248 and 249 of the Labor Code, as amended (Rule III, Section 1).
Union means any association or organization of employees existing for collective bargaining or dealing with employers on terms and conditions of employment, duly registered with the Department, including a local/chapter directly chartered by a federation/national union duly reported to the Department in accordance with Rule VI, Section 2 of Book V of the Labor Code (Rule III, Section 1).
Employer includes any person acting in the interest of an employer directly or indirectly, and excludes a labor organization or its officers/agents except when acting as an employer (Rule III, Section 1).
Employee includes any person in the employ of an employer, and includes an individual whose work has ceased due to or in connection with a current labor dispute or because of unfair labor practice if the person has not obtained another substantially equivalent and regular employment (Rule III, Section 1).
Lockout is the temporary refusal of an employer to furnish work as a result of a labor or industrial dispute (Rule III, Section 1).
Strike is any temporary stoppage of work by the concerted action of employees as a result of a labor or industrial dispute (Rule III, Section 1).
Preventive Mediation Cases are labor disputes subject of a formal or informal request for conciliation and mediation assistance sought by either or both parties or upon NCMB initiative (Rule III, Section 1).

Conduct, decorum, and independence of conciliators

A Conciliator-Mediator must conduct himself with dignity and respect, maintain a life of unblemished reputation and integrity, and maintain impartiality and independence of judgment (Rule IV, Section 1).
A Conciliator-Mediator must appear properly dressed at all times (Rule IV, Section 2).

Strike and lockout notices; preventive mediation

A strike or lockout may be declared only in cases of: (a) deadlock in collective bargaining negotiations, and (b) unfair labor practice (Rule V, Section 1).
Any strike or lockout must be properly covered by a notice of strike or lockout using Board’s prescribed Form No. 01 (Rule V, Section 2).
A notice must state, among others: names and addresses of the employer and union involved, the nature of the industry, number of union members and workers in the bargaining unit, and other relevant data facilitating settlement, including a brief statement/enumeration of pending labor disputes involving the same parties (Rule V, Section 3).
In bargaining deadlock notices, the notice must, as far as practicable, state unresolved issues in negotiations, be accompanied by the union’s written proposals, the employer’s counter-proposals, and proof of a request for conference to settle differences (Rule V, Section 3).
In unfair labor practice notices, the notice must, as far as practicable, state the specific acts complained of and the efforts taken to resolve the dispute amicably (Rule V, Section 3).
A notice that does not conform to the requirements is deemed as not having been filed, and the regional branch informs the party concerned in writing (Rule V, Section 3).
Any certified or duly recognized bargaining representative may file a notice or declare a strike or request preventive mediation in bargaining deadlock and unfair labor practice cases (Rule V, Section 4).
The employer may file a notice or declare lockout or request preventive mediation in the same cases (Rule V, Section 4).
In the absence of a certified or duly recognized bargaining representative, any legitimate labor organization in the establishment may file a notice, request preventive mediation, or declare a strike, but only on grounds of unfair labor practices (Rule V, Section 4).
A notice or preventive mediation request must be filed with the appropriate NCMB regional branch or its extension offices having jurisdiction over the workplace (Rule V, Section 5).
If filed in other regions without workplace jurisdiction, it must be indorsed to the regional branch with jurisdiction, and the filing date is reckoned from the date the jurisdictional branch receives the notice/request (Rule V, Section 5).
When two or more regional branches have jurisdiction, the branch that first receives the notice/request acquires jurisdiction to the exclusion of the others (Rule V, Section 5).
Cooling-off periods apply as follows: 30 days for bargaining deadlock and 15 days for unfair labor practice (Rule V, Section 6).
The 15-day cooling-off period does not apply in unfair labor practice involving dismissal from employment of duly elected union officers duly elected under the union constitution and by-laws when it constitutes union-busting where the existence of the union is threatened (Rule V, Section 6).
A 7-day strike or lockout ban period must be observed in all cases after the results of the strike or lockout vote have been submitted to the appropriate NCMB Regional Branch (Rule V, Section 6).
The party filing the notice must serve the other party or parties with copies of the notice through personal service or registered mail (Rule V, Section 7).
The complete name and office address (and any change of counsel/representative address) must be made of record and the other party must be properly informed (Rule V, Section 7).
Parties may appear personally or through duly authorized representatives; a representative or lawyer must be duly authorized in writing to appear with binding effects (Rule V, Section 8).
Lawyers or authorized representatives must have written authority to bind their principal/client or enter into a compromise agreement with the other party in full or partial discharge of a principal’s/client’s claim (Rule V, Section 9).

NCMB action on cases and conferences

Upon filing, the Regional Branch Director assigns cases to Conciliator-Mediators immediately, considering among others: (1) gravity of issues, (2) personalities, (3) nature of industry, (4) number of workers, (5) rapport with the parties, and (6) industry expertise of the conciliator-mediator (Rule VI, Section 1).
Before the initial conference, the Conciliator-Mediator prepares by gathering information and studying previous labor disputes involving the same parties (Rule VI, Section 2).
The Conciliator-Mediator must send notice of conference within 24 hours upon receipt of the notice of strike/lockout assigned to him for conciliation, using the fastest available means such as telephone, telefax, telegram, or messengerial services (Rule VI, Section 3, “Notice of Conferences”).
The initial conference should be held as early as possible, preferably within 48 hours from receipt of the assignment for conciliation, considering location and seriousness based on initial assessment (Rule VI, Section 3, “Schedule of Conferences”).
Resetting conferences must be done at reasonable intervals either by agreement of the parties or on the initiative of the Conciliator-Mediator, and scheduling remains under the control of the assigned Conciliator-Mediator to avoid protracted conciliation (Rule VI, Section 3, “Schedule of Conferences”).
If the party-filer fails to attend scheduled conciliation conferences for two (2) consecutive instances after due notice, the Conciliator-Mediator, through the Regional Branch Director, may drop the case from the regional branch business calendar, and the parties must be informed in writing (Rule VI, Section 3, “Attendance at Conferences”).
For companies and unions with Manila offices where managerial authority/approval comes from Manila, the Conciliator-Mediator seeks assistance of Central Office officials to facilitate attendance of duly authorized representatives at regional/provincial conferences if necessary (Rule VI, Section 3, “Parties with Manila-based representatives”).
At the initial meeting, the Conciliator-Mediator must identify and specify the real issues raised in the notice; when the notice carries several unfair labor practice charges, he must clarify the specific acts alleged (Rule VI, Section 4).
For strikeable issues involving unfair labor practice: the Conciliator-Mediator must consider the 15-day cooling-off period and the 7-day strike ban period, schedule conferences, and exert best efforts to settle; when cooling-off is about to lapse and parties have already balloted strike/lockout, he must conduct marathon conferences (Rule VI, Section 5, “Notice of Strike Involving Unfair Labor Practice”).
For unfair labor practice involving union-busting dismissal of duly elected union officers: the Conciliator-Mediator must treat cooling-off as not applicable while still requiring the 7-day strike-ban period and must immediately schedule and conduct marathon conferences as early as possible (Rule VI, Section 5, “Notice of Strike Involving Unfair Labor Practice”).
For other unfair labor practice cases alleging flagrant/malicious violations of the economic provisions of the CBA, the Conciliator-Mediator extends conciliation/mediation services or advises use of other voluntary dispute settlement modes such as voluntary arbitration or preventive mediation (Rule VI, Section 5, “Notice of Strike Involving Unfair Labor Practice”).
For strikeable issues involving bargaining deadlock: the Conciliator-Mediator must consider the 30-day cooling-off period and the 7-day strike ban period, schedule conferences, and exert best efforts to settle; when cooling-off is about to lapse and parties have already balloted, he must conduct marathon conferences (Rule VI, Section 5, “Notice of Strike Involving Deadlock…”).
Notices anchored on non-strikeable issues are deemed not duly filed and must be notified in writing by the Regional Branch Director, including notices involving: (1) inter-union or intra-union disputes, (2) violation of labor standard laws, (3) pending cases at specified DOLE/BLR/NLRC/Wage Board/Office of the Secretary/Voluntary Arbitrator/Court of Appeals/Supreme Court, and (4) execution/enforcement of final orders/decisions/resolutions/awards of cases cognizable under the listed (3) (Rule VI, Section 6).
When a notice is non-duly filed, the Conciliator-Mediator must convince the filing party to voluntarily withdraw the notice without prejudice to further conciliation proceedings; otherwise, he recommends that it be treated as a preventive mediation case (Rule VI, Section 6).
For notices involving inter-union and intra-union disputes: the Conciliator-Mediator ascertains whether a petition for certification election or direct certification is pending before the Med-Arbiter or on appeal to the Bureau of Labor Relations or Office of the Secretary; if pending, he promptly advises the concerned office to act at the earliest time (Rule VI, Section 6, “Inter-Union and Intra-Union Disputes”).
If no such case is pending and the union is legitimate, the Conciliator-Mediator exerts diligent efforts for settlement through direct certification or consent election; if settlement occurs, he immediately furnishes the DOLE Regional Director a copy of the agreement for guidance and appropriate action (Rule VI, Section 6, “Inter-Union and Intra-Union Disputes”).
If no agreement is reached, the Conciliator-Mediator advises the party to file the necessary petition with the appropriate body (Rule VI, Section 6, “Inter-Union and Intra-Union Disputes”).
For notices involving violation of labor standard laws, if the parties opt not to continue conciliation, the Conciliator-Mediator immediately refers the case to the concerned DOLE Regional Office (Rule VI, Section 6, “Violation of Labor Standards Laws”).
For disputes cognizable by grievance machinery, voluntary arbitration, or NLRC: disputes on interpretation/enforcement of CBA or company personnel policies are referred to grievance machinery under Article 261 of the Labor Code, as amended by Republic Act No. 6715 and Department Order No. 9, series of 1997, through the assigned Conciliator-Mediator (Rule VI, Section 6, “Grievance Machinery…”).
Wage distortion disputes arising from wage orders must be resolved through the CBA grievance procedure and, if unresolved, through voluntary arbitration; when there are no collective agreements or recognized labor unions and the dispute is brought before the Board, the Conciliator-Mediator exerts efforts to settle, and if unresolved after ten (10) calendar days of conciliation, he advises referral to the appropriate NLRC branch (Rule VI, Section 6, “Wage distortion…”).
A final agreement must be drafted with extra care to minimize doubtful or vague interpretation; it must be clear, concise, and contain all points of the parties’ understanding (Rule VI, Section 7, “Final Agreement”).
The Conciliator-Mediator remains responsible after conclusion of an agreement and must monitor smooth implementation and faithful compliance to normalize relations (Rule VI, Section 7, “Monitoring of the Agreement”).
For actual strikes or lockouts, the Conciliator-Mediator proceeds as much as possible to the strike area to verify, among others, (a) impact on company operations and whether operations are paralyzed, and (b) number of participating workers and the situation at the strike area, then submits an immediate report to the Regional Branch Director (Rule VI, Section 8, “Verification…”).
For wildcat strikes, the Conciliator-Mediator also finds out the issues and the parties involved, in addition to verifying the listed facts (Rule VI, Section 8, “Verification…”).
Immediately after occurrence (or knowledge) of an actual strike/lockout, the Conciliator-Mediator calls the parties to a conference within 24 hours and undertakes marathon proceedings as necessary, exerting efforts toward voluntary return to work and unconditional acceptance by the struck employer (Rule VI, Section 8, “Conduct of Conciliation”).
If the actual strike/lockout is not disposed after a reasonable period from occurrence, the Conciliator-Mediator may seek assistance of the Central Office in disposition; Central Office officials coordinate with the concerned branch to schedule and conduct meetings until final settlement/disposition (Rule VI, Section 8, “Conduct of Conciliation”).
The Conciliator-Mediator must submit status reports to the Regional Branch Director to enable necessary action (Rule VI, Section 9).

Strike votes and improved/reduced offer balloting

A decision to declare a strike must be approved by a majority of the total union membership in the bargaining unit obtained by secret ballot in meetings or referenda called for the purpose (Rule VII, Section 1).
A decision to declare a lockout must be approved by a majority of the members of the board of directors of the employer corporation/association or the partners in a partnership, obtained in a meeting called for the purpose (Rule VII, Section 1).
The strike/lockout decision is valid for the duration of the dispute based on substantially the same grounds considered when the strike/lockout vote was taken (Rule VII, Section 1).
Requests for balloting must be filed with the NCMB Regional Branch at least 24 hours before the voting date, together with a copy of the notice of meeting called by the union for the strike/lockout balloting (Rule VII, Section 2).
The NCMB Regional Branch may supervise secret balloting at its own initiative or upon request of any affected party (Rule VII, Section 2).
For strike situations, the Regional Branch conducts a referendum by secret balloting on the employer’s improved offer on or before the 30th day of the strike, at its own initiative or upon request of any affected party (Rule VII, Section 3).
If at least a majority of union members vote to accept the improved offer, striking workers must immediately return to work, and the employer must readmit them upon signing of the agreement (Rule VII, Section 3).
For lockout situations, the NCMB administers a referendum by secret ballot on the union’s reduced offer on or before the 30th day of the lockout, at its own initiative or upon request of any affected party (Rule VII, Section 4).
If at least a majority of the board of directors or trustees, or of partners holding controlling interest in a partnership, vote to accept the reduced offer, workers must immediately return to work, and the employer must readmit them upon signing of the agreement (Rule VII, Section 4).
When the Board’s assistance is sought, personnel must ensure parties understand that strike vote and improved/reduced offer balloting is not in the nature of certification election, so the usual legal procedures for certification election apply (Rule VII, Section 5).
For improved/reduced offer balloting, the issues to be voted upon must be properly spelled out in the ballot prepared for the purpose (Rule VII, Section 5).

Reporting requirements to NCMB Central Office

All NCMB regional branches must regularly submit necessary reports to the NCMB Central Office through the Regional Branch Director, using the prescribed forms (Rule VIII, Section 1).
Regional branches must submit: Daily Report on Strikes (Rule VIII, Section 1).
Regional branches must submit: Daily Report on Impending Strike Cases (Rule VIII, Section 1).
Regional branches must submit: Weekly Report on Cases Handled together with a copy of all Notices of Strike/Lockout Filed (Form 01) (Rule VIII, Section 1).
Regional branches must submit: Weekly Report on Closures, Retrenchments and Lay-offs of Establishments Involved in Conciliation-Mediation Cases (Rule VIII, Section 1).
Regional branches must submit: Weekly Report on Cases Involving Inter/Intra-Union Disputes (Rule VIII, Section 1).
Regional branches must submit: Monthly Summary of Cases Disposed (Rule VIII, Section 1).
Conciliators must submit a special report on actual strikes and incidence immediately upon occurrence and again once a settlement is reached (Rule VIII, Section 1).