The Supreme Court in Grand Boulevard Hotel vs. Genuine Labor Organization of Workers addressed when a strike can be considered legal. The Court emphasized that even if an employer is believed to be engaging in unfair labor practices, unions must still strictly follow all legal requirements for staging a strike, including providing proper notice and holding a strike vote. This ruling underscores the importance of procedural compliance in labor disputes, ensuring that strikes are conducted lawfully and do not unduly disrupt business operations.

When Does a Strike Become Illegal? Grand Boulevard Hotel’s Labor Dispute

The case arose from a labor dispute at the Grand Boulevard Hotel (formerly Silahis International Hotel, Inc.) involving the Genuine Labor Organization of Workers in Hotel, Restaurant and Allied Industries (GLOWHRAIN). The union staged a strike on November 16, 1990, citing unfair labor practices by the hotel, including the dismissal of union members and violations of their collective bargaining agreement. The hotel argued that the strike was illegal because the union failed to comply with the procedural requirements outlined in the Labor Code. This led to a legal battle that eventually reached the Supreme Court, which was tasked with determining the legality of the strike and the validity of the subsequent dismissal of union officers.

The Supreme Court meticulously examined the facts and the applicable provisions of the Labor Code. The Court acknowledged the workers’ right to strike as a means to address grievances and unfair labor practices. However, it also emphasized the importance of adhering to the procedural requirements established by law. These requirements, outlined in Article 263 of the Labor Code, include filing a notice of strike with the Department of Labor and Employment (DOLE), conducting a strike vote, and providing the DOLE with notice of the results at least seven days before the intended strike. These steps are designed to ensure that strikes are conducted lawfully and to provide an opportunity for mediation and conciliation.

The Court noted that the union had filed a notice of strike on September 27, 1990, but the Acting Secretary of Labor and Employment (SOLE) issued a status quo ante bellum order, which certified the labor dispute to the National Labor Relations Commission (NLRC) for compulsory arbitration and enjoined the parties from engaging in any strike or lockout. Despite this order, the union staged another strike on November 16, 1990, simultaneously with filing a new notice of strike. The Court found this to be a violation of Article 264(a) of the Labor Code, which prohibits strikes after the Secretary of Labor has assumed jurisdiction or certified the dispute to compulsory arbitration. As the Supreme Court stated:

Art. 264. …

No strike or lockout shall be declared after assumption of jurisdiction by the President or the Secretary or after certification or submission of the dispute to compulsory or voluntary arbitration or during the pendency of cases involving the same grounds for the strike or lockout.

The Court rejected the argument that the union’s good faith belief that the hotel was engaging in unfair labor practices excused their failure to comply with the procedural requirements. Citing the case of National Federation of Labor v. NLRC, the Court stated that even if the union acted in good faith, the failure to follow the mandatory requirements for a valid strike renders the strike illegal.

In reaching its decision, the Court considered the economic impact of strikes, particularly on industries like the hotel, which contribute substantially to tourism and foreign exchange earnings. The Court emphasized the need for unions to adhere strictly to the procedural conditions sine qua non provided by law in staging a strike, to minimize disruption and protect the broader public interest. Ultimately, the Supreme Court reversed the Court of Appeals’ decision, which had sided with the union, and reinstated the Labor Arbiter’s decision, which had declared the strike illegal.

This decision highlights the delicate balance between protecting workers’ rights and ensuring that labor disputes are resolved in a lawful and orderly manner. The ruling serves as a reminder to unions that procedural compliance is not merely a technicality but a fundamental aspect of the right to strike. Unions must carefully navigate the legal requirements to ensure that their actions are protected under the law. The case also serves as a caution against prematurely resorting to strikes, especially when other avenues for resolving disputes, such as arbitration and conciliation, are available.

FAQs

What was the key issue in this case?	The key issue was whether the strike staged by the union was legal, considering their failure to comply with the procedural requirements of the Labor Code. The court examined whether the union’s belief in the employer’s unfair labor practices excused their non-compliance.
What are the requirements for a legal strike in the Philippines?	The requirements include filing a notice of strike with the DOLE, conducting a strike vote approved by a majority of union members, and notifying the DOLE of the results at least seven days before the strike. Compliance with these requirements is mandatory for a strike to be considered legal.
What happens if a union fails to comply with the strike requirements?	If a union fails to comply with the requirements, the strike is considered illegal. The union officers and members may lose their employment status for knowingly participating in an illegal act.
Can a union strike if the Secretary of Labor has already assumed jurisdiction over the dispute?	No, Article 264 of the Labor Code prohibits strikes after the Secretary of Labor has assumed jurisdiction or certified the dispute to compulsory arbitration. Any strike during this period is considered illegal.
Does a good faith belief in unfair labor practices excuse non-compliance with strike requirements?	No, even if a union believes in good faith that the employer is committing unfair labor practices, it must still comply with the procedural requirements for a legal strike. Good faith does not excuse non-compliance.
What is the cooling-off period?	The cooling-off period is the 30-day or 15-day period (depending on the grounds for the strike) after filing a notice of strike with the DOLE, during which the parties are expected to attempt mediation and conciliation. This period must lapse before a strike can be legally staged.
What is a status quo ante bellum order?	A status quo ante bellum order is an order issued by the Secretary of Labor directing the parties to maintain the same terms and conditions of employment that existed before the labor dispute. It also typically enjoins any strike or lockout.
What is the impact of an illegal strike on the striking employees?	Employees who participate in an illegal strike may face disciplinary actions, including termination of employment. This is particularly true for union officers who lead or participate in an illegal strike.

In conclusion, the Grand Boulevard Hotel case reinforces the importance of adhering to the procedural requirements for staging a legal strike in the Philippines. While workers have the right to strike to address grievances and unfair labor practices, this right is not absolute and must be exercised within the bounds of the law. Failure to comply with the procedural requirements can render the strike illegal and expose the participating employees to disciplinary actions.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Grand Boulevard Hotel vs. Genuine Labor Organization of Workers, G.R. No. 153664, July 18, 2003