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May an Employer Declare a Lockout?

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May An Employer Declare A Lockout?

 

AT A GLANCE:

Lockout refers to the temporary refusal of an employer to furnish work as a result of a labor or industrial dispute (Section 1 (gg), Rule 1 Book V of the Omnibus Rules Implementing the Labor Code)

Under the Omnibus Code Implementing the Labor Code, a strike or lockout may be declared in cases of bargaining deadlocks and unfair labor practices. Violations of collective bargaining agreements, except flagrant and malicious refusal to comply with its economic provisions, shall not be considered unfair labor practice and shall not be strikeable. No strike or lockout may be declared on grounds involving inter-union and intra-union disputes or without first having filed a notice to strike or without the necessary strike or lockout vote having been obtained and reported to the Board. (Section 5, Rule XXII)

 

Section 6 of the same Rule provides that an employer may declare a lockout in cases of bargaining deadlocks and unfair labor practices. 

 

In bargaining deadlocks, a notice of strike or lockout shall be filed within the regional branch of the Board at least thirty (30) days before the intended date thereof, a copy of said notice having been served on the other party concerned. (Section 7, Rule XXII)

 

In cases of unfair labor practice, the period shall be fifteen (15) days. However, in case of unfair labor practice involving the dismissal from employment of any union officer duly elected in accordance with the union constitution and by-laws which may constitute union-busting where the existence of the union is threatened, the fifteen-day cooling-off period shall not apply and the union may take action immediately after the strike vote is conducted and the results thereof submitted to the appropriate regional branch of the Board. (Section 7, Rule XXII)

 

Upon receipt of the notice, the regional branch of the Board shall exert all efforts at mediation and conciliation to enable the parties to settle the dispute amicably. The regional branch of the Board may, upon agreement of the parties, treat a notice as a preventive mediation case. It shall also encourage the parties to submit the dispute to voluntary arbitration. (Section 9, Rule XXII)

A decision to declare a lockout must be approved by a majority of the Board of Directors of the employer, corporation, or association or the partners in a partnership obtained by a secret ballot in a meeting called for the purpose. (Section 10, Rule XXII)

 

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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 09175772207/ 09778050020.

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