Jun 22, 2007labor-lawillegal-strikeunion-officerslabor-codenlrcstrike-penalties

When Strikes Defy Orders: Consequences for Union Officers in the Philippines

Philippine Supreme Court ruling on illegal strikes, union officer liability, and penalties for defying labor secretary orders.


The right to strike is a powerful economic weapon for Filipino workers, but it comes with strict legal boundaries. When a union conducts a strike in defiance of a government order or fails to follow mandatory procedures, the consequences can be severe—especially for union officers. In Pilipino Telephone Corporation v. Pilipino Telephone Employees Association (PILTEA) (G.R. No. 160058, June 22, 2007), the Supreme Court clarified just how heavy those consequences can be.

The Facts of the Case

The dispute began when the collective bargaining agreement (CBA) between PILTEA and Pilipino Telephone Corporation was set to expire. After failed conciliation proceedings, the union filed its first notice of strike on July 13, 1998, citing alleged unfair labor practices by company managers.

On August 14, 1998, the Secretary of Labor issued an order assuming jurisdiction over the entire labor dispute under Article 263(g) of the Labor Code. The order expressly enjoined any strike or lockout.

Despite this, the union filed a second notice of strike on September 4, 1998—and went on strike the very same day. The grounds cited were alleged "union busting" through mass promotions of union members and the company's refusal to turn over union funds.

The Issue

The central questions were: (1) Was the September 4, 1998 strike legal? and (2) What penalty should be imposed on the union officers who participated?

The Ruling: An Illegal Strike

The Supreme Court ruled the strike was illegal for two independent reasons.

First, the union violated mandatory procedural requirements. Under Article 263 of the Labor Code, as amended by Republic Act No. 6715, a valid strike requires: a notice of strike filed with the National Conciliation and Mediation Board (NCMB); observance of a 15-day cooling-off period for unfair labor practice cases; a strike vote by secret ballot approved by majority of union members; and reporting of the strike vote result to the NCMB at least seven days before the intended strike.

The union staged the strike on the same day it filed its notice, violating the seven-day strike ban and the cooling-off period. The Court emphasized these requirements are mandatory, not merely directory.

Second, the strike defied the Secretary of Labor's assumption order. Article 264 of the Labor Code prohibits strikes after the Secretary assumes jurisdiction over a dispute. The Court found the grounds in the second notice—mass promotion and non-remittance of union dues—were substantially the same issues already covered by the August 14 assumption order.

The union argued it acted in good faith and that the company committed unfair labor practice. The Court rejected this. The alleged "union busting" did not qualify because promotion is different from dismissal, and there was no showing the union's existence was threatened.

The Penalty: Dismissal for Union Officers

The Court also reversed the Court of Appeals' reduction of the penalty. Under Article 264 of the Labor Code, a union officer who knowingly participates in an illegal strike may be declared to have lost employment status. The law distinguishes between officers and ordinary members: mere participation in an illegal strike is not enough to terminate rank-and-file members, but officers face dismissal because they bear greater responsibility.

The Court applied its rulings in Gold City Integrated Port Service, Inc. v. NLRC and Nissan Motors Philippines, Inc. v. Secretary of Labor, which upheld dismissal of union officers who knowingly participate in illegal strikes. The Court found no reason to deviate, noting the strike was "extensively coordinated" nationwide and conducted in bad faith.

Practical Takeaways

  • Procedural requirements are non-negotiable. Filing a notice of strike, observing cooling-off periods, conducting a proper strike vote, and reporting results to the NCMB at least seven days before a strike are mandatory. Missing any step renders the strike illegal.
  • Assumption orders must be obeyed. Once the Secretary of Labor assumes jurisdiction over a labor dispute, strikes and lockouts are prohibited. Defying such an order is a separate and independent ground for declaring a strike illegal.
  • Union officers face dismissal, not just suspension. Knowingly participating in an illegal strike can result in loss of employment for union officers. Ordinary members generally face lesser penalties unless they commit illegal acts during the strike.
  • Good faith is not a defense to procedural violations. Even if the union believes the employer committed unfair labor practices, it must still comply with the legal requirements for conducting a strike.
  • "Union busting" has a specific legal meaning. To justify skipping the cooling-off period, there must be actual dismissal of union officers that threatens the union's existence—not mere promotions or other acts.

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.

This article is general information and not legal advice. For your situation, ask ASG Legal AI or book a consultation.

When Strikes Defy Orders: Consequences for Union Officers in the Philippines · Ablola, Saribong & Gueco