NICANOR B.
JIMENO
Current Practice of Voluntary Arbitration in
the Settlement of Labor Disputes
CURRENT PRACTICE OF VOLUNTARY
ARBITRATION IN THE SETTLEMENT OF
LABOR DISPUTES
(With Related Supreme Court Decisions)
By:
NICANOR B. JIMENO
Labor Dispute : includes any controversy or
matter concerning terms and conditions or the
association or representation of persons in
negotiating, fixing, maintain, changing or
arranging the terms and conditions of
employment, regardless of whether the
disputants stand in the proximate relations of
employer and employee.
Proximate relations of employer and
employee : a labor dispute can XXX exist
“regardless of whether the disputants stand in
proximate relationship of employer and
employee” XXX provided the controversy
concerns, among others, the terms and
conditions of employment or a “change” or
“arrangement” thereof.
 Put differently, and as defined by law, the
existence of a labor dispute is not negative by
the fact that the Plaintiffs and Defendants do
not stand in the proximate relation of
employer and employee.
Voluntary Arbitration : a mode of settling labor-
management disputes by which the parties
select a competent, trained and impartial third
person who shall decide on the merits of the
case and whose decision is final and executory.
Compulsory Arbitration : is the process of
settlement of labor disputes by a government
agency which has the authority to investigate
and to make an award which is binding on all
the parties.
Voluntary arbitrator
 means any person accredited by the Board as
such, or any person named or designated in
the Collective Bargaining agreement by the
parties to act as their Voluntary Arbitrator.
1
 One chosen with or without the assistance of
the National Conciliation and Mediation Board,
pursuant to a selection procedure agreed upon
in the CBA;
 Any official that may be authorized by the
Secretary of Labor and Employment to act as
Voluntary Arbitrator upon the written request
and agreement of the parties to a labor
dispute.
PRIMARY FUNCTION OF VOLUNTARY
LABOR ARBITRATION
The primary function of voluntary labor arbitration is
to provide:
1) A process for the orderly disposition of
disputes; and
2) A foundation for stable labor-management
relations.
 Commercial arbitration grew up as an
alternative to court action, while labor
management arbitration has evolved primarily
as a substitute for strikes.
]
NATURE OF
VOLUNTARY ARBITRATION
VOLUNTARY ARBITRATION: A PRIVATE
JUDICIAL SYSTEM
 A voluntary arbitrator “is not a public tribunal
imposed upon the parties by a superior
authority which the parties are obliged to
accept.”
 He has no general character to administer
justice for a community which transcends the
parties.
 He is rather part of a system of self-
government created by an confined to the
parties.

Current Practice of Voluntary Arbitration in
the Settlement of Labor Disputes
DISTINGUISHED FROM
A COURT OF LAW
DIFFERENCE BETWEEN VOLUNTARY
ARBITRATION AND COURT OF LAW
 The procedures followed those in a court of
law are formal, whereas arbitration
proceedings are informal.
 A judge under the doctrine of stare decisis
is obliged to follow precedents set by
other judges while Arbitrators are not
obliged to follow precedents set by other
arbitrations in similar cases.
 The rules of evidence established in courts
of law are not followed in arbitration
proceedings. What might be admissible in
an arbitration case would not necessarily be
admissible in a court of law. The arbitrator
determines what is admissible evidence.
 in courts of law, decisions may be
appealed to a higher court, but in arbitration
there is no comparable appeal recourse.
 With the exception of a certain specialized
courts, judges hear a great variety of cases
and are not usually experts in the
particular subject matter brought before
them while most labor arbitrators have
extensive background and knowledge of
the manifold problem in industrial relations,
and they hear only industrial disputes.
CONSTITUTIONAL BASIS
1987 Constitution of the Philippines
ART. III – Bill of Rights
Section 16. all persons shall have the right to
a speedy disposition of their cases before
all judicial, quasi-judicial or administrative
bodies.
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2
ART. XIII – Social Justice and Human Rights
Section 3 (3rd paragraph) The State shall
promote the principles of shared
responsibility beween workers and
employers and the preferential use of
voluntary modes in settling disputes,
including conciliation, and shall enforce their
mutual compliance therewith to foster
industrial peace.
STATUTORY BASIS
Labor Code as amended by R.A. 6715
ART. 211 – Declaration of Policy
A. It is the policy of the State: (a) to promote
and emphasize the primacy of free
collective bargaining and negotiations,
including voluntary arbitration, mediation
and conciliation, as mode of settling labor or
industrial disputes.
BOOK V, LABOR RELATIONS
 ART. 260. Grievance Machinery and
Voluntary Arbitration
 ART. 261. Jurisdiction of Voluntary
Arbitrators
 ART. 262. Jurisdiction over other labor
disputes.
 ART. 262-A. Procedures
 ART. 262-B. Cost of Voluntary Arbitration
and Voluntary Arbitrators fee.

Current Practice of Voluntary Arbitration in
the Settlement of Labor Disputes
IS VOLUNTARY ARBITRATION A
MANDATORY ACTIVITY UNDER
THE LABOR CODE?
Article 241 (o) of the Labor Code
“other than for mandatory activities under this
Code, no special assessment, attorney‟s fees,
negotiation fees or any other extraordinary fees
may be checke off from any amount due an
employee without an individual written
authorization duly signed by the employee xxx”
In the case of Ambrocio Vengco, et al. vs.
Cresencio Trajano, et al., G.R. No. 74453, May 5,
1989:
“It is very clear from [Article 241 (o)] that
attorney‟s fees may not be deducted or
checked off from any amount due to an
employee without his written consent except for
mandatory activities under the Code. A
mandatory activity has been defined as a
judicial process of settling dispute laid
down by law. (Carlos P. Galvadores, et al. vs.
Cresencio B. Trajano, xxx)” emphasis supplied
In the case of Carlos P. Galvadores, et al., vs.
Cresencio B. Trajano, G.R. No. 70067, Sept. 15,
1986,
“xxx the benefits awarded to PLDT employees
still formal part of the collective bargaining
negotiations although placed under compulsory
arbitration. This is not the “mandatory activity”
under the Code, which dispenses with
individual written authorization for check-off
notwithstanding its “compulsory” nature. It is a
judicial process of settling disputes laid
down by law.” (emphasis supplied)
Art. 241 (p) of the Labor Code
It shall be the duty of a labor organization and
its officers to inform its members on the
provisions of its constitution and by-laws,
collective bargaining agreement, the prevailing
labor relations system and all their rights and
obligations under existing labor laws.
 For this purpose, registered labor organizations
may assess reasonable dues to finance labor
NICANOR B. JIMENO
3
relations seminar and other labor education
activities.
MINIMUM CRITERIA FOR
ACCREDITATION AS VOLUNTARY
ARBITRATOR BY THE NCMB
1) A Filipino citizen residing in the Philippines;
2) A holder of a Bachelor‟s Degree in any field of
behavioral or applied sciences or equivalent
educational trainings short of a Bachelor‟s
Degree;
3) At least five (5) years experience in labor-
management relations;
4) Completion of a training course on voluntary
arbitration conducted by the Board; and
5) A person of good moral character, noted for
impartiality, probity, and has not been civilly,
criminally and administratively adjudged guilty
of any offense involving moral turpitude as
evidenced by a duly sworn affidavit.
HOW ACCREDITED VOLUNTARY
ARBITRATOR MAINTAINS
ACTIVE STATUS
1) He must attend Arbitrators‟ Continuing
Retooling Program (ACRP) every 3 years, or
2) He must attend w regular retooling programs
within the 2-year period;
3) He should handle at least one case a year
HOW VOLUNTARY ARBITRATION
IS CHOSEN
 The preferred method of selection is by mutual
agreement of the parties.
 Alternative methods include the selection or
appointment by an administrative agency like
the NCMB.

Current Practice of Voluntary Arbitration in
the Settlement of Labor Disputes
 Parties may choose between the use of a
temporary or permanent arbitrator. They
have also a choice as to the number of
arbitrators, either a sole arbitrator or a panel of
arbitrators or Arbitration Board.
HOW TEMPORARY OR PERMANENT
ARBITRATOR HAS BEEN SELECTED
TEMPORARY OR AD HOC ARBITRATOR
 Selected when dispute is already at hand.
He is named to arbitrate a specific dispute
or a specific group of disputes, and there is
no commitment to select him again.
PERMANENT ARBITRATOR
 One who is selected before a dispute
arises, usually during the negotiation of the
CBA. He is to serve for a period of time,
usually during the life of the CBA, rather
than for just one case or specific group of
cases.
JURISDICTION OF VOLUNTARY
ARBITRATOR
Original and exclusive jurisdiction to hear and
decide:
A. All unresolved grievances arising from the
interpretation or implementation of the CBA.
Two kinds of Disputes in the field
of labor Relations:
1) Contract-negotiation disputes
(Arbitration of Interest)
2) Contract-interpretation
disputes (Arbitration of
grievance on rights)
B. Disputes arising from the interpretation
or enforcement of company personnel
policies.
C. Violations of a CBA except those which
are Gross violation of the CBA –
NICANOR B. JIMENO
4
flagrant and/or malicious refusal to
comply with the economic provisions of
the CBA.
D. Wage distortion issues arising from the
application of any wage orders in
organized establishments.
E. Interpretation of the productivity
incentive program under RA 6971 (The
Productivity Incentives Act of 1990)
F. Termination cases arising from the
CBAs and company personnel policies
which were initially processed at the
Grievance Machinery are under the
original and exclusive jurisdiction of the
voluntary arbitrator. (Policy Instruction
No. 56)
JURISDICTION OVER TERMINATION
CASES
 Preference of the law for voluntary arbitration
supports the view that termination of
employment dispute arising from or personnel
policy implementation is cognizable by the
voluntary arbitrator, not the Labor Arbiter.
 But the parties must have agreed in
“unequivocal language” that the termination
dispute should be submitted to voluntary
arbitration. Otherwise, Labor Arbiter shall
have jurisdiction.
CONCURRENT JURISDICTION
 Upon agreement of the parties, all other labor
disputes including ULP and bargaining
deadlocks.
 Labor disputes under Article 263 on strikes,
picketing and lock-outs, parties may opt to
submit their disputes to voluntary arbitration
before or at any stage of the compulsory
arbitration process.
The parties are free to opt for voluntary
arbitration directly and by-pass the Grievance
machinery. By-passing is not equivalent to

Current Practice of Voluntary Arbitration in
the Settlement of Labor Disputes
relinquishing right to voluntary arbitration. (Apalisok
vs. Radio Philippines Network, G.R. No. 138094, May 29,
2003)
GRIEVANCE
 Any question by either the employer or the
union regarding the interpretation or
application of the CBA or company personnel
policies or any claim by either party that the
other party is violating any provision of the
CBA or company personnel policies.
COMPANY PERSONNEL POLICIES
 Guiding principles stated in broad, long-range
terms that express the philosophy or beliefs of
an organization‟s top authority regarding
personnel matters.
 They deal with matters affecting efficiency
and well-being of employees and include,
among others the procedure in the
administration of wages, benefits, promotions,
transfer and other personnel movements
which are usually not spelled out in the
collective agreement.
 The expansion of the original and exclusive
jurisdiction of voluntary arbitrators to include
questions arising from the interpretation and
enforcement of company personnel
policies has the effect of widening the
meaning and interpretation of a grievance to
include a situation where there is no
Collective Bargaining agent and no CBA.
CONSTITUTIONAL BASIS FOR
EMPLOYEES’ PARTICIPATION IN THE
POLICY AND DECISION-MAKING
PROCESSES OF THE EMPLOYER
INVOLVING TERMS AND CONDITIONS OF
EMPLOYMENT
Section 3 [2], ARTICLE XIII, Social Justice and
Human Rights of the 1987 Constitution
 “It (state) shall guaranty the rights of all
workers to self-organization, of collective
bargaining and negotiations, and peaceful
concerted activities, including the right to
strike in accordance with the law. They shall
NICANOR B. JIMENO
5
be entitled to security of tenure, humane
conditions of work and a living wage. They
shall also participate in policy and
decision-making processes affecting
their rights and benefits as may be
provided by law.” (emphasis supplied)
HOW VOLUNTARY ARBITRATION
IS INITIATED
1) By Submission
2) By Demand or Notice to arbitrator
1) By Submission
 also known as “stipulation” or an
“agreement to arbitrate”
 used when there is no previous
agreement to arbitrate
 usually entered into after the dispute has
materialized and the issues are already
defined.
POWER OF ARBITRATOR
UNDER SUBMISSION AGREEMENT
 The arbitrator is expected to decide only
those questions expressly delineated by the
Submission Agreement. (Ludo and Luym Corp.
vs. Saarnido, G.R. No. 140960, January 20, 2003)
 Nevertheless, the arbitrator can assume that
he has the necessary power to make a final
settlement since arbitration is the final resort
for adjudication of disputes.
 Law and jurisprudence give the voluntary
arbitrator enough leeway of authority as well
as adequate prerogative to accomplish the
reason for which the law on voluntary
arbitration was created – speedy labor justice.
2) By Demand or Notice to arbitrator
 Used when there is previous agreement
to arbitrate.
 Applicable when dispute arise from the
application or interpretation of the CBA
since Labor Code as amended required

Current Practice of Voluntary Arbitration in
the Settlement of Labor Disputes
CBAs to provide for a grievance procedure
and voluntary arbitration clause.
POWER OF ARBITRATOR UNDER
PREVIOUS AGREEMENT
TO ARBITRATE
In arbitration of labor-Management Disputes:
A. Broadest scope of power under the
“disputes” clause.
Where the CBA arbitration clause provides:
“Any difference or dispute arising between the
company and the union or its members shall be
settled in the following manner”
B. Limited scope of power under the “no
power to add to or subtract from the
contract” clause.
Authority of the Arbitrator is only to interpret the
contract but not add to or modify at.
AUTHORITY OF THE VOLUNTARY
ARBITRATOR ON CASES INVOLVING
INTERPRETATION AND
IMPLEMENTATION OF THE CBA
From Labor Law Reviewer by J. Veloso, Vicente,
2012 Edition pp. 458-459.
1) A voluntary arbitrator is confined to the
interpretation and the interpretation and
application of the CBA.
 He does not sit to dispense his own brand
of industrial justice: his award is legitimate
only insofar as it draws its essence from the
CBA. (Lepanto Ceramics vs. Lepanto Ceramics
Employees Association, G.R. No. 180866, March 2,
2010)
NICANOR B. JIMENO
6
2) Neither does he have jurisdiction over
matters affecting third persons in a
given submission.
 His ruling cannot bind third persons. (Temic
Automotive vs. Temic Automotive Philippines,
G.R. No. 186965 Dec. 23, 2009)
3) While the voluntary arbitrator is
confined to the interpretation and
application of the CBA in resolving the
issue/s submitted for its resolution, he is
not expected to merely rely on the cold
and cryptic words on the face of the
CBA.
 He is mandated to discover the intentions of
the parties.
 Gaps may likewise be filled in by reference
to the practices of the industry, such that the
parties‟ contemporaneous and subsequent
acts should be considered.
4) What the voluntary arbitrator is
prohibited from doing is dispense his
own brand of industrial justice.
 His award is legitimate only in so far as it
draws its essence from the CBA.
OTHERWISE, his award is an unauthorized
amendment or alteration thereof, because it
is:
 Unfounded in reason and fact;
 Unconnected with the working and
purpose of the agreement;
 Without factual support in view of its
language, its context, and any other
indicia of the parties‟ intention;
 Ignores or abandons the plain language of
the contract;
 Mistakenly based on a crucial assumption
which concededly is a non-fact;
 Unlawful, arbitrary or capricious; and
 Contrary to public policy. (United Kimberly-
Clark vs. Kimberly-Clark, 414 SCRA 459)

Current Practice of Voluntary Arbitration in
the Settlement of Labor Disputes
PROCEDURE
Under article 262-a, Book V, Labor Relations
 The Voluntary Arbitrator or panel of Voluntary
Arbitrators shall have the power to hold
hearings, receive evidence and take whatever
action is necessary to resolve the issue or
issues subject of the dispute, including efforts
to effect a voluntary settlement between
parties.
 All parties to the dispute shall be entitled to
attend the arbitration proceedings. The
attendance of any third party or the exclusion
of any witness from the proceedings shall be
determined by the Voluntary Arbitrator or
panel of Voluntary Arbitrators. Hearings may
be adjourned for a cause or upon agreement
of the parties.
 Lawyers and representatives of the parties
cannot enter into a compromise agreement
without the client‟s or the principal‟s
expressed consent or through a special
power of attorney.
 Unless the parties agree otherwise, it shall be
mandatory for the Voluntary Arbitrator or
panel of Voluntary Arbitrators to render an
award or decision within twenty (20)
calendar days from the date of the
submission of the dispute to voluntary
arbitration.
 The award or decision shall contain the facts
and the law on which it is based. It shall be
final and executory after (10) calendar
days from receipt of the copy of the award
or decision by the parties
 Upon motion of any interested party, the
Voluntary Arbitrator/s in the region where the
movant reside, in case of the absence or
incapacity of the Voluntary Arbitrator/s for any
reason, may issue a writ of execution
requiring either the sheriff of the Commission
or regular courts or any public official whom
the parties may designate in the submission
agreement to execute the final decision, order
or award.
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The Cardinal Rules for Procedural Due
Process in Administrative or Quasi-judicial
Tribunal (Ang Tibay vs. CIR, 169 Phil 635, 1940)
1. The right to a hearing, which includes the right
to present one‟s case and submit evidence in
support thereof;
2. The tribunal must consider the evidence
presented;
3. The decision must have something to support
itself;
4. The evidence must be substantial. Substantial
evidence is such relevant evidence as a
reasonable mind might accept as adequate to
support a conclusion;
5. The decision must be based on the evidence
presented at the hearing, or at least contained
in the record and disclosed to the parties
affected;
6. The tribunal or body or any of its judges must
act on its or his own independent consideration
of the law and facts of the controversy, and not
simply accept the views of a subordinate; and
7. The tribunal or body should render its decision
in such manner that the parties to the
proceeding can know the various issues
involved and the reason for the decision
rendered.
DEPARTMENT ORDER NO. 40-03 SERIES
OF 2003, IMPLEMENTING RULES OF BOOK
V OF THE LABOR CODE.
Section 6, Rule XIX, Last Paragraph
“Failure on the part of the voluntary arbitrator to
render a decision, resolution, order or award
within the prescribed period, shall upon
complaint of a party, be sufficient ground for the
Board to discipline said voluntary arbitrator,
pursuant to the guidelines issued by the
Secretary… in cases that the recommended
sanction is de-listing, it shall be unlawful for the

Current Practice of Voluntary Arbitration in
the Settlement of Labor Disputes
voluntary arbitrator to refuse or fail to turn over
to the board, for its further disposition, the
records of the case within ten (10) calendar
days from demand thereof.”
Section 7. Finality of Award/Decision
The decision, order, resolution or award of the
voluntary arbitrator or panel of voluntary
arbitrators shall be final and executory after ten
(10) calendar days from receipt of the copy of
the award or decision by the parties and it shall
not be subject of a motion for reconsideration.
VOLUNTARY ARBITRATION AWARD
CAN BE THE SUBJECT OF MOTION FOR
RECONSIDERATION
 Before RA No. 6715, Art. 263 of the Labor
Code provided that “voluntary arbitration
awards or decisions shall be final,
unappealable and executory.”
 Section 7, Rule XIX of D.O. No. 40, Series of
2003 implementing Book V of the Labor
Code in labor relations specifically provides that
“decision, order, resolution or award of the
voluntary arbitrator or panel of voluntary
arbitrators shall be final and executor after ten
(10) calendar days from receipt of the copy of
the award or decision by the parties and it shall
not be subject of a motion for reconsideration.”
 R.A. No. 6715 (which took effect on March 21,
1989) inserted art. 262-a which provided that
the award or decision shall be final and
executor after ten (10) calendar days from
receipt of the copy of award or decision by the
parties.
 In the case of Imperial Textile Mills, Inc. vs.
Sampang, G.R. No. 94960, March 8, 1993, the
SC ruled that R.A. No. 6715 makes the award
final and executor after ten days from receipt,
presumably the decision may still be considered
by the Voluntary Arbitrator on the bais of a
motion for reconsideration duly filed within
that period.
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 In the case of Coca-Cola Bottlers Philippines,
Inc. Sales Force Union-PTGWO Balais vs.
Coca-Cola Bottlers, inc., G.R. No. 155651, July
28, 2005, SC stated in its decision that “under
Sec. 6, Rule VII of the same guideline
implementing Article of 262-A of the Labor
Code, a Decision (of a Voluntary Arbitrator), as
a matter of course, would become final and
executory after ten (10) calendar days from
receipt of the decision xxx unless in the
meantime, a motion for reconsideration or a
petition for review to the Court of Appeals
under Rule 43 of the Rules of Court is filed
within the same 10 day period.”
(underscoring supplied)
 In the case of Albert Teng et al. vs. Pahagac
et al., G.R. No. 169704, November 17, 2010,
“A motion for reconsideration is the more
appropriate remedy in line with the doctrine of
exhaustion of administrative remedies. By
allowing a 10-day period, the obvious intent of
Congress in amending Article 263 to Article
262-A is to provide an opportunity for the party
adversely affected by the VA‟s decision to seek
recourse via a motion for reconsideration or a
petition for review under Rule 43 of the Rules of
Court filed with the CA. indeed, a motion for
reconsideration is the more appropriate remedy
in line with the doctrine of exhaustion of
administrative remedies. For this reason, an
appeal from administrative agencies to the CA
via rule 43 of the Rules of Court requires
exhaustion of available remedies as a condition
precedent to a petition under that Rule.
APPEAL FROM THE DECISION
OR AWARD OF VOLUNTARY
ARBITRATOR IS TO THE
COURT OF APPEALS
UNDER RULE 43, NOT RULE 65
 A Voluntary Arbitrator by the nature of his
functions acts in a quasi-judicial capacity.
(Oceanic Bic Division (FFW) et al. vs. Romero et al.,
G.R. No. L-43890, July 16, 1984)
 NICANOR B. JIMENO
Current Practice of Voluntary Arbitration in 9
the Settlement of Labor Disputes

 “xxx a Voluntary Arbitrator partakes of the

nature of „quasi-judicial instrumentality and is Petition Under Rule 65 may be allowed if:
within the ambit of Section 9(3) of the
Judiciary Reorganization Act, which 1) Public welfare and the advancement of public
provides in part: policy dictates,
(3) (The Court of Appeals shall
2) Broader interest of justice so requires,
have) exclusive appellate jurisdiction
over all final judgments, decisions,
3) Writs issued are null and void,
resolutions, orders or awards of the
Regional Trial Courts and quasi-
4) Questioned Order amounts to an oppressive
judicial agencies, instrumentalities,
exercise of judicial authority. (AMAComputer vs.
xxx.” Nacino, G.R. No. 162739, February 12, 2008)
(Luzon Development Bank vs. Association of
Luzon Development Bank Employees, G.R. No.
120319, October 6, 1995)

 In a petition for certiorari from an award or COST OF VOLUNTARY

decision of Voluntary Arbitration, the Court of
Appeals must be deemed to have concurrent
jurisdiction with the Supreme Court. As a
matter of policy, this Court shall henceforth
remand to the Court of Appeals petition of
this nature for proper disposition.”
(emphasis supplied)
Remember the case of St. Martin Funeral
Homes vs. NLRC, September 15, 1998?
 As such, the decisions of a Voluntary Arbitrator
fall within the exclusive appellate jurisdiction of
the Court of Appeals. Indeed, this Court took
note of this decision (referring to Luzon
Development case) in approving the 1997
Rules of Civil Procedure, the pertinent provision
of which states as follows:
“Section 1 (Rule 43, appeal from the
Court of Tax Appeals and Quasi-
Judicial agencies to the Court of
Appeals) Scope – This Rule shall
apply to appeals on final orders of the
Court of Tax Appeals and from
awards, judgments, final orders or
resolutions of or any authorized
authorized by any quasi-judicial
agency in the exercise of its quasi-
judicial functions. Among these
agencies are the xxx, and voluntary
arbitrators authorized by law.”
(Nippon Paint Employees Union-Olalia vs. CA,
G.R. No. 159010, November 19, 2004)
ARBITRATION
Art. 262-B, Labor Code as amended
 The parties to a CBA shall provide therein a
proportionate sharing scheme on the cost of
voluntary arbitration including the Voluntary
Arbitrators fee.
 The fixing of the fee of the Voluntary
Arbitrators, whether shouldered wholly by the
parties or subsidized by the Special Voluntary
Arbitration Fund, shall take into account the
following factors:
 Nature of the case;
 Time consumed in hearing the case;
 Professional standing of the Voluntary
Arbitrator;
 Capacity to pay of the parties; and
 Fees provided for in the Revised Rules
of Court.
RULE XIX OF D.O. 40-03 RULES
IMPLEMENTING BOOK V
 Section 9.
xxx Unless the parties agree otherwise, the
cost of voluntary arbitration proceedings and
voluntary arbitrator‟s fee shall be shared
equally by the parties.
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Current Practice of Voluntary Arbitration in 10
the Settlement of Labor Disputes

Parties are encouraged to set aside funds to

answer for the cost of voluntary arbitration
proceedings including voluntary arbitrator‟s
fee.

In the event the said funds are not sufficient

to cover such expenses, an amount by way of
subsidy taken out of the Special Voluntary
Arbitration fund may be availed of by either or
both parties subject to the guidelines on the
voluntary arbitration to be issued by the
Secretary.

SCHEDULE OF FEES UNDER

SUBSIDY ENTITLEMENT PROGRAM

1) P15,000 for all types of VA cases;

2) P20,000 if:
a) Case is under expedited Voluntary
Arbitration Procedure
b) Case involves two or more issues
independent of each other
c) Case involves bargaining deadlock.

3) P5,000 if case is under FLAVAS (Free Aid

and Voluntary Arbitration Services) program
Requirements:
a) Either or both parties lack capacity to
pay cost of arbitration
b) For workers without union or no CBA
c) Union still organizing
d) Distressed companies and small and
medium enterprises.