2011

About the Report

           

            This 2011 Performance Report of the National Labor Relations Commission (NLRC) highlights its accomplishment on major programs, projects, and reforms. The statistics used in this Report cover the period January to December 2011.

 

            Part I – The National Labor Relations Commission.

 

            Part II – Arbitration and Adjudication, presents the caseload and disposition of labor cases through settlement and decision on the merits.

 

Part III – Reform Projects, presents the results of the NLRC’s 2011 performance in accordance with its Labor and Employment Strategic Plan, and the Philippine Labor and Employment Plan 2011-2016.

 

            Part IV – Financial Statements, presents the budget breakdown, and the summary of appropriations and expenditures.

 

            Part V– Other Information, presents the data on the industry classification and the nature of cases filed.

 

 

Part I

The NATIONAL LABOR RELATIONS COMMISSION

 

Organization

 

            The National Labor Relations Commission (NLRC) is a quasi-judicial agency attached to the Department of Labor and Employment (DOLE) for program and policy coordination only. It was created under Presidential Decree No. 442, otherwise known as the Labor Code of the Philippines, as amended, which took effect on November 1, 1974. It took over the functions of the Court of Industrial Relations and the Ad Hoc NLRC created under Presidential Decree No. 21.

 

            The NLRC is the principal government agency that hears and decides labor-management disputes. It is tasked to promote and maintain industrial peace by resolving labor and management disputes involving both local and overseas workers through compulsory arbitration after mandatory conciliation- mediation conferences failed. This is in consonance with the mission of the NLRC to resolve labor disputes in the fairest, quickest, least expensive and most effective way possible.

 

 

            The Commission Proper of the NLRC is tripartite in representation. Under R.A. No. 9347, the Commission Proper has eight (8) Divisions, each is composed of three (3) members with the Presiding Commissioner representing the government sector and the other two members representing the workers’ and the employers’ sectors.

 

Of the eight (8) Divisions, the First, Second, Third, Fourth, Fifth and Sixth Divisions handle cases coming from the National Capital Region and other parts of Luzon, and the Seventh and Eight Divisions, cases from the Visayas and Mindanao, respectively.

 

The Chairman, aided by the Executive Clerk of the Commission, has exclusive administrative supervision over the NLRC, its regional arbitration branches and all its personnel, including the Labor Arbiters.

           

The Commission Proper sits en banc only for purposes of promulgating rules and regulations governing the hearing and disposition of cases, and formulating policies affecting its administration and operations.

 

The Commission Proper sitting en banc may, on temporary or emergency basis, allow cases within the jurisdiction of any Division to be transferred to and be heard and decided by any other Division which docket may allow additional workload and such transfer will not expose litigants to unnecessary additional expense.

 

            The Commission Proper through its Divisions have exclusive appellate jurisdiction over all cases decided by Labor Arbiters at the Regional/Sub-Regional Arbitration Branches.

 

            The First, Second, Third, Fourth, Fifth, and Sixth Divisions have their respective offices in the National Capital Region, while the Seventh and Eighth Divisions in the cities of Cebu and Cagayan de Oro, respectively.

 

The Chairman is the Presiding Commissioner of the First Division.

 

In case of the effective absence or incapacity of the Chairman, the Presiding Commissioner of the Second Division shall be the Acting Chairman.

 

 

Performance Planning Framework

 

           

            The 2011 performance planning framework is a continuation of the goals and objectives of the NLRC in line with the 22-Point Labor and Employment Agenda of President Benigno S. Aquino III when he assumed the presidency on 30 June 2010.

 

 

Performance Measure (Quantity and Quality)

Summary Table

 

            As to performance measure based on quantity, the table below presents FY 2011 targeted performance compared to actual results on compulsory arbitration.

 

 

PERFORMANCE MEASURE (QUANTITY)

(Target vs. Actual)

 

Level

 

Target

 

Actual

 

%

 

Regional Arbitration Branches*

(Original Cases)

 

33,000

 

32,045

 

97%

 

Commission Proper**

(Appealed Cases)

 

13,500

 

11,817

 

88%

 

  *During the resolution period, there was insufficient number of Labor Arbiters at the Regional Arbitration Branches (RABs).

**During the resolution period, there was insufficient number of Commissioners at the Commission Proper.

 

 

 

            With respect to performance measure based on quality, the table below reflects the affirmation rate by the Court of Appeals and the Supreme Court of the decisions rendered by the Commission Proper of the NLRC.

 

 

PERFORMANCE MEASURE (QUALITY)

 (Affirmance vs. Reversal)

 

Appellate Court

 

Total Appealed Cases

 

Affirmed

 

Reversed

 

 

 

 

 

No.

 

%

 

No.

 

%

 

Court of Appeals

 

 

1,504

 

1,364

 

91%

 

14

 

9%

 

Supreme Court

 

1,098

 

1,018

 

 

93%

 

80

 

7%

 

 

            The table below explains the minimal number and percentage of cases elevated to the appellate courts in relation to the acceptability and quality of decisions/settlements made by the Labor Arbiters and the Commissioners.

 

 

 

APPEALED CASES (2010 and 2011)

 

 

Regional Arbitration Branches

(Original Cases)

 

Commission Proper

 

Court of Appeals

 

Supreme Court

 

Cases Filed

 

No.

 

%

 

No.

 

%*

 

No.

 

%**

 

FY 2010

32,958

 

 

 

11,543

 

 

35%

 

 

1,240

 

 

11%

 

 

1,107

 

 

89%

 

FY 2011

30,812

 

 

 

11,478

 

 

37%

 

 

1,504

 

 

13%

 

 

1,098

 

 

73%

 

           

 

In 2010, of the 32,958 cases decided by the Regional Arbitration Branches (RABs), only 11,543 or 35% are appealed to the Commission Proper. The 21,415 or 65% cases not elevated on appeal to the Commission Proper are deemed satisfied with the decision or settlement made by the Labor Arbiters. Moreover, of the 11,543 cases decided by the Commission Proper, only 1,240 or 11% are elevated to the Court of Appeals. Thus, the 10,303 or 89% of the cases not appealed to the Court of Appeals are deemed satisfied with the decision of the Commission Proper.  

 

            The same statistical approach was used in 2011. Of the 30,812 cases decided by the Regional Arbitration Branches (RABs), only 11,478 or 37% are appealed to the Commission Proper. The 19,334 or 63% cases not elevated on appeal to the Commission Proper are deemed satisfied with the decision or settlement made by the Labor Arbiters. Moreover, of the 11,478 cases decided by the Commission Proper, only 1,504 or 13% are elevated to the Court of Appeals. Thus, the 9,974 or 87% of the cases not appealed to the Court of Appeals are deemed satisfied with the decision of the Commission Proper. 

 

 

 

Part II

ARBITRATION and ADJUDICATION

 

 

Caseload and Disposition

           

            Despite the present problems such as insufficient number of Labor Arbiters and Commissioners on certain period, limited facilities, and budget reduction, the NLRC was able to maintain a higher level of disposition of cases, and posted gains in reducing the number of pending cases.

 

In 2011, the NLRC posted an overall output of 43,862 cases, 32,045 as original cases from the Regional Arbitration Branches (RABs), and 11,817 as appealed cases from the Commission Proper. In terms of inflow versus outflow of cases, of the 30,812 received original cases, 32,045 or 104% were disposed of by the Regional Arbitration Branches (RABs). On the other hand, of the 11,372 received appeal cases, 11,817 or 104% were disposed of by the Commission Proper.

                                                                                

            Notably, based on a nine (9)-year trend, from 2003-2011, the outflow or the cases disposed of outnumbered the inflow or the cases received by the RABs as shown in the graph below:  

 

 

            In the same manner, the outflow or cases disposed of in most years outnumbered the inflow or cases received by the Commission Proper as shown in the graph below:

 

Moreover, all efforts were exerted towards amicable settlement of labor disputes during the compulsory arbitration process. As a result, settlement efforts have been successful to a substantial degree every year. Records show that from 2003 to 2011, the average settled cases by the RABs posted at 13,954, or 43% of the average disposal.

 

For FY 2011, the RABs posted 13,808 or 43% share of settled cases during the mandatory conciliation and mediation conference of the compulsory arbitration procedure.

 

The above settled cases are in addition to the settled request/cases during the mandatory conciliation and mediation conference of the Single-Entry Approach (SEnA), which was posted at 1,969 or 13% settlement. The Single-Entry Approach (SEnA) program of the DOLE serves as entry points in speeding up the resolution of all labor issues and dejudicializing the process of handling labor cases. Pursuant to Department Order No. 107, s. 2010, the SEnA was fully implemented by the NLRC this year.

 

 

 

SINGLE-ENTRY APPROACH (SEnA)

 

 

Total Disposal

 

Settled

 

Withdrawn

 

 

Referred to Med. Arb.

(Other Offices)

 

Referred to Comp. Arb.

(NLRC)

 

 

 

No.

 

%

 

No.

 

%

 

No.

 

%

 

No.

 

%

 

15,193

 

 

1,969

 

13%

 

396

 

3%

 

73

 

0.50%

 

12,524

 

82%

 

 

 

All in all, the percentage of settled cases at the RABs during the mandatory conciliation and mediation proceedings both under the Single-Entry Approach (SEnA) and the compulsory arbitration posted at 56%. This is without reference to additional settlements made during the so-called “post decision settlement”.

 

 

Ending Caseload

           

            At the end of 2010, the RABs and the Commission Proper had total pending of 11,277 original cases, and 2,897 appealed cases, respectively. By December 31, 2011, said numbers stood at 9,663 original cases, and 2,443 appealed cases, a decrease of 1,614 pending original cases, and 454 pending appealed cases. The decreases on original and appeal cases are significant considering that 30,812 new original cases and 11,372 new appealed cases were filed in 2011.

 

 

 

LEVEL

 

 

Pending Cases as of 12/31/10

 

NEWLY FILED CASES IN 2011

 

 

 

Pending Cases as of 12/31/11

 

 

 

Total Filed Cases

 

Filed

Cases Jan.-Mar.

(1st Quarter)

 

Filed

Cases Apr.-Jun.

(2nd Quarter)

 

Filed Cases

Jul.-Sep.

(3rd Quarter)

 

Filed

Cases Oct.-Dec.

(4th Quarter)

 

RABs

 

11,277

 

30,812

 

8,440

 

7,849

 

7,719

 

6,804

 

9,663

 

Commission

 

2,897

 

11,372

 

2,654

 

2,861

 

2,885

 

2,972

 

2,443

 

TOTAL

 

 

14,174

 

42,184

 

11,094

 

10,710

 

10,604

 

9,776

 

12,106

 

Evidently, the graph below shows the rapid reduction of ending caseload every year.

                       

The RABs beginning caseload of 11,277 has now come to an ending caseload of 9,663, while in the Commission Proper, the beginning caseload of 2,897 has reduced to an ending caseload of 2,443. Of 9,663 remaining original cases at the RABs, 8,651 or 90% are newly filed cases or cases filed from April to December 2011. At the Commission Proper, of2,443 remaining appealed cases, 2,331 or 95% are newly filed cases or cases filed from April to December 2011.

 

   

Judgment: Labor and Management

 

 

            For 2011, at the RABs, 65% of the total cases were disposed of in favor of labor (workers), while 35% in favor of management (employer). On appealed cases, the Commission Proper disposed of 49.46% in favor of labor, and 50.54% in favor of management. 

Regional Arbitration Branches

 

 

 

Commission Proper

 

Judgment: Monetary Awards   

 

            Amount of judgment awards at the RABs reached P4.57B, benefiting 34,455 workers. Of the total amount awarded and workers benefitted, P1.7B were awarded through settlement, benefitting 18,945 workers, and P2.8 Billion, through cases of merit (decided), benefitting 15,510 workers. At the Commission Proper, P2.91B were awarded, benefitting a total of 14,015 workers. 

 

                                                 

            Of the total judgment award in 2011, the RABs on regular (local) cases awarded P385.3M by way of settlement and P1.96B by way of decisions on the merits.

 

 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

For OFW cases, awarded were P1.3B by settlement, and P905.12M by decisions on the merits.

 

 
 

 


 

Project SpeED

 

            Project SpeED (Speedy and Efficient Delivery of Labor Justice) was designed to achieve a 98% disposition rate of all enrolled cases within the resolution period set by the DOLE.

 

For Project SpeEDs 1, 2, and 3, which covered September 2010 and earlier cases, of the 54,630 total enrolled cases, 53,556 cases or 98% were disposed of.

 

            At the end of calendar year 2011, the NLRC posted a total disposal of 11,127 or 87%, 8,760 or 85% from the Regional Arbitration Branches, and 2,367 or 95% from the Commission Proper under the Project SpeED 4 with coverage of June 2011 and earlier cases.

 

 

 

Project SpeED 4*

 

 

Level

 

Enrolled Cases

 

Resolved Cases

 

Pending Cases

 

No.

%

No.

%

 

RABs**

 

10,313

 

8,760

 

85%

 

1,553

 

15%

 

 

Commission***

 

2,479

 

 

2,367

 

95%

 

112

 

5%

 

TOTAL

 

12,792

 

11,127

 

 

87%

 

1,665

 

13%

 

*Coverage: June 2011 & earlier cases

 Period to Resolve: Six (6) months (i.e. July to December 31, 2011)

**During the resolution period of Project SpeED 4, there was insufficient number of Labor Arbiters.

***During the resolution period of Project SpeED 4, there was insufficient number of Commissioners..

 

 

 

            Of all the agencies and offices required to implement the Project SpeED 4, the NLRC garnered the highest number and percentage of enrolled and disposed cases.

 

 

 

 

Project SpeED 4*

 

 

Offices

 

Enrolled Cases

 

% Share of Enrolled Cases

 

Resolved Cases

 

% Share of Resolved Cases

 

Overall

Disposition Rate

 

Employees Compensation Commission

(ECC)

 

47

 

0.2%

 

47

 

0.2%

 

100%

 

 

Bureau of Labor Relations Commission

(BLR)

 

119

 

 

1%

 

 

109

 

0.5%

 

92%

 

National Labor Relations Commission

(NLRC)

 

12,792

 

55%

 

 

 

11,127

 

60%

 

87%**

 

National Conciliation and Mediation Board

(NCMB)

 

210

 

1%

 

193

 

1%

 

92%

 

Bureau of Working Conditions (BWC)

 

5,140

 

22%

 

4,944

 

27%

 

96%

 

Philippine Overseas and Employment Agency (POEA)

 

4,366

 

19%

 

1,846

 

10%

 

42%

 

Legal Service

(LS)

 

 

417

 

2%

 

331

 

2%

 

79%

 

GRAND TOTAL

 

 

23,091

 

100%

 

18,597

 

100%

 

81%

 

* Coverage: June 2011 & earlier cases

  Period to Resolve: Six (6) months (i.e. July to December 31, 2011)

**While the overall percentage of the accomplishment was 87%, the actual numbers of case  disposal numbered 11,127 was more than the total case disposal of all the offices which posted at 7,470 only.

 

 

 

Execution

 

            In compliance with the Department Order No. 312, Series of 2010 on Project SpeED, and pursuant to the 2011 NLRC Rules of Procedure and the Labor Code, as amended, the NLRC has strengthened the monitoring system on execution.

 

            Toward this end, a committee was created to revise the execution forms so that all necessary data relative to execution will be included. Additionally, a memorandum was issued to all Executive/Labor Arbiters of the Main and Sub Regional Arbitration Branches, reiterating the monthly submission of accurate and proper execution reports to the Legal and Enforcement Division and the Research, Information and Publications Division. The sheriffs were also directed to submit monthly reports on execution. Non-submission of the monthly reports subjects the sheriffs to administrative sanctions.     

 

            Following execution monitoring, the table below captures the NLRC report for satisfied number of cases and judgment awards for Project SpeEDs 1, 2, and 3.

 

 

SATISFIED NUMBER OF CASES*

(Settlement and Decided)

 

Project SpeED

 

Settled Cases

(Before issuance of the writ)

 

Decided Cases

(After issuance of the writ)

 

Total

 

 

Aug. 2011 & earlier reports

 

 

 

 

 

SpeED 1

 

11,065

 

649

 

 

11,714

 

 

SpeED 2

 

7,510

 

 

379

 

 

7,889

 

 

SpeED 3

 

 

8,469

 

 

95

 

 

8,564

 

 

Sep. to Dec. 2011 reports

 

 

 

 

SpeEDs 1 to 3

 

 

846

 

 

1,556

 

 

2,402

 

 

GRAND TOTAL

 

27,890

 

2,679

 

30,569

 

 

*As of December 31, 2011.

            Pursuant to Administrative Order No. 08-05, Series of 2011, the NLRC complied with the directive that 50% of cases enrolled in Project SpeEDs 1 to 3 be satisfied or executed in case of issued writs. Of the 54,630 total enrolled cases in Project SpeEDs 1 to 3, 27,890 or 51% cases were satisfied by way of settlement (i.e. before issuance of writs as required in decided case), and 2,679 or 5% cases were satisfied by way of decisions on the merits (i.e., writs were issued and satisfied). All in all, the total satisfied cases (either by settlement or decisions on the merits) numbered 30,569 or 56%.   

 

 

 

SATISFIED JUDGMENT AWARD*

(Settlement and Decided)

 

 

Project SpeED

 

Amounts

(Before issuance of the writ)

 

Amounts

(After issuance of the writ)

 

Total Amounts

 

 

Aug. 2011 & earlier reports

 

 

 

 

 

SpeED 1

 

 

 

1,382,984,620.90

 

 

100,738,049.30

 

 

1,483,722,670.20

 

 

SpeED 2

 

968,244,815.24

 

32,078,438.44

 

 

1,000,323,253.68

 

 

SpeED 3

 

 

966,793,238.15

 

3,369,527.52

 

970,162,765.67

 

 

Sep. to Dec. 2011 reports

 

 

 

 

SpeEDs 1 to 3

 

 

79,080,534.54

 

 

126,720,470.81

 

 

205,801,005.35

 

 

GRAND TOTAL

 

 

3,397,103,208.83

 

 

262,906,486.07

 

 

3,660,009,694.90

 

 

*As of December 31, 2011.

 

 

 

 

 

 

 

 

Affirmation of Judgment

 

Since decision making is its primordial duty and by far its most important duty in order to maintain industrial peace and promote social justice, the NLRC, as a personification of labor justice, strives for excellence in deciding labor cases. As a result, the NLRC was able to maintain a higher level of affirmation rate of decisions by the Court of Appeals and the Supreme Court.

 

 

            From 2008 to 2011, the average decisions affirmed by the Court of Appeals numbered 1,056 or 91%, and 105 or 9% only for reversed decisions. At the Supreme Court, the average affirmed decisions numbered 837 or 88%, and 116 or 12% for reversed decisions

Part III

REFORM PROJECTS

 

 

Streamlining of Procedures

 

In line with its commitment to streamline the procedures in labor arbitration and adjudication, and pursuant to its power to promulgate rules and regulations, the NLRC En Banc promulgated the 2011 NLRC Rules of Procedure on 31 May 2011.

 

The 2011 NLRC Rules of Procedure contains new provisions to address the issue of delay and to enforce final decisions effectively. These include, among others, the expanded coverage of prohibited pleadings, utilization of service of private courier as additional mode for service of summons and other legal processes, provisions for specific periods for filing certain pleadings, authority of the Chairman to blacklist bonding companies, strengthening of contempt powers, imposition of fines to ensure compliance with the final decisions, and introduction of safeguards to ensure immediate enforcement of judgment.

 

In order to assess and evaluate the 2011 NLRC Rules of Procedure, Administrative Order No. 09-02 was issued to accommodate all requests for discussion of the Rules. In addition, as part of the celebration of the 37th Founding Anniversary and Labor Relations Week, Administrative Order No. 09-18 was issued directing the Committee on LR Week to schedule a one (1) day briefing on the 2011 NLRC Rules of Procedure, which was participated in by the representatives of the Labor Sector, the Management Sector, and the Government Sector.  

 

            The NLRC endeavors to further strengthen its mandatory conciliation and mediation proceedings with the end-view of increasing the number of disposition of cases by way of settlement and reducing time spent in case resolution. For this reason, the Single-Entry Approach (SEnA) was fully implemented in all the RABs. In the event cases were not settled through the SEnA, best efforts were still exerted during the mandatory conciliation and mediation conferences to settle the cases assigned to the Labor Arbiters in recognition of the importance of conciliation and mediation.

 

As to the revision on Manual on Execution of Judgment, the revised provisions have been submitted to the NLRC En Banc for approval.

 

 

 

 

Improvement of Internal Processes

 

 Pursuant to the reform measures for labor arbitration and adjudication system, continuous monitoring of the following are observed: (a) raffle of cases and inventory of all (regular, transferred, remanded and revived) cases; and (b) transmittal of records of cases on appeal including Memorandum on Appeal within forty-eight (48) hours from the filing of the appeal.

 

Also, strict compliance with the First-In-First-Out policy in the disposition of cases (En Banc Resolution No. 13-07) has been continuously and regularly monitored. As a consequence, majority of the RABs and Divisions attained current status in their case dockets. Similarly, the implementation of acceptable level of performance set for Labor Arbiters and Commissioners, and enforcement of sanctions to non-performing officials is strictly observed. As a penalty measure for non-compliance, the NLRC issued warnings which sometimes lead to withholding of their Representation And Transportation Allowance (RATA);

 

            Recognizing the importance of capacity-building and with the implementation of the Strategic Performance Management System (SPMS), the NLRC has participated in the Consultation-Workshop on the Operationalization of the SPMS and Human Resources Division Programs. This is aimed of ensuring the accountability of the agencies and their officials and employees.

 

            Moreover, in view of the budget allocation system, regular monitoring and submission of project procurement management plan to streamline the processing of request of office supplies are regularly observed. The Bids and Awards Committee is required to submit regular reports to ensure transparency and accountability. 

 

            Further, in line with the strategy under the Philippine Labor and Employment Plan 2011-2016 to ensure transparency and accountability in dispute settlement by posting the status of labor cases at the DOLE and NLRC websites, the NLRC developed a computer program to provide a comprehensive database of all cases at the RABs. The Web-Based Case Tracking System (CTS) is designed to expedite the resolution of cases through the effective monitoring and strict observance of time limits in the conduct of case event, from filing to disposition.

 

 

Strengthening Integrity and Fairness

 

 The NLRC vigorously and continuously implements its Integrity Development Action Plan (IDAP), a roadmap in the fight against the perception of graft and corruption. Along this line, the following activities/initiatives were conducted and implemented: (a) Designation of personnel as Bilis Aksyon Partner (BAP) in compliance with the CSC Memorandum Circular (Mamayan Muna Program) to handle all feedbacks/reports received from the public and other government and non-government organizations; (b) Continuous review of the Code of Conduct for Commissioners and Labor Arbiters, and ongoing consultation with the NLRC Employees’ Association (NLRCEA) on the Code of Conduct for the rank-and-file employees; (c) Continuous implementation of New Frontline System to ensure the integrity of raffle system through e-Raffle and to effectively assist litigants in filing complaints; (d) Awaiting approval of the Rationalization Plan creating an Internal Audit Unit (IAU); (e) Creation of a Committee of Peers to initiate investigation and recommendation on alleged partiality and conflict of interest against Commissioners; and (f)  Participation on the workshop on Participatory Gender Audit.

 

            Likewise, the Technical Working Group (TWG) of the Committee on Efficiency and Integrity Board (EIB) Rules has drafted the amended NLRC EIB Rules to conform to the Revised Rules on Administrative Cases in Civil Service (RRACCS) issued sometime in November 2011. The amendment aims to streamline the procedures governing administrative cases in the NLRC. For this purpose, certain provisions on the composition, preliminary investigation, formal charge and notice of charge, preventive suspension, formal investigation, decision, and remedies were adopted. The final draft of the Efficiency and Integrity Board (EIB) Rules will be presented for approval in the next NLRC En Banc session. 

 

 

Improving Quality Decisions

 

While it is the goal of the NLRC to dispose of labor cases fairly and speedily, it is also tasked to resolve the same with quality decisions. For this reason, continuous monitoring of directives instructing all Presiding/Commissioners to submit to the Chairman the disapproved/not considered draft report/ decision of their reviewers, with their comments, observations, or underscoring the reasons for the disapproval. The Chairman, after evaluation of the draft decision/report, shall take appropriate action which may include filing of cases before the Efficiency and Integrity Board (EIB).

 

            Recognizing the essence of capacity building, all Presiding/Commissioners, Executive/Labor Arbiters and other office Lawyers were directed to attend the Mandatory Continuing Legal Education (MCLE) Seminar. Also, certain Commissioners and Labor Arbiters were directed to attend the Seminar Workshop on the Freedom of Association, Civil Liberties and Labour Laws and the Issue of Impunity, and the DOLE-Labor AFP Summit on the Protection and Promotion of Workers Rights.

           

 

 

More importantly, on matters involving international labor trends and issues, the NLRC in cooperation with the International Training Center of the International Labour Organization conducted a training course for the Commissioners and Labor Arbiters on International Labour Standards for Dispute Settlement.

 

            Moreover, the Presiding Commissioner of the 7th Division was directed to conduct a briefing on 2011 NLRC Rules of Procedure for the Labor Arbiters and Commissioners. In this connection, all Presiding/Commissioners and Executive/Labor Arbiters are directed to attend the discussion of the 2011 NLRC Rules of Procedure.

 

Also, for proper application of special rules such as attorney’s fees and corporate rehabilitation, memoranda were issued to all Presiding/Commissioners and Executive/Labor Arbiters reiterating the following: (a) effects of corporate rehabilitation on labor cases; and (b) guidelines in the award of attorney’s fees.

 

Furthermore, monthly digests of Supreme Court Decisions on labor cases are compiled and disseminated to all Presiding/Commissioners and Executive/Labor Arbiters.

 

 

Implementation of Project SpeED

 

Consistent with the agenda to reform labor arbitration and adjudication systems by streamlining procedures, Project Speedy and Efficient Delivery of Labor Justice (SpeED) was fully institutionalized and implemented in the NLRC. Project SpeED was designed to achieve a 98% disposition rate of all cases in the Department of Labor and Employment (DOLE) by April 2011. Project SpeED comprises of three phases, namely: (1) SpeED 1 – to dispose of April 2009 and earlier cases by March 30, 2010; (2) SpeED 2 – to dispose of March 2010 and earlier cases by September 30, 2010; (3) SpeED 3 – to dispose of September 2010 and earlier cases by April 30, 2011; and (4) Project SpeED 4 – to dispose of June 2011 and earlier cases by December 31, 2011.

 

            In the pursuit of achieving the targets set under the Project SpeEDs, Administrative Orders and Memoranda were issued directing all Presiding/Commissioners of the Commission Proper and Executive/Labor Arbiters of the Main/Sub Regional Arbitration Branches to resolve and dispose of all enrolled cases within the target periods.

 

            Strategies for accomplishment of the Project SpeED are also designed to support the reforms, such as but not limited to the following: (a) regular conduct of special task forces of all pending cases, including unresolved cases of retired and separated Labor Arbiters and Commissioners; (b) recommended the appointment of fifteen (15) Labor Arbiters and one (1) Commissioner to fill the vacant positions; (c) continuous monitoring and implementation of the “First-In-First-Out Policy” (En Banc Resolution No. 13-07) in the resolution of cases which directs the Labor Arbiters to dispose of a minimum of twenty-seven (27) cases per month, and to submit monthly reports on their respective outputs to their immediate superiors for proper monitoring, and in case of non-compliance thereof, a penalty of withholding of the RATA is enforced; (d) strict monitoring of aging of cases pursuant to the resolution periods set by the Project SpeED, and non-compliance thereof, a penalty is imposed as provided under the En Banc Resolution No. 13-07; and (e) strict monitoring of attendance of NLRC personnel to ensure efficiency of performance.   

 

 

Implementation of Single-Entry Approach (SEnA)

 

Consistent with the agenda to reform labor arbitration and adjudication systems, and in compliance with Department Order No. 107, Series of 2010, the NLRC implemented the Single-Entry Approach (SEnA) program. The SEnA is a conciliation-mediation process to provide a speedy, impartial and accessible settlement procedure of all labor issues or conflicts to prevent them from ripening into full blown disputes.

 

            As part of institutionalizing the SEnA, the NLRC has circulated an Advisory to all Executive/Labor Arbiters and SEnA Desk Officers of the Main and Sub Regional Arbitration Branches, reiterating the settlement rate of 70%, and incorporating thereto the salient features and guidelines of the SEnA.

 

            The NLRC, in collaboration with the NCMB, conducted a Re-Training Program for the SEnA Desk Officers which was held on 05-07 October 2011 at the NLRC. Also, SEnA Units in all Main and Sub Regional Arbitration Branches were created to provide a separate venue for SEnA. At the National Capital Region, where requests for assistance constitute roughly 54% of the total requests received by the RABs, the SEnA Unit is located at the Ground Floor of the NLRC, with seven (7) assigned SEnA Desk Officers everyday. Monitoring of SEnA monthly reports from all RABs is given priority to assess and evaluate the developments of the SEnA.

           

 

Strengthening of Monitoring Measures for

Migrant Workers

 

Withthe effectivity of the Implementing Rules of R.A. 10022 which amends the Migrant Workers Act of 1995, the NLRC endeavors to monitor, in coordination with other agencies, all labor issues related to protection to migrant workers in their national laws, bilateral agreements, ratified international conventions and measures towards the protection and promotion of Overseas

Filipino Workers (OFWs). 

 

            In compliance with R.A. 10022, the NLRC strengthened the monitoring system on execution of judgment award against a foreign employer/principal. This is in addition to the monitoring by the NLRC, in coordination with the Insurance Commission (IC), of all insurance providers under the compulsory insurance coverage for agency-hired workers, to identify the insurance companies which are evasive or unresponsive to the legitimate claims of migrant workers.

 

The NLRC likewise conducted several consultations with recruitment/manning agencies and legitimate non-government organizations (NGOs) advocating for the rights and welfare of OFWs.

 

            Consistent with the mandate to resolve money claims involving OFWs, the NLRC endeavors to update and keep abreast with the developments in the global services industry, and on several occasions, participated in international and local conferences involving migrant workers’ issues. To fully complement the measures for migrant workers, Administrative Order No. 07-17 designated a focal person for migrant workers. Administrative Order Nos. 07-12, 07-13, 07-14 were also issued directing Commissioners and Labor Arbiters to attend the summit on the protection and promotion of workers’ rights. Also, Memorandum dated 28 February 2011 was issued, directing certain personnel to attend the workshop entitled “Problems & Prospects of Asian Migrants”.

 

Since the primary mandate of the NLRC is compulsory arbitration, and to be fully equipped with knowledge on international labor laws especially on migrant workers, the NLRC, in cooperation with the International Labor Organization (ILO) – International Training Center (ITC), conducted a training course entitled “International Labour Standards for Labour Commissioners and Arbiters in Dispute Settlement”.      

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Part IV

FINANCIAL STATEMENTS

 

Budget Breakdown

 

Based on the National Expenditure Program (NEP) for FY 2011, the budget approved by the Department of Budget and Management (DBM) posted at P492.8M. Personal Services (PS) accounted for 76% budget, with a total allotment of P375.5M, while Maintenance and Other Operating Expenses (MOOE) represented 22% at P107M. The remaining 2% went to Capital Outlay, with allotted P10,260M.

 

 

 

 

Financial Statement Summary Table

 

For FY 2011, the allotments, obligations and balances of the National Labor Relations Commission are summarized as follows:

 

 

 

 

 

 

P/A/P Allotment Class/

Appropriation

Allotment

Obligations Incurred

 

 

Unobligated Balance

Object of Expenditure

FY 2011 GAA

Received

of Allotment

 

 

 

 

A. Current Year Budget

 

 

 

 

Personal Services

 

 

 

 

   Salaries & Wages-Regular

252,297,000.00

252,297,000.00

    319,606,265.30

(67,309,265.30)

   Salaries & Wages- Casual

422,000.00

422,000.00

           109,255.45

312,744.55

   Personnel Economic Relief Allowance

21,792,000.00

21,792,000.00

      21,731,209.84

60,790.16

   Representation Allowance

17,460,000.00

17,460,000.00

      17,314,543.91

145,456.09

   Transportation Allowance

17,460,000.00

17,460,000.00

      17,181,556.67

278,443.33

   Clothing/Uniform Allowance

3,632,000.00

3,632,000.00

        3,622,000.00

10,000.00

   Productivity Incentive Bonus

1,816,000.00

1,816,000.00

        1,613,333.51

202,666.49

   Other Bonuses and Allowances

 

10,283,364.00

      19,236,419.65

(8,953,055.65)

   Honoraria

 

 

             62,700.00

(62,700.00)

   Longevity Pay

 

 

             25,572.50

(25,572.50)

   Overtime Pay

 

 

           126,013.56

(126,013.56)

   Cash Gift & Year end bonus

25,528,000.00

25,528,000.00

      32,748,266.91

(7,220,266.91)

   Life & Retirement Insurance   Contribution

21,440,000.00

29,416,000.00

      26,517,235.97

2,898,764.03

 

   PAG-IBIG Contributions

1,106,000.00

1,106,000.00

        1,154,427.48

(48,427.48)

   PHILHEALTH Contributions

2,478,000.00

2,478,000.00

        3,062,000.01

(584,000.01)

   ECC Contributions

1,106,000.00

1,106,000.00

        1,078,238.96

27,761.04

   Pension Benefits - Civilian

8,986,000.00

8,986,000.00

        7,307,595.26

1,678,404.74

   Other Personnel Benefits

 

 

        8,896,330.85

(8,896,330.85)

MPBF - Salaries and Wages

 

87,803,839.00

 

87,803,839.00

             Sub-Total

375,523,000.00

481,586,203.00

481,392,965.83

193,237.17

 

 

 

 

 

Maintenance and Other Operating Expenses

 

 

 

 

Travel Expenses - Local

6,217,000.00

6,217,000.00

        2,976,204.14

3,240,795.86

Travel Expenses - Foreign

 

 

 

 

Training Expenses

4,881,000.00

4,881,000.00

        4,027,271.38

853,728.62

Supplies Expense

 

 

 

 

     Office Supplies Expense

6,501,000.00

6,501,000.00

        5,707,343.55

793,656.45

     Accountable Forms

511,000.00

511,000.00

           106,390.20

404,609.80

     Medical/Dental

116,000.00

116,000.00

 

116,000.00

     Gasoline, Oil and Lubricants Expense

877,000.00

877,000.00

           479,295.68

397,704.32

     Textbooks and Instructional Materials

773,000.00

773,000.00

           149,920.90

623,079.10

     Other Supplies Expenses

1,716,000.00

1,716,000.00

           385,811.30

1,330,188.70

Utility Expenses

 

 

 

 

     Water Expenses

4,119,000.00

4,119,000.00

        3,590,938.17

528,061.83

     Electricity Expenses

9,466,000.00

9,466,000.00

      13,749,372.54

(4,283,372.54)

Communication Services

 

 

 

 

     Postage & Deliveries

7,667,000.00

7,667,000.00

        8,942,948.70

(1,275,948.70)

     Telephone Expense – Landline

3,183,000.00

3,183,000.00

        4,139,605.76

(956,605.76)

     Telephone Expense – Mobile

1,273,000.00

1,273,000.00

        1,275,403.01

(2,403.01)

     Internet Expenses

635,000.00

635,000.00

           553,704.09

81,295.91

    Cable,Satellite,Telegraph,Radio

 

 

 

 

    Advertising Expenses

800,000.00

800,000.00

           237,534.80

562,465.20

    Printing and Binding Expenses

1,140,000.00

1,140,000.00

           320,653.93

819,346.07

    Rent Expenses

32,927,000.00

32,927,000.00

      31,990,337.29

936,662.71

    Representation Expenses

100,000.00

100,000.00

           251,873.60

(151,873.60)

    Transportation and Delivery 

706,000.00

706,000.00

             89,325.58

616,674.42

    Subscription Expenses

50,000.00

50,000.00

           165,890.72

(115,890.72)

Professional Services

 

 

 

 

     Legal Services

530,000.00

530,000.00

             26,327.60

503,672.40

     Auditing Services

 

 

             15,500.00

(15,500.00)

     General Services

4,396,000.00

4,396,000.00

        3,253,026.47

1,142,973.53

     Janitorial Services

4,535,000.00

4,535,000.00

        2,882,314.85

1,652,685.15

     Security Services

5,713,000.00

5,713,000.00

        7,237,120.58

(1,524,120.58)

Repairs and Maintenance Exp.

 

 

 

 

     Office Building

 

 

           873,042.93

(873,042.93)

     Office Equipment

 

 

           335,313.00

(335,313.00)

     Furnitures/Fixtures

 

 

           236,110.85

(236,110.85)

     IT Equipment & Software

 

 

           363,421.93

(363,421.93)

     Motor Vehicle

1,500,000.00

1,500,000.00

           737,120.13

762,879.87

     Communication Equipment

 

 

 

 

    Extraordinary Expenses

5,970,000.00

5,970,000.00

        5,560,885.16

409,114.84

    Miscellaneous Expenses

 

 

 

 

Taxes, Insurance Premiums, and Other Fees

746,000.00

746,000.00

 

746,000.00

     Taxes, Duties and Licenses

 

 

             32,438.85

(32,438.85)

     Fidelity Bond Premiums

 

 

           414,744.10

(414,744.10)

     Insurance Expense

 

 

           718,493.08

(718,493.08)

     Other MOE

 

 

        4,199,876.08

(4,199,876.08)

     Bank Charges

 

 

               9,232.79

(9,232.79)

             Sub-Total

107,048,000.00

107,048,000.00

106,034,793.74

1,013,206.26

Capital Outlays

 

 

 

 

     Office Equipment

10,260,000.00

10,260,000.00

1,079,519.00

9,180,481.00

     IT Equipment & Software

 

 

184,000.00

(184,000.00)

             Sub-Total

10,260,000.00

10,260,000.00

1,263,519.00

8,996,481.00

 

 

 

 

 

TOTAL - CURRENT YEAR

492,831,000.00

598,894,203.00

588,691,278.57

10,202,924.43

B. SPECIAL PURPOSE FUNDS

 

 

 

 

Pension Gratuity Fund

 

 

 

 

    Terminal Leave Benefits

 

18,538,968.00

18,663,022.30

(124,054.30)

    Retirement Benefits – Civilian

 

105,634,247.00

105,634,247.13

(0.13)

TOTAL - SPECIAL PURPOSE FUND

0.00

124,173,215.00

124,297,269.43

(124,054.43)

C. CONTINUING APPROPRIATION

 

 

 

 

     MOOE    

 

 

 

 

     Capital Outlay

 

 

 

 

TOTAL - CONT APPRO

0.00

0.00

0.00

0.00

 

GRAND TOTAL

 

492,831,000.00

 

723,067,418.00

 

712,988,548.00

 

10,078,870.00

 

 

 

Notably, pending the passage of the law (House Bill No. 1406) granting franking privilege to the NLRC, the NLRC spent P8.94M for postages and deliveries, or 2% of the total budget for the NLRC. With the enactment of the franking privilege act (i.e. all official communications and papers of the NLRC addressed for delivery within the Philippines will be received, transmitted and delivered in the mails of the Philippines free of postage), the NLRC will save 2% of the whole NLRC budget.

 

 

 

 

 

 

 

 

 

 

 

Part V

OTHER INFORMATION

 

Industry Classification

 

Based on the data gathered by the Research, Information and Publications Division of the NLRC, the classifications by industry of the responding parties are as follows:

 

 

 

LOCAL INDUSTRY CLASSIFICATION*

 

% of Cases

 

A

 

Agriculture

 

2.5%

 

B

 

Fishing

 

0.2%

 

C

 

Mining & Quarrying

 

0.3%

 

D

 

Manufacturing

 

15%

 

E

 

Electricity, Gas & Water

 

1%

 

F

 

Construction

 

5%

 

G

 

Wholesale & Retail Trade, Motor Sales, etc.

 

13%

 

H

 

Hotels & Restaurants

 

3%

 

I

 

Transportation, Storage & Communication

 

10%

 

J

 

Financial Intermediation

 

4%

 

K

 

Real Estate, Renting & Business Act

 

5%

 

L

 

Public Administration and Defense

 

5%

 

M

 

Education

 

2%

 

N

 

Health and Social Work

 

1%

 

O

 

Community, Social & Personal Services

 

29%

 

P

 

Activities of Private Household

 

0.5%

 

Q

 

Extra-territorial Organizations and Bodies

 

3%

 

Activities not Adequately Defined

 

0.5%

 

 

Grand Total

 

100%

Nature of Cases

 

In 2011, the NLRC received various labor cases arising from money claims, unfair labor practices, illegal dismissal, and other similar cases. The table below shows the data of nature of cases filed with the NLRC:

 

 

 

 

NATURE OF CASES

 

No.

 

%

 

I

 

Money Claims

 

6,037

 

24%

 

II

 

Unfair Labor Practices

 

99

 

0.4%

 

III

 

Illegal Dismissal

 

852

 

3%

 

IV

 

Illegal Dismissal with Money Claims

 

16,957

 

68%

 

V

 

Unfair Labor Practices with Money Claims

 

100

 

0.4%

 

VI

 

ULP, Illegal Dismissal with Money Claims

 

196

 

1%

 

VII

 

Unfair Labor Practices with Illegal Dismissal

 

38

 

0.2%

 

VIII

 

Others

 

699

 

3%

 

 

Grand Total

 

 

24,978

 

100%

 

 

-oOo-

           

 

 

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