A: He performs functions which are not normal to the
courts, and the considerations which help him to fashion his judgment may be foreign to the competence of courts.
Also, the arbitrator is confined to interpretation and application of the CBA; he does not sit to dispense his own brand of industrial justice.
The arbitrator’s authority is contractual rather than judicial in nature. His power is conferred by the CBA; and his duty with respect to that agreement is to settle disputes arising there under by applying and interpreting that agreement.
But so long as an arbitrator is not arbitrary he has wide latitude in exercising his authority, especially in fashioning an appropriate remedy.
Q: Give instances when an arbitral award does not draw its essence from CBA (unauthorized amendment or alteration)?
A:
1. It is so unfounded in reason and fact
2. It is so unconnected with the wording and purpose of the agreement
3. It is without factual support in view if its language, its context, and any other indicia of the parties’ intention
4. It ignores or abandons the plain language of the contract
5. It is mistakenly based on a crucial assumption which concededly is a non-fact.
6. It is unlawful, arbitrary or capricious 7. It is contrary to public policy.
NOTE:
If the terms of a CBA are clear and leave no doubt upon the intention of the contracting parties, the literal meaning of its stipulation shall prevail.
But, the VA may also consider and rely upon negotiating and contractual history of the parties, evidence of past practices interpreting ambiguous provisions.
CBA must be construed liberally rather than narrowly and technically and the Court must place a practical and realistic construction upon it.
ARTICLE 262-A. Procedures. – The Voluntary Arbitrator
or panel of Voluntary Arbitrators shall have the power to hold hearings, receive evidences 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. Hearing may be adjourned for cause or upon agreement by the parties.
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 submission of the dispute to voluntary arbitration. The award or decision of the Voluntary Arbitrator or panel of Voluntary Arbitrators shall contain the facts and the law on which it is based. It shall be final and executory after ten (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 or panel of Voluntary Arbitrators or the Labor Arbiter in the region where the movant resides, in case of the absence or incapacity of the Voluntary Arbitrator or panel of Voluntary Arbitrators, 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.
Q: What is the effect if the CBA requires settlement of disputes exclusively by arbitration?
A: Then, the arbitration is needed before court suits for
breach of contract may be filed. It is well-settled that an employee is precluded from bringing a court suit against his employer unless the parties to the CBA expressly agreed that arbitration was not to be exclusive remedy under the contract.
Q: May the parties to CBA waive arbitration content? A: Yes, parties to a CBA may waive the arbitration
covenants of the agreement, but their conduct must clearly show that intention.
Q: Who determines the arbitration procedures? A: In practice, VA of labor cases use:
a. Procedures based on the Labor Code and its Implementing Rules
b. RA 6715 c. CBA
d. Other agreement of the parties e. Directives of the arbitrator
f. Procedural rules of appropriate agencies like NCMB Procedural Guidelines in Conduct of Voluntary Arbitration Proceedings
But in the appreciation of evidence, the arbitrator is not bound by the Rules of Court.
Q: State the ethical standards of arbitrators:
A: An arbitrator is obliged to maintain a high level of
professional ethics in his relationships with the parties and the appointing agencies. He also has responsibility to society.
Since in effect, he is a judge, and his ethics must be on the same high level as the code that governs the conduct of judicial tribunal.
Q: Does the absence of judicial rituals minimize the judicial functions of the arbitrator?
A: No. NOTE:
Decisions made by the arbitrator virtually affect the rights and responsibilities of the parties.
When a judge makes a decision, it can be appealed to a higher tribunal.
The absence of a similar appeal procedure in arbitration places a much heavier responsibility upon the arbitrator.
Q: What is the effect of failure of VA to render a decision, resolution, order or award within the prescribed period, upon complaint of a party?
A: It shall be sufficient ground for the Board to
discipline said VA, pursuant to the guidelines issued by the Secretary.
VOLUNTARY ARBITRATION AWARD GENERALLY FINAL;