Arbitrators, since the same fall within a special class of disputes that are generally
within the exclusive original jurisdiction of Labor Arbiters by express provision of
law. Absent such express stipulation, the phrase "all disputes" should be construed as
limited to the areas of conflict traditionally within the jurisdiction of Voluntary
Arbitrators, i.e., disputes relating to contract-interpretation, contract-implementation, or
interpretation or enforcement of company personnel policies. Illegal termination disputes
- not falling within any of these categories - should then be considered as a special area
of interest governed by a specific provision of law.
In this case, however, while the parties did agree to make termination disputes the
proper subject of voluntary arbitration, such submission remains discretionary upon the
parties. A perusal of the CBA provisions shows that Sec. 6, Art. XII (Grievance
Procedure) of the CBA is the general agreement of the parties to refer grievances,
disputes or misunderstandings to a grievance committee, and henceforth, to a voluntary
arbitration committee. The requirement of specificity is fulfilled by Art. XVII (Job
Security) where the parties agreed -
Sec. 1. Promotion, demotion, suspension, dismissal or disciplinary action of the
seaman shall be left to the discretion of the Master, upon consultation with the
Company and notification to the Union. This notwithstanding, any and all disciplinary
action taken on board the vessel shall be provided for in Appendix B of this
Agreement x x x x [23]
Sec. 4. x x x x Transfer, lay-off or discipline of seamen for incompetence,
inefficiency, neglect of work, bad behavior, perpetration of crime, drunkenness,
insubordination, desertion, violation of x x x regulations of any port touched by the
Companys vessel/s and other just and proper causes shall be at Masters discretion x x
x in the high seas or foreign ports. The Master shall refer the case/dispute upon
reaching port and if not satisfactorily settled, the case/dispute may be referred to the
grievance machinery or procedure hereinafter provided (emphasis supplied).[24]
The use of the word "may" shows the intention of the parties to reserve the right to
submit the illegal termination dispute to the jurisdiction of the Labor Arbiter, rather than
to a Voluntary Arbitrator. Petitioner validly exercised his option to submit his case to a
Labor Arbiter when he filed his Complaint before the proper government agency.
Private respondents invoke Navarro III v. Damasco[25] wherein the Court held that "it
is the policy of the state to promote voluntary arbitration as a mode of
settling disputes."[26] It should be noted, however, that in Navarro III all the parties
voluntarily submitted to the jurisdiction of the Voluntary Arbitrator when they filed their
respective position papers and submitted documentary evidence before
him. Furthermore, they manifested during the initial conference that they were not
questioning the authority of the Voluntary Arbitrator.[27] In the case at bar, the dispute
was never brought to a Voluntary Arbitrator for resolution; in fact, petitioner precisely
requested the Court to recognize the jurisdiction of the Labor Arbiter over the case. The
Court had held in San Miguel Corp. v. NLRC[28] that neither officials nor tribunals can