his Complaint originally with POEA, then the Labor Arbiter to whom the case was
transferred would have to take cognizance of the case.[7]
The NLRC then remanded the case to the Labor Arbiter for further proceedings. On
3 July 1998 respondents filed a Motion for Reconsideration which was denied by the
NLRC on 23 July 1998.
Thus, private respondents raised the case to the Court of Appeals contending that
the provision in the CBA requiring a dispute which remained unresolved by the
Grievance Committee to be referred to a Voluntary Arbitration Committee, was
mandatory in character in view of the CBA between the parties. They stressed that
"since it is a policy of the state to promote voluntary arbitration as a mode of settling
labor disputes, it is clear that the public respondent gravely abused its discretion in
taking cognizance of a case which was still within the mantle of the Voluntary Arbitration
Commitees jurisdiction."[8]
On the other hand, petitioner argued -
(A)s strongly suggested by its very title, referral of cases of this nature to the
Voluntary Arbitration Committee is voluntary in nature. Otherwise, the committee
would not have been called Voluntary Arbitration Committee but rather, a
Compulsory Arbitration Committee. Moreover, if the referral of cases of similar
nature to the Voluntary Arbitration Committee would be deemed mandatory by virtue
of the provisions in the CBA, the [NLRC] would then be effectively deprived of its
jurisdiction to try, hear and decide termination disputes, as provided for under Article
217 of the Labor Code. Lastly, [respondents] ought to be deemed to have waived their
right to question the procedure followed by [petitioner], considering that they have
already filed their Position Paper before belatedly filing a Motion toDismiss x x x x [9]
But the Court of Appeals ruled in favor of private respondents. It held that the CBA
"is the law between the parties and compliance therewith is mandated by the express
policy of the law."[10] Hence, petitioner should have followed the provision in the CBA
requiring the submission of the dispute to the Voluntary Arbitration Committee once the
Grievance Committee failed to settle the controversy.[11] According to the Court of
Appeals, the parties did not have the choice to "volunteer" to refer the dispute to the
Voluntary Arbitrator or a Panel of Arbitrators when there was already an agreement
requiring them to do so. "Voluntary Arbitration" means that it is binding because of a
prior agreement or contract, while "Compulsory Arbitration" is when the law declares the
dispute subject to arbitration, regardless of the consent or desire of the parties.[12]
The Court of Appeals further held that the Labor Code itself enumerates the original
and exclusive jurisdiction of the Voluntary Arbitrator or Panel of Voluntary Arbitrators,
and prohibits the NLRC and the Regional Directors of the Department of Labor and
Employment (DOLE) from entertaining cases falling under the same. [13] Thus, the fact
that private respondents filed their Position Paper first before filing their Motion to
Dismiss was immaterial and did not operate to confer jurisdiction upon the Labor