Art. 260. Grievance machinery and voluntary arbitration. The parties to a
Collective Bargaining Agreement shall include therein provisions that will ensure the
mutual observance of its terms and conditions. They shall establish a machinery for the
adjustment and resolution of grievances arising from the interpretation or
implementation of their Collective Bargaining Agreement and those arising from the
interpretation or enforcement of company personnel policies.
All grievances submitted to the grievance machinery which are not settled within seven
(7) calendar days from the date of its submission shall automatically be referred to
voluntary arbitration prescribed in the Collective Bargaining Agreement.
For this purpose, parties to a Collective Bargaining Agreement shall name and designate
in advance a Voluntary Arbitrator or panel of Voluntary Arbitrators, or include in the
agreement a procedure for the selection of such Voluntary Arbitrator or panel of
Voluntary Arbitrators, preferably from the listing of qualified Voluntary Arbitrators duly
accredited by the Board. In case the parties fail to select a Voluntary Arbitrator or panel
of Voluntary Arbitrators, the Board shall designate the Voluntary Arbitrator or panel of
Voluntary Arbitrators, as may be necessary, pursuant to the selection procedure agreed
upon in the Collective Bargaining Agreement, which shall act with the same force and
effect as if the Arbitrator or panel of Arbitrators has been selected by the parties as
described above