SENATE 
Introduced by Sen. Jinggoy Ejercito Estrada 
Explanatory Note 
Section 3 of Article Xlll of the 1987 Constitution enumerates the provisions which 
guarantee the full protection of the basic rights of workers and employers. Based on 
this premise, the full exercise of workers and employers’ right to go on strike and to lock 
out respectively in furtherance of their interests is encouraged by the State as this will 
be beneficial to both parties in settling problems and disputes arising from their 
relationship. 
Unfortunately, the above conditions are not made to prosper due to an existing 
legal situation wherein the Secretary of Labor and Employment can assume jurisdiction 
based merely on his opinion that the contending parties are engaged in activities that 
are considered indispensable to national interest. 
While another constitutional provision, mandates the State to regulate the 
relations between workers and employers, there is a need to cure the system such that 
the contending parties shall be given the leeway to settle their problems with minimum 
government intervention. 
Hence, this bill. The proposed measure, seeks to limit the Labor Secretary’s 
power to assume jurisdiction over dispute settlement to essential services only, such as 
hospital, water supply, electrical, and transportation. By doing so, the interruption in the 
delivery of these basic services, due to lockouts and strikes, would not be as inimical to 
public health safety. 
In view of the foregoing, support to the passage of this bill is earnestly sought. 
IT0 ESTRADA 


THRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
'04 
S.B. NO. 11027 
Introduced by Sen. Jinggoy Ejercito Estrada 
AN ACT 
LIMITING THE POWER OF ASSUMPTION OR CERTiFlCATiON OF LABOR 
DISPUTES BY THE SECRETARY OF LABOR AND EMPLOYMENT TO ACTIVITIES 
OR UNDERTAKING WHICH INVOLVE ESSENTIAL SERVICES, AMENDING FOR 
THIS PURPOSE ARTICLE 263 (G) OF PD 422, OTHERWISE KNOWN AS THE 
LABOR CODE OF THE PHILIPPINES, AS AMENDED AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives in Congress 
assembled: 
SECTION 1. The State recognizes the constitution of labor in national 
development and guarantees their rights among others to engage in peaceful concerted 
activities including the rights to strike in accordance with the law. 
SECTION 2. Article 263 (9) of the Labor Code, as amended is hereby further 
amended to read as follows: 
"Art. 263. Strikes, picketing and lockouts. - 
xxx . xxx 
(G)When [, in his opinion,] there exists a dispute causing or likely to cause 
a strike lockout in an industry [indispensable to the national interest,] 
INVOLVING ESSENTIAL SERVICES, the Secretary of Labor and 
Employment may assume jurisdiction over the dispute and decide [it or 
certify the same to the Commission for compulsory arbitration] THE 
SAME 
WITHIN 
FORTY 
FIVE 
(45) 
DAYS 
AFTER 
SUCH 
ASSUMPTION. THE SECRETARY'S DECISION SHALL BE FINAL 


AND EXECUTORY. [Such] THE assumption or certification ORDER 
I 
shall have the effect automatically enjoining the intended or impending 
strike or lockout [as] specified [in the assumption or certification order] 
THEREIN. If [one] A STRIKE OR LOCKOUT has already taken place 
at the time of assumption [or certification], all striking or locked out 
employees UNDER PAIN OF CONTEMPT AND PAYMENT OF 
WAGES OR SALARIES 
OF THE WORKERS, shall immediately 
resume operations and readmit all workers under the same terms and 
conditions prevailing before the strike or lockout: 
PROVIDED, 
HOWEVER, THAT WHERE THERE IS NO DECISION BY THE 
SECRETARY WITHIN THE SAID FORTY-FIVE (45) DAY PERIOD, 
THE PARTIES MAY THEN EXERCISE THEIR RESPECTIVE RIGHTS 
UNDER THIS CODE. 
The Secretary of Labor and Employment [or the Commission] may 
seek the assistance of law enforcement agencies to ensure 
compliance with this provisions as well as such orders as he may issue 
to enforce the same. 
FOR PURPOSES OF THIS SECTION, 
ESSENTIAL SERVICES SHALL MEAN HOSPITAL, WATER SUPPLY, 
AND ELECTREAL SERVICES, TRANPORTATfON SERVICES, THE 
LACK OF WHICH WOULD ENDANGER LIFE OR PUBLIC SAFETY. 
"In line with the national concern for the highest respect accorded 
to the right of patients to life and health, strikes and lockouts in 
hospitals, clinics and similar medical institutions shall, to every extent 
possible, be avoided, and all serious efforts, not only by labor and 
management but government as well, be exhausted to substantially 
minimize, if not prevent, their adverse effects on such life and health, 
through the exercise, however legitimate, by labor of its right to strike 
and by management to lockout. In labor disputes adversely affecting 
the continued operation of such hospitals, clinics or medical 
institutions, it shall be the duty of the striking union or locking out 
employer to provide and maintain an effective skeletal workforce of 
medical and other health personnel, whose movement and services 
shall be unhampered and unrestricted as are necessary to ensure the 
proper and adequate protection of the life and health of its patients, 
most especially emergency causes, for the duration of the strike or 
lockout. 
In such cases, therefore, the Secretary of Labor and 


. *  
Employment may immediately assume, within twenty-four (24) hours 
from knowledge of the occurrence of such strike or lockout, jurisdiction 
over the same [or certify it to the Commission for compulsory 
arbitration]. For this purpose the injunctions as are issued by the 
Secretary of Labor [or the Commission], under pain of immediate 
disciplinary action, including dismissal or loss of employment or 
payment by the locking-out employer of back wages [,I AND OTHER 
BENEFITS, damages, ADMINISTRATIVE FINES OF NOT LESS 
THAN TEN THOUSAND PESOS (P10,OOO.OO) AND NOT MORE 
THAN TWENTY THOUSAND PESOS (P20,000.00) AND OTHER 
AFFIRMATIVE RELIEF, [even] INCLUDING criminal prosecution 
against either or both [of them] EMPLOYERS AND EMPLOYEES. 
“The foregoing notwithstanding, the President of the Philippines 
shall not be precluded, AT ANY TIME, from [determining the industries 
that, in his opinion, are indispensable to the national interest, and from 
intervening at any time and] assuming jurisdiction over any labor 
dispute in order to settle or terminate the same. THE PRESIDENT’S 
DECISION SHALL ALSO BE FINAL AND EXECUTORY.” 
SECTION 3. The Secretary of Labor and Employment shall issue within thirty 
(30) days after the effectivity of this Act the corresponding implementing the rules and 
regulations. 
SECTION 4. Should any provision of this Act or any part thereof be declared 
invalid, the other provisions, so far as they are separable from the invalid ones, shall 
remain in force and effect. 
SECTION 5. All laws, decrees, rules or regulations and other issuances or parts 
thereof, which are inconsistent with this Act, are hereby repealed, amended or modified 
accordingly. 
SECTION 6. Act shall take effect after fifteen (-l5) days following its publication 
either in the Official Gazette of in a newspaper of general circulation. 
APPROVED,