Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No. 2040 7

Introduced by TUCP Party-List Representative
HON. RAYMOND DEMOCRITO C. MENDOZA

EXPLANATORY NOTE

The Philippine Constitution guarantees “the rights of all workers to self-organization,
collective bargaining and negotiations, xxx". However, the Labor Code restricts this
provision by giving too many opportunities to anti-union employers and their
representatives to intervene and frustrate the process. The ‘Employer as Bystander’
is more of the exception than the rule.

This proposed amendment, the ‘Employee Free Choice Act’, will address:

a. Registration of local chapters;

b. Majority sign-up;

¢. Strengthening enforcement; and
d. First contract arbitration.

Removing the requirements for the registration of local chapters will uphold the
principle that the registration of unions is only ministerial on the part of the
Department of Labor and Employment (DOLE). Consistent with the State policy to
promote and guarantee full respect for freedom of association and collective
bargaining, this proposal is seen as an efficient and expeditious administrative
mechanism to implement the said policy.

Majority sign-up will promote employee free choice and make it easier for workers to
join and or establish unions. The current union certification process fails to protect
workers from the inherent coercive power that management holds over workers. The
unequal access to worker-voters tips the balance. Anti-union managers are free to
campaign against unionizationduring working hours while pro-union workers are
banned from talking about unionization evenat break times.

Penalties must be strong enough to prevent anti-union discrimination of workers
exercising their right to self-organization and collective bargaining. Current remedies
fail to address the chilling effect of firings. When a union leader is fired for union
activity, the impact of that firing extends not only to the worker fired, but to other
coworkers that would have received the anti-union message from the employer. The
injunctive relief provision levels the playing field with management by giving
‘employees equal access to such measure. This, and the proposed fine and criminal
liability of employer charged with unfair labor practice, will strengthen enforcement.

First contract mediation and arbitration is necessary because management can
hinder employee free choice by refusing to bargain. Even when employees surmount
the many obstacles to forming a union, management frequently denies them the
benefits of collective bargaining by refusing to agree on a first contract.

This bill will bring Philippine law into compliance with ILO Convention Nos. 87 and 98
on Freedom of Association and the Right to Collective Bargaining, which the
Philippines is obliged to observe as a member State of the International Labor
Organization (ILO).

‘0 &MENDOZA
Representative, TUCP Party-List

27806 2013.

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
FirstRegular Session

House Bill No. 254

Introduced by TUCP Party-List Representative
HON. RAYMOND DEMOCRITO C. MENDOZA

AN ACT
ESTABLISHING AN EFFICIENT SYSTEM TO STRENGTHEN WORKERS’ RIGHT
TO SELF-ORGANIZATION AND COLLECTIVE BARGAINING, AMENDING FOR
THE PURPOSE PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE
KNOWN AS THE LABOR CODE OF THE PHILIPPINES.

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

Section 1.Short Title.— This Act shall be known as the “Employee Free Choice Act
of 2010”.

Section 2.Injunctive Relief.-Paragraph(f) in Article 218 of the Labor Code is
hereby inserted to read as follows:

“article 218.Powers of the Commission.-- Xxx xxx
2X 100

*(F) NOTWITHSTANDING ANY PROVISION OF THIS ARTICLE, TO ENJOIN OR
RESTRAIN ANY ACTUAL OR THREATENED COMMISSION OF ANY UNFAIR
LABOR PRACTICE WHICH, IF NOT RESTRAINED, MAY CAUSE GRAVE OR
IRREPARABLE DAMAGE TO ANY PARTY, ASSOCIATION OR ORGANIZATION:
PROVIDED, THAT THE INJUNCTION RESTORES THE STATUS QUO ANTE
PENDING THE FULL REVIEW AND RESOLUTION OF THE CASE BY THE
COMMISSION.”

Section 3.Removing the Documentary Requirements for Registration of
Local Chapters. - Article 234-A of the Labor Code is hereby amended to read as
follows:

“ARTICLE.234-A. Chartering and Creation of a Local Chapter. - A duly
registered federation or national union may directly create a local chapter by issuing
a charter certificate indicating the establishment of the local chapter. The chapter
shall acquire legal personality [only for purposes of filing a petition for certification
election] from the date it was issued a charter certificate AND SHALL BE ENTITLED
TO THE RIGHTS AND PRIVILEGES OF A LEGITIMATE LABOR ORGANIZATION UPON
SUBMISSION OF ITS CHARTER CERTIFICATE TO THE DEPARTMENT OF LABOR AND
EMPLOYMENT.”

Section 4.Remedy forUnfair Labor Practices. - A new provision is hereby
inserted into the Labor Code as Article 247-A to read as follows:

“ARTICLE 247-A. NOTWITHSTANDING THE PROVISION OF THE IMMEDIATELY
PRECEDING PARAGRAPH, ANY EMPLOYER, INCLUDING ANY PERSON ACTING IN THE
INTEREST OF AN EMPLOYER, WHO DISMISSES OR THREATENS TO DISMISS OR
OTHERWISE DISCRIMINATE AGAINST A UNION MEMBER OR A DULY ELECTED
UNION OFFICER COMMITS NOT ONLY AN UNFAIR LABOR PRACTICE BUT ALSO A
CRIMINAL OFFENSE WHICH MAY BE THE SUBJECT OF AN IMMEDIATE CRIMINAL
PROSECUTION.


“AN EMPLOYEE DISCRIMINATED AGAINST WHILE SEEKING REPRESENTATION BY A
LABOR ORGANIZATION, OR DURING THE PERIOD AFTER A LABOR ORGANIZATION
WAS RECOGNIZED AS A REPRESENTATIVE UNTIL THE FIRST COLLECTIVE
BARGAINING AGREEMENT WAS ENTERED INTO BETWEEN THE EMPLOYER AND THE
REPRESENTATIVE, THE NLRC IN SUCH ORDER SHALL AWARD THE EMPLOYEE BACK
PAY AND, IN ADDITION, TWO (2) TIMES THAT AMOUNT AS LIQUIDATED DAMAGES.

“ANY EMPLOYER WHO WILLFULLY OR REPEATEDLY COMMITS ANY UNFAIR LABOR
PRACTICE WHILE ITS EMPLOYEES ARE SEEKING REPRESENTATION BY A LABOR
ORGANIZATION OR DURING THE PERIOD AFTER A LABOR ORGANIZATION HAS.
BEEN RECOGNIZED AS A REPRESENTATIVE UNTIL THE FIRST COLLECTIVE
BARGAINING CONTRACT IS ENTERED INTO BETWEEN THE EMPLOYER AND THE
REPRESENTATIVE SHALL, IN ADDITION TO ANY MAKE-WHOLE REMEDY ORDERED,
BE SUBJECT TO A CIVIL PENALTY OF NOT TO EXCEEDFIVE HUNDREDTHOUSAND.
PESOS (P500,000.00) FOR EACH VIOLATION. IN DETERMINING THE AMOUNT OF
ANY PENALTY UNDER THIS SECTION, THE COMMISSION SHALL CONSIDER THE
GRAVITY OF THE UNFAIR LABOR PRACTICE AND THE IMPACT OF THE UNFAIR LABOR
PRACTICE ON THE CHARGING PARTY, ON OTHER PERSONS SEEKING TO EXERCISE
RIGHTS GUARANTEED BY THIS CODE, OR ON THE PUBLIC INTEREST.

“CRIMINAL COMPLAINT IN VIOLATION OF THIS ARTICLE SHALL FALL UNDER THE
CONCURRENT JURISDICTION OF THE MUNICIPAL OR REGIONAL TRIAL COURT.”

Section 5.Facilitating Initial Collective Bargaining Agreements.-Article 250
(e) of the Labor Code is hereby amended to read as follows:

“ARTICLE 250.Procedure in collective bargaining.-Xxx xxx
HX XXX

“(e) The Board shall exert all efforts to settle disputes amicably and
encourage the parties to submit their case to a voluntary arbitrator. IN
COLLECTIVE BARGAINING HELD FOR THE PURPOSE OF ESTABLISHING AN
INITIAL AGREEMENT, THE BOARD SHALL REFER THE DISPUTE TO AN
ARBITRATION BOARD ESTABLISHED IN ACCORDANCE WITH SUCH
REGULATIONS AS MAY BE PRESCRIBED BY THE BOARD. THE ARBITRATION
PANEL SHALL RENDER A DECISION WITHIN1S DAYSSETTLING THE DISPUTE
AND SUCH DECISION SHALL BE BINDING UPON THE PARTIES FOR A PERIOD
OF THREE (3) YEARS, UNLESS AMENDED DURING SUCH PERIOD BY WRITTEN
CONSENT OF THE PARTIES.”

Section 6.Streamlining Union Certification. - Article 257 of the Labor Code is
hereby amended to read as follows:

“ARTICLE 257.Petitions in Unorganized Establishments. - In any
establishment where there is no certified bargaining agent, THE MED-
ARBITER SHALL AUTOMATICALLY RULE ON A PETITION FOR CERTIFICATION
FILED BY ANY LEGITIMATE LABOR ORGANIZATION. IF THE LABOR
ORGANIZATION SHOWS THAT A MAJORITY OF THE EMPLOYEES IN THE
BARGAINING UNIT HAS SIGNED VALID AUTHORIZATIONS DESIGNATING THE
PETITIONER LABOR ORGANIZATION AS THEIR BARGAINING
REPRESENTATIVE, THE MED-ARBITER SHALL CERTIFY THE LABOR
ORGANIZATION AS THE EXCLUSIVE BARGAINING AGENT. IF THE LABOR
ORGANIZATION FAILS TO SHOW VALID AUTHORIZATIONS FROM A MAJORITY
OF THE EMPLOYEES, a certification election shall automatically be conducted
by the Med-Arbiter upon the filing of a petition by any legitimate labor
organization, including a national union or federation which has already
issued a charter certificate to its local/chapter participating in the certification
election or a local/chapter which has been issued a charter certificate by the
national union or federation.

“In cases where the petition was filed by a national union or federation, it
shall not be required to disclose the names of the local chapter's officers and
members.”


Section 7.Employer Petition. - Article 258 of the Labor Code is hereby amended to
read as follows.

“ARTICLE. 258. When an employer may file petition. - When requested to
bargain collectively, an employer may petition the Bureau for [an election] A UNION
CERTIFICATION. If there is no existing certified collective bargaining agreement in
the unit, the Bureau shall, after hearing, CERTIFY THE LEGITIMATE LABOR
ORGANIZATION OR order a certification election IN ACCORDANCE WITH ARTICLE
257 OF THIS CODE.

“All certification cases shall be decided within twenty (20) working days FROM
FILING OF THE PETITION.

“The Bureau shall conduct a certification election within twenty (20) days in
accordance with the rules and regulations prescribed by the Secretary of
Labor.”

Section 8.Separability Provisions.-- If any part of this Act is held invalid or
declared unconstitutional, the same shall not affect the validity and effectivity of the
other parts thereof.

Section 9.Repealing Clause. -- All laws, decrees, executive orders, rules and
regulations or parts thereof, which are inconsistent with this Act, are hereby
repealed, amended or modified accordingly.

Section 10.Effectivity. - This Act shall take effect fifteen (15) days after its
publication in at least two newspapers of general circulation.

Approved,