NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SENATE 
S. B. NO. 741
Senate
i0ffi£p of tljf lo'ccrprarp
*22 JUL18 P5:03
RECEIVED BY;
Introduced by SENATOR JOEL VILLANUEVA
AN ACT RATIONALIZING GOVERNMENT INTERVENTIONS IN 
LABOR DISPUTES BY ADOPTING THE ESSENTIAL SERVICES 
CRITERIA IN THE EXERCISE OF THE ASSUMPTION OR 
CERTIFICATION POWER OF THE SECRETARY OF LABOR AND 
EMPLOYMENT, AND DECRIMINALIZING VIOLATIONS THEREOF, 
AMENDING FOR THE PURPOSE ARTICLES 278[263], 279[264] ancJ 
287[272] OF PRESIDENTIAL DECREE 442, OTHERWISE KNOWN AS 
THE LABOR CODE OF THE PHILIPPINES, AS AMENDED AND FOR
OTHER PURPOSES
EXPLANATORY NOTE
Over the years, Articles 278[263], 279[264] and 287[272] of the 1974 Labor 
Code of the Philippines, as amended, have been rendered inconsistent with the 
country’s democratic principles and governance, and increasing use of “labor rights’ 
clauses” in trade agreements, multilateral or otherwise.
The country has long departed from strong-arm rule and from fiercely 
adversarial industrial relations. Article XI11 of the 1987 Philippine Constitution promotes 
the principle of shared responsibility between workers and employers and the 
preferential use of voluntary modes in settling disputes, including conciliation, and 
enforces mutual compliance to foster industrial peace. The Constitution also 
guarantees the rights of all workers to self-organization, collective bargaining and 
negotiations, and peaceful concerted activities, including the right to strike in 
accordance with law, and regulates the relations between workers and employers, 
recognizing the right of labor to its just share in the fruits of production and the right of 
enterprises to reasonable returns on investments, and to expansion and growth.
Past experiences have shown us of violence in the picket lines due to forcible 
restraint on workers’ right to strike; cases of harassments, abductions and 
disappearances of unionists; “criminalization” of labor disputes; company closures; 
mass termination of workers; and high level of distrust in government and in the


process under the law. This is largely due to the perception of corruption and bias in 
labor justice administration because decisions by the Secretary of Labor and 
Employment to assume jurisdiction over a labor dispute have been seen as largely 
favoring employers, who at the sarrie time, are the very first ones to ignore or resist 
return-to-work orders by filing numerous motions for reconsideration and appeals to 
higher courts.
State interventions in labor disputes under paragraph (g) of Article 278[263] of 
the Labor Code have been largely viewed as intrusive and an arbitrary exercise of 
police power. The Se?cretary is provided with very wide latitude of discretion to prevent 
an impending strike or lockout or to stop an ongoing strike or lockout by assuming 
jurisdiction over a labor dispute, which according to his/her own opinion, involve an 
“industry indispensable to national interest.” This overbroad discretion has seen labor 
disputes in an undergarment factory, match sticks manufacturing, hotdog, chicha-corn 
and fish sauce factory being assumed by the Secretary after his/her determination that 
these industries are indispensable to the national interest.
Under paragraph (g) of Article 278[263], the State restrains the exercise of the 
right to strike or lockout and direct workers to return to work and the management to 
accept the striking workers under the same terms and conditions. Defiance of a return- 
to-work order or non-compliance with the procedural requirement for the conduct of a 
strike/lockout is a prohibited act under paragraph (a) of Article 279[264] that may result 
in loss of employment for union officers who knowingly participate in an illegal strike, 
including any worker who knowingiy participate in the commission of illegal acts. 
Additionally, paragraph (a) of Article 287[272] imposes a fine of not less than Php1,000 
nor more than Php10,000 and/or imprisonment of not less than three months nor more 
than three years, or both fine and imprisonment, at the discretion of the Court, for 
violation of any of the provisions of Article 264.
In this regard, both the ILO and the US Trade Representatives have observed 
that the penalties of loss of employment, fine and imprisonment for administrative non- 
compliance is disproportionate to the procedures laid down for notices of strike and on 
cooling-off periods, the absence of which would make the strike illegal.
Thus, the proposed bill seeks to amend Article 278[263], 279[264] and 287(272] 
of the Labor Code to rationalize government interventions in labor disputes by: (a) 
adopting the essential services critena, i.e., functions or services which if interrupted 
would endanger the life, personal safety or health of whole or part of the population, 
in the exercise of the assumption or certification power of the Secretary of Labor and 
Employment, (b) providing clear conditions in its exercise, (c) requiring minimum 
service or operation in case an assumption order will issue, (d) decriminalizing non- 
compliance with the procedural requirements in the exercise of the right to strike, (e) 
providing fines for violation by employer, labor organization, or corporation, and (f) 
providing a procedure for prosecution of criminal acts committed during a strike or 
lockout.
In view of the foregoing, the passage of this bill is earnestly sought.
SENATOR VILL
EVA


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SENATE 
S. B. NO. 741
igfl Senate
of tlif ig'i'iTPtnr^
*22 JUL 18 P5 :03
RECEIVED BY;
Introduced by SENATOR JOEL VILLANUEVA
AN ACT RATIONALIZING GOVERNMENT INTERVENTIONS IN 
LABOR DISPUTES BY ADOPTING THE ESSENTIAL SERVICES 
CRITERIA IN THE EXERCISE OF THE ASSUMPTION OR 
CERTIFICATION POWER OF THE SECRETARY OF LABOR AND 
EMPLOYMENT, AND DECRIMINALIZING VIOLATIONS THEREOF, 
AMENDING FOR THE PURPOSE ARTICLES 278[263], 279[264] and 
287[272] OF PRESIDENTIAL DECREE 442, 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 of the Philippines 
in Congress assembled:
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follows:
SECTION 1. Article 278 [263] of the Labor Code is hereby amended to read as
Article 278 [263]. Strikes, picketing and lockouts. -
a) It is the policy of the State to encourage free trade unionism and free 
collective bargaining.
b) Workers shall have the right to engage in concerted activities for purposes 
of collective bargaining or for their mutual benefit and protection. The right 
of legitimate labor organizations to strike and picket and of employers to 
lockout [, consistent with the national interest,] shall continue to be 
recognized and respected. However, no labor union may strike and no 
employer may declare a lockout on grounds involving inter-union and 
intra-union disputes.
c) In case of bargaining deadlocks, the duly certified or recognized 
bargaining agent may file a notice of strike or the employer may file a 
notice of lockout with the [Ministry] DEPARTMENT OF LABOR AND
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EMPLOYMENT (DOLE) at least 30 days before the intended date thereof. 
In cases of unfair labor practice, the period of notice shall be fifteen (15) 
days and in the absence of a duly certified or recognized bargaining 
agent, the notice of strike may be filed by any legitimate labor organization 
in behalf of its members. However, in case of dismissal from employment 
of union officers duly elected in accordance with the union constitution 
and by-laws, which may constitute union busting where the existence of 
the union is threatened, the fifteen (15) day cooling-off period shall not 
apply and the union may take action immediately.
d) The notice must be in accordance with such implementing rules and 
regulations as the [Minister] SECRETARY of Labor and Employment may 
promulgate.
e) During the cooling-off period, it shall be the duty of the [Ministry] DOLE to 
exert all efforts at the mediation and conciliation to effect a voluntary 
settlement. Should the dispute remain unsettled until the lapse of the 
requisite number of days from the mandatory filing of notice, the labor 
union may strike or the employer may declare a lockout.
f) A decision to declare a strike must be approved by a majority of the total 
union membership in the bargaining unit concerned, obtained by secret 
ballot in meetings or referenda called for that purpose. A decision to 
declare a lockout must be approved by a majority of the board of directors 
of the corporation or association or of the partners in a partnership 
obtained by secret ballot in a meeting called for that purpose. The 
decision shall be valid for the duration of the dispute based on 
substantially the same grounds considered when the strike or lockout vote 
was taken. The [Ministry] DOLE may on its own initiative or upon the 
request of any affected party, supervise the conduct of the secret 
balloting. In every case, the union or the employer shall furnish the 
[Ministry] DOLE the results of the voting at least seven days before the 
intended strike or lockout, subject to the cooling-off period herein 
provided.
g) When [in his opinion] there exists a labor dispute causing or likely to cause 
a strike or lockout in an industry [indispensable to the national interest,] 
ENGAGED IN ESSENTIAL SERVICES, the Secretary of Labor and 
Employment may assume jurisdiction over the dispute: PROVIDED, 
THAT ANY OF THE FOLLOWING CONDITIONS IS PRESENT:
1. BOTH PARTIES HAVE REQUESTED THE SECRETARY OF LABOR 
AND EMPLOYMENT TO ASSUME JURISDICTION OVER THE 
LABOR DISPUTE; OR
2. UPON REQUEST OR PETITION BY EITHER PARTY, OR MOTU 
PROPRIO ON THE PART OF THE SECRETARY OF LABOR AND 
EMPLOYMENT: PROVIDED, THAT A CONFERENCE CALLED BY 
THE OFFICE OF THE SECRETARY ON THE PROPRIETY OF ITS 
ISSUANCE HAS BEEN CONDUCTED.


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IN SUCH CASE, THE SECRETARY OF LABOR AND EMPLOYMENT 
MAY DECIDE OR CERTIFY THE LABOR DISPUTE TO THE 
NATIONAL LABOR RELATIONS COMMISSION (NLRC) FOR 
COMPULSORY ARBITRATION, OR TO A VOLUNTARY 
ARBITRATOR OR PANEL OF VOLUNTARY ARBITRATORS.
SAID ASSUMPTION SHALL HAVE THE EFFECT OF 
AUTOMATICALLY ENJOINING AN IMPENDING STRIKE OR 
LOCKOUT. IF A STRIKE/LOCKOUT HAS ALREADY TAKEN PLACE 
AT THE TIME OF ASSUMPTION, ALL STRIKING OR LOCKED OUT 
EMPLOYEES AND OTHER EMPLOYEES SUBJECT OF THE 
NOTICE OF STRIKE OR LOCKOUT SHALL IMMEDIATELY 
RETURN TO WORK AND THE EMPLOYER SHALL IMMEDIATELY 
RESUME OPERATIONS AND READMIT ALL EMPLOYEES UNDER 
THE SAME TERMS AND CONDITIONS PREVAILING BEFORE THE 
STRIKE OR LOCKOUT.
ESSENTIAL SERVICES REFER TO FUNCTIONS OR SERVICES 
RENDERED BY AN ESTABLISHMENT, WHICH IF INTERRUPTED, 
WOULD ENDANGER THE LIFE, PERSONAL SAFETY OR HEALTH 
OF THE WHOLE OR PART OF THE POPULATION. FOR THIS 
PURPOSE, THE SECRETARY OF LABOR AND EMPLOYMENT, BY 
APPROPRIATE REGULATIONS, SHALL DETERMINE THE 
INDUSTRIES ENGAGED IN ESSENTIAL SERVICES AFTER 
CONSULTATIONS WITH THE NATIONAL TRIPARTITE 
INDUSTRIAL PEACE COUNCIL.
IN LABOR DISPUTES AFFECTING INDUSTRIES ENGAGED IN 
ESSENTIAL SERVICES, IT SHALL BE THE DUTY OF THE UNION 
AND EMPLOYER TO PROVIDE AND MAINTAIN THE OPERATION 
OR DELIVERY OF SERVICES. IN CASE OF HOSPITALS, CLINICS 
OR MEDICAL INSTITUTIONS, THE UNION AND EMPLOYER 
SHALL PROVIDE AND MAINTAIN AN EFFECTIVE AND 
FUNCTIONAL WORKFORCE, WHOSE MOVEMENT AND 
SERVICES SHALL BE UNHAMPERED AND UNRESTRICTED, AS 
ARE NECESSARY TO ENSURE THE PROPER AND ADEQUATE 
PROTECTION OF THE LIFE, PERSONAL SAFETY AND HEALTH 
OF THEIR PATIENTS, MOST ESPECIALLY EMERGENCY CASES, 
FOR THE DURATION OF THE LABOR DISPUTE.
h) WITHIN FIVE (5) DAYS FROM THE ISSUANCE OF THE ASSUMPTION 
OR CERTIFICATION ORDER, A PRELIMINARY CONFERENCE OR 
HEARING SHALL IMMEDIATELY BE CONDUCTED BY THE OFFICE 
OF THE SECRETARY OF LABOR AND EMPLOYMENT, THE 
NATIONAL LABOR RELATIONS COMMISSION, OR THE VOLUNTARY 
ARBITRATOR OR PANEL OF VOLUNTARY ARBITRATORS, AS THE 
CASE MAY BE.


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follows:
i) 
IN CASE OF ACTUAL OR IMPENDING STRIKE OR LOCKOUT IN 
INDUSTRIES THAT ARE NOT ENGAGED IN ESSENTIAL SERVICES, 
THE SECRETARY OF LABOR AND EMPLOYMENT MAY ASSUME 
JURISDICTION UPON JOINT REQUEST OF BOTH PARTIES IN THE 
LABOR DISPUTE AFTER EXHAUSTION OF MANDATORY 
CONCILIATION. EITHER OR BOTH PARTIES MAY ALSO OPT TO 
SUBMIT TO COMPULSORY OR VOLUNTARY ARBITRATION.
j) 
THE FOREGOING NOTV\/ITHSTANDING, THE PRESIDENT OF THE 
PHILIPPINES SHALL NOT BE PRECLUDED FROM DETERMINING 
INDUSTRIES THAT ARE ENGAGED IN ESSENTIAL SERVICES, AND 
FROM INTERVENING AT ANY TIME AND ASSUMING JURISDICTION 
OVER ANY LABOR DISPUTE IN ORDER TO SETTLE OR TERMINATE 
THE SAME DURING SEVERE NATIONAL EMERGENCIES.
SEC. 2. Article 279 [264] of the Labor Code is hereby amended to read as
Article 279 [264]. Prohibited Activities. -
a) No labor organization or employer shall declare a strike or lockout without 
first having bargained colk^ctively in accordance with Title VII of this Book 
or without first having filed the notice required in the preceding Article or 
without the necessary strike or lockout vote first having been obtained and 
reported to the [Ministry] DOLE.
No strike or lockout shall be declared after assumption of jurisdiction by 
the President or the [Minister] SECRETARY or after certification or 
submission of the dispute lo compulsory or voluntary arbitration or during 
the pendency of cases involving the same grounds for the strike or 
lockout.
Any worker whose employment has been terminated as a consequence 
of [any unlawful] AN ILLEGAL lockout shall be entitled to reinstatement 
with full backwages. Any WORKER OR union officer who knowingly 
participates [in an illegal strike and any worker or union officer who 
knowingly participates] in the commission of [illegal] UNLAWFUL acts 
during a strike may be declared to have lost his/HER employment AFTER 
DUE PROCESS. [Provided, That] Mere participation of a worker OR 
UNION OFFICER in a [lawful] strike DECLARED ILLEGAL FOR 
FAILURE OF THE UNION TO COMPLY WITH PROCEDURAL 
REQUIREMENTS UNDER PARAGRAPH (A) OF THIS ARTICLE shall 
not [constitute sufficient] BE A ground for termination of his/HER 
employment, even if a replacement had been hired by the employer 
during such [lawful] ILLEGAL strike.
b) No person shall obstruct, impede, or interfere with, by force, violence, 
coercion, threats or intimidation, any peaceful CONCERTED ACTION, 
INCLUDING picketing by employees during any labor controversy or in


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the exercise of the right of self-organization or collective bargaining, or 
shall aid or abet such obstruction or interference.
c) No employer shall use or employ any strike-breaker, nor shall any person 
be employed as a strike-breaker.
d) No public official or employee, including officers and personnel of the 
[New] Armed Forces of the Philippines or the [Integrated] PHILIPPINE 
National Police, or armed person, PRIVATE SECURITY GUARDS AND 
SIMILAR PERSONNEL IN THE PRIVATE SECURITY AGENCY shall 
bring in, introduce or escort in any manner, [any individual who seeks to 
replace strikers in entering or leaving the premises of a strike area, or 
work in the place of the strikers] REPLACEMENT WORKERS. The police 
force shall keep out of the picket lines unless actual violence or other 
criminal acts occur therein: Provided, That nothing herein shall be 
interpreted to prevent any public officer from taking any measure 
necessary] HOWEVER, THE SECRETARY OF LABOR AND 
EMPLOYMENT OR THE NLRC MAY SEEK THE ASSISTANCE OF LAW 
ENFORCEMENT AGENCIES to maintain peace and order, protect life 
and property, and/or enforce the law and legal orders.
e) No person engaged in picketing shall commit any act of violence, coercion 
or intimidation or obstruct the free ingress to or egress from the 
employer's premises for lawful purposes, or obstruct public 
thoroughfares.
follows:
SEC. 3. Article 287 [272] of the Labor Code is hereby amended to read as
Article 287 [272]. [Penalties] FINES.
a) Any person, EMPLOYER, LABOR ORGANIZATION OR CORPORATION 
FOUND violating any of the provisions of Article 264 of this Code shall be 
punished by a fine of not less than [one thousand pesos (P1,000.00] 
TEN THOUSAND PESOS (P10,000.00) nor more than [ten thousand 
pesos (P10,000.00)] ONE HUNDRED THOUSAND PESOS 
(P100,000.00) [and/or imprisonment for not less than three months nor 
more than three (3) years, or both such fine and imprisonment,] at 
the discretion of the [court] NLRC. [Prosecution under this provision 
shall preclude prosecution for the same act under the Revised Penal 
Code, and vice versa.]
b) Upon the recommendation of the [Minister] SECRETARY of Labor and 
Employment and the [Minister] Secretary of National Defense, foreigners 
who violate the provisions of this Title shall be subject to immediate and 
summary deportation by the [Commission on] BUREAU OF Immigration 
[and Deportation] and shall be permanently barred from re-entering the 
country without the special permission of the President of the Philippines.


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c) THE REGULAR COURTS SHALL HAVE JURISDICTION OVER ANY 
CRIMINAL ACTION ARISING FROM VIOLATION OF ANY OF THE 
PROVISIONS OF ARTICLE 264 OF THE LABOR CODE, AS AMENDED, 
SUBJECT TO THE REQUIRED CLEARANCE FROM DOLE ON CASES 
ARISING OUT OF OR RELATED TO A LABOR DISPUTE.
NO CRIMINAL PROSECUTION UNDER ARTICLE 264 MAY BE 
INSTITUTED WITHOUT A FINAL JUDGMENT THAT AN ILLEGAL 
STRIKE OR LOCKOUT HAS BEEN COMMITTED. THE PRESCRIPTIVE 
PERIOD OF THE CRIMINAL OFFENSE SHALL BE CONSIDERED 
INTERRUPTED DURING THE PENDENCY OF ADMINISTRATIVE 
PROCEEDINGS: PROVIDED, HOWEVER, THAT THE FINAL 
JUDGMENT IN THE SAID PROCEEDINGS SHALL NOT BE BINDING IN 
THE CRIMINAL CASE NOR SHALL IT CONSTITUTE AS AN EVIDENCE 
OF GUILT.
d) COMPLAINTS ON ACTS OR OMISSIONS OF THE PERSONNEL OF 
THE PHILIPPINE NATIONAL POLICE OR THE ARMED FORCES OF 
THE PHILIPPINES IN VIOLATION OF ARTICLE 264 OF THIS CODE 
SHALL BE FILED WITH THE CONCERNED AGENCY, WITHOUT 
PREJUDICE TO THE FILING OF APPROPRIATE CASES BEFORE THE 
OMBUDSMAN.
SEC. 4. Implementing Rules and Regulations. - Within sixty (60) days from 
the effectivity of this Act, the Secretary of Labor and Employment, in consultation with 
the appropriate government agencies and other stakeholders, shall promulgate the 
necessary rules and regulations to implement the provisions of this Act.
SEC, 5. Separability Clause. - If any part or provision of this Act is declared 
unconstitutional or invalid, the remainder of this Act or the provisions not otherwise 
affected shall remain valid and subsisting.
SEC. 6. Repealing Clause. - All laws, presidential decrees, proclamations, 
executive orders issuances, rules and regulations, or any part thereof, inconsistent 
with the provisions of this Act are hereby repealed, amended or modified 
accordingly.
SEC. 7. Effectivity Clause. - This Act shall take effect fifteen (15) days after 
its complete publication in the Official Gazette or in at least two (2) newspapers of 
general circulation.
Approved,