Senate Bill No. 581 
I 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The National Conciliation and Mediation Board or NCMB was created in 
January 31, 1987 thru EO 126 to principally perform a dual task: first, to promote 
voluntary arbitration as the preferred mode of labor dispute resolution; and 
second, to prevent impending strikes and lockouts by means of conciliation and 
mediation. 
Despite the creation of a special Voluntary Arbitration Fund and 20 years 
of implementation, the voluntary arbitration program being administered by the 
NCMB never gained the acceptance of the employer sector and labor sector, 
both of whom prefer either the assumption of jurisdiction by the Secretary of 
Labor and Employment or the compulsory arbitration by the NLRC. 
Allowing the NLRC to administer the voluntary arbitration program may be 
the solution to the problem because the compulsory arbitration method employed 
by the NLRC has ever since been overloaded with cases, which gives the NLRC 
an incentive to unload its cases to the voluntary arbitration mode. 
On the part of the NLRC, the infusion of additional resources and 
manpower from the NCMB may be the solution to its perennial case backlogs 
and overflowing dockets. 
This bill seeks to address two huge lingering problems with one simple 
solution, and that is the promotion of voluntary arbitration and the elimination of 
backlog at the NLRC thru the absorption of the NCMB by the NLRC. 
Hence, the immediate passage of this bill is therefore earnestly requested. 
Senator 


"7 &I[;: -2 [ I ( ) ' /  
FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
S E N A T E  
Senate Bill No. 581 
-~ 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
ABOLISHING THE NATIONAL CONCILIATION AND 
MEDIATION BOARD OR NCMB 
Be it enacted by the Senafe and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. The National Conciliation and Mediation Board or NCMB is 
hereby abolished. All properties, records, equipment, buildings, facilities, and 
other assets, liabilities and appropriations of and belonging to the 
abovementioned office, as well as other matters pending therein, including the 
special funds it administers, shall be transferred to the National Labor Relations 
Commission or NLRC. All personnel of the above abolished office shall continue 
to function in a holdover capacity and shall be preferentially considered for 
appointments to or placement in the NLRC. 
Any official or employee separated from the service as a result of the 
abolition of office pursuant to this Act shall be entitled to appropriate separation 
pay and retirement and other benefits accruing to them under existing laws. In 
lieu thereof, at the option of the employee, he shall be preferentially considered 
for employment in the government or in any of its subdivisions, instrumentalities, 
or agencies, including government-owned or controlled corporations and their 
subsidiaries. 
The Department of Labor and Employment shall issue the necessary rules 
and regulations for the implementation of this Act, and for the incorporation of the 
functions and activities of NCMB into the NLRC organization within sixty (60) 
days from the effectivity of this Act. 
SECTION 2. This Act shall take effect fifteen (15) days after its complete 
publication in the Official Gazette or in at least two (2) national papers of general 
circulation. whichever comes earlier. 
Approved,