FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 
793 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The preferential use of voluntary modes of dispute settlement, particularly 
voluntary arbitration, has been given impetus with the passage of R.A. No. 6715 
in 1989. 
As a state policy, the preferential use of voluntary arbitration in all labor-
management disputes, other than those arising from the interpretation and 
implementation of collective b~rgaining agreements and company personnel 
policies, is highly encouraged. This is because lasting industrial peace can be 
achieved only through the sincere desire and mutual effort of labor and 
management to resolve their differences. Specifically, Sec. 3, Article XIII of the 
1987 Constitution provides that "The State shall promote the principle of shared 
responsibility between workers and employers and the preferential use of 
voluntary modes in settling dispute including conciliation, and shall enforce their 
mutual compliance therewith to foster industrial peace." 
As the program reachecl its 17th year of implementation under the 
auspices of the National Conciliation and Mediation Board, specific problems 
cropped up which hampered the full promotion of voluntary arbitration as the 
preferential mode of dispute settlement. This include the overlapping jurisdiction 
of Labor Arbiters and Voluntary 'Arbitrators over termination disputes, refusal of 
one party to arbitrate and delays in the disposition of cases by arbitrators. Also, 
the promulgation of Luzon Development Bank case and st. Martin Funeral 
Homes case which applies the appellate jurisdiction of the Court of Appeals to 
voluntary arbitration adds another layer to the review process. 
These 
developments negate promotional efforts undertaken by the NCMB to boost 
voluntary arbitration as an important component of the Philippine ADR. Through 
the proposed Bill on Voluntary Arbitration, these identified problems and issues, 
among others, are hoped to be addressed. 
While the Labor Code contains ample provisions to encourage the use of 
voluntary arbitration as the preferred mode of settling labor disputes, experience 
point to the need to further strengthen particular sections of the law. It is to this 
end that this measure is being introduced, seeking to amend the following 
provisions of the Labor Code: 
Article 260. 


1. Grievance machinery provIsion should be strengthened to ensure that 
grievance mechanisms are in place and that parties will continuously work 
to enhance such mechanisms. 
2. Designation of voluntary arbitrators in advance is encouraged. 
3. Inclusion of a provision stating that in case the CBA does not specify the 
number of arbitrators, parties should submit their unresolved grievances to 
a single arbitrator; 
4. On the refusal of one party to submit to arbitration to the prejudice of the 
aggrieved party, the NCM.B proposed for the inclusion of the principle of 
notice to arbitrate to ensure that the voluntary arbitration proceedings can 
proceed notwithstanding the refusal of one party. 
This measure was 
already introduced in DO 40-03; however, some parties continue to 
challenge this principle. 
Article 261. 
5. The concern on the overlapping jurisdiction of Labor Arbiters and 
Voluntary Arbitrators is proposed to be addressed by amending Article 
261 of the Labor Code and Article 217 in order to specify that termination 
cases as a result of interpretation and enforcement of company personnel 
policies involving workers covered by collective bargaining agreements 
should fall under the jurisdiction of voluntary arbitrators. 
Article 262. 
6. The concurrent jurisdiction of voluntary arbitrators is proposed to be 
expanded to include an option for party-complainants not covered by 
collective bargaining agreements to have a choice where they want to 
submit their dispute. 
7. The same provision also included the instances where the Secretary of 
Labor and Employment would have the discretion to certify a dispute not 
only to the National Labor Relations Commission but also to voluntary 
arbitration. 
Article 262-A. 
8. Voluntary Arbitrators should also have powers to administer oaths, 
subpoena witnesses, req~ire the production of documents, and cite for 
direct and indirect contempt and impose the appropriate penalties in 
accordance with law. 
9. Appropriate sanction is proposed to be imposed to arbitrators who cannot 
render an award or decision within the period prescribed by law. 
10. On the issue of appeal, the proposed Bill expressly provides that the final 
decision of voluntary arbitrators shall be immediately executory unless 
restrained by the Supreme Court which alone shall have the authority to 
review the decision of the arbitrator in a Petition for Certiorari under Rule 
65 of the Rules of Court. 
11.lnclude a provision creating sheriff positions at the NCMB and requiring 
them to execute decisions of voluntary arbitrators. This is anchored on the 
fact that the sheriffs of the NLRC who execute decisions of voluntary 
arbitrators are not always available to provide services to parties in a 


voluntary arbitration case considering that they give priority to their own 
cases in NLRC. 
12.ln case the voluntary arbitrator or panel of arbitrators who issued the 
decision becomes incapacitated for any reason, the NCMB is proposed to 
be given the authority to designate another arbitrator, in consultation with 
the parties, to issue the writ of execution. 
Article 263. 
13. Article 263 (g) is proposed to be amended to allow the Secretary of Labor 
and Employment to certify cases to voluntary arbitration in national 
interest cases. 
Article 277. (f) 
14. Article 277 (f) is propose;d to be renumbered as 262-C referring to "The 
Special Voluntary Arbitration Fund" provision. The Article provides for the 
allocation of P75 Million in the NCMB's annual general appropriations 
which allocated 80% of the case subsidy for the unions which do not have 
the capacity to pay the voluntary arbitrators' fees. The 20% of the fund 
shall be allocated to operations of the Tripartite Voluntary Arbitration 
Advisory Council (TVAAC) and the promotion of the voluntary arbitration 
program including the regular training for arbitrators. 
15. A new provision Article 262-0 is proposed to be inserted to provide for the 
accreditation and de-accreditation of voluntary arbitrators. This confers 
expressed power to the NCMB to accredit and de-accredit voluntary 
arbitrators. Under the existing provision of the Labor Code, the authority of 
the Board to accredit is iinplied only from Art. 260. The same provision 
also requires attendance of voluntary arbitrators to continuing retooling 
programs in order to remain in the active list of arbitrators. The same 
provision also provides for the authority of the Board to de-list and remove 
arbitrators from the roster of active arbitrators. 
16. Another new provision Article 262-E is proposed to be inserted providing 
the composition of the Tripartite Voluntary Arbitration Advisory Council. It 
proposes for the inclusion of the PAVA as members of the TVAAC to 
represent the voluntary arbitrators. This, however, shall be without any 
compensation. 
In view thereof, the urgent approval of this Bill is earnestly sought. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'SENATE 
Senate Bill No. 793 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
FURTHER STRENGTHENING VOLUNTARY ARBITRATION AS THE 
PREFERENTIAL MODE OF LABOR DISPUTE SETTLEMENT, AMENDING 
FOR THIS PURPOSE ARTICLES 217, 260, 261, 262-A, 262-B, 263(G) AND 
ARTICLE 277(F}, AND INCORPORATING A NEW ARTICLE 262-0 OF 
PRESIDENTIAL DECREE NO. 442, OTHERWISE KNOWN AS THE LABOR 
CODE OF THE PHILIPPINES, AS AMENDED 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: . 
SECTION 1. Article 217 of PO 442, otherwise known as the Labor Code of 
the Philippines, as amended, is hereby further amended to read as: 
"1. Unfair labor practice cases; 
2. Termination disputes EXCEPT THOSE INVOLVING WORKERS COVERED 
BY COLLECTIVE BARGAINING AGREEMENTS WHICH SHALL BE 
SUBJECT TO THE GRIEVANCE MACHINERY AND VOLUNTARY 
ARBITRATION; 
, 
3. XXX" 
SEC. 2. Article 260 of the same Code, otherwise known as the Labor 
Code of the Philippines, as amended, is hereby further amended to read as: 
"Article 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 1} arising from the 
implementation or interpretation of the collective bargaining agreements and 2) 
those arising from the interpretation or enforcement of company personnel 
policies which remain unresolved after exhaustion of the grievance procedure 
INCLUDING ALL TERMINATION CASES INVOLVING WORKERS COVERED 
BY COLLECTIVE BARGAINING AGREEMENTS. FOR THIS PURPOSE, THE 
PARTIES 
AND 
THE 
BOARD 
SHALL 
ENSURE 
THAT 
GRIEVANCE 
MECHANISMS ARE IN PLACE IN ALL ORGANIZED ESTABLISHMENTS AND 
SHALL CONTINUOUSLY WORK TO ENHANCE AND STRENGTHEN THIS 
GRIEVANCE MACHINERY." 


"All grievances submitted to the grievance machinery which are not settled 
within seven (7) calendar days ,from the date of its submission TO THE LAST 
STEP PRIOR TO VOLUNTARY ARBITRATION 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 
NAME AND DESIGNATE IN ADVANCE [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 
SO NAMED AND DESIGNATED [selected by the parties as described above]." 
"IF THE COLLECTIVE BARGAINING AGREEMENT DOES 
NOT 
SPECIFY THE NUMBER OF ARBITRATORS, THE CASE SHALL BE 
SUBMITTED, HEARD AND RESOLVED BY A SOLE ARBITRATOR, UNLESS 
THE PARTIES AGREE OTHERWISE." 
"IF ONE OF THE PARTIES REFUSES TO SUBMIT THE UNRESOLVED 
GRIEVANCES TO VOLUNTARY ARBITRATION, THE WILLING PARTY SHALL 
INITIATE SUBMISSION TO ARBITRATION BY SERVING A NOTICE TO 
ARBITRATE UPON THE OTHER PARTY TO A COLLECTIVE BARGAINING 
AGREEMENT. THE NOTICE SHALL STATE THE ISSUE OR ISSUES TO BE 
ARBITRATED, COPY THEREOF FURNISHED THE BOARD AND/OR THE 
VOLUNTARY ARBITRATOR OR PANEL OF ARBITRATORS DESIGNATED IN 
THE COLLECTIVE BARGAINING AGREEMENT." 
"IF THE PARTY UPON WHOM THE NOTICE IS SERVED FAILS OR 
REFUSES TO RESPOND FAVORABLY WITHIN SEVEN (7) DAYS FROM 
RECEIPT THEREOF, THE VOLUNTARY ARBITRATOR OR PANEL OF 
VOLUNTARY 
ARBITRATORS 
DESIGNATED 
IN 
THE 
COLLECTIVE 
BARGAINING AGREEMENT SHALL COMMENCE VOLUNTARY ARBITRATION 
PROCEEDINGS. WHERE THE COLLECTIVE BARGAINING AGREEMENT 
DOES NOT SO DESIGNATE, THE BOARD SHALL CALL THE PARTIES AND 
APPOINT A VOLUNTARY ARBITRATOR OR PANEL OF VOLUNTARY 
ARBITRATORS, WHO SHALL THEREAFTER COMMENCE ARBITRATION 
PROCEEDINGS IN ACCORDANCE WITH THE PRECEEDING PARAGRAPH." 
"IN INSTANCES WHERE PARTIES FAIL TO SELECT A VOLUNTARY 
ARBITRATOR OR PANEL OF VOLUNTARY ARBITRATORS, THE REGIONAL 
BRANCH DIRECTOR OF THE BOARD SHALL DESIGNATE THE VOLUNTARY 
ARBITRATOR OR PANEL OF VOLUNTARY ARBITRATORS, AS MAY BE 
NECESSARY, WHICH SHALL HAVE THE SAME FORCE AND EFFECT AS IF 
THE PARTIES HAVE SELECTED THE ARBITRATOR." 
SEC. 3. Article 261 of the same Code, as amended, is hereby further 
amended to read as: 
"Article 261. Jurisdiction :of Voluntary Arbitrators or Panel of Voluntary 
Arbitrators. - The Voluntary Arbitrator or Panel of Voluntary Arbitrators shall have 
original and exclusive jurisdiction to hear and decide ALL unresolved grievances: 
1. Arising from the implementation or interpretation of the collective bargaining 
agreements; [and] 


2. [those] Arising from the interpretation or enforcement of company personnel 
policies referred to in the immediately preceding article, INCLUDING CASES 
OF TERMINATION OF WORKERS COVERED BY COLLECTIVE 
BARGAINING AGREEMENTS; 
3. RELATING TO WAGE DISTORTION ISSUES UNDER RA 6727; AND 
4.ARISING FROM PRODUCTIVITY INCENTIVE PROGRAMS UNDER RA 6971." 
"Accordingly, violation of a Collective Bargaining Agreement, except those 
which are gross in character, shall no longer be treated as unfair labor practice 
and shall be resolved as grievances under the Collective Bargaining Agreement. 
For purposes of this article, gross violation of Collective Bargaining Agreement 
shall mean flagrant and/or malicious refusal to comply with the economic 
provisions of such agreement." 
"The Commission, its Regional Offices and the Regional Directors of the 
Department of Labor and Employment shall not entertain disputes, grievances or 
matters under the exclusive and original jurisdiction of the Voluntary Arbitrator or 
Panel of Voluntary Arbitrators and shall immediately dispose and refer the same 
to the Grievance Machinery or Voluntary Arbitration provided in the Collective 
Bargaining Agreement." 
SEC. 4. Article 262, of the same Code, as amended, is hereby further 
amended to read as: 
. 
''Art. 262. Jurisdiction over other labor disputes - The Voluntary Arbitrator 
or Panel of Voluntary Arbitrators [, upon agreement of the parties,] shall also hear 
and decide all other labor disputes [including unfair labor practices and 
bargaining deadlocks.llN ANY OF THE FOLLOWING SITUATIONS:" 
A. UPON AGREEMENT OF THE PARTIES. 
B. IF THE PARTIES ARE NOT COVERED BY A COLLECTIVE 
BARGAINING AGREEMENT, THE PARTY-COMPLAINANT, MAY AT 
HIS/HER OPTION, SUBMIT THE CLAIM OR DISPUTE TO EITHER 
THE VOLUNTARY ARBITRATOR OR PANEL OF VOLUNTARY 
ARBITRATORS, OR TO THE NATIONAL LABOR RELATIONS 
COMMISSION AND ITS LABOR ARBITERS. 
IF THERE IS NEITHER A PROVISION NOR AGREEMENT AS TO 
THE VOLUNTARY ARBITRATOR TO BE APPOINTED BY THE 
PARTIES, THE SAME SHALL BE APPOINTED BY THE BOARD 
FROM THE LIST OF ACTIVE AND ACCREDITED VOLUNTARY 
ARBITRATORS. 
. 
C. WHEN THE DISPUTE IS CERTIFIED BY THE SECRETARY OF 
LABOR AND EMPLOYMENT TO THE BOARD FOR VOLUNTARY 
ARBITRATION IN ACCORDANCE WITH ARTICLE 263 (G) OF THIS 
CODE. 
SEC. 5. Article 262-A of the same Code, as amended, is hereby further 
amended to read as: 
"Article 262-A. Procedures - The Voluntary Arbitrator or Panel of Voluntary 
Arbitrators shall have the power to ADMINISTER OATHS, hold hearings, receive 


evidences, SUBPOENA WITNESSES TO APPEAR IN HEARINGS AND TO 
PRODUCE DOCUMENTS, TO CITE FOR DIRECT AND INDIRECT CONTEMPT 
AND IMPOSE APPROPRIATE. PENALTIES THEREFOR IN ACCORDANCE 
WITH LAW and take whatever action is necessary to resolve the issue or issues 
subject of the dispute, including efforts to effect a voluntary settlement between 
parties." 
, 
"All parties to the dispute shall be entitled to attend the arbitration 
proceedings. The attendance of any third party or the exclusion of any witness 
from the proceedings shall be determined by the voluntary arbitrator or Panel of 
Voluntary Arbitrators. Hearings may be adjourned for a cause or upon agreement 
by the parties." 
"Unless the parties agree otherwise, it shall be mandatory for the voluntary 
arbitrator or Panel of Voluntary Arbitrators to render an award or decision within 
twenty (20) calendar days from the date of submission of the dispute FOR 
DECISION [to voluntary arbitratiOn]. "FAILURE ON HIS/HER OR THEIR PART 
TO RENDER AN AWARD OR A DECISION WITHIN SUCH PRESCRIBED 
PERIOD SHALL BE SUFFICIENT CAUSE FOR THE BOARD TO DELIST OR 
REMOVE THEIR NAMES FROM THE LIST OF ACCREDITED VOLUNTARY 
ARBITRATORS AND BAR THEM FROM PRACTICE OF THE VOLUNTARY 
ARBITRATION PROFESSION; PROVIDED, HOWEVER, THAT DUE PROCESS 
IS OBSERVED. 
IN SUCH CASES, IT SHALL BE UNLAWFUL FOR THE 
VOLUNTARY ABITRATOR OR PANEL OF VOLUNTARY ARBITRATORS TO 
REFUSE OR FAIL TO TURN OVER TO THE BOARD THE RECORD OF THE 
CASES WITHIN TEN (10) CALENDAR DAYS AFTER ITS DEMAND FOR THE 
SAME 
FOR 
FURTHER DISPOSITION 
IN 
ACCORDANCE WITH THE 
PRECEEDING PARAGRAPHS.'" 
"The award or decision of the voluntary arbitrator or Panel of Voluntary 
Arbitrators shall contain the facts and the law on which it is based. It shall be final 
and executory after ten (10) calendar days from receipt of the copy of the award 
or decision by the parties. THE FINAL DECISION OF THE VOLUNTARY 
ARBITRATOR OR PANEL OF VOLUNTARY ARBITRATORS SHALL BE 
IMMEDIATELY EXECUTORY UNLESS RESTRAINED BY THE SUPREME 
COURT WHICH ALONE SHALL REVIEW THE AWARD OR DECISION IN A 
PETITION FOR CERTIORARI UNDER RULE 65 OF THE RULES OF COURT. 
"Upon motion of any interested party, the Voluntary Arbitrator or Panel of 
Voluntary Arbitrators SHALL ISSUE THE WRIT OF EXECUTION. [or the Labor 
Arbiter in the region where the movant resides, i] In case of the absence or 
incapacity of the Voluntary Arbitrator or Panel of Voluntary Arbitrators, for any 
reason, THE BOARD SHALL DESIGNATE, UPON CONSULTATION WITH THE 
PARTIES, ANOTHER VOLUNTARY ARBITRATOR TO issue a writ of execution 
requiring either the sheriff of the NATIONAL CONCILIATION AND MEDIATION 
BOARD, DEPARTMENT OF LABOR AND EMPLOYMENT, NATIONAL LABOR 
RELATIONS COMMISSION, [Commission or regular courts] or any public official 
whom the parties may designate in the submission agreement to execute the 
final decision L order or award]. IN ORDER TO FACILITATE THIS FUNCTION, 
THE POSITION OF SHERIFF IS HEREBY CREATED IN ALL REGIONAL 
BRANCHES OF THE BOARD." 
"FOR THIS MATTER, THE BOARD MAY DEPUTIZE ANY LAW 
ENFORCEMENT AGENCY TO ASSIST IN THE EFFECTIVE ENFORCEMENT 
OF DECISIONSL AWARDS, RESOLUTIONS OR ORDERS] OF VOLUNTARY 
ARBITRATORS OR PANEL OF ARBITRATORS." 


SEC. 6. Article 262-B of the same Code, as amended, is hereby further 
amended to read as: 
"Art. 262-B. Cost of Voluntary Arbitration and Voluntary Arbitrator's fee. -
The parties to a Collective Bargaining Agreement shall provide therein a 
proportionate sharing scheme on the cost of voluntary arbitration including 
PAYMENT OF VOLUNTARY ARBITRATOR'S FEES. The fixing of fees of 
Voluntary Arbitrators, whether shouldered wholly by the parties or TO BE 
subsidized by the Special Voluntary Action Fund SHALL BE MADE IN 
ACCORDANCE WITH THE GUIDELINES ISSUED BY THE BOARD 
UPON 
RECOMMENDATION 
OF THE TRIPARTITE VOLUNTARY 
ARBITRATION ADVISORY COUNCIL AND APPROVED BY THE 
SECRETARY OF LABOR AND EMPLOYMENT and shall take into 
account the following factors: 
(a) Nature of the case; 
(b) Time consumed in hearing the case; 
(c) Professional standing of the Voluntary Arbitrator; 
(d) Capacity to pay of the parties; and 
(e) Fees provided for in the Revised Rules of Court." 
SEC. 7. Article 277, paragraph (f) of the same Code, as amended, is 
hereby renumbered as Article 262-C, to read as: 
"ARTICLE 262-C. THE SPECIAL VOLUNTARY ARBITRATION FUND. 
[(f)] A special Voluntary Arbitration Fund is hereby established in the Board to 
subsidize the cost of voluntary arbitration [in cases involving the interpretation of 
the Collective Bargaining Agreement,] including the arbitrator's fees, and for such 
other related purposes to promote and develop voluntary arbitration. The Board 
shall administer the Special Voluntary Arbitration Fund in accordance with the 
guidelines it may adopt upon the recommendation of the Council, which 
guidelines shall be subject to the approval of the Secretary of Labor and 
Employment, PROVIDED, THAT EIGHTY PERCENT 80% OF THE FUND 
SHALL BE ALLOCATED FOR SUBSIDY FOR UNIONS WHICH DO NOT HAVE 
THE CAPACITY TO PAY THEIR AGREED SHARE OF THE VOLUNTARY 
ARBITRATOR'S FEE AS PROVIDED FOR IN THE CBA. CONTINUING FUNDS 
NEEDED FOR THIS PURPOSE IN THE INITIAL YEARLY AMOUNT OF 
SEVENTY-FIVE MILLION PESOS (Php75,000,000.00) [fifteen million pesos] 
shall be provided in the 1989 annual general appropriations act.' 
"The amount of subsidy in appropriate cases shall be determined by the 
Board in accordance with the established guidelines issued by it upon the 
recommendation of the Council." 
"THE REMAINING TWENTY PERCENT (20%) OF THE FUND shall [also] 
be utilized for the operation of the council, the training and education of Voluntary 
Arbitrators and the Voluntary Arbitration Program." 
SEC. 8. A new provision is hereby proposed to be inserted as Article 262-
D, to read as: 
"ARTICLE 262-D. ACCREDITATION AND DE-ACCREDITATION OF 
VOLUNTARY ARBITRATORS". 
"THE BOARD SHALL HAVE THE POWER TO ACCREDIT VOLUNTARY 
ARBITRATORS AND MAINTAIN A ROLL OF ACCREDITED VOLUNTARY 
ARBITRATORS IN ACCORDANCE WITH THE CRITERIA AND GUIDELINES IT 


SHALL ESTABLISH." 
, 
"THE 
ACCREDITATION 
OF 
AN 
INDIVIDUAL 
AS 
VOLUNTARY 
ARBITRATOR SHALL BE SUBJECT TO THE CONDITION THAT HE MEETS 
ALL 
THE 
QUALIFICATIONS 
PRESCRIBED 
BY 
THE 
BOARD 
FOR 
ACCREDITATION. 
IF 
FOUND 
QUALIFIED, 
ACCREDITATION 
AS 
VOLUNTARY ARBITRATOR SHALL BE ON A LIFETIME BASIS, UNLESS 
DELISTED PURSUANT TO THE DELISTING GUIDELINES APPROVED BY 
THE TRIPARTITE VOLUNTARY ARBITRATION ADVISORY COUNCIL. TO 
MAINTAIN THEIR ACTIVE STATUS, HOWEVER, VOLUNTARY ARBITRATORS 
SHALL BE REQUIRED TO ATTEND THE ARBITRATORS' CONTINUING 
RETOOLING PROGRAM (ACRP), SUBJECT TO THE GUIDELINES WHICH 
THE COUNCIL AND THE BOARD SHALL ADOPT." 
"ONLY ARBITRATORS WITH ACTIVE STATUS SHALL BE INCLUDED 
IN THE LIST OF ACTIVE ARBITRATORS BEING DISSEMINATED TO LABOR 
AND MANAGEMENT FOR SELECTION AND APPOINTMENT PURPOSES. " 
''THE BOARD SHALL ALSO HAVE THE POWER TO DELIST AND 
REMOVE ACCREDITED VOLUNTARY ARBITRATORS FROM THE ROLL FOR 
JUST CAUSE AND SUBJECT TO THE REQUIREMENTS OF DUE PROCESS; 
PROVIDED, THAT THE DECISION OF THE BOARD TO DELIST OR REMOVE 
IS FINAL AND EXECUTORY. 
SEC. 9. A new provision taken from Executive Order No. 251 is hereby 
proposed to be inserted as Article 262-E, to read as: 
"ARTICLE 262-E. COMPOSITION OF THE TRIPARTITE VOLUNTARY 
ARBITRATION ADVISORY COl,.JNCIL". 
''THE TRIPARTITE VOLUNTARY ARBITRATION ADVISORY COUNCIL 
IS HEREBY' CREATED AND ATTACHED TO THE NATIONAL CONCILIATION 
AND MEDIATION BOARD. THE COUNCIL SHALL ADVISE THE BOARD ON 
MATTERS 
PERTAINING 
TO 
THE 
PROMOTION 
OF 
VOLUNTARY 
ARBITRATION AS THE PREFERRED MODE OF DISPUTE SETTLEMENT. 
"THE TRIPARTITE VOLUNTARY ARBITRATION ADVISORY COUNCIL 
SHALL CONSIST OF THE EXECUTIVE DIRECTOR [ADMINISTRATOR] OF 
THE NATIONAL CONCILIATION AND MEDIATION BOARD AS CHAIRMAN, 
ONE (1) MEMBER FROM ,THE GOVERNMENT, TWO (2) MEMBERS 
REPRESENTING LABOR, AND TWO (2) OTHER MEMBERS REPRESENTING 
MANAGEMENT. 
THE 
MEMBERS 
SHALL 
BE 
APPOINTED 
BY 
THE 
PRESIDENT TO SERVE FOR A TERM OF THREE (3) YEARS. THE 
CHAIRMAN 
AND 
MEMBERS 
THEREOF 
SHALL 
SERVE 
WITHOUT 
COMPENSATION." 
"IN 
ORDER 
TO 
FURTHER 
STRENGTHEN 
VOLUNTARY 
ARBITRATION, THE PRESIDENT AND EXECUTIVE VICE-PRESIDENT OF 
THE PHILIPPINE ASSOCIATION ON VOLUNTARY ARBITRATION, INC. 
SHALL ALSO BECOME MEMBERS OF THE TRIPARTITE VOLUNTARY 
ARBITRATION ADVISORY COUNCIL." 
SEC. 10. Art. 263 (g) oUhe same Code, as amended, is hereby further 
amended to read as: 
"ARTICLE 263 (g). Strikes, picketing and lockouts. -(a) x x x 


(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, the 
Secretary of Labor and Employment may assume jurisdiction over the dispute 
and decide it or certify the same TO THE BOARD FOR VOLUNTARY 
ARBITRATION, OR to the Commission for compulsory arbitration." 
SEC. 11. All laws, orders, issuances, rules and regulations or parts thereof 
inconsistent with the provisions of this Act are hereby repealed, amended or 
modified accordingly. 
SEC. 12. The Secretary of Labor and Employment shall promulgate the 
necessary rules and regulations to implement the provisions of this Act. 
SEC. 13. If any provision of this Act or the application thereof to any 
person or circumstances is held invalid or unconstitutional, the same shall not 
affect the remaining provisions of this Act. 
SEC. 14. This Act shall take effect fifteen (15) days after its complete 
publication in the Official Gazette or in at least two (2) newspapers of national 
circulation. 
Approved"