Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

RECEIVED

TWENTIETH CONGRESS
First Regular Session

S
House Bill No. __ 7 2

Introduced by TUCP Partylist Representative
HON. RAYMOND DEMOCRITO C. MENDOZA

EXPLANATORY NOTE

The TUCP Party-list is refiling this proposed Public Service Labor Relations
bill to uphold the fundamental right to freedom of association of our over two million
workers in Government. This was approved by the House Committee on Civil Service
and Professional Regulation in both the 18th and 19th Congresses but failed to be
referred to the plenary due to lack of material time and competing equally priority
legislative measures. It is fervently hoped that in this 20th Congress we can finally
enact this long-overdue Public Sector Labor Relations bill into law.

It cannot be overemphasized that the 1987 Philippine Constitution recognizes
the public sector employees’ right to self-organization through Article IX-B. This
Constitutional guarantee was translated into Executive Order No. 180, Series of 1987,
or the "Guidelines for the Exercise of the Right to Organize of Government
Employees, Creating a Public Sector Labor-Management Council, and For Other
Purposes." Executive Order No. 180 and its implementing rules and regulations have
since been the governing issuances on public sector labor relations. However, it has
not been amended despite the need and several attempts to create an enabling
environment for decent work in the public sector and address the permeating
patronage system, bloated bureaucracy, “transaction costs/corruption in the
bureaucracy,” and inefficient public service. There are also. longstanding
observations by the ILO Committee of Experts on the Application of Conventions and
Recommendations (CEACR) on gaps in the laws and practices concerning
public-sector unionism.

Further, on 14 August 2017, the Philippine Goverment ratified ILO
Convention 151, known as the Labour Relations (Public Service) Convention, 1978,
or the "Convention concerning Protection of the Right to Organise and Procedures for
Determining Conditions of Employment in the Public Service” after nine (9) long

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years of campaigning by the public sector organizations for its ratification. The
ratification is expected to usher in an era of robust and progressive labor relations
environment for the public service that can only be realized with the passage of this
proposed Bill into law. The main argument in the ratification of ILO Convention No.
151 was the mobilization of the public sector employees in reforming the bureaucracy
and in addressing corruption and widespread "endo" or end of contract engagement of
public service employees in core or critical services through job orders or contracts of
service, casuals and other forms of contractual work.

The essentiality of having a robust and progressive labor relations environment
cannot be overemphasized. It would create conditions for professionalized, trained,
motivated, and efficient public sector employees that are essential in fostering
sustainable good and high-quality public service.

With this and the obligation arising from the ratification of ILO Convention No.
151, upgrading Philippine laws and practices on freedom of association and collective
bargaining in the public sector is imperative. Hence, this proposed measure to address
the gaps in public sector labor relations, particularly on: protection of the right to
organize, facilities to be afforded to public sector employees’ organizations,
procedures for determining the terms and conditions of employment, civil and
political rights, and settlement of disputes arising or in connection with the
determination of terms and conditions of employment.

In view of the foregoing, the passage of this bill is earnestly sought.

HON. RAY! EMOCRITO C. MENDOZA
TUCP Partylist Representative


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bill No._ 92

Introduced by TUCP Partylist Representative
HON. RAYMOND DEMOCRITO C. MENDOZA

AN ACT
STRENGTHENING THE CONSTITUTIONAL RIGHTS OF GOVERNMENT
EMPLOYEES TO SELF-ORGANIZATION, COLLECTIVE BARGAINING
AND NEGOTIATION, PEACEFUL CONCERTED ACTIVITIES, AND USE
OF VOLUNTARY MODES OF DISPUTE SETTLEMENT

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

ARTICLE I
DECLARATION OF POLICY

SEC. 1. Short Title, This Act shall be known as the “Public Service Labor
Relations Act”.

SEC. 2. Declaration of Policy. It is the policy of the State to promote the
right to self-organization of government employees, to collective bargaining and
negotiation and peaceful concerted activities including the right to strike in
accordance with the law, and the right to participate in policy and decision-making
processes affecting their rights and benefits. They shall be entitled to security of
tenure, humane conditions of work, and a living wage.

Public employees shall have civil and political rights which are essential to the
exercise of freedom of association, subject only to the obligations arising from their
status and the nature of their function.


ARTICLE I
GENERAL PROVISIONS,

SEC. 3. Coverage. This Act shall apply to all employees in the civil service,
covering all branches, subdivisions, instrumentalities, and agencies of the
government, including government-owned or controlled corporations with or without
original charters. For this purpose, employees covered by this Act include job order,
contract of service, and barangay workers.

SEC. 4. Definition of Terms. As used in this Act:

(a) Agency refers to any bureau, office, commission, administration, board,
committee, institute, government-owned or controlled corporation with
original charter or any other unit of the national government, as well as
provincial, city, municipal government except as hereinafter otherwise
provided.

(b) Certification election refers to the process of determining through secret ballot
the exclusive bargaining representative of the employees in an appropriate
organizational unit for purposes of collective bargaining or negotiation.

(c) Certified exclusive union refers to a duly registered employees’ organization
which has been certified by the Board as the exclusive bargaining and
negotiating representative having majority support of the agency’s
rank-and-file employees determined through the conduct of a certification
election.

(A) Civil Service refers to the men and women employed to carry out public
services in all branches, agencies, subdivisions and instrumentalities of the
government, including government owned or controlled corporations, local
government units, state universities and colleges, and entities and corporations
sequestered by the government.

(e) Collective bargaining agreement refers to the negotiated contract at the
organizational unit between a certified exclusive bargaining representative and
the concerned public authority or appropriate authority, including those
negotiated at the sectoral or national levels by sectoral or national federation or
confederations with the concerned public authorities on the terms and
conditions of employment and improvements thereof.

(f) Conciliation-mediation refers to a mode of dispute settlement that brings
together two disputing parties to negotiate a mutually acceptable solution
through a non-litigious, non-adversarial, less expensive and expeditious
mechanism.

(g) Confederation refers to the organization of two or more federations as defined
in this Act.

(h) Department refers to any of the departments in the Executive Branch.

@ Employee refers to any person in the civil service of whatever category or
class up to the division chief level, including those who are engaged under


different forms of contractual arrangements in the public service such as job
order, contract of service, or through a memorandum of understanding. It also
includes those whose work have ceased in connection with any current
employee-management dispute or unfair labor practice or whose dismissal
from the services has not attained finality.

(i) Entry position refers to the first level position in the career or non-career
service which include clerical, trades, crafts, and custodial service positions
that involve non-professional or sub professional work in a non-supervisory or
supervisory capacity requiring less than four (4) years of collegiate studies.

(k) Federation refers to a duly registered labor organization with at least five (5)
affiliate employees’ organizations, each of which must be a duly certified
exclusive bargaining and negotiating representative in an organizational unit.

(Y) Grievance refers to any question or complaint regarding an employee's
working conditions, relationship or employment status including question or
interpretation or implementation of any of the provisions of the collective
bargaining or negotiation agreement, or interpretation or enforcement of
company personnel policies.

(m) _Inter-union dispute refers to any conflict between and among registered
employees’ organization or federation or confederation involving
representation questions for purposes of collective bargaining or negotiation or
representation or to any dispute other than an intra-union dispute as defined in
herein.

(n) Intra-union dispute refers to any conflict between and among employees’
organization’s members, including grievances arising from any violation of the
rights and conditions of membership, violation of or disagreement over any
provision of the constitution and by-laws, or dispute arising from affiliation to
any organization.

(0) Labor dispute refers to any controversy or matter concerning terms and
conditions of employment or the association or representation of persons in
negotiating, fixing, maintaining, changing or arranging the terms and
conditions of employment, regardless of whether the party to the dispute
stands in the proximate relation of employer-employee relations.

(p) Labor organization refers to any duly registered employees’ organization, or
duly registered federation or confederation of employees’ organizations,
however they are composed, that exist in whole or in part for the purpose of
collective bargaining or of dealing with the agency or agencies concerning
terms and conditions of employment.

(q) Negotiating unit refers to the constitutional bodies and their regional offices,
the executive department including services and staff bureaus and regional
offices, line bureaus and their regional offices, attached agencies, the
legislature, the judiciary, state universities and colleges, government-owned or
controlled corporations with or without original charter, and, provinces, cities

(t) Non-competitive positions may refer to any of the following:


(1) Policy determining position refers to one which vests in the occupant the
power to formulate policies for the government or any of its agencies,
subdivisions, or instrumentalities like that of a member of the cabinet.

(2) Primarily confidential position refers to one where the occupant enjoys
more than the ordinary confidence of the appointing power but bears
such close intimacy which relieves the latter from misgiving of betrayal
or personal trust on confidential matters.

(3) Highly technical position refers to one which requires the occupant to
possess specialized skill or training such as scientists or legal counsels.

(8) Organizational unit refers to an identifiable government unit, such as the
constitutional bodies and their regional offices; the executive department
including services and staff bureaus; line bureaus; attached agencies; the
Legislature; the Judiciary; state universities and colleges; government-owned
or controlled corporations with or without original charter; provinces; cities;
municipalities; regional offices (composed of provincial, district, local offices)
of a department, agency, office, or government-owned or controlled
corporations; and such other identifiable government units as may be
considered by the Board.

(Q Peaceful concerted activities refer to actions taken by an employees’
organization in relation to a labor dispute which may include submission of
petitions, hanging of streamers, distribution of campaign materials, conduct of
peaceful assembly or wearing of buttons or armed band, and does not include
any form of work stoppage or disruption of public order and safety, or actions
that may pose imminent danger to life, personal safety, or the health of a part
of, or the whole population.

(u) Position refers to an occupational title with a defined set of duties and
responsibilities to be performed by an individual, either on a full time or part
time basis.

(v) Public authority or appropriate authority refers to an authority which has a
legal mandate to govern, or administer a part or aspect of branches, agencies,
subdivisions and instrumentalities of the government including government
owned or controlled corporation, local government units, state universities and
colleges, and entities and corporations sequestered by the government.

(w)Red tagging refers to any malicious blacklisting, profiling, surveillance,
portrayal, description, or characterization of any members or officers or public
sector union, federation or confederation, critical against, or not supportive of
the actions, decisions, policies, and issuance of the government in general or
their public employer, or management.

(x) Registered union refers to any employces’ organization or association duly
registered with the Bureau of Labor Relations (BLR) and includes any branch
or local Chapter thereof.

&) Social dialogue refers to all types of negotiation, consultation, or simply
exchange of information between or among representatives of government and


employees on issues of common interest or relating to economic and social
policy.

(2) Strike refers to any temporary stoppage of work or slow-down by the
concerted action of employees as a result of a labor dispute, as defined in this
Act.

(aa) Strike area refers to the immediate vicinity actually used by picketing
employees in moving to and from before all points of entrance and exit from
the office of the organizational unit or negotiating unit.

(bb) Strike-breaker refers to any person who obstructs, impedes, or interferes
by force, violence, correction, threats, or intimidation any peaceful picketing
by employees due to a labor dispute, as defined in this Act.

(cc) Union or employees’ organization refers to a labor organization formed
and operating in an appropriate organizational unit which aim to protect and
promote employees’ rights and benefits in accordance with the law.

(dd) Union busting refers to any form and range of activities, actions, decisions,
issuances undertaken to constraint, attack, interfere, harass, intimidate,
undermine, disrupt or prevent the organization of public sector union,
federation or confederation from freely functioning in order to place them
under the influence or control of management or their representative, or agent.

(ee) Voluntary arbitration refers to the constitutionally mandated preferential
mode of dispute settlement of labor dispute.

(f) Voluntary recognition refers to the process by which a duly registered
employees’ organization is recognized as the exclusive bargaining
representative of the employees in the organizational unit sought to be
represented.

ARTICLE II
RIGHT TO SELF-ORGANIZATION

SEC. 5. Coverage of the Right to Self-Organization. All workers employed
by the government shall have the right to self-organization and to form, join, or assist
employee organizations, national or sectoral federations or confederations of their
own choice for collective bargaining or negotiation and protection of their interests.

Government employees may also participate, in conjunction with appropriate
government authorities, employee management committees, work councils and other
forms of employee participation schemes.

SEC. 6, Limitation on the Right to Self-Organization of employees under
different forms of public service work arrangements. Employees under different
forms of public service work arrangements such as job order, contract of service, or
on memorandum of understanding, or casual, are eligible to join or assist an
employees’ organization in the organizational unit. They however cannot form a
separate employees’ organization of their own in an organized organizational unit.


lity of managerial, or employees in positions of trust to
join the rank-and-file union, Managerial or employees in positions of trust shall not
be eligible to join, form or assist any rank-and-file employees" organization. They
may, however, have the right to form or join any sectoral, national or international
federation or confederation of their choice.

Accordingly, when a member of a rank-and-file employees’ organization is
designated to a position which has been declared primarily confidential or policy
determining or managerial in nature or by law, membership to the rank-and-file
employees’ organization shall automatically be deemed suspended for the duration of
the designation.

SEC. 8. Exclusion from the right to self-organization. Members of the
Armed Forces of the Philippines, including police officers and members of the
Philippine National Police who are vested with the duty and function of ensuring the
external and internal security of the State are excluded from the coverage of the right
to self-organization.

However, members of the Bureau of Fire Protection and Bureau of Jail
Management and Penology who are not involved in maintaining the security of the
State shall enjoy the right to organize.

SEC. 9. Effect of inclusion as members of ineligible or excluded employee
in the rank-and-file organization. The inclusion of ineligible or excluded
government employees, as provided for in this Act, in the rank-and-file employees’
organization shall not be a ground for the cancellation of union registration, but said
employees shall be automatically deemed removed from the list of membership of the
union.

SEC. 10. Protection of the right to self-organization. No employee shall be
discriminated against by reason of their membership in any employees” organization
or participation in the exercise of the right to self-organization. Employment in the
civil service shall not be subject to a condition not to join, assist or form an
‘employees’ organizations. It shall be unlawful for any person to restrain, coerce or
interfere with employees’ exercise of the right to self- organization.

ARTICLE IV
RIGHTS OF REGISTERED ORGANIZATION AND RIGHTS AND
CONDITIONS OF MEMBERSHIP IN AN EMPLOYEES’ ORGANIZATION

SEC. 11. Rights of a registered organization. A registered employees’
organization or federation or confederation shall have the following rights:


(a) To act as representative of its members for the purpose of representation,
social dialogue, collective bargaining and negotiations;

(b) To be certified as the exclusive bargaining or negotiating representative of all
employees in an organizational unit in the case of employees’ organization;

(©) To be recognized as the bargaining or negotiating representative of all
member-employees’ organizations for national or sectoral bargaining on
matters pertaining to the welfare and benefits of government employees, in the
case of federation or confederation;

(d) In the case of federations, to issue a charter certificate to chartered employees’
organization as guarantee of its existence and legitimacy to be the exclusive
bargaining or negotiating representative of the organizational unit sought to be
represented subject, however, to submission of the charter certificate and
accompanying application for registration as provided for in this Act;

(e) To own property, real or personal, for the use and benefit of the organization
and its members;

(f) To sue and be sued in its registered name;

(g) To be afforded facilities to enable a certified employees’ organizations to carry
out their functions promptly and efficiently, both during and outside their
hours of work, including union or membership dues payroll deduction,
time-off for union activities without loss of pay or benefits, access to
workplaces and prompt access to management, office spaces and equipment,
transportation and communications, authorization to post organization or trade
union notices, right to attend meetings, and right of assembly;

(h) To undertake all other activities not contrary to law, for the benefit of the
‘organization and its members; and

(i) Pursuant to the constitutional provision on the right to information and access
to official records, and documents and papers pertaining to official transactions
or decisions as well as government research data used as basis for policy
development, an employees’ organization, federation and confederation shall
have access to public documents which shall include budget and financial
statements.

The income of legitimate employees’ organization or federation or
confederation, shall be exempt from tax in accordance with Section 30(a) of the
National Internal Revenue Code of 1997, as amended: Provided, That the income of
whatever kind and character of the foregoing organizations from any owned property,
real or personal, or from any activity conducted for profit regardless of the disposition
made of such income, shall be subject to tax imposed under the same code.

All grants, bequests, endowments, donations and contributions made to and
used actually, directly and exclusively by the employees’ organization, federation, or
confederation for official purposes shall be exempt from donor's tax and the same
shall be considered as allowable deduction from gross income for purposes of


computing the taxable income of the donor in accordance with the provisions of the
National Internal Revenue Code of 1997, as amended.

SEC. 12. Rights and conditions of membership in an employees’
organization, federation or confederation. The following are the rights and
conditions of membership in an employees’ organization or federation or
confederation:

(a) No arbitrary or excessive initiation fees shall be required of the members nor
shall any arbitrary, excessive or oppressive fine and forfeiture of membership
be imposed;

(b) The members shall be entitled to full and detailed reports from their officers
and representatives of all financial transactions as provided for in the
constitution and by-laws of the organization;

(©) The members shall directly elect their officers in the employees’ organization,
as well as their national officers in the federation or confederation to which
they are affiliated. No qualification requirement for candidacy to any position
shall be imposed other than membership in good standing in the subject
organization, federation or confederation. The secretary or any other
responsible officer shall furnish the Public Service Labor Relations Board
(PSLRB) with a list of the newly-elected officers, together with the appointive
officers or agents who are entrusted with the handling of funds within thirty
(30) calendar days after the election of officers or from the occurrence of any
change in the list of officers of the organization;

(d) The members shall determine by secret ballot after due deliberation, any
question of major policy affecting the entire membership of the employees”
organization, federation or confederation unless the nature of the organization
or force majeure renders such secret ballot impractical, in which case, the
Board of Directors of the organization may make the decision in behalf of the
general membership;

(e) No person who has been convicted of a crime involving moral turpitude shall
be eligible for election as an officer or for appointment to any position in the
employees’ organization, federation or confederation;

(8) No officer, agent or member of the employees’ organization, federation or
confederation shall collect any fees, dues, or other contributions in its behalf or
make any disbursement of its money or funds unless one is duly authorized
pursuant to its constitution and by-laws;

(g) Every payment of fees, dues or other contributions by a member shall be
evidenced by a receipt signed by the officer or agent making the collection and
entered into the record of the employees’ organization, federation or
confederation to be kept and maintained for the purpose;

(h) The funds of the employees’ organization, federation or confederation shall
not be applied for any purpose or object other than those expressly provided
by its constitution and by-laws or those expressly authorized by written

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resolution adopted by the majority of the members at a general meeting duly
called for the purpose;
Every income or revenue of the employees’ organization, federation or
confederation shall be evidenced by a record showing its source, and every
expenditure of its funds shall be evidenced by a receipt from the person to
whom the payment is made, which shall state the date, place and purpose of
such payment. Such record or receipt shall form part of the financial records of
the organization, federation or confederation.

() Any action involving the funds of the employees’ organization, federation or
confederation shall prescribe after three (3) years from the date of submission
of the annual financial report to the PSLRB or from the date the same should
have been submitted as required by law, whichever comes earlier: Provided,
That this provision shall apply only to registered employees’ organization or
federation or confederation which has submitted the financial report
requirements under this Act: Provided, further, That failure of any employees’
organization, federation or confederation to comply with the periodic financial
reports required by law and such rules and regulations promulgated thereunder
six (6) months after the effectivity of this Act shall be a ground for disciplinary
action against the responsible officers;

(k) The officers shall not be paid any compensation other than the salaries and
expenses due to their positions and shall be specifically provided for in its
constitution and by-laws, or in a written resolution duly authorized by a
majority of all the members at a general membership meeting duly called for
the purpose. The minutes of the meeting and the list of participants and ballots
cast shall be subject to inspection by the PSLRB through the Bureau of Labor
Relations (BLR) as its duly authorized representative. Any irregularities in the
approval of the resolutions shall be a ground for impeachment or expulsion
from the employees’ organization, federation or confederation;

() The treasurer of an employees’ organization and every officer thereof who is
responsible for the account of such organization or for the collection,
management, disbursement, custody or control of the funds, moneys and other
properties of the organization, shall render to the organization and to its
members a true and correct account of all moneys received and paid to the
organization since assumption of office or since the last day on which an
account was rendered, and of all bonds, securities and other properties of the
organization entrusted to the treasurer’s custody or control. The rendering of
such account shall be made:

(1)At least once a year within thirty (30) days after the close of its fiscal

(

year;
(2)At such other times as may be required by a resolution of the majority
of the members of the organization; and
(3) Upon vacating the office.
The account shall be duly audited and verified by affidavit and a copy thereof
shall be furnished the Secretary of Labor.


(m)The books of accounts and other records of the financial activities shall be
open to inspection by any officer or member thereof during office hours;

(A) No special assessment or other extraordinary fees may be levied upon the
members unless authorized by a written resolution of a majority of all the
members in a general membership meeting duly called for the purpose. The
secretary of the organization shall record the minutes of the meeting including
the list of all members present, the votes cast, the purpose of the special
assessment or fees, and the recipient of such assessment or fees. The record
shall be attested to by the president.

(0) Other than for mandatory activities, no special assessments, attorney's fees,
negotiation fees or any other extraordinary fees may be checked off from any
amount due to an employee without an individual written authorization duly
signed by the employee. The authorization should specifically state the
amount, purpose and beneficiary of the deduction; and

(p) It shall be the duty of any organization and its officers to inform its members
on the provisions of its constitution and by-laws, collective bargaining
agreement, the prevailing labor relations system and all their rights and
obligations under existing laws. For this purpose, reasonable dues to finance
labor relations seminars and other labor education activities may be assessed.

ARTICLE V.
PUBLIC SERVICE LABOR RELATIONS BOARD

SEC. 13. Public Service Labor Relations Board (PSLRB); Composition.
The Public Service Labor Relations Board (PSLRB) is hereby constituted and
attached to the Department of Labor and Employment (DOLE) for policy
coordination, It shall implement and administer the provisions of this Act, and shall
be composed of the following:

(a) Duly appointed government representative with rank equivalent to
Undersecretary, as fulltime Chairperson;

(b) Duly elected heads of registered federations or confederations, as members:
and

(©) One (1) duly elected sectoral representative from each of the national
government agencies (NGAs); government owned or controlled corporations
with or without original charter (GOCCs); local government units (LGUs);
state universities and colleges (SUCs), local universities and colleges,
technical and vocational schools; judiciary; legislative; constitutional bodies;
public school teachers and public health workers, as members.

To help ensure the free, democratic, inclusive selection and representation of
PSLRB members, there shall be under the National Workers Congress, a National
Council of Leaders composed of all presidents of sectoral employees’ organizations,


federations and confederations, Regional and Sectoral Councils each for Luzon,
Visayas, Mindanao, and the National Capital Region.

SEC. 14. Original and exclusive jurisdiction of the PSLRB. The PSLRB
shall have original and exclusive jurisdiction to hear and decide the following cases:

(a) Unfair labor practice;

(b) Disputes arising in the course of the conduct of collective negotiations;

(c) Disputes on issues resulting from the interpretation or implementation of the
grievance machinery;

(d) Determination of the presence or absence of a strike;

(€) Disputes on the issues from the interpretation or implementation of the
provisions of collective bargaining agreements;

(f) Violation of the fundamental rights of workers; and

(g) Grave abuse of management prerogatives.

SEC. 15. Appellate jurisdiction of the PSLRB. The PSLRB shall have
appellate jurisdiction on decision or orders of the BLR on:

(a) Representation issues;

(b) Inter- and intra-employees’ organization, federation or confederation disputes;

(c) Issues arising from the election or expulsion of officers of employees’
organization, federation or confederation;

(d) Certification election; and

(©) Verification of voluntary recognition.

SEC. 16. Support and assistance of the Civil Service Commission,
Department of Labor and Employment, National Conciliation and Mediation Board
and law enforcement agencies.

(a) The PSLRB shall have a number of employees as may be necessary. It
shall be supported and assisted by the Civil Service Commission (CSC), DOLE and
the National Conciliation and Mediation Board (NCMB) in the administration of
public sector labor relations.

(b) Specific to the DOLE, the BLR shall, pursuant to its existing mandate
under Executive Order No. 180, Series of 1987, and the Labor Code of the
Philippines, as amended, continue to conduct hearings on inter or intra-union disputes
with respect to public sector organizations, including the registration and cancellation
of registration of employees’ organization, federation or confederation. The decision
of the BLR shall be appealable to the PSLRB within fifteen (15) calendar days from
the date of receipt thereof by the parties.

(©) The NCMB = shall, for purposes of this Act, create a
conciliation-mediation unit and assign the appropriate personnel who shall take

13


cognizance of public sector concerns for conciliation-mediation services whether
individual or disputes arising from collective bargaining negotiations or
interpretations. Unless there is a need for adjustments, the existing guidelines on
conciliation-mediation services shall be observed.

Further, a unit for public sector labor relations disputes-shall be created from
the existing voluntary arbitration system administered by the NCMB as established
pursuant to Title VII-A, Book V of the Labor Code of the Philippines, as amended, to
take cognizance of disputes such as unfair labor practice or assumed cases by the
PSLRB or any other cases that the parties may opt to submit to voluntary arbitration
subject to existing guidelines and schedule of fees. The PSLRB however, at its
option, may directly conduct voluntary arbitration.

Any national or local law enforcement agency or instrumentality of the
government may be tapped by the PSLRB to act under its direct and immediate
supervision, to enforce and execute its decision, orders, and rulings.

SEC. 17. Writ of Preliminary Injunction or Temporary Restraining Order.
The PSLRB may issue a writ of preliminary injunction or temporary restraining order
when, on the basis of the allegations in a petition, it is established that the acts
indicated in the complaint involve or is arising from an employee-management
dispute, if not restrained, will cause grave or irreparable injury to any party or render
ineffectual any decision in favor of such party.

The PSLRB shall require the petitioner to post a bond and the writ of
preliminary injunction or temporary restraining order shall become effective only
upon approval of the bond which shall answer for any damage that may be suffered
by the party enjoined if it is finally determined that the petitioner is not entitled to the
ancillary relief prayed for.

SEC. 18. Issuance of Subpoenas. The PSLRB shall have the power to require
the appearance of any person or the production of any paper, document or matter
relevant to a labor dispute under its jurisdiction, either at the request of any interested
party or upon its initiative.

SEC. 19. Grounds for Contempt. The PSLRB may cite a person for
contempt on any of the following grounds:

(a) Disobedience or resistance to lawful orders, decisions, rulings, summons or
subpoena, or any other issuance of the PSLRB, or

(b) Unlawful interference with the proceedings of the PSLRB, improper conduct
tending to directly or indirectly impede, obstruct, delay or hamper the
implementation of any order, decision or ruling as provided for in this Act.

14


SEC. 20. Decisions of the PSLRB. The decisions of the PSLRB in the
exercise of its appellate jurisdiction are final and executory unless a motion for
reconsideration is filed by the aggrieved party within fifteen (15) calendar days from
the receipt of the decision and only on the basis of palpable or potent errors. The
PSLRB shall not entertain any second motion for reconsideration.

The decisions of the PSLRB, in the exercise of its original or appellate
jurisdiction, may be elevated to the Court of Appeals through the extra-ordinary
remedy of petition for certiorari.

SEC. 21. Operations of the PSLRB. The PSLRB shall have a Technical
Executive Committee (TEC) as its technical and implementing arm and a permanent
Secretariat. The PSLRB shall designate from among themselves the chairperson and
shall determine the number and composition of the members of the TEC. The TEC
shall regularly meet to: (a) pre-process issues and concems and submit
recommendations for approval and issuance by the PSLRB; (b) monitor, perform or
implement decisions, activities and projects as approved by the PSLRB; and (c)
perform such other functions as may be required by the PSLRB.

The DOLE shall allocate the necessary funds and resources to ensure the
smooth operations of the PSLRB.

ARTICLE VI
REGISTRATION AND CANCELLATION OF REGISTRATION

SEC. 22. Requirements for registration. An employees’ organization,
federation or confederation shall acquire legal personality and shall be entitled to the
rights and privileges under this Act on the date of issuance of a certificate of
registration by the BLR.

(a) The application for registration of employees’ organization shall be
accompanied by the following:

(1) A statement indicating the name of the applicant employees’
organization, its principal address, names of its officers, total number of
members and the number of employees in the organizational unit where
the applicant seeks to operate;

(2) Duly ratified constitution and by-laws, minutes of its adoption or
ratification and list of members who participated in its adoption and
ratification;

(3) Support signatures of at least ten percent (10%) of the total membership
of the applicant organization;

(4) If the applicant union has been in existence for one or more years, copies
of its annual financial report; and;



(5) A registration fee of such amount as may be determined by the BLR,
charged upon every application for registration of employees’
organizations under this Act.

(b) The application for registration of a chartered employees’ organization shall be
accompanied by the following:

(1) Duly authenticated copy of the issued federation charter certificate;

(2) Duly ratified constitution and by-laws, minutes of its adoption or
ratification and list of members who participated in its adoption and
ratification;

(3) _ If the applicant union has been in existence for one or more years, copies
of its annual financial report; and,

(4) A registration fee of such amount as may be determined by the BLR,
charged upon every application for registration of employees’
organizations under this Act.

(c) The application for registration of a federation or confederation shall be
accompanied by the following:

(1) A statement indicating the name of the applicant federation or
confederation, its principal address, and the names of its officers;

(2) Duly ratified constitution and by-laws, minutes of the organizational
mecting on its adoption or ratification, and list of affiliated unions and
members who participated in its adoption and ratification;

(3) Copies of registration certificates and affiliation confirmation resolution
of at least five (5) affiliate or member labor organizations in the case of
federations;

(4) Copies of registration certificates and affiliation confirmation resolution
of at least two (2) affiliate or member federations in the case of
confederations;

(5) If the applicant has been in existence for one or more years, copies of its
most recent audited financial statement; and,

(6) A registration fee of such amount as may be determined by the BLR,
charged upon every application for registration of employees’
organizations under this Code.

(d) All applications for registration and its accompanying documents as stated
shall be verified under oath by the applicant’s secretary or treasurer, and
attested to by its president.

SEC. 23. Incomplete application; Non-denial. Incomplete applications for

registration shall not be accepted. Upon receipt of the BLR, an application for
registration that has complied with all the required documentation and payment of
registration fees shall be deemed approved.

SEC. 24. Reportorial Requirements; Probative value. All registered

employees’ organizations shall annually submit an organizational report such as the
elected officers, principal address, audited annual financial statement and updated list

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of members with list of set of officers, complete address and contact persons. The
reportorial requirements submitted to the BLR shall have probative value and shall
serve as evidence on the state of affairs of the organization and on issues internal or
subject of intra-organizational dispute. Non-submission of reportorial requirements
shall not be a ground for cancellation of registration.

SEC. 25. Grounds for cancellation of registration. A petition for the
cancellation of registration of an employees’ organization or federation or
confederation is an independent proceeding filed by at least forty percent (40%) of the
total membership of the subject organization before the BLR on the ground of
misrepresentation, false statement, or fraud in the formation of the organization. No
motu proprio or administrative cancellation of registration by the BLR or by the
PSLRB shall be allowed.

SEC. 26. Effect of pendency of a petition for cancellation of registration.
The pendency of the petition for cancellation of registration shall not affect the
legitimate personality of the employees’ organization and all the rights appurtenant
thereto, including the right to participate or file a petition for certification election or
be certified as the exclusive bargaining agent to negotiate a collective bargaining
agreement, absent a cease-and-desist order from the BLR, or the PSLRB, in the case
of an appeal for the reconsideration of the cancellation of registration.

SEC. 27. Bureau of Labor Relations’ report of registration and cancellation
to the PSLRB. The BLR shall make a periodic report on registered and cancelled
registration of employees’ organizations, federations and confederations to the
PSLRB.

ARTICLE VII
EXCLUSIVE BARGAINING REPRESENTATIVE

SEC. 28. Certification of exclusive bargaining representative in an
unorganized organizational unit. A duly registered employees’ organization, which
has the support of at least twenty percent (20%) of the total membership of the
appropriate organizational unit, may petition for the conduct of a certification election
before the PSLRB and to be certified as the exclusive bargaining representative of the
said organizational unit. The PSLRB shall refer the petition to the BLR for
determination and conduct of a certification election.

The employees’ organization who garnered the most number of votes shall be
certified by the PSLRB as the exclusive bargaining representative of the rank-and-file
employees in the organizational unit sought to be represented.

SEC. 29. Request for voluntary recognition. \ duly registered employees’
organization may opt to file a request for recognition with the appropriate authority in

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the organizational unit if it has the support of more than a majority of employees in
the organizational unit sought to be represented.

A joint submission, under oath, to the PSLRB of majority support from the
members of the organizational unit and confirmation of majority support by the
appropriate authority therein shall warrant the posting of the request for fifteen (15)
days in at least two (2) conspicuous places in the organizational unit sought to be
represented. After compliance with the posting requirement, a certificate of
recognition shall be issued to the employees’ organization as the exclusive bargaining
representative.

However, when there are two (2) or more registered employees’ organizations
in the organizational unit sought to be represented at the time the request for
recognition was filed with the appropriate authority, or if there is a question on the
claimed majority support, the PSLRB shall direct the BLR to conduct a certification
election to determine the exclusive bargaining representative regardless of the
willingness of the appropriate authority to grant recognition.

SEC, 30. Representation issue in an organized organizational unit. In an
organized organizational unit, a duly registered employees’ organization may
challenge the representative status of the incumbent exclusive bargaining
representative by filing with the PSLRB a petition for certification election, with the
support signatures of at least twenty percent (20%) of its total membership, within the
freedom period of sixty (60) days before the expiration of the collective bargaining
agreement.

All existing registered employees in the organizational unit at the time of
filing of the petition for certification election shall be a choice in the certification
election. There shall be no union choice in the certification election.

The employees’ organization that garnered a majority of the votes shall be
certified by the PSLRB as the exclusive bargaining representative.

ARTICLE VII
COLLECTIVE BARGAINING AND NEGOTIATION

SEC. 31. Levels of Collective Bargaining and Negotiation. Collective
bargaining and negotiation being essentially a social dialogue between all public
sector workers and government authorities shall be regularly conducted, whether
simultaneous or in succession, at the national, sectoral, and organizational levels at
intervals deemed appropriate by the parties but in no case it shall be conducted
beyond six (6) years.

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SEC. 32. Funding for implementation of Collective Bargaining and
Negotiation agreement. To ensure mutual full implementation of collective
bargaining and negotiation agreements throughout the effectivity period, financial and
other resources agreements shall be appropriated through the annual budget of the
legislative, judiciary, constitutional bodies, uniformed agencies, national government
agencies, state and local universities and colleges, local government units and
government owned and controlled corporations. National, sectoral, and
organizational bargaining agreements shall be concluded between the months of
January to May before the annual budgeting processes and respective budget
approval.

SEC. 33. National bargaining and negotiation agreement Coverage.
General terms and conditions of employment of national application including the
standardization of salaries, allowances and benefits for government employees that
require legislative action shall be subject to collective bargaining and negotiation
between representatives of all accredited public sector federations or confederations
and national government authorities at regular intervals, Such terms and conditions
of employment may include the following:

(a) Reclassification, review, creation, abolition, or upgrading of positions;

(b) Wages, and review and revision of the compensation structure;

(c) Increase in standard allowances granted uniformly across the government;

(@) Creation of anti-corruption advocacy and monitoring units at the national,
sectoral and organizational units;

(e) Creation of social dialogue mechanisms at the national, sectoral and
organizational units;

(0) Humane working conditions; and

(g) Such other benefits.

SEC. 34. Sectoral bargaining and negotiation agreement. Sectoral
collective bargaining and negotiations shall be undertaken on sector specific concerns
between elected sectoral representatives and the concemed sectoral government
authority, which may include terms and conditions of employment unique to the
sector covered and incentives including wage and salary structure.

SEC. 35. Organizational bargaining and negotiation agreement; Coverage.
Personnel enhancements, welfare and benefits, which must not be lower than the
national or sectoral standards, may be negotiated at the level of the negotiating unit
between the certified employees’ union and concerned government authority:

(a) Schedule of vacation and other leaves;
(b) Work assignment of pregnant women;

(©) Personnel growth and development;

(d) Communication system within the organizational unit;

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(e) Provisions for occupational safety and health;
(f) Provisions and facilities for handicapped personnel;
(g) Use of gender and development budget;

(h) Wellness and physical fitness progra

(i) Establishment of day care facilities;

@ Annual medical and physical examination;

(k) Recreational, social, athletic, and cultural activities;

(D) Facilities requiring capital outlays;

(m)Provident fund (management counterpart);

(n) Hospitalization, medical, and dental services;

(0) Rice, sugar and other subsidies;

(p) Travel expenses;

(q) Representation in different committees in the organizational unit, particularly
in committees where decisions on employee welfare and development and
productivity are being made;

() Work organization;

(s) Productivity and collective negotiation incentive;

(t) Health maintenance benefit;

(u) Staple food benefit;

(v) Disaster Risk Assistance Management Allowance (DRAMA);

(w) Renewal of licenses if these are a requirement of the work or functions being
performed;

(x) Free legal assistance for work related cases or in the exercise of the mandate of
the office or function; and

(y) Other retirement benefits.

SEC. 36. Duty to bargain and negotiate in good faith. Both parties to a
collective negotiation and bargaining must make every effort to, in the fullest possible
terms, arrive at agreed solutions on all matters of mutual interest, which must be
observed and mutually carried out in good faith. Good faith includes observance of
its binding effect on the parties and their successors-in-interest, even after a change in
administration or leadership, of the terms and conditions of their collective bargaining
agreement.

Collective agreements at all levels must include a built-in and binding dispute
resolution mechanism such as a grievance machinery and resort to voluntary
arbitration on issues of implementation or interpretation of its provisions.

SEC. 37. Registration of Collective Bargaining and Negotiation
Agreements. Collective bargaining and negotiation agreements whether in a national,
sectoral, or a specific organizational unit shall be submitted to the PSLRB for
administration and monitoring, and to the BLR for registration, recording, and
statistical purposes.

ARTICLE IX

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UNFAIR LABOR PRACTICE

SEC. 38. Unfair Labor Practice of the Agency. The following acts shall
constitute unfair labor practices on the part of a government agency:

(a) Interfering with, restraining or coercing employees in the exercise of their
right to self-organization;

(b) Requiring as a condition of employment that an employee joins or not join an
employee organization, federation, or confederation, or withdraw from one to
which the employee belongs;

(©) Discriminating in regard to work schedule, granting of benefits, places of
assignment, and other terms and conditions of employment in order to
encourage or discourage membership in any employee organization;

(d) Terminating the services or discriminating against an employee for having
filed charges or express willingness to expose corrupt practices of heads of
agencies, or members of the board, or any government executive;

(e) Refusing to enter into collective bargaining with the accredited or certified
employee organization;

(f) Violating any of the provision of the collective bargaining agreement;

(g) Union busting;

(h) Violation of the freedom of association and the right to strike;

(i) Indiscriminate use of management prerogatives;

(i) Failure to act on any form of violence in the workplace; and

(&) Red-tagging.

SEC. 39. Unfair labor practice of the employees’ organization. The
following acts shall constitute unfair labor practice on the part of the employee
organizations:

(a) Restraining or coercing employees in the exercise of their right to self
-organization;

(b) Causing or attempting to cause the agency head to discriminate against an
employee who has not joined the employee organization;

(c) Refusing to negotiate collectively with the duly authorized representative of
the agency; and

(d) Violating any of the provision of the collective bargaining agreement.

ARTICLE X
GRIEVANCE MACHINERY AND SETTLEMENT OF DISPUTES

SEC. 40. Settlement of disputes arising in connection with the determination
of terms and conditions of employment. There shall be established an independent,
efficient, speedy and impartial dispute settlement mechanism for terms and conditions
of employment which shall start at the organizational unit through the grievance

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machinery, third party intervention through conciliation-mediation services unit for
unresolved grievance, and voluntary arbitration for all unresolved labor
relations-related disputes.

SEC. 41. Grievance machinery. Each department or agency and employees’
organization of the organizational unit shall establish and administer a grievance
machinery.

Every employee has the right to have one’s grievance adjudicated as
expeditiously and as fairly as possible.

A complaint may be filed by an aggrieved employee or by the employee
organization to which the employee belongs in accordance with the rules issued by
the PSLRB.

SEC. 42. Conciliation-mediation public sector individual or collective
bargaining labor dispute. Untesolved grievance, or an individual or collective
bargaining dispute may be processed, at the option of the parties, through the
conciliation-mediation services of the NCMB, upon referral by the PSLRB.

SEC. 43. Voluntary arbitration. All labor relations and related disputes in
the public sector shall be submitted for voluntary arbitration.

SEC. 44. Voluntary arbitration unit; Accreditation. The voluntary
arbitrators for the public sector shall be accredited by the PSLRB pursuant to an
accreditation procedure and requirements it may promulgate which shall include
minimum hours of training on public service laws, rules and regulations, and
appropriate clearances.

Accredited voluntary arbitrators shall submit to the PSLRB, regular reports on
cases handled, and shall undergo enhancement training on public sector rules and
regulations to be listed in the roster of public sector arbitrators of good standing.

SEC. 45. Assignment of cases; Finality of voluntary arbitration decision.
In the absence of an agreement by the parties is their voluntary arbitrators, the PSLRB
shall facilitate the assignment and raffle of cases to arbitrators of good standing.

SEC. 46. Award or decisions of the voluntary arbitrators. Awards ot
decisions of the voluntary arbitrator shall contain the facts and the law on which the
award or decision is based. The award or decision shall be final and executory ten
(10) calendar days after the receipt of the copy of the award or decision by the parties
unless an appeal is timely filed to the Court of Appeals.

ARTICLE XI
STRIKES

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SEC. 47. Right to strike. The right of government employees to engage in
peaceful concerted activities including the right to strike for purposes of collective
bargaining or for mutual benefit and protection shall be recognized and respected:
Provided, That the grounds, procedures and cooling off period requirement in Article
278 of the Labor Code of the Philippines, as amended, shall be observed: Provided
further, That an inter-union or intra-union dispute shall not be a ground for strike.

SEC. 48. Minimum service requirement. Considering the nature of public
service, the duly registered employees’ organization and the appropriate authority in
the organizational unit shall ensure a minimum level of continuous service to the
public for the duration of the concerted activities or strike.

SEC. 49. Compulsory arbitration by the PSLRB in essential services. The
PSLRB shall assume cases of concerted activities and strikes by employees and duly
registered employees’ organizations in an organizational unit that renders essential
services where any interruption will cause imminent danger to the life, safety or
health of part or in whole of the population, which include direct patient care in public
health institutions, public air traffic control, or prison services, for speedy conciliation
and compulsory arbitration proceedings and resolution.

SEC. 50. Compensatory guarantee. The PSLRB shall decide or resolve a
dispute within thirty (30) calendar days from the date of assumption of the labor
dispute. The resolution or decision of the PSLRB shall be final and executory ten
(10) calendar days from receipt by the parties of the copy of the resolution or
decision.

SEC. 51. No disciplinary action arising from a labor dispute. No
administrative or disciplinary action shall be imposed against any employee involved
in the legitimate exercise of the right to strike or freedom of expression and assembly.

SEC. 52. Guarantees against unreasonable searches or arrest arising from a
labor dispute. Pursuant to the Constitutional guarantee on the right of the people to
be secured from unreasonable searches and seizures, no search or arrest arising from a
labor dispute shall be made except through a valid court warrant. Government
prosecutors shall first secure a clearance from the PSLRB before taking cognizance of
complaints or conducting a preliminary investigation thereon and before filing in
court of the corresponding information on cases arising out of or related to a labor
dispute, including cases with allegations of violence, coercion, physical injuries,
assault upon a person in authority and other similar acts of intimidation, or obstructing
the free ingress to and egress from the workplace.

ARTICLE XII
REPRESENTATION AND SOCIAL DIALOGUE

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SEC. 53. Institutionalization of Social Dialogue. The genuine participation
and representation of public sector employees’ organization, federation and
confederation at various levels of policy and decision making bodies and institutions
with provisions for their representation in the board such as the Government Service
and Insurance System (GSIS), Employees Compensation Commission (ECC),
Overseas Workers Welfare Administration (OWWA), Occupational Safety and Health
Center (OSHC), PhilHealth Insurance Corporation (PHIC),Technical Education and
Skills Development Authority (TESDA), Pag-IBIG Fund, Social Security System
(SSS), National Tripartite Industrial Peace Council (NTIPC), Regional Tripartite
Industrial Peace Council (RTIPC) and the Board of Regents or Trustees of state and
local universities and colleges, shall be upheld at all times. To fully comply with the
requirement for representation in social dialogue, no appointments of representatives
for government employees shall be issued without the concurrence and endorsement
of duly registered public sector employees” federation or confederation.

SEC. 54. Consultative mechanisms in the civil service. To make the delivery
of government process and services transparent, graft-free and effective, and ensure
harmonious labor-management relations in the civil service, the Civil Service
Commission shall establish a mechanism for social dialogue and consultation with the
government employees in all branches, subdivisions, instrumentalities, and agencies
of the government, including government-owned or controlled corporations with or
without original charters.

SEC. 55. Representation in tripartite policy-making and/or quasi-judicial
bodies. Public sector employees shall be afforded representation in the National
Tripartite Industrial Peace Council and where appropriate, in the regional and industry
specific tripartite industrial peace councils lodged with the DOLE including the
Tripartite Voluntary Arbitration Advisory Council (TVAAC) at the NCMB.

SEC. 56. Presidential social dialogue and consultation, ‘The PSLRB, as
attached to the DOLE shall regularly convene, motu proprio or upon request, for
social dialogue and consultation between the President of the Philippines and the
public sector employees’ organizations on matters of national concem or major
policies affecting the civil service.

SEC. 57. Dispute or Conflict Resolution. Cascs wherein disputes arise
between the employees’ organization and an agency attached to or under the
administration or supervision of either the duly appointed government representative
as the Chairperson of the PSLRB or the Secretary of the DOLE shall be directly heard
and decided by the PSLRB. In addition, the Chairperson of the PSLRB shall be
excluded from all hearings and discussions thereon.

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ARTICLE XII
PENAL PROVISIONS

SEC. 58. Violation on the part of employees’ organization, federation and
confederation. Any violation of the rights and conditions of membership provided in
Sections 11 and 12 of this Act shall be a ground for expulsion of the officers from the
employees’ organization, federation or confederation. At least thirty percent (30%) of
the total membership of an employees” organization or of total number of affiliated
employees’ organization in the case of federation or confederation, or any member or
members specially concerned, may report such violation to the PSLRB. The PSLRB
shall have the power to hear and decide any reported violation to mete the appropriate

penalty.

Criminal and civil liabilities arising from violations of above rights and
conditions of membership shall continue to be under the jurisdiction of ordinary
courts.

SEC. 59. Violation on the part of public employer. ‘The heads of offices and
other officers of the agency as well as officers and members of an employee
organization, who participate in or authorize an unfair labor practice, provided on
Section 38 of this Act shall be held administratively liable and meted the penalty of
suspension for a period not exceeding one (1) year, or both, for such participation or
grant of authority, without prejudice to civil and criminal liability.

ARTICLE XIV
MISCELLANEOUS PROVISIONS

SEC. 60. Tax Exemptions. The income of a legitimate employee organization,
federation, or confederation shall be exempt from tax in accordance with Section 30
(a) of the National Internal Revenue Code of 1997, as amended: Provided, That the
income of whatever kind and character of the foregoing organizations from any
‘owned property, real or personal, or any activity conducted for profit regardless of the
disposition made of such income, shall be subject to tax imposed under the same
code.

Alll grants, bequests, endowments, donations, and contributions made to and
used directly and exclusively by the employee organization, federation, or
confederation for official purposes shall be exempt from donor’s tax. The same shall
be considered an allowable deduction from gross income to compute the donor’s
taxable income in accordance with the provisions of the National Internal Revenue
Code of 1997, as amended.

SEC. 61. Implementing Rules and Regulations. Within ninety (90) days
from the effectivity of this Act, the PSLRB shall, in coordination with the DOLE,

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CSC, Department of Budget and Management, Department of Interior and Local
Government, Commission on Higher Education along with representatives from the
Public sector federations and confederations, promulgate the necessary implementing
rules and regulations.

SEC. 62. Transitory Provisions. Upon the effectivity of this Act, all existing
and effective collective agreements shall continue to be honored and implemented
until their expiration. This Act shall have no retroactive effect and will only apply to
new collective bargaining agreements, signed and approved, upon the effectivity of
this Act.

SEC. 63. Separability Clause. If any part or provision of this Act is held
unconstitutional or invalid, the other parts or provisions that are not affected shall
continue to be in full force and effect.

SEC. 64. Repealing Clause. Executive Order No. 180, Series of 1987, is
hereby repealed. All laws, orders, rules, or regulations inconsistent or contrary to the

provisions of this Act are hereby amended or repealed accordingly.

SEC. 65. Effectivity. This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved.

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