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Republic of the Philippines py; fied
HOUSE OF REPRESENTATIVI :
Suazo Shy REGISTRATION UNIT
BILLS AND INDEX SERVICE

SEVENTEENTH CONGRESS
First Regular Session

H.B.No,_?i1

Introduced by HONORABLE BELLAFLOR J. ANGARA-CASTILLO.

EXPLANATORY NOTE,

The 1987 Philippine Constitution promotes the principle of shared responsibility
between workers and employers and the preferential use of voluntary modes in settling
disputes, including conciliation, and shall enforce their mutual compliance therewith to foster
industrial peace. The Constitution also guarantees the rights of all workers to self-
organization, collective bargaining and negotiations, and peaceful concerted activities,
including the right to strike in accordance with law.

Articles 263, 264 and 272 of the Labor Code of the Philippines, as amended, having
been crafted under the Martial Law era, have to be aligned with the mandates of the 1987
Constitution to foster industrial peace based on social justice.

Particularly, paragraph (g) of Article 263 empowers the Secretary of Labor and
Employment to assume jurisdiction over a labor dispute causing or likely to cause a strike or
lockout, that on his/her opinion, is an “industry indispensable to national interest.” This
provides the Secretary of Labor and Employment very wide latitude of discretion in the
exercise of assumption power to include labor disputes in an undergarment factory, match
manufacturing, hotdog, and fish sauce factory as industries indispensable to the national
interest.

With such power, the State restrains the exercise of the right to strike or lockout with
a directive to workers to return to work and the management to accept the striking workers
under the same terms and conditions. Article 264 declares as a prohibited act non-
compliance with the procedural requirement and defiance of a Return-to-Work Order. Too
often, the exercise of assumption power has not resulted in a peaceful settlement of labor
disputes. Instead, it has triggered dismissal of workers as a penalty imposed under Article
272, the happening of picket line violence and violation of trade union rights, and even filing
of criminal cases or company closures. This is borne by the cases of trade union rights
violations against the Philippine government before the International Labour Organization
(ILO) and the US Trade Representatives.

Thus, this bill seeks to amend Article Numbers 263, 264 and 272 of the Labor Code,
as amended, so as to rationalize government interventions in labor disputes by adopting the
Essential Services Criteria in the exercise of the assumption or certification power of the
Secretary of Labor and Employment, providing conditions in its exercise and to
decriminalize violations thereof.

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

selbty Hadetionso

‘epresentative
Lone District, Province of Aurora


SEVENTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES —_)
FIRST REGULAR SESSION )

H.B.No,__ 244

Introduced by HONORABLE BELLAFLOR J. ANGARA-CASTILLO

AN ACT RATIONALIZING GOVERNMENT INTERVENTIONS IN LABOR DISPUTES BY
ADOPTING THE ESSENTIAL SERVICES CRITERIA IN THE EXERCISE OF THE
ASSUMPTION OR CERTIFICATION POWER OF THE SECRETARY OF LABOR AND
EMPLOYMENT, AND DECRIMINALIZING VIOLATIONS THEREOF, AMENDING FOR
THE PURPOSE ARTICLE NUMBERS 263, 264 AND 272 OF PRESIDENTIAL DECREE
NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE
PHILIPPINES, AS AMENDED, AND FOR OTHER PURPOSES

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

Section 1. Article 263 of Presidential Decree No. 442, otherwise known as the Labor Code
of the Philippines, as amended, is hereby amended to read as follows:

“Article 263. Strikes, picketing and lockouts.

a. Itis the policy of the State to encourage free trade unionism and free collecting
bargaining.

b. Workers shall have the right to engage in concerted activities for purposes of
collective bargaining or for their mutual benefit and protection. The right of
legitimate labor organizations to strike and picket and of employers to shall
continue to be recognized and respected. However, no labor union may strike
and no employer may declare a lockout on grounds involving inter-union and
intra-union disputes.

c. Incase of bargaining deadlocks, the duly certified or recognized bargaining agent
may file a notice of strike or the employer may file a notice of lockout with the
Department of Labor and Employment at least 30 days before the intended date
thereof. In cases of unfair labor practice, the period of notice shall be 15 days
and in the absence of a duly certified or recognized bargaining agent, the notice
of strike may be filed by any legitimate labor organization in behalf of its
members. However, in case of dismissal from employment of union officers duly
elected in accordance with the union constitution and by-laws, which may
constitute union busting where the existence of the union is threatened, the 15
day cooling-off period shall not apply and the union may take action immediately.

d. The notice must be in accordance with such implementing rules and regulations
as the Secretary of Labor and Employment may promulgate.

€. During the cooling-off period, it shall be the duty of the Department of Labor and
Employment to exert all efforts at the mediation and conciliation to effect a
voluntary settlement. Should the dispute remain unsettled until the lapse of the
requisite number of days from the mandatory filing of notice, the labor union may
strike or the employer may declare a lockout.

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f.

A decision to declare a strike must be approved by a majority of the total union
membership in the bargaining unit concerned, obtained by secret ballot in
meetings or referenda called for that purpose. A decision to declare a lockout
must be approved by a majority of the board of directors of the corporation or
association or of the partners in a partnership obtained by secret ballot in a
meeting called for that purpose. The decision shall be valid for the duration of the
dispute based on substantially the same grounds considered when the strike or
lockout vote was taken. The Department of Labor and Employment may its own
initiative or upon the request of any affected party, supervise the conduct of the
secret balloting. In every case, the union or the employer shall furnish the
Department of Labor and Employment the results of the voting at least seven
days before the intended strike or lockout, subject to the cooling- off period
herein provided.

When there exists a labor dispute causing or likely to cause strike or lockout in
an industry engaged in essential services to the public, the Secretary of Labor
and Employment may assume jurisdiction over the dispute: Provided, That any of
the following conditions is present:

1. Both parties have requested the Secretary of Labor and Employment to
assume jurisdiction over the labor dispute; or

2. Upon request or petition by either parties, or motu proprio on the part of the
Secretary of Labor and Employment after a conference called for on the
propriety of its issuance has been conducted.

In such case, the Secretary of Labor and Employment may decide or certify the
labor dispute to the National Labor Relations Commission for compulsory
arbitration, or to a voluntary arbitrator or panel of voluntary arbitrators. The
assumption shall have the effect of automatically enjoining an impending strike or
lockout. if a strike/lockout has already taken place at the time of assumption, all
striking or locked out employees and other employees subject of the notice of
strike or lockout shall immediately return to work and the employer shall
immediately resume operations and readmit all employees under the same terms
and conditions prevailing before the strike or lockout.

Essential services refer to functions or services being rendered by an
establishment, which if interrupted, would endanger the life, personal safety or
health of whole or part of the population. For this purpose, the Secretary of Labor
and Employment, by appropriate regulations, shall determine the industries
engaged in essential services after consultations with the national tripartite
industrial peace council.

In labor disputes affecting industries engaged in essential services, it shall be the
duty of the union and employer to provide and maintain the operation or delivery
of services. In case of hospitals, clinics or medical institutions, the union and
employer shall provide and maintain an effective and functional workforce, whose
movement and services shall be unhampered and unrestricted, as are necessary
to ensure the proper and adequate protection of the life, personal safety and
health of their patients, most especially emergency cases, for the duration of the
labor dispute.

Within five (5) days from the issuance of the assumption or certification order, a
preliminary conference or hearing shall immediately be conducted by the office of
the Secretary of Labor and Employment, the National Labor Relations
Commission, or the voluntary arbitrator or panel of voluntary arbitrators as the
case may be.

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In case of actual or impending strike or lockout in industries that are not
engaged in essential services, the Secretary of Labor and Employment may
assume jurisdiction upon the joint request of both parties in the labor dispute
after the mandatory conciliation. Either or both parties may also opt to submit to
compulsory or voluntary arbitration.

The foregoing notwithstanding, the President of the Philippines shall not be
precluded from determining industries that are engaged in essential services and
from intervening at any time and assuming jurisdiction over any labor dispute in
order to settle or terminate the same during severe national emergencies.”

Section 2. Article 264 of the same Code is hereby amended to read as follows:

“Art. 264, Prohibited Activities.

a. No labor organization or employer shall declare a strike or lockout without first
having bargained collectively in accordance with Title VII of this Book or
without first having filed the notice required in the preceding Article or without
the necessary strike or lockout vote first having been obtained and reported
to the Department of Labor and Employment.

No strike or lockout shall be declared after assumption of jurisdiction by the
President or the Secretary or after certification or submission of the dispute
to compulsory or voluntary arbitration or during the pendency of cases
involving the same grounds for the strike or lockout.

b. Any worker whose employment has been terminated as a consequence of an
illegal lockout shall be entitled to reinstatement with full back wages.

Mere participation of a worker or union officer in a strike declared illegal for
failure of the union to comply with procedural requirements under paragraph
(a) of this article shall not be a ground for termination of his or her
employment, even if a replacement had been hired by the employer during
such illegal strike.

¢. No person shall obstruct, impede, or interfere with, by force, violence,
coercion, threats or intimidation, any peaceful concerted action including
picketing by employees during any labor controversy or in the exercise of the
right of self-organization or collective bargaining, or shall aid or abet such
obstruction or interference

‘Any worker or union officer who knowingly participates in the commission of
unlawful acts during a strike may be declared to have lost his/her employment
after due process

d. No employer shall use or employ any strike-breaker, nor shall any person be
employed as a strike-breaker.

e. No person engaged in picketing shall commit any act of violence, coercion or
intimidation or obstruct the free ingress to or egress from the employer's
premises for lawful purposes, or obstruct public thoroughfares

f. No public official or employee, including officers and personnel of the Armed
Forces of the Philippines or the Philippine National Police, or armed person,
private security guards and similar personnel in the private security agency
shall introduce or escort in any manner replacement workers. The police
force shall keep out of the picket lines unless actual violence or other criminal
acts occur therein.

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However, the Secretary of Labor and Employment or the National Labor
Relations Commission may seek the assistance of law enforcement agencies
to maintain peace and order, protect life and property, and/or enforce the law
and legal order.”

Section 3. Article 272 of the same Code is hereby amended to read as follows:
“Article 272. Penalties.

a. Any person, employer, organization or corporation found violating Article 264 of
this Code shall be imposed a fine in an amount of not less than Ten thousand
pesos (P10,000.00) nor more than One hundred thousand pesos
(P100,000.00), at the discretion of the National Labor Relations Commission.

b. Upon the recommendation of the Secretary of Labor and Employment and the
Secretary of National Defense, foreigners who violate the provisions of this Title
shall be subject to immediate and summary deportation by the Bureau of
Immigration and shall be permanently barred from re-entering the country
without the special permission of the President of the Philippines.

¢. The regular courts shall have jurisdiction over any criminal action arising from
violation of any of the provisions of Article 264 of this Code, subject to the
required clearance from the Department of Labor and Employment on cases
arising out of or related to a labor dispute

d. No criminal prosecution under Article 264 of this Code may be instituted without
a final judgment that an illegal strike or lockout has been committed. The
prescriptive period of the criminal offense shall be considered interrupted
during the pendency of administrative proceedings: Provided, however, That
the final judgment in the said proceedings shall not be binding in the criminal
case nor an evidence of guilt.

. Complaints on acts or omissions of officers and personnel of the Armed Forces
of the Philippines or the Philippine National Police in violation of Article 264 of
this Code shall be filed with their respective agency without prejudice to the
filing of the appropriate cases before the Office of the Ombudsman.”

SEC. 4. Implementing Rules and Regulations. - The Secretary of Labor and Employment
shall promulgate the necessary rules and regulations to implement the provisions of this Act
within thirty twenty (30) days from its effectivity.

SEC. 5. Repealing Clause. — Presidential Decree No. 442, as amended, otherwise known
as the "Labor Code of the Philippines", and all other acts, laws, presidential issuances, rules
and regulations inconsistent herewith are hereby repealed, amended or modified
accordingly.

SEC. 6. Separability Clause. — If any provision of this Act is declared unconstitutional or
invalid, the other provisions not affected thereby shall remain in full force and effect.

Sec. 7. Effectivity Clause. — This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,

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