RECEIVED

| DATE: WI ONG

Republic of the Philippines |
HOUSE OF REPRESENTATIVES TRE
Quezon City, Metro Manila | RY:

{
SEVENTEENTH CONGRESS | 9, DESSTRATON UNTT

First Regular Session

HOUSE BLLNO._ 175

Introduced by: Hon, Karlo A. B. Nograles AND Hon, Jericho Jonas B. Nograles

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,
inchuding the right to strike in accordance with law.

Articles 263, 264 and 272 of the 1974 Labor Code of the Philippines, as amended,
wve 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 in his/her opinion, is an “industry indispensable to national interest.” This
provides the Secretary of Labor and Employment a 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.

Under this, 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 Retum to Work Order. Too often, the
exercise of assumption power has not resulted to peaceful settlement of labor disputes
Instead, it has triggered dismissal of workers as penalty imposed under Article 272, picket
line violence and violation of trade union rights, filing of criminal cases or company closures
‘This is bome by the cases of trade union rights violations against the Philippine government
before the International Labour Organization (ILO) and the US Trade Representatives.

Thus, the bill seeks to amend Article 263, 264 and 272 of the Labor Code to
rationalize government interventions in labor disputes by adopting the essential services

| HOUSE®F REPRESENTATIVES

BILLS AND INDEX SERVICE



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.

Tn view of the foregoing, the passage of this bill is earnestly sought

HON, KARLO A. B. NOGRALES HON. JERICHO|JONAS B. NOGRALES


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

175

HOUSE BILL NO.

Introduced by: Hon. Karlo A. B. Nograles AND Hon. Jericho Jonas B. Nograles

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 THIS PURPOSE ARTICLES 263, 264 and 272 OF
PRESIDENTIAL DECREE 442, OTHERWISE KNOWN AS THE LABOR CODE OF
‘THE PHILIPPINES, AS AMENDED AND FOR OTHER PURPOSES

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

Section 1, Article 263 of the Labor Code is hereby amended to read as follows:
“Anticle 263. Strikes, picketing and lockouts. —

1) It is 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 lockout 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.

©) In case of bargaining deadlocks, the duly certified or recognized bargaining agent
may file a notice of strike or the employer may file a notice of lockout with the
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

1) 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 thet 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 parmers
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 (DOLE) may on its own initiative or upon the
request of any affected party, supervise the conduct of the secret balloting, In every
case, the union or the employer shall furnish the DOLE the results of the voting at
least seven days before the intended strike or lockout, subject to the cooling-off period
herein provided

2) When there exists a labor dispute causing or likely to cause strike or lockout in an
industry ENGAGED IN ESSENTIAL SERVICES, THE SECRETARY OF LABOR
AND EMPLOYMENT MAY ASSUME JURISDICTION OVER THE DISPUTE
PROVIDED, THAT ANY OF THE FOLLOWING CONDITIONS IS PRESENT:

1, BOTH PARTIES HAVE REQUESTED THE SECRETARY OF LABOR
AND EMPLOYMENT TO ASSUME JURISDICTION OVER THE LABOR
DISPUTE: OR

2. UPON REQUEST OR PETITION BY EITHER PARTIES, OR MOTU
PROPIO ON THE PART OF THE SECRETARY OF LABOR AND
EMPLOYMENT AFTER A CONFE) 1B CALLED BY THE OFFICE OF
‘THE SECRETARY 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,

SAID ASSUMPTION SHALL HAVE THE EFFECT OF AUTOMATICALLY
ENJOINING AN IMPENDING STRIKE OR LOCKOUT. IF A STRIKE/LOCKOUT
HAS ALREADY TAKEN PLACE AT THE TIME OF ASSUMPTION, ALL
STRIKING OR LOCKED OUT EMPLOYEES AND OTHER EMPLOYEES
SUBJECT OF THE NOTICE OF STRIKE OR LOCKOUT SHALL
IMMEDIATELY RETURN TO WORK AND THE EMPLOYER SHALL


IMMEDIATELY RESUME OPERATIONS AND READMIT ALL EMPLOYEES
UNDER THE SAME TERMS AND CONDITIONS PREVAILING BEFORE THE
STRIKE OR LOCKOUT,

ESSENTIAL SERVICES REFER TO FUNCTIONS OR SERVICES RENDERED
BY AN ESTABLISHMENT, WHICH IF INTERRUPTED, WOULD ENDANGER
THE LIFE, PERSONAL SAFETY OR HEALTH OF THE WHOLE OR PART OF
THE POPULATION. FOR THIS PURPOSE, THE SECRETARY OF LABOR AND
EMPLOYMENT, BY APPROPRIATE REGULATIONS, SHALL DETERMINE
THE INDUSTRIES ENGAGED IN ESSENTIAL SERVICES AFTER
CONSULTATIONS WITH THE NATIONAL TRIPARTITE INDUSTRIAL PEACE
COUNCIL,

IN LABOR DISPUTES AFFECTING INDUSTRIES ENGAGED IN ESSENTIAL
SERVICES, IT SHALL BE THE DUTY OF THE UNION AND EMPLOYER TO
PROVIDE AND MAINTAIN THE OPERATION OR DELIVERY OF SERVICES
IN CASE OF HOSPITALS, CLINICS OR MEDICAL INSTITUTIONS, THE
UNION AND EMPLOYER SHALL PROVIDE AND MAINTAIN AN EFFECTIVE
AND FUNCTIONAL WORKFORCE, WHOSE MOVEMENT AND SERVICES
SHALL BE UNHAMPERED AND UNRESTRICTED, AS ARE NECESSARY TO
ENSURE THE PROPER AND ADEQUATE PROTECTION OF THE LIFE,
PERSONAL SAFETY AND HEALTH OF THEIR PATIENTS, MOST
ESPECIALLY EMERGENCY CASES, FOR THE DURATION OF THE LABOR
DISPUT!

h) WITHIN FIVE (5) DAYS FROM THE ISSUANCE OF THE ASSUMPTION OR
CERTIFICATION ORDER, A PRELIMINARY CONFERENCE OR HEARING
SHALL IMMEDIATELY BE CONDUCTED BY THE OFFICE OF THE
SECRETARY OF LABOR AND EMPLOYMENT, THE NATIONAL LABOR
RELATIONS COMMISSION, OR THE VOLUNTARY ARBITRATOR OR PANEL
OF VOLUNTARY ARBITRATORS AS THE CASE MAY BE.

i) INC OF ACTUAL OR IMPENDING STRIKE OR LOCKOUT
INDUSTRIES THAT ARE NOT ENGAGED IN ESSENTIAL SERVICES, THE
SECRETARY OF LABOR AND EMPLOYMENT MAY ASSUME JURISDICTION
UPON JOINT REQUEST OF BOTH PARTIES IN THE LABOR DISPUTE AFTER
THE MANDATORY CONCILIATION, EITHER OR BOTH PARTIES MAY ALSO
OPT TO SUBMIT TO COMPULSORY OR VOLUNTARY ARBITRATION.

i) 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 Labor Code is hereby amended to read as follows:

"Article 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.

5) 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.

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

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

5 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

URITY 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 PIC LINES UNLESS ACTUAL VIOLENCE OR OTHER CRIMINAL

ACTS OCCUR THEREIN.

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 Labor Code is hereby amended to read as follows:
"Avticle 272. Fines,

a) Any person, EMPLOYER, ORGANIZATION OR CORPORATION FOUND
violating Article 264 of this Code shall be FINED 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 reentering the country without the special
permission of the President of the Philippines."

c) THE REGULAR COURTS SHALL HAVE JURISDICTION OVER ANY
CRIMINAL ACTION ARISING FROM VIOLATION OF ANY OF THE
PROVISIONS OF ART, 264 OF THE LABOR CODE, AS AMENDED, BUT
SUBJECT TO THE REQUIRED CLEARANCE FROM THE DOLE ON CASES
ARISING OUT OF OR RELATED TO A LABOR DISPUTE,

NO CRIMINAL PROSECUTION UNDER ARTICLE 264 MAY BE INSTITUTED
WITHOUT A FINAL JUDGMENT THAT AN ILLEGAL STRIKE OR LOCKOUT
HAS BEEN COMMITTED. THE PRESCRIPTIVE PERIOD OF THE CRIMINAL
OFFENS 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.

d) COMPLAINTS ON ACTS OR OMISSIONS OF PNP OR AFP PERSONNEL IN
VIOLATION OF ARTICLE 264 OF THE LABOR CODE, AS AMENDED, SHALL
BE FILED WITH THEIR RESPECTIVE AGENCY WITHOUT PREJUDICE TO
‘THE FILING OF THE APPROPRIATE CASES BEFORE THE OMBUDSMAN

Section 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.

Section 5. Separability Clause. If any part or provision of this Act is declared
‘unconstitutional or invalid, the remainder of this Act or the provisions not otherwise affected
shall remain valid and subsisting,

Section 6. Repealing Clause.- All laws, presidential decrees, proclamations, executive
orders, issuances, rules and regulations, or any part thereof, inconsistent with the
provisions of this Act are hereby repealed, amended or modified accordingly


Section 7. Effectivity. 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.