1
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by CIBAC Party-List Representative 
HON. EDUARDO “BRO. EDDIE” C. VILLANUEVA 
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 ARTICLES 278[263], 279[264] and 287[272] OF 
PRESIDENTIAL DECREE 442, OTHERWISE KNOWN AS THE 
LABOR CODE OF THE PHILIPPINES, AS AMENDED AND FOR 
OTHER PURPOSES 
EXPLANATORY NOTE 
Over the years, Articles 278[263], 279[264] and 287[272] of the 
1974 Labor Code of the Philippines, as amended, have been rendered 
inconsistent with the country’s democratic principles and governance, and 
increasing use of “labor rights’ clauses” in trade agreements, multilateral 
or otherwise.  
The country has long departed from strong-arm rule and from 
fiercely adversarial industrial relations. Article XIII of 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 enforces mutual compliance 
to foster industrial peace. The Constitution also guarantees the rights of 
all workers to self-organization, collective bargaining and negotiations, 
November 7, 2022
8:05 am
5789


 
 
2
and peaceful concerted activities, including the right to strike in 
accordance with law, and regulates the relations between workers and 
employers, recognizing the right of labor to its just share in the fruits of 
production and the right of enterprises to reasonable returns on 
investments, and to expansion and growth.   
 
Past experiences have shown us of violence in the picket lines due 
to forcible restraint on workers’ right to strike; cases of harassments, 
abductions and disappearances of unionists; “criminalization” of labor 
disputes; company closures; mass termination of workers; and high level 
of distrust in government and in the process under the law.  This is largely 
due to the perception of corruption and bias in labor justice administration 
because decisions by the Secretary of Labor and Employment to assume 
jurisdiction over a labor dispute have been seen as largely favoring 
employers, who at the same time, are the very first ones to ignore or resist 
return-to-work orders by filing numerous motions for reconsideration and 
appeals to higher courts.  
 
State interventions in labor disputes under paragraph (g) of Article 
278[263] of the Labor Code have been largely viewed as intrusive and an 
arbitrary exercise of police power.  The Secretary is provided with very 
wide latitude of discretion to prevent an impending strike or lockout or to 
stop an ongoing strike or lockout by assuming jurisdiction over a labor 
dispute, which according to his/her own opinion, involve an “industry 
indispensable to national interest.”  This overbroad discretion has seen 
labor disputes in an undergarment factory, match sticks manufacturing, 
hotdog, chicha-corn and fish sauce factory being assumed by the 
Secretary after his/her determination that these industries are 
indispensable to the national interest.  
 
Under paragraph (g) of Article 278[263], the State restrains the 
exercise of the right to strike or lockout and direct workers to return to work 
and the management to accept the striking workers under the same terms 
and conditions. Defiance of a return-to-work order or non-compliance with 
the procedural requirement for the conduct of a strike/lockout is a 
prohibited act under paragraph (a) of Article 279[264] that may result in 
loss of employment for union officers who knowingly participate in an 
illegal strike, including any worker who knowingly participate in the 
commission of illegal acts.  Additionally, paragraph (a) of Article 287[272] 
imposes a fine of not less than Php1,000 nor more than Php10,000 and/or 
imprisonment of not less than three months nor more than three years, or 
both fine and imprisonment, at the discretion of the Court, for violation of 
any of the provisions of Article 264.   


 
 
3
 
In this regard, both the ILO and the US Trade Representatives have 
observed that the penalties of loss of employment, fine and imprisonment 
for administrative non-compliance is disproportionate to the procedures 
laid down for notices of strike and on cooling-off periods, the absence of 
which would make the strike illegal.   
 
Thus, the proposed bill seeks to amend Article 278[263], 279[264] 
and 287[272] of the Labor Code to rationalize government interventions 
in labor disputes by: (a) adopting the essential services criteria, i.e., 
functions or services which if interrupted would endanger the life, personal 
safety or health of whole or part of the population, in the exercise of the 
assumption or certification power of the Secretary of Labor and 
Employment, (b) providing clear conditions in its exercise, (c) requiring 
minimum service or operation in case an assumption order will issue, (d) 
decriminalizing non-compliance with the procedural requirements in the 
exercise of the right to strike, (e) providing fines for violation by employer, 
labor organization, or corporation, and (f) providing a procedure for 
prosecution of criminal acts committed during a strike or lockout. 
 
In view of the foregoing, the passage of this bill is earnestly sought. 
 
 
 
HON. EDUARDO “BRO. EDDIE” C. VILLANUEVA 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


4
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by CIBAC Party-List Representative 
HON. EDUARDO “BRO. EDDIE” C. VILLANUEVA 
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 ARTICLES 278[263], 279[264] and 287[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 
1 
Philippines in Congress assembled: 
2 
3 
SECTION 1. Article 278 [263] of the Labor Code is hereby amended 
4 
to read as follows: 
5 
6 
Article 278 [263]. Strikes, picketing and lockouts. – 
7 
8 
a) It is the policy of the State to encourage free trade unionism
9 
and free collective bargaining.
10 
11 
b) Workers shall have the right to engage in concerted activities
12 
for purposes of collective bargaining or for their mutual
13 
benefit and protection. The right of legitimate labor
14 
organizations to strike and picket and of employers to lockout
15 
[, consistent with the national interest,] shall continue to be
16 
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5
recognized and respected. However, no labor union may 
1 
strike and no employer may declare a lockout on grounds 
2 
involving inter-union and intra-union disputes. 
3 
 
4 
c) In case of bargaining deadlocks, the duly certified or 
5 
recognized bargaining agent may file a notice of strike or the 
6 
employer may file a notice of lockout with the [Ministry] 
7 
DEPARTMENT OF LABOR AND EMPLOYMENT (DOLE) at 
8 
least 30 days before the intended date thereof. In cases of 
9 
unfair labor practice, the period of notice shall be fifteen (15) 
10 
days and in the absence of a duly certified or recognized 
11 
bargaining agent, the notice of strike may be filed by any 
12 
legitimate labor organization in behalf of its members. 
13 
However, in case of dismissal from employment of union 
14 
officers duly elected in accordance with the union 
15 
constitution and by-laws, which may constitute union busting 
16 
where the existence of the union is threatened, the fifteen 
17 
(15) day cooling-off period shall not apply and the union may 
18 
take action immediately. 
19 
 
20 
d) The notice must be in accordance with such implementing 
21 
rules and regulations as the [Minister] SECRETARY of Labor 
22 
and Employment may promulgate. 
23 
 
24 
e) During the cooling-off period, it shall be the duty of the 
25 
[Ministry] DOLE to exert all efforts at the mediation and 
26 
conciliation to effect a voluntary settlement. Should the 
27 
dispute remain unsettled until the lapse of the requisite 
28 
number of days from the mandatory filing of notice, the labor 
29 
union may strike or the employer may declare a lockout. 
30 
 
31 
f) A decision to declare a strike must be approved by a majority 
32 
of the total union membership in the bargaining unit 
33 
concerned, obtained by secret ballot in meetings or 
34 
referenda called for that purpose. A decision to declare a 
35 
lockout must be approved by a majority of the board of 
36 
directors of the corporation or association or of the partners 
37 
in a partnership obtained by secret ballot in a meeting called 
38 
for that purpose. The decision shall be valid for the duration 
39 
of the dispute based on substantially the same grounds 
40 
considered when the strike or lockout vote was taken. The 
41 
[Ministry] DOLE may on its own initiative or upon the request 
42 
of any affected party, supervise the conduct of the secret 
43 


 
 
6
balloting. In every case, the union or the employer shall 
1 
furnish the [Ministry] DOLE the results of the voting at least 
2 
seven days before the intended strike or lockout, subject to 
3 
the cooling-off period herein provided. 
4 
 
5 
g) When [in his opinion] there exists a labor dispute causing or 
6 
likely to cause a strike or lockout in an industry 
7 
[indispensable to the national interest,] ENGAGED IN 
8 
ESSENTIAL SERVICES, the Secretary of Labor and 
9 
Employment may assume jurisdiction over the dispute: 
10 
PROVIDED, 
THAT 
ANY 
OF 
THE 
FOLLOWING 
11 
CONDITIONS IS PRESENT: 
12 
 
13 
1. BOTH PARTIES HAVE REQUESTED THE SECRETARY 
14 
OF 
LABOR 
AND 
EMPLOYMENT 
TO 
ASSUME 
15 
JURISDICTION OVER THE LABOR DISPUTE; OR 
16 
 
17 
2. UPON REQUEST OR PETITION BY EITHER PARTY, 
18 
OR MOTU PROPRIO ON THE PART OF THE 
19 
SECRETARY 
OF 
LABOR 
AND 
EMPLOYMENT: 
20 
PROVIDED, THAT A CONFERENCE CALLED BY THE 
21 
OFFICE OF THE SECRETARY ON THE PROPRIETY 
22 
OF ITS ISSUANCE HAS BEEN CONDUCTED.  
23 
 
24 
IN SUCH CASE, THE SECRETARY OF LABOR AND 
25 
EMPLOYMENT MAY DECIDE OR CERTIFY THE 
26 
LABOR 
DISPUTE 
TO 
THE 
NATIONAL 
LABOR 
27 
RELATIONS 
COMMISSION 
(NLRC) 
FOR 
28 
COMPULSORY ARBITRATION, OR TO A VOLUNTARY 
29 
ARBITRATOR 
OR 
PANEL 
OF 
VOLUNTARY 
30 
ARBITRATORS.  
31 
 
32 
SAID ASSUMPTION SHALL HAVE THE EFFECT OF 
33 
AUTOMATICALLY 
ENJOINING 
AN 
IMPENDING 
34 
STRIKE OR LOCKOUT. IF A STRIKE/LOCKOUT HAS 
35 
ALREADY 
TAKEN 
PLACE 
AT 
THE 
TIME 
OF 
36 
ASSUMPTION, ALL STRIKING OR LOCKED OUT 
37 
EMPLOYEES AND OTHER EMPLOYEES SUBJECT OF 
38 
THE NOTICE OF STRIKE OR LOCKOUT SHALL 
39 
IMMEDIATELY 
RETURN 
TO 
WORK 
AND 
THE 
40 
EMPLOYER 
SHALL 
IMMEDIATELY 
RESUME 
41 
OPERATIONS AND READMIT ALL EMPLOYEES 
42 


 
 
7
UNDER THE SAME TERMS AND CONDITIONS 
1 
PREVAILING BEFORE THE STRIKE OR LOCKOUT.   
2 
 
3 
ESSENTIAL SERVICES REFER TO FUNCTIONS OR 
4 
SERVICES RENDERED BY AN ESTABLISHMENT, 
5 
WHICH IF INTERRUPTED, WOULD ENDANGER THE 
6 
LIFE, PERSONAL SAFETY OR HEALTH OF THE 
7 
WHOLE OR PART OF THE POPULATION. FOR THIS 
8 
PURPOSE, THE SECRETARY OF LABOR AND 
9 
EMPLOYMENT, BY APPROPRIATE REGULATIONS, 
10 
SHALL DETERMINE THE INDUSTRIES ENGAGED IN 
11 
ESSENTIAL SERVICES AFTER CONSULTATIONS 
12 
WITH THE NATIONAL TRIPARTITE INDUSTRIAL 
13 
PEACE COUNCIL.   
14 
 
15 
IN LABOR DISPUTES AFFECTING INDUSTRIES 
16 
ENGAGED IN ESSENTIAL SERVICES, IT SHALL BE 
17 
THE DUTY OF THE UNION AND EMPLOYER TO 
18 
PROVIDE AND MAINTAIN THE OPERATION OR 
19 
DELIVERY OF SERVICES. IN CASE OF HOSPITALS, 
20 
CLINICS OR MEDICAL INSTITUTIONS, THE UNION 
21 
AND EMPLOYER SHALL PROVIDE AND MAINTAIN AN 
22 
EFFECTIVE 
AND 
FUNCTIONAL 
WORKFORCE, 
23 
WHOSE MOVEMENT AND SERVICES SHALL BE 
24 
UNHAMPERED 
AND 
UNRESTRICTED, 
AS 
ARE 
25 
NECESSARY TO ENSURE THE PROPER AND 
26 
ADEQUATE PROTECTION OF THE LIFE, PERSONAL 
27 
SAFETY AND HEALTH OF THEIR PATIENTS, MOST 
28 
ESPECIALLY 
EMERGENCY 
CASES, 
FOR 
THE 
29 
DURATION OF THE LABOR DISPUTE.  
30 
 
31 
h) WITHIN FIVE (5) DAYS FROM THE ISSUANCE OF THE 
32 
ASSUMPTION 
OR 
CERTIFICATION 
ORDER, 
A 
33 
PRELIMINARY CONFERENCE OR HEARING SHALL 
34 
IMMEDIATELY BE CONDUCTED BY THE OFFICE OF THE 
35 
SECRETARY OF LABOR AND EMPLOYMENT, THE 
36 
NATIONAL LABOR RELATIONS COMMISSION, OR THE 
37 
VOLUNTARY ARBITRATOR OR PANEL OF VOLUNTARY 
38 
ARBITRATORS, AS THE CASE MAY BE. 
39 
 
40 
i) IN CASE OF ACTUAL OR IMPENDING STRIKE OR 
41 
LOCKOUT IN INDUSTRIES THAT ARE NOT ENGAGED IN 
42 
ESSENTIAL SERVICES, THE SECRETARY OF LABOR 
43 


 
 
8
AND EMPLOYMENT MAY ASSUME JURISDICTION UPON 
1 
JOINT REQUEST OF BOTH PARTIES IN THE LABOR 
2 
DISPUTE 
AFTER 
EXHAUSTION 
OF 
MANDATORY 
3 
CONCILIATION. EITHER OR BOTH PARTIES MAY ALSO 
4 
OPT TO SUBMIT TO COMPULSORY OR VOLUNTARY 
5 
ARBITRATION.  
6 
 
7 
j) THE 
FOREGOING 
NOTWITHSTANDING, 
THE 
8 
PRESIDENT OF THE PHILIPPINES SHALL NOT BE 
9 
PRECLUDED FROM DETERMINING INDUSTRIES THAT 
10 
ARE ENGAGED IN ESSENTIAL SERVICES, AND FROM 
11 
INTERVENING 
AT 
ANY 
TIME 
AND 
ASSUMING 
12 
JURISDICTION OVER ANY LABOR DISPUTE IN ORDER 
13 
TO SETTLE OR TERMINATE THE SAME DURING 
14 
SEVERE NATIONAL EMERGENCIES.  
15 
 
16 
SEC. 2. Article 279 [264] of the Labor Code is hereby amended to 
17 
read as follows: 
18 
 
19 
Article 279 [264].  Prohibited Activities. - 
20 
 
21 
a) No labor organization or employer shall declare a strike or 
22 
lockout without first having bargained collectively in 
23 
accordance with Title VII of this Book or without first having 
24 
filed the notice required in the preceding Article or without 
25 
the necessary strike or lockout vote first having been 
26 
obtained and reported to the [Ministry] DOLE. 
27 
 
28 
No strike or lockout shall be declared after assumption of 
29 
jurisdiction by the President or the [Minister] SECRETARY 
30 
or after certification or submission of the dispute to 
31 
compulsory or voluntary arbitration or during the pendency 
32 
of cases involving the same grounds for the strike or lockout. 
33 
 
34 
Any worker whose employment has been terminated as a 
35 
consequence of [any unlawful] AN ILLEGAL lockout shall be 
36 
entitled to reinstatement with full backwages. Any WORKER 
37 
OR union officer who knowingly participates [in an illegal 
38 
strike and any worker or union officer who knowingly 
39 
participates] in the commission of [illegal] UNLAWFUL acts 
40 
during a strike may be declared to have lost his/HER 
41 
employment AFTER   DUE PROCESS. [Provided, That] 
42 
Mere participation of a worker OR UNION OFFICER in a 
43 


 
 
9
[lawful] strike DECLARED ILLEGAL FOR FAILURE OF THE 
1 
UNION 
TO 
COMPLY 
WITH 
PROCEDURAL 
2 
REQUIREMENTS UNDER PARAGRAPH (A) OF THIS 
3 
ARTICLE shall not [constitute sufficient] BE A ground for 
4 
termination of his/HER employment, even if a replacement 
5 
had been hired by the employer during such [lawful] 
6 
ILLEGAL strike. 
7 
 
8 
b) No person shall obstruct, impede, or interfere with, by force, 
9 
violence, coercion, threats or intimidation, any peaceful 
10 
CONCERTED 
ACTION, 
INCLUDING 
picketing 
by 
11 
employees during any labor controversy or in the exercise of 
12 
the right of self-organization or collective bargaining, or shall 
13 
aid or abet such obstruction or interference. 
14 
 
15 
c) No employer shall use or employ any strike-breaker, nor 
16 
shall any person be employed as a strike-breaker. 
17 
 
18 
d) No public official or employee, including officers and 
19 
personnel of the [New] Armed Forces of the Philippines or 
20 
the [Integrated] PHILIPPINE National Police, or armed 
21 
person, PRIVATE SECURITY GUARDS AND SIMILAR 
22 
PERSONNEL IN THE PRIVATE SECURITY AGENCY shall 
23 
bring in, introduce or escort in any manner, [any individual 
24 
who seeks to replace strikers in entering or leaving the 
25 
premises of a strike area, or work in the place of the strikers] 
26 
REPLACEMENT WORKERS.  The police force shall keep 
27 
out of the picket lines unless actual violence or other criminal 
28 
acts occur therein: Provided, That nothing herein shall be 
29 
interpreted to prevent any public officer from taking any 
30 
measure necessary] HOWEVER, THE SECRETARY OF 
31 
LABOR AND EMPLOYMENT OR THE NLRC MAY SEEK 
32 
THE ASSISTANCE OF LAW ENFORCEMENT AGENCIES 
33 
to maintain peace and order, protect life and property, and/or 
34 
enforce the law and legal orders. 
35 
 
36 
e) No person engaged in picketing shall commit any act of 
37 
violence, coercion or intimidation or obstruct the free ingress 
38 
to or egress from the employer's premises for lawful 
39 
purposes, or obstruct public thoroughfares. 
40 
 
41 
SEC. 3. Article 287 [272] of the Labor Code is hereby amended to 
42 
read as follows: 
43 


 
 
10 
 
1 
Article 287 [272]. [Penalties] FINES. 
2 
 
3 
a) Any person, EMPLOYER, LABOR ORGANIZATION OR 
4 
CORPORATION FOUND violating any of the provisions of 
5 
Article 264 of this Code shall be punished  by  a fine of  not  
6 
less  than  [one  thousand  pesos (P1,000.00] TEN 
7 
THOUSAND  PESOS (P10,000.00)  nor more than [ten  
8 
thousand  pesos  (P10,000.00)]  ONE  HUNDRED  
9 
THOUSAND PESOS (P100,000.00) [and/or imprisonment 
10 
for not less than three months  nor  more  than  three  (3)  
11 
years,  or  both such  fine  and imprisonment,]  at the  
12 
discretion  of the  [court]  NLRC. [Prosecution under this 
13 
provision shall preclude prosecution for the same act under 
14 
the Revised Penal Code, and vice versa.] 
15 
 
16 
b) Upon the recommendation of the [Minister] SECRETARY of 
17 
Labor and Employment and the [Minister] Secretary of 
18 
National Defense, foreigners who violate the provisions of 
19 
this Title shall be subject to immediate and summary 
20 
deportation by the [Commission on] BUREAU OF 
21 
Immigration [and Deportation] and shall be permanently 
22 
barred from re-entering the country without the special 
23 
permission of the President of the Philippines.  
24 
 
25 
c) THE REGULAR COURTS SHALL HAVE JURISDICTION 
26 
OVER 
ANY 
CRIMINAL 
ACTION 
ARISING 
FROM 
27 
VIOLATION OF ANY OF THE PROVISIONS OF ARTICLE 
28 
264 OF THE LABOR CODE, AS AMENDED, SUBJECT TO 
29 
THE REQUIRED CLEARANCE FROM DOLE ON CASES 
30 
ARISING OUT OF OR RELATED TO A LABOR DISPUTE.  
31 
 
32 
NO CRIMINAL PROSECUTION UNDER ARTICLE 264 MAY 
33 
BE INSTITUTED WITHOUT A FINAL JUDGMENT THAT AN 
34 
ILLEGAL STRIKE OR LOCKOUT HAS BEEN COMMITTED. 
35 
THE PRESCRIPTIVE PERIOD OF THE CRIMINAL 
36 
OFFENSE SHALL BE CONSIDERED INTERRUPTED 
37 
DURING 
THE 
PENDENCY 
OF 
ADMINISTRATIVE 
38 
PROCEEDINGS: PROVIDED, HOWEVER, THAT THE 
39 
FINAL JUDGMENT IN THE SAID PROCEEDINGS SHALL 
40 
NOT BE BINDING IN THE CRIMINAL CASE NOR SHALL IT 
41 
CONSTITUTE AS AN EVIDENCE OF GUILT. 
42 
 
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d) COMPLAINTS ON ACTS OR OMISSIONS OF THE 
1 
PERSONNEL OF THE PHILIPPINE NATIONAL POLICE OR 
2 
THE ARMED FORCES OF THE PHILIPPINES IN 
3 
VIOLATION OF ARTICLE 264 OF THIS CODE SHALL BE 
4 
FILED WITH THE CONCERNED AGENCY, WITHOUT 
5 
PREJUDICE TO THE FILING OF APPROPRIATE CASES 
6 
BEFORE THE OMBUDSMAN.  
7 
 
8 
SEC. 4. Implementing Rules and Regulations. – Within sixty (60) 
9 
days from the effectivity of this Act, the Secretary of Labor and 
10 
Employment, in consultation with the appropriate government agencies 
11 
and other stakeholders, shall promulgate the necessary rules and 
12 
regulations to implement the provisions of this Act. 
13 
 
14 
SEC. 5.  Separability Clause. - If any part or provision of this Act is 
15 
declared unconstitutional or invalid, the remainder of this Act or the 
16 
provisions not otherwise affected shall remain valid and subsisting. 
17 
 
18 
SEC. 6. Repealing Clause. - All laws, presidential decrees, 
19 
proclamations, executive orders, issuances, rules and regulations, or any 
20 
part thereof, inconsistent with   the provisions of   this   Act 
are 
21 
hereby repealed, amended or modified accordingly. 
22 
 
23 
SEC. 7. Effectivity Clause. - This Act shall take effect fifteen (15) 
24 
days after its complete publication in the Official Gazette or in at least two 
25 
(2) newspapers of general circulation. 
26 
 
27 
Approved, 
28