FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
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[ZCT -2 1’5 :lo 
First Regular Session 
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Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The Presidential Decree No. 442, also known as the Labor Code, Article 248, makes it an 
unfair labor practice for employees “to contract out services or functions being performed by 
union members.. .”. Clearly, the provision does not cover situations where employers merely 
threaten to contract out services being performed by the latter. A threat has the same coercive 
effect as actually contracting out services as it instills fear in the laborer of losing his job. 
This bill extends the protection of Article 248 by making it unlawful for employers to 
threaten to contract out services being performed by union members.* 
* This bil1,was originally filed during the Thirteenth Congress, First Regular Session. 


FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
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!j!;[ 
-2 175 : i  9 
First Regular Session 
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Introduced by Senator Miriam Defensor Santiago 
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AN ACT 
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BY UNION MEMBERS 
AMENDING PRESIDENTIAL DECREE NO. 442 ALSO KNOWN 
AS THE LABOR CODE, ART. 248, MAKING IT UNLAWFUL FOR EMPLOYERS TO 
THREATEN TO CONTRACT OUT SERVICES BEING PERFORMED 
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assembled: 
Be it enacted by the Senate and House of Represen.tatives of the Philippines in Congress 
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SECTION 1. P.D. No. 448 also known as the Labor Code, Article 248, is amended by 
deleting paragraph (c) and replacing it with a new paragraph to read as follows: 
“(c) TO PROMISE, TO THREATEN, OR TO TAKE OTHER ACTION (1) TO HIRE A 
PERMANENT REPLACEMENT OR AN EMPLOYEE WHO 
(A) AT THE COMMENCEMENT OF A LABOR DISPUTE WAS AN 
EMPLOYEE OF THE EMPLOYER IN A BARGAINING UNIT WHICH A LABOR 
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ORGANIZATION - 
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(I) 
WAS THE CERTIFIED OR RECOGNIZED EXCLUSIVE 
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BARGAINING REPRESENTATIVE; OR 
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(II) 
AT LEAST THIRTY (30) DAYS PRIOR TO THE 
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COMMENCEMENT OF THE DISPUTE HAD FILED A 
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PETITION 
FOR 
CERTIFICATION 
ELECTION 
PURSUANT TO ARTICLES 256 AND 257 OF THIS 
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CODE, AND THE BUREAU OF LABOR RELATIONS 
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HAS NOT COMPLETED THE REPRESENTATION 
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PROCEEDING; AND 
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“(B) IN CONNECTION WITH THAT DISPUTE HAS ENGAGED IN 
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CONCERTED ACTIVITIES FOR THE PURPOSE OF COLLECTIVE BARGAINING OR 
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OTHER MUTUAL AID OR PROTECTION OR DENY ANY OTHER EMPLOYMENT 
RIGHT OR PRIVILEGE TO AN EMPLOYEE WHO IS WORKING FOR OR HAS 
UNCONDITIONALLY OFFERED TO RETURN TO WORK FOR THE EMPLOYER, OUT 
OF A PREFERENCE FOR ANY OTHER INDIVIDUAL, THAT IS BASED ON THE FACT 
THAT THE INDIVIDUAL IS PERFORMING, HAS PERFORMED, OR HAS INDICATED A 
WILLLINGNESS TO PERFORM BARGAINING UNIT WORK FOR THE EMPLOYER 
DURING THE LABOR DISPUTE.” 
SECTION 2. Separability Clause. - If any provision or part hereof is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
valid and subsisting. 
SECTION 3. Repealing Clause. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to, or inconsistent 
with, the provision of this Act is hereby repealed, modified or amended accordingly. 
SECTION 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved, 
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