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1513

HOUSE BILL NO.

Introduced by TUCP Partylist
Rep. Raymond Democrito C. Mendoza

EXPLANATORY NOTE

Having recognized the urgency of the proposed Bill, the House Committee on
Civil Service and Professional Regulation in the 18th Congress has completed the
hearings, consultations, and review of House Bill No. 2621, principally authored by
the undersigned, and arrived at a substitute bill. Unfortunately, the passage of the
Committee substitute bill into law has not materialized due to lack of material time
and competing equally priority legislative measures.

Given the above circumstances, the undersigned is refiling the Committee
Substitute Bill and seeking the support of fellow legislators in this 19th Congress to
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 transtated 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 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 Government 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
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.

Representative, TUCP Party-List


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

1513

HOUSE BILL NO.

Introduced by TUCP Partylist
Rep. Raymond Democrito C. Mendoza

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

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

ARTICLE |
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.

(a)

(b)

(c)

(a)

(e)

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

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.

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.
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.

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.

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.


(9)

(h)
10)

(k)

0)

(m)

(n)

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.

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

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.

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.
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.
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.

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.

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

3


(0)

(p)

(a)

10)

provision of the constitution and by-laws, or dispute arising from affiliation to
any organization.
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.
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.
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
and municipalities

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.

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)

4


()

(u)

(vy)

(w)

&®)

(y)

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of a department, agency, office, or government-owned or controlled
corporations; and such other identifiable government units as may be
considered by the Board.

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.

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.

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.

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.

Registered union refers to any employees’ 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.

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)

(bb)

(cc)

(dd)

(ee)

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.

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.

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.

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.

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

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 Ill
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.

SEC. 7. Ineligibility 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;

(c) 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;

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

8


(9) Tobe 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 intemal 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)

(b)

(c)

()

(e)

(9)

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;

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;

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;

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;

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;

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

10


(h)

0)

0)

(k)

and entered into the record of the employees’ organization, federation or
confederation to be kept and maintained for the purpose;

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
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;

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;

1


0)

(m)

(n)

(0)

(p)

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
‘shail be furnished the Secretary of Labor.
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;
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.
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
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

12


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)

(b)

(c)

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

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)

(b)

Unfair labor practice;
Disputes arising in the course of the conduct of collective negotiations;

13


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

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

(e) 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

(9) _ 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;

(4) Certification election; and

(e) 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.

14


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

15


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.

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)

(2)

(3)

(4)

(5)

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;

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

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

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

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)
(2)

(3)

Duly authenticated copy of the issued federation charter certificate;

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

If the applicant union has been in existence for one or more years,

copies of its annual financial report; and,

7


(c)

(a)

(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.

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
meeting 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.

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 of members with list of set of officers, complete address and contact persons.

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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 Vil
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

19


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. A duly registered employees’
organization may opt to file a request for recognition with the appropriate authority in
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
tecognition 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

20


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 VIII
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.

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

21


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;

(d) 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;

() 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 concerned 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;
(c) Personnel growth and development;
(4) Communication system within the organizational unit;
(e) Provisions for occupational safety and health;
(Provisions and facilities for handicapped personnel;
(g) Use of gender and development budget;

22


(h)
(i)
0)
(k)
0)
(m)
(n)
(0)
(p)
(@)

10)
(s)
()
(u)
(v)
(w)

&)

y)

Wellness and physical fitness program;
Establishment of day care facilities;

Annual medical and physical examination;

Recreational, social, athletic, and cultural activities;

Facilities requiring capital outlays;

Provident fund (management counterpart);

Hospitalization, medical, and dental services;

Rice, sugar and other subsidies;

Travel expenses;

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;

Productivity and collective negotiation incentive;

Health maintenance benefit;

Staple food benefit;

Disaster Risk Assistance Management Allowance (DRAMA);

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

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

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.

23


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
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)

(b)

(c)

(a)

(e)

(9)
(h)
10)
i)
(k)

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

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;
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;

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

Violating any of the provision of the collective bargaining agreement;

Union busting;

Violation of the freedom of association and the right to strike;

Indiscriminate use of management prerogatives;

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

Red-tagging.

24


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 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.

25


SEC. 42. Concil
ing labor dispute. Unresolved grievance, or an individual or collective

tion-mediation public sector individual or collective

bargair
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 or
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

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
26


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 shalll 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

27


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 Xil
REPRESENTATION AND SOCIAL DIALOGUE

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.

28


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 concern or major
policies affecting the civil service.

SEC. 57. Dispute or Conflict Resolution. Cases 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 shalll be directly
heard and decided by the PSLRB. In addition, the Chairperson of the PSLRB shall
be excluded from all hearings and discussions thereon.

ARTICLE Xill
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.

29


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. Implementing Rules and Regulations. Within ninety (90) days
from the effectivity of this Act, the PSLRB shall, in coordination with the DOLE, CSC,
DBM,DILG, CHED, along with representatives from the public sector federations and
confederations, promulgate the necessary implementing rules and regulations.

SEC. 61. 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. 62. Separability Clause. If any part or provision of this Act is held
unconstitutional or invalid, the other parts or provision hereof which are not affected
thereby shall continue to be in full force and effect.

SEC. 63. Repealing Clause. Executive Order No. 180, Series of 1987, is

hereby repealed. All laws, orders, rules or regulations, which are inconsistent or
contrary to the provisions of this Act are hereby amended or repealed accordingly.

30


SEC. 64, Effectivity. This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved.

31