SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 5 6 2 
) 
) 
) 
'13 
JUL -8 1\ 9 :06 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The preferential use of voluntary modes of dispute settlement, particularly 
voluntary arbitration, has been given impetus with the passage of R.A. No. 6715 
Ih 1989. 
As a state policy, the preferential use of voluntary arbitration in all labor-
management disputes, other than those arising from the interpretation and 
I implementation of collective bargaining agreements and company personnel 
policies, is highly encouraged. This is because lasting industrial peace can be 
achieved only through the sincere desire and mutual effort of labor and 
management to resolve their differences. Specifically, Sec. 3, Article XIII of the 
1987 Constitution provides that "The State shall promote the principle of shared 
responsibility between workers and employers and the preferential use of 
voluntary modes in settling dispute including conciliation, and shall enforce their 
mutual compliance therewith to foster industrial peace." 
As the program reached its more than twenty (20) years of implementation 
under the auspices of the National Conciliation and Mediation Board, specific 
problems cropped up which hampered the full promotion of voluntary arbitration 
as the preferential mode of dispute settlement. This include the overlapping 
jurisdiction of Labor Arbiters and Voluntary Arbitrators over termination disputes, 
refusai of one party to arbitrate and deiays in the disposition of cases by 
arbitrators. Also, the promulgation of Luzon Development Bank case and St. 
Martin Funeral Homes case which applies the appellate jurisdiction of the Court 
of Appeals to voluntary arbitration adds another layer to the review process. 
These developments negate promotional efforts undertaken by the NCMB to 
bQQst vQluntary arbitratiQn as an impQrtant GQmpQnent Qf the Philippine ADR 
Through the proposed Bill on Voluntary Arbitration, these identified problems and 
issues, among others, are hoped to be addressed. 
While the Labor Code contains ample provisions to encourage the use of 
voluntary arbitration as the preferred mode of settling labor disputes, experience 
point to tne need to furttief stfengtnen particular sections of tI'le laW. It is to tnis 
end that this measure is being introduced, seeking to amend the following 
provisions of the Labor Code: 
. 
Article 260. 


-1. Grievance machinery provision should be strengthened to ensure that 
grievance mechanisms are in place and that parties will continuously work 
to enhance such mechanisms. 
2. Designation of voluntary arbitrators in advance is encouraged. 
3. Inclusion of a provision stating that in case the CBA does not specify the 
number of arbitrators, parties should submit their unresolved grievances to 
a single arbitrator; 
4. On the refusal of one party to submit to arbitration to the prejudice of the 
aggrieved party, the NCMB proposed for the inclusion of the principle of 
notice to arbitrate to ensure that the voluntary arbitration proceedings can 
proceed notwithstanding the refusal of one party. 
This measure was 
already introduced in DO 40-03; however, some parties continue to 
challenge this principle. 
Article 261. 
5. The concern on the overlapping jurisdiction of Labor Arbiters and 
Voluntary Arbitrators is proposed to be addressed by amending Article 
261 of the Labor Code and Article 217 in order to specify that termination 
cases as a result of interpretation and enforcement of company personnel 
policies involving workers covered by collective bargaining agreements 
should fall under the jurisdiction of voluntary arbitrators. 
Article 262. 
6. The concurrent jurisdiction of voluntary arbitrators is proposed to be 
expanded to include an option for party-complainants not covered by 
collective bargaining agreements to have a choice where they want to 
submit their dispute. 
7. The same provision also included the instances where the Secretary of 
Labor and Employment would have the discretion to certify a dispute not 
only to the National Labor Relations Commission but also to voluntary 
arbitration. 
Article 262-A. 
8. Voluntary Arbitrators should also have powers to administer oaths, 
subpoena witnesses, require the production of documents, and cite for 
direct and indirect contempt and impose the appropriate penalties in 
accordance with law. 
9. Appropriate sanction is proposed to be imposed to arbitrators who cannot 
render an award or decision within the period prescribed by law. 
10. On the issue of appeal, the proposed Bill expressly provides that the final 
decision of voluntary arbitrators shall be immediately executory unless 
restrained by the Supreme Court which alone shall have the authority to 
review the decision of the arbitrator in a Petition for Certiorari under Rule 
65 of the Rules of Court. 
11.lnclude a provision creating sheriff positions at the NCMB and requiring 
them to execute decisions of voluntary arbitrators. This is anchored on the 
fact that the sheriffs of the NLRC who execute decisions of voluntary 
arbitrators are not always available to provide services to parties in a 


voluntary arbitration case considering that they give priority to their own 
cases in NLRC. 
12.ln case the voluntary arbitrator or panel of arbitrators who issued the 
decision becomes incapacitated for any reason, the NCMB is proposed to 
be given the authority to designate another arbitrator, in consultation with 
the parties, to issue the writ of execution. 
Article 263. 
13.Article 263 (g) is proposed to be amended to allow the Secretary of Labor 
and Employment to certify cases to voluntary arbitration in national 
interest cases. 
Article 277. (f) 
14. Article 277 (f) is proposed to be renumbered as 262-C referring to "The 
Special Voluntary Arbitration Fund" provision. The Article provides for the 
allocation of P75 Million in the NCMB's annual general appropriations 
which allocated 80% of the case subsidy for the unions which do not have 
the capacity to pay the voluntary arbitrators' fees. The 20% of the fund 
shall be allocated to operations of the Tripartite Voluntary Arbitration 
Advisory Council (TVAAC) and the promotion of the voluntary arbitration 
program including the regular training for arbitrators. 
15. A new provision Article 262-D is proposed to be inserted to provide for the 
accreditation and de-accreditation of voluntary arbitrators. This confers 
expressed power to the NCMB to accredit and de-accredit voluntary 
arbitrators. Under the existing provision of the Labor Code, the authority of 
the Board to accredit is implied only from Art. 260. The same proviSion 
also requires attendance of voluntary arbitrators to continuing retooling 
programs in order to remain in the active list of arbitrators. The same 
provision also provides for the authority of the Board to de-list and remove 
arbitrators from the roster of active arbitrators. 
16. Another new provision Article 262-E is proposed to be inserted providing 
the composition of the Tripartite Voluntary Arbitration Advisory Council. It 
proposes for the inclusion of the PAVA as members of the TVAAC to 
represent the voluntary arbitrators. This, however, shall be without any 
compensation. 
In view thereof, the urgent approval of this Bill is earnestly sought. 
Senator 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. :5 '6 2 
) 
) 
) 
-Sf'tllltr 
<l9tftr"r IIF tlJr >i'nf>br~ 
'13 JUl -8 A9 :05 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
FURTHER 
STRENGTHENING 
VOLUNTARY 
ARBITRATION 
AS 
THE 
PREFERENTIAL MODE OF LABOR DISPUTE SETILEMENT, AMENDING 
FOR THIS PURPOSE ARTICLES 217, 260, 261, 262-A, 262-B, 263(G) AND 
ARTICLE 277(F), AND INCORPORATING A NEW ARTICLE 262-0 OF 
PRESIDENTIAL DECREE NO. 442, OTHERWISE KNOWN AS THE LABOR 
CODE OF THE PHILIPPINES, AS AMENDED 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SECTION 1. Article 217 of PO 442, otherwise known as the Labor Code of 
the Philippines, as amended, is hereby further amended to read as: 
"1. Unfair labor practice cases; 
2. Termination disputes EXCEPT THOSE INVOLVING WORKERS 
COVERED 
BY COLLECTIVE 
BARGAINING AGREEMENTS 
WHICH SHALL BE SUBJECT TO THE GRIEVANCE MACHINERY 
AND VOLUNTARY ARBITRATION; 
3. XXX" 
SEC. 2. Article 260 of the same Code, otherwise known as the Labor 
Code of the Philippines, as amended, is hereby further amended to read as: 
"Article 260. Grievance Machinery and Voluntary Arbitration. 
- The parties to a Collective Bargaining Agreement, shall include 
therein provisions that will ensure the mutual observance of its 
terms and conditions. They shall establish a machinery for the 
adjustment and resolution of grievances 1) arising from the 
implementation or interpretation of the collective bargaining 
agreements and 2) those arising from the interpretation or 
enforcement of company personnel policies which 
remain 
unresolved 
after 
exhaustion 
of 
the 
grievance 
procedure 
INCLUDING ALL TERMINATION CASES INVOLVING WORKERS 
COVERED BY COLLECTIVE BARGAINING AGREEMENTS. FOR 
THIS PURPOSE, THE PARTIES AND THE BOARD SHALL 
ENSURE THAT GRIEVANCE MECHANISMS ARE IN PLACE IN 
ALL 
ORGANIZED 
ESTABLISHMENTS 
AND 
SHALL 


CONTINUOUSLY WORK TO ENHANCE AND STRENGTHEN 
THIS GRIEVANCE MACHINERY." 
"All grievances submitted to the grievance machinery which 
are not settled within seven (7) calendar days from the date of its 
submission TO THE LAST STEP PRIOR TO VOLUNTARY 
ARBITRATION shall automatically be referred to voluntary 
arbitration prescribed in the Collective Bargaining Agreement." 
"For this purpose, parties to a Collective Bargaining 
Agreement shall name and designate in advance a Voluntary 
Arbitrator or Panel of Voluntary Arbitrators, [or include in the 
agreement a procedure for the selection of such Voluntary 
Arbitrator or Panel of Voluntary Arbitrators,] preferably from the 
listing of qualified Voluntary Arbitrators duly accredited by the 
Board. In case the parties fail to NAME AND DESIGNATE IN 
ADVANCE [select] a Voluntary Arbitrator or Panel of Voluntary 
Arbitrators, the Board shall designate the Voluntary Arbitrator or 
Panel of Voluntary Arbitrators [, as may be necessary, pursuant to 
the selection procedure agreed upon in the Collective Bargaining 
Agreement,] which shall act with the same force and effect as if the 
Arbitrator or panel of Arbitrators has been SO NAMED AND 
DESIGNATED [selected by the parties as described above]." 
"IF THE COLLECTIVE BARGAINING AGREEMENT DOES 
NOT SPECIFY THE NUMBER OF ARBITRATORS, THE CASE 
SHALL BE SUBMITTED, HEARD AND RESOLVED BY A SOLE 
ARBITRATOR, UNLESS THE PARTIES AGREE OTHERWISE." 
"IF ONE OF THE PARTIES REFUSES TO SUBMIT THE 
UNRESOLVED 
GRIEVANCES TO VOLUNTARY ARBITRATION, THE WILLING 
PARTY SHALL INITIATE SUBMISSION TO ARBITRATION BY 
SERVING A NOTICE TO ARBITRATE UPON THE OTHER PARTY 
TO A COLLECTIVE BARGAINING AGREEMENT. THE NOTICE 
SHALL STATE THE ISSUE OR ISSUES TO BE ARBITRATED, 
COPY THEREOF FURNISHED THE BOARD AND/OR THE 
VOLUNTARY ARBITRATOR OR PANEL OF ARBITRATORS 
DESIGNATED 
IN 
THE 
COLLECTIVE 
BARGAINING 
AGREEMENT." 
"IF THE PARTY UPON WHOM THE NOTICE IS SERVED 
FAILS OR REFUSES TO RESPOND FAVORABLY WITHIN 
SEVEN (7) DAYS FROM RECEIPT THEREOF, THE VOLUNTARY 
ARBITRATOR OR PANEL OF VOLUNTARY ARBITRATORS 
DESIGNATED 
IN 
THE 
COLLECTIVE 
BARGAINING 
AGREEMENT SHALL COMMENCE VOLUNTARY ARBITRATION 
PROCEEDINGS. 
WHERE THE 
COLLECTIVE BARGAINING 
AGREEMENT DOES NOT SO DESIGNATE, THE BOARD SHALL 
CALL 
THE 
PARTIES 
AND 
APPOINT 
A 
VOLUNTARY 
ARBITRATOR OR PANEL OF VOLUNTARY ARBITRATORS, 
WHO 
SHALL 
THEREAFTER 
COMMENCE 
ARBITRATION 
PROCEEDINGS IN ACCORDANCE WITH THE PRECEEDING 
PARAGRAPH." 
"IN INSTANCES WHERE PARTIES FAIL TO SELECT A 
VOLUNTARY ARBITRATOR 
OR 
PANEL 
OF VOLUNTARY 


ARBITRATORS, THE REGIONAL BRANCH DIRECTOR OF THE 
BOARD SHALL DESIGNATE THE VOLUNTARY ARBITRATOR 
OR PANEL OF VOLUNTARY ARBITRATORS, AS MAY BE 
NECESSARY, WHICH SHALL HAVE THE SAME FORCE AND 
EFFECT AS 
IF 
THE 
PARTIES 
HAVE 
SELECTED THE 
ARBITRATOR." 
SEC. 3. Article 261 of the same Code, as amended, is hereby further 
amended to read as: 
"Article 261. Jurisdiction of Voluntary Arbitrators or Panel of 
Voluntary Arbitrators. - The Voluntary Arbitrator or Panel of 
Voluntary Arbitrators shall have original and exclusive jurisdiction to 
hear and decide ALL unresolved grievances: 
1. Arising from the implementation or interpretation of the collective 
bargaining agreements; [and] 
2. [those] Arising from the interpretation or enforcement of company 
personnel poliCies referred to in the immediately preceding article, 
INCLUDING 
CASES 
OF 
TERMINATION 
OF 
WORKERS 
COVERED BY COLLECTIVE BARGAINING AGREEMENTS; 
3. RELATING TO WAGE DISTORTION ISSUES UNDER RA 6727; 
AND 
4.ARISING FROM PRODUCTIVITY INCENTIVE PROGRAMS 
UNDER RA 6971." 
"Accordingly, violation of a Collective Bargaining Agreement, 
except those which are gross in character, shall no longer be 
treated as unfair labor practice and shall be resolved as grievances 
under the Collective Bargaining Agreement. For purposes of this 
article, gross violation of Collective Bargaining Agreement shall 
mean flagrant and/or malicious refusal to comply with the economic 
provisions of such agreement." 
"The Commission, its Regional Offices and the Regional 
Directors of the Department of Labor and Employment shall not 
entertain disputes, grievances or matters under the exclusive and 
original jurisdiction of the Voluntary Arbitrator or Panel of Voluntary 
Arbitrators and shall immediately dispose and refer the same to the 
Grievance Machinery or Voluntary Arbitration provided in the 
Collective Bargaining Agreement." 
SEC. 4. Article 262, of the same Code, as amended, is hereby further 
amended to read as: 
"Art. 262. Jurisdiction over other labor disputes - The 
Voluntary Arbitrator or Panel of Voluntary Arbitrators L upon 
agreement of the parties,] shall also hear and decide all other labor 
disputes 
[including 
unfair 
labor 
practices 
and 
bargaining 
deadlocks.] IN ANY OF THE FOLLOWING SITUATIONS:" 
A. UPON AGREEMENT OF THE PARTIES. 


B. 
IF THE PARTIES ARE NOT COVERED BY A 
COLLECTIVE 
BARGAINING 
AGREEMENT, 
THE 
PARTY-
COMPLAINANT, MAY AT HIS/HER OPTION, SUBMIT THE CLAIM 
OR DISPUTE TO EITHER THE VOLUNTARY ARBITRATOR OR 
PANEL 
OF 
VOLUNTARY 
ARBITRATORS, 
OR 
TO 
THE 
NATIONAL LABOR RELATIONS COMMISSION AND ITS LABOR 
ARBITERS. 
IF THERE IS NEITHER A PROVISION NOR AGREEMENT AS 
TO THE VOLUNTARY ARBITRATOR TO BE APPOINTED BY 
THE PARTIES, THE SAME SHALL BE APPOINTED BY THE 
BOARD FROM THE LIST OF ACTIVE AND ACCREDITED 
VOLUNTARY ARBITRATORS. 
C. WHEN THE DISPUTE IS CERTIFIED BY THE SECRETARY OF 
LABOR AND EMPLOYMENT TO THE BOARD FOR VOLUNTARY 
ARBITRATION IN ACCORDANCE WITH ARTICLE 263 (G) OF 
THIS CODE. 
SEC. 5. Article 262-A of the same Code, as amended, is hereby further 
amended to read as: 
"Article 262-A. Procedures - The Voluntary Arbitrator or 
Panel 
of Voluntary Arbitrators 
shall 
have the 
power to 
ADMINISTER 
OATHS, 
hold 
hearings, 
receive 
evidences, 
SUBPOENA WITNESSES TO APPEAR IN HEARINGS AND TO 
PRODUCE 
DOCUMENTS, 
TO 
CITE 
FOR 
DIRECT 
AND 
INDIRECT 
CONTEMPT 
AND 
IMPOSE 
APPROPRIATE 
PENALTIES THEREFOR IN ACCORDANCE WITH LAW and take 
whatever action is necessary to resolve the issue or issues subject 
of the dispute, including efforts to effect a voluntary settlement 
between parties." 
"All parties to the dispute shall be entitled to attend the 
arbitration proceedings. The attendance of any third party or the 
exclusion of any witness from the proceedings shall be determined 
by the voluntary arbitrator or Panel of Voluntary Arbitrators. 
Hearings may be adjourned for a cause or upon agreement by the 
parties." 
"Unless the parties agree otherwise, it shall be mandatory for 
the voluntary arbitrator or Panel of Voluntary Arbitrators to render 
an award or decision within twenty (20) calendar days from the date 
of submission of the dispute FOR DECISION [to voluntary 
arbitration]. "FAILURE ON HIS/HER OR THEIR PART TO 
RENDER AN 
AWARD 
OR A 
DECISION WITHIN 
SUCH 
PRESCRIBED PERIOD SHALL BE SUFFICIENT CAUSE FOR 
THE BOARD TO DELIST OR REMOVE THEIR NAMES FROM 
THE LIST OF ACCREDITED VOLUNTARY ARBITRATORS AND 
BAR 
THEM 
FROM 
PRACTICE 
OF 
THE 
VOLUNTARY 
ARBITRATION PROFESSION; PROVIDED, HOWEVER, THAT 
DUE PROCESS IS OBSERVED. IN SUCH CASES, IT SHALL BE 
UNLAWFUL FOR THE VOLUNTARY ABITRATOR OR PANEL OF 
VOLUNTARY ARBITRATORS TO REFUSE OR FAIL TO TURN 
OVER TO THE BOARD THE RECORD OF THE CASES WITHIN 


TEN (10) CALENDAR DAYS AFTER ITS DEMAND FOR THE 
SAME FOR FURTHER DISPOSITION IN ACCORDANCE WITH 
THE PRECEEDING PARAGRAPHS." 
"The award or decision of the voluntary arbitrator or Panel of 
Voluntary Arbitrators shall contain the facts and the law on which it 
is based. It shall be final and executory after ten (10) calendar days 
from receipt of the copy of the award or decision by the parties. 
THE FINAL DECISION OF THE VOLUNTARY ARBITRATOR OR 
PANEL 
OF 
VOLUNTARY 
ARBITRATORS 
SHALL 
BE 
IMMEDIATELY EXECUTORY UNLESS RESTRAINED BY THE 
SUPREME COURT WHICH ALONE SHALL REVIEW THE 
AWARD OR DECISION IN A PETITION FOR CERTIORARI 
UNDER RULE 65 OF THE RULES OF COURT. 
"Upon motion of any interested party, the Voluntary 
Arbitrator or Panel of Voluntary Arbitrators SHALL ISSUE THE 
WRIT OF EXECUTION. [or the Labor Arbiter in the region where 
the movant resides, i] In case of the absence or incapacity of the 
Voluntary Arbitrator or Panel of Voluntary Arbitrators, for any 
reason, 
THE 
BOARD 
SHALL 
DESIGNATE, 
UPON 
CONSULTATION WITH THE PARTIES, ANOTHER VOLUNTARY 
ARBITRATOR TO issue a writ of execution requiring either the 
sheriff of the NATIONAL CONCILIATION AND MEDIATION 
BOARD, 
DEPARTMENT OF 
LABOR AND 
EMPLOYMENT, 
NATIONAL LABOR RELATIONS COMMISSION, [Commission or 
regular courts] or any public official whom the parties may 
designate in the submission agreement to execute the final 
decision [, order or award]. 
IN ORDER TO FACILITATE THIS 
FUNCTION, THE POSITION OF SHERIFF IS HEREBY CREATED 
IN ALL REGIONAL BRANCHES OF THE BOARD." 
"FOR THIS MATTER, THE BOARD MAY DEPUTIZE ANY 
LAW ENFORCEMENT AGENCY TO ASSIST IN THE EFFECTIVE 
ENFORCEMENT OF DECISIONS[, AWARDS, RESOLUTIONS OR 
ORDERS] OF VOLUNTARY ARBITRATORS OR PANEL OF 
ARBITRATORS." 
SEC. 6. Article 262-B of the same Code, as amended, is hereby further 
amended to read as: 
"Art. 262-B. Cost of Voluntary Arbitration and Voluntary Arbitrator's 
fee. -The parties to a Collective Bargaining Agreement shall provide 
therein a proportionate sharing scheme on the cost of voluntary 
arbitration including PAYMENT OF VOLUNTARY ARBITRATOR'S 
FEES. 
The fixing of fees of Voluntary Arbitrators, whether 
shouldered wholly by the parties or TO BE subsidized by the 
Special 
Voluntary 
Action 
Fund 
SHALL 
BE 
MADE 
IN 
ACCORDANCE WITH THE GUIDELINES ISSUED BY THE 
BOARD UPON RECOMMENDATION OF THE TRIPARTITE 
VOLUNTARY 
ARBITRATION 
ADVISORY 
COUNCIL 
AND 
APPROVED 
BY 
THE 
SECRETARY 
OF 
LABOR 
AND 
EMPLOYMENT and shall take into account the following factors: 
(a) Nature of the case; 
(b) Time consumed in hearing the case; 


(c) Professional standing of the Voluntary Arbitrator; 
(d) Capacity to pay of the parties; and 
(e) Fees provided for in the Revised Rules of Court." 
SEC. 7. Article 277, paragraph (f) of the same Code, as amended, is 
hereby renumbered as Article 262-C, to read as: 
"ARTICLE 
262-C. 
THE 
SPECIAL 
VOLUNTARY 
ARBITRATION FUND. [(f)] A special Voluntary Arbitration Fund is 
hereby established in the Board to subsidize the cost of voluntary 
arbitration [in cases involving the interpretation of the Collective 
Bargaining Agreement,] including the arbitrator's fees, and for such 
other related 
purposes to promote and 
develop voluntary 
arbitration. The Board shall administer the Special Voluntary 
Arbitration Fund in accordance with the guidelines it may adopt 
upon the recommendation of the Council, which guidelines shall be 
subject to the approval of the Secretary of Labor and Employment, 
PROVIDED, THAT EIGHTY PERCENT 80% OF THE FUND 
SHALL BE ALLOCATED FOR SUBSIDY FOR UNIONS WHICH 
DO NOT HAVE THE CAPACITY TO PAY THEIR AGREED SHARE 
OF THE VOLUNTARY ARBITRATOR'S FEE AS PROVIDED FOR 
IN THE CBA. 
CONTINUING FUNDS NEEDED FOR THIS 
PURPOSE IN THE INITIAL YEARLY AMOUNT OF SEVENTY-
FIVE MILLION PESOS (Php75,000,OOO.OO) [fifteen million pesos] 
shall be provided in the 1989 annual general appropriations act.' 
"The amount of subsidy in appropriate cases shall be 
determined by the Board in accordance with the established 
guidelines issued by it upon the recommendation of the Council." 
"THE REMAINING TWENTY PERCENT (20%) OF THE 
FUND shall [also] be utilized for the operation of the council, the 
training and education of Voluntary Arbitrators and the Voluntary 
Arbitration Program." 
SEC. 8. A new provision is hereby proposed to be inserted as Article 262-
0, to read as: 
"ARTICLE 
262-0. 
ACCREDITATION 
AND 
DE-
ACCREDITATION OF VOLUNTARY ARBITRATORS". 
"THE BOARD SHALL HAVE THE POWER TO ACCREDIT 
VOLUNTARY ARBITRATORS AND MAINTAIN A ROLL OF 
ACCREDITED VOLUNTARY ARBITRATORS IN ACCORDANCE 
WITH THE CRITERIA AND GUIDELINES IT SHALL ESTABLISH." 
"THE 
ACCREDITATION 
OF 
AN 
INDIVIDUAL 
AS 
VOLUNTARY ARBITRATOR SHALL BE SUBJECT TO THE 
CONDITION THAT HE MEETS ALL THE QUALIFICATIONS 
PRESCRIBED BY THE BOARD FOR ACCREDITATION. 
IF 
FOUND 
QUALIFIED, 
ACCREDITATION 
AS 
VOLUNTARY 
ARBITRATOR SHALL BE ON A LIFETIME BASIS, UNLESS 
DELISTED PURSUANT TO THE DELISTING GUIDELINES 
APPROVED BY THE TRIPARTITE VOLUNTARY ARBITRATION 
ADVISORY COUNCIL. TO MAINTAIN THEIR ACTIVE STATUS, 


HOWEVER, VOLUNTARY ARBITRATORS SHALL BE REQUIRED 
TO ATTEND THE ARBITRATORS' CONTINUING RETOOLING 
PROGRAM (ACRP), SUBJECT TO THE GUIDELINES WHICH 
THE COUNCIL AND THE BOARD SHALL ADOPT." 
"ONLY ARBITRATORS WITH ACTIVE STATUS SHALL BE 
INCLUDED IN THE LIST OF ACTIVE ARBITRATORS BEING 
DISSEMINATED 
TO 
LABOR 
AND 
MANAGEMENT 
FOR 
SELECTION AND APPOINTMENT PURPOSES. " 
"THE BOARD SHALL ALSO HAVE THE POWER TO 
DELIST 
AND 
REMOVE 
ACCREDITED 
VOLUNTARY 
ARBITRATORS FROM THE ROLL FOR JUST CAUSE AND 
SUBJECT TO THE REQUIREMENTS OF DUE PROCESS; 
PROVIDED, THAT THE DECISION OF THE BOARD TO DELIST 
OR REMOVE IS FINAL AND EXECUTORY. 
SEC. 9. A new provision taken from Executive Order No. 251 is hereby 
proposed to be inserted as Article 262-E, to read as: 
"ARTICLE 262-E. COMPOSITION OF THE TRIPARTITE 
VOLUNTARY ARBITRATION ADVISORY COUNCIL". 
"THE 
TRIPARTITE 
VOLUNTARY 
ARBITRATION 
ADVISORY COUNCIL IS HEREBY' CREATED AND ATTACHED 
TO THE NATIONAL CONCILIATION AND MEDIATION BOARD. 
THE COUNCIL SHALL ADVISE THE BOARD ON MATTERS 
PERTAINING 
TO 
THE 
PROMOTION 
OF 
VOLUNTARY 
ARBITRATION AS THE PREFERRED MODE OF DISPUTE 
SETTLEMENT. 
"THE 
TRIPARTITE 
VOLUNTARY 
ARBITRATION 
ADVISORY COUNCIL SHALL CONSIST OF THE EXECUTIVE 
DIRECTOR 
[ADMINISTRATOR] 
OF 
THE 
NATIONAL 
CONCILIATION AND MEDIATION BOARD AS CHAIRMAN, ONE 
(1) MEMBER FROM THE GOVERNMENT, TWO (2) MEMBERS 
REPRESENTING LABOR, AND TWO (2) OTHER MEMBERS 
REPRESENTING MANAGEMENT. THE MEMBERS SHALL BE 
APPOINTED BY THE PRESIDENT TO SERVE FOR A TERM OF 
THREE (3) YEARS. THE CHAIRMAN AND MEMBERS THEREOF 
SHALL SERVE WITHOUT COMPENSATION." 
"IN ORDER TO FURTHER STRENGTHEN VOLUNTARY 
ARBITRATION, 
THE PRESIDENT AND EXECUTIVE VICE-
PRESIDENT 
OF 
THE 
PHILIPPINE 
ASSOCIATION 
ON 
VOLUNTARY ARBITRATION, INC. SHALL ALSO BECOME 
MEMBERS OF THE TRIPARTITE VOLUNTARY ARBITRATION 
ADVISORY COUNCIL." 
SEC. 10. Arl. 263 (g) of the same Code, as amended, is hereby further 
amended to read as: 
"ARTICLE 263 (g). Strikes, picketing and lockouts. -(a) x x x 


(g) When, in his opinion, there exists a labor dispute causing 
or likely to cause a strike or lockout in an industry indispensable to 
the national interest. the Secretary of Labor and Employment may 
assume jurisdiction over the dispute and decide it or certify the 
same TO THE BOARD FOR VOLUNTARY ARBITRATION, OR to 
the Commission for compulsory arbitration." 
SEC. 11. All laws, orders, issuances, rules and regulations or parts thereof 
inconsistent with the provisions of this Act are hereby repealed, amended or 
modified accordingly. 
SEC. 12. The Secretary of Labor and Employment shall promulgate the 
necessary rules and regulations to implement the provisions of this Act. 
SEC. 13. If any provision of this Act or the application thereof to any 
person or circumstances is held invalid or unconstitutional, the same shall not 
affect the remaining provisions of this Act. 
SEC. 14. 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,