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THIRTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
Third Regular Session 
) 
SENATE 
Introduced by Senators Pangilinan, Gordon and J. Estrada 
AN ACT STRENGTHENING THE WORKERS' CONSTITUTIONAL 
RIGHT TO SELF-ORGANIZATION 
Be enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION I. 
Article 234 of Presidential Decree No. 442, otherwise known as 
The Labor Code of the Philippines, as amended, is hereby amended to read as 
follows: 
'I ART. 234. Requirements of Registration. - [Any applicant labor 
organization, association or group of unions or workers] A FEDERATION, 
NATIONAL UNION OR INDUSTRY OR TRADE UNION CENTER OR AN 
INDEPENDENT UNION shall acquire legal personality and shall be entitled to 
the rights and privileges granted by law to legitimate labor organizations upon 
issuance of the certificate of registration based on the following requirements: 
xxx 
(C) IN CASE THE APPLICANT IS AN INDEPENDENT UNION, [Tlthe 
names of all its members comprising at least twenty percent (20%) of all the 
employees in the bargaining unit where it seeks to operate; 
xxx 


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SEC. 2. A new provision is hereby inserted into the Labor Code as Article 234-A: 
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“ART. 234-A. CHARTERING AND CREATION OF A LOCAL CHAPTER. 
- A DULY REGISTERED FEDERATION OR NATIONAL UNION MAY 
DIRECTLY CREATE A LOCAL CHAPTER BY ISSUING A CHARTER 
CERTIFICATE INDICATING THE ESTABLISHMENT OF THE LOCAL 
CHAPTER. THE CHAPTER SHALL ACQUIRE LEGAL PERSONALITY ONLY 
FOR PURPOSES OF FILING A PETITION FOR CERTIFICATION FROM THE 
DATE IT WAS ISSUED A CHARTER CERTIFICATE. 
THE CHAPTER SHALL BE ENTITLED TO ALL OTHER RIGHTS AND 
PRIVILEGES OF A LEGITIMATE LABOR ORGANIZATION ONLY UPON THE 
SUBMISSION OF THE FOLLOWING DOCUMENTS IN ADDITION TO ITS 
CHARTER CERTIFICATE: 
(A) 
THE 
NAMES OF 
THE 
CHAPTER’S 
OFFICERS, 
THEIR 
ADDRESSES, AND THE PRINCIPAL OFFICE OF THE CHAPTER: AND 
(B) THE CHAPTER’S CONSTITUTION AND BY-LAWS: PROVIDED, 
THAT WHERE THE CHAPTER’S CONSTITUTION AND BY-LAWS ARE THE 
SAME AS THAT OF THE FEDERATION OR THE NATIONAL UNION, THIS 
FACT SHALL BE INDICATED ACCORDINGLY. 
THE ADDITIONAL SUPPORTING REQUIREMENTS SHALL BE 
CERTIFIED UNDER OATH BY THE SECRETARY OR TREASURER OF THE 
CHAPTER AND ATTESTED BY ITS PRESIDENT. 
ANY FORM OF MISREPRESENTATION, FALSE STATEMENT OR 
FRAUD COMMITTED BY INDIVIDUAL OFFICERS OR MEMBERS SHALL NOT 


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BE A GROUND FOR CANCEf-LATION BUT >SHALL SUBJECT THE ERRING 
OFFICERS 
OR 
MEMBER8 
TO 
SUSPEMSION, 
EXPULSION 
FROM 
MEMBERSHIP, OR ANY APPROPRIATE PENALTY.” 
SEC. 3. Article 239 of the Labor Code as amended is hereby further amended as 
follows: 
“ART. 239 Grounds for [Cancellation of Union Registration. - The 
following shall constitute grounds for cancellation of union registration] 
EXPULSION [DISMISSAL] AS UNION OFFICERS ANDlOR MEMBERS UPON 
PETITION BY MEMBERS - UNION OFFICERS ANDlOR MEMBERS MAY BE 
DISMISSED FROM THE UNION FOR THEIR DIRECT CULPABILITY FOR ANY 
OF THE FOLLOWING ACTS: 
xxx 
SEC. 4. A new provision, Article 239-A, is inserted into the Labor Code as 
follows: 
“ART. 239-A. VOLUNTARY CANCELLATION OF REGISTRATION. THE 
REGISTRATION OF A LEGITIMATE LABOR ORGANIZATION MAY BE 
CANCELLED ONLY BY THE ORGANIZATION ITSELF PROVIDED THAT AT 
LEAST TWO THIRDS OF ITS GENERAL MEMBERSHIP VOTES, IN A 
MEETING DULY CALLED FOR THAT PURPOSE, TO DISSOLVE THE 
ORGANIZATION, PROVIDED FURTHER, THAT AN APPLICATION TO 
CANCEL REGISTRATION IS THEREAFTER SUBMITTED BY THE BOARD OF 
THE ORGANIZATION, ATTESTED TO BY THE PRESIDENT THEREOF.” 


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SEC. 5. A new provision is inserted in the Labor Code as Article 242-A to read as 
follows: 
“ART. 2426. REPORTORIAL REQUIREMENTS. - THE FOLLOWING 
ARE DOCUMENTS REQUIRED TO BE SUBMITTED TO THE BUREAU BY 
THE LEGITIMATE LABOR ORGANIZATION CONCERNED: 
(A) ITS CONSTITUTION AND 
BY-LAWS, 
OR AMENDMENTS 
THERETO, THE MINUTES OF RATIFICATION, AND THE LIST OF MEMBERS 
WHO TOOK PART IN THE RATIFICATION OF THE CONSTITUTION AND BY- 
LAWS WITHIN (30) DAYS FROM ADOPTION OR RATIFICATION OF THE 
CONSTITUTION AND BY-LAWS OR AMENDMENTS THERETO; 
(B) ITS LIST OF OFFICERS, MINUTES OF THE ELECTION OF 
OFFICERS, AND LIST OF VOTERS WITHIN THIRTY (30) DAYS FROM 
ELECTION; 
(C) ITS ANNUAL FINANCIAL REPORT WITHIN THIRTY (30) DAYS 
AFTER THE CLOSE OF EVERY FISCAL YEAR; AND 
(D) ITS LIST OF MEMBERS AT LEAST ONCE A YEAR OR WHENEVER 
REQUIRED BY THE BUREAU. 
FAILURE TO COMPLY WITH THE ABOVE REQUIREMENTS SHALL 
NOT BE A GROUND FOR CANCELLATION OF UNION REGISTRATION BUT 
SHALL 
SUBJECT 
THE 
ERRING 
OFFICERS OR MEMBERS 
TO 
SUSPENSION, EXPULSION FROM MEMBERSHIP, OR ANY APPROPRIATE 
PENALTY.” 


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SEC. 6. New provisions, Article 245 (A) and (Bj are hereby inserted into the 
Labor Code: 
“ART. 
245. 
(A). 
EFFECT OF INCLUSION AS MEMBERS OF 
EMPLOYEES OUTSIDE THE BARGAINING UNIT. - THE INCLUSION AS 
UNION MEMBERS OF EMPLOYEES OUTSIDE THE BARGAINING UNIT 
SHALL NOT BE A GROUND FOR THE CANCELLATION OF THE 
REGISTRATION OF THE UNION. SAID EMPLOYEES ARE AUTOMATICALLY 
DEEMED REMOVED FROM THE LIST OF MEMBERSHIP OF SAID UNION. 
ART. 245. (B) Ineligibility of managerial employees to join any labor 
organization; Right of supervisory employees. - Managerial employees are not 
eligible to join, assist or form any labor organization. Supervisory employees 
shall not be eligible for membership in [a labor organization] THE COLLECTIVE 
BARGAINING UNIT of the rank-and-file employees but may join, assist or form 
separate [labor organization] COLLECTIVE BARGAINING UNITS AND I OR 
LEGITIMATE tabor organizations of their own. THE RANK AND FILE UNION 
AND THE SUPERVISORY UNION MAY JOIN THE SAME FEDERATION OR 
NATIONAL UNION.” 
SEC. 7. Article 256 of the Labor Code as amended is further amended as 
follows: 
“ART. 256. Representation issue in organized establishments. - In 
organized establishments, when a verified petition questioning the majority status 
of the incumbent bargaining agent is filed BY ANY LEGITIMATE LABOR 
ORGANIZATION, INCLUDING A NATIONAL UNION, A FEDERATION, OR A 
LOCAL OR CHAPTER WHICH HAS BEEN ISSUED A CHARTER 
CERTIFICATE BY THE NATIONAL UNION OR FEDERATION before the 
Department of Labor and Employment within the sixty-day period before the 


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expiration of the collective bargaining agreement, the Med-Arbiter shall 
automatically order an election by secret ballot when the verified petition is 
supported by the written consent of at least twenty-five percent (25%) of all the 
employees in the bargaining unit to ascertain the will of the employees in the 
appropriate bargaining unit. To have a valid election, at least a majority of all 
eligible voters in the unit must have cast their votes. The labor union receiving 
the majority of the valid votes cast shall be certified as the exclusive bargaining 
agent of all the workers in the unit. When an election which provides for three or 
more choices results in no choice receiving a majority of the valid votes cast, a 
run-off election shall be conducted between the labor unions receiving the two 
highest number of votes: Provided, that the total number of votes for all 
contending unions is at least fifty percent (50%) of the number of votes cast. 
xxx 
SEC. 8. Article 257 of the Labor Code as amended is further amended as 
follows: 
“ART. 257. Petitions in unorganized establishments. - In any 
establishment where there is no certified bargaining agent, a certification election 
shall automatically be conducted by the Med-Arbiter upon the filing of a petition 
by [a] ANY legitimate labor organization [.I, INCLUDING A NATIONAL UNION, 
A FEDERATION OR A LOCAL OR CHAPTER WHICH HAS BEEN ISSUED A 
CHARTER CERTIFICATE BY THE NATIONAL UNION OR FEDERATION. IN 
CASES WHERE THE PETITION WAS FILED BY A NATIONAL UNION OR 
FEDERATION, IT SHALL NOT BE REQUIRED TO DISCLOSE THE NAMES 
OF THE LOCAL CHAPTER’S OFFICERS AND MEMBERS.” 
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SEC. 9. A new provision, Article 258-A, is hereby inserted into the Labor’Code: 


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“ART. 258-A, EMPLOYkR AS BY-STANDER - IN ALL CASES, 
WHETHER THE PETITION FOR CERTIFICATION ELECTION IS FILED BY AN 
EMPLOYER OR A LEGITIMATE LABOR ORGANIZATIOM, THE EMPLOYER 
SHALL NOT BE CONSIDERED A PARTY THERETO WITH CONCOMITANT 
RIGHT TO OPPOSE A PETITION FOR CERTIFICATION ELECTION. THE 
EMPLOYER’S PARTICIPATION IN SUCH PROCEEDINGS SHALL BE 
LIMITED TO: (I) 
BEING NOTIFIED OR INFORMED OF PETITIONS OF SUCH 
NATURE, AND (2) SUBMITTING THE LIST OF EMPLOYEES WITHIN THE 
APPROPRIATE BARGAINING UNIT UNDER OATH DURING THE PRE- 
ELECTION CONFERENCE SHOULD THE MED-ARBITER ACT FAVORABLY 
ON THE PETITION.” 
SEC.lO. Repealing Clause. - P.D. 442, as amended, otherwise known as the 
Labor Code of the Philippines, and all other acts, laws, rules, presidential 
issuance, rules and regulations are repealed, modified, or amended accordingly. 
SEC. 11. Separability Clause. - If any part, section or provision of this Act shall 
be held ‘invalid or unconstitutional, the other provisions shall not be affected 
thereby. 
SEC. 12. Effectivity Clause. -This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) newspapers of general 
circulation. 
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Approved,