Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City, Metro Manila

‘THIRTEENTH CONGRESS
First Regular Session

House BILL No.__ 3627

Introduced by Akbayan Representatives Mario “Mayong” Joyo Aguja,
Loretta Ann P. Rosales and Ana Theresia Hontiveros-Baraquel

iatory Note

‘The rights of workers to self-organization and to engage in peaceful concerted
‘action are two of the most fundamental principles that undertie the Philippine
legal framework governing labor relations. The importance given to these two
‘concepts springs from the recognition that the only way to ensure that workers
truly enjoy their human rights to just and favorable conditions of work and to
fair and adequate remuneration, is to allow them to assert these rights with
the strength of a united and collective voice.

‘These rights are enshrined in no less than the Philippine Constitution, the
highest law in the land, where it is declared in Article XIll, Section 3 that “the
State] shall guarantee the rights of all workers to selt-organizations, and
Peaceful concerted activities, including the right to strike in accordance with
law.”

In thi, our Constitution mirrors and applies tothe Philippine context Article 23
of the Universal Declaration of Human Rights, which asserts that ‘everyone
has the right to form and to join trade unions for the protection of his
interests.”

‘These mandates contained in the Constitution and found under international
law are given specific application in the provisions of Presidential Decree No.
442, as amended, otherwise known as the Labor Code of the Philippines. The
Labor Code lays down a system of rules by which the rights to self-
‘organization and to peaceful concerted activities can be validly exercised as
well as effectively protected,

‘The passage of years and the actual experience of workers and trade unions
in collectively asserting their interests have, however, revealed certain
difficuties and inadequacies in the prevaling framework of the Labor Code.


Oftentimes, these shortcomings in the statute have hindered the complete
fulfilment of the fundamental rights enshrined in the Constitution, recognized
under interational human rights law, and which form the firm and essential
basis for our system of labor relations.

Itis time that the lettor of the law be modified to more adequately reflect the
spirit ofthe rights it has been crafted to implement,

To this end, the following enactment is proposed, amending in part
Presidential Decree No. 442 with the aim of strengthening the implementation
‘and observance of these fundamental rights,

ING” JOYO AGUJA

OUD Ran hax,

LORETTA ANN P. ROSALES

tdncterces aarcapraad,
ANA THERESIA HONTIVERO#/BARAQUEL


Republic of the Philippines.
HOUSE OF REPRESENTATIVES,
‘Quezon City, Metro Manila

‘THIRTEENTH CONGRESS
First Regular Congress

House Bit No,_ 3627

Tintroduced by Akbayan Representatives Mario “Mayong” Joyo Aguja,
Loretta Ann P. Rosales and Ana Theresia Hontiveros-Baraquel

AN ACT
STRENGTHENING RIGHTS RELATING TO TRADE UNION ACTIVITIES,
AMENDING FOR THE PURPOSE ARTICLES 263 AND 264 OF
PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN
AS THE LABOR CODE OF THE PHILIPPINES

Be it enacted by the Senate and House of Representatives of the Philippines
in Congress assembled.

SECTION 1. Article 263 of Presidential Decree No. 422, as amended,
‘otherwise known as the Labor Code of the Philippines is hereby amended to
read as follows:

“ARTICLE 263. Strikes, picketing and lockouts ~ (a) It is the policy of
the State to encourage free trade unionism and free collective bargaining,

(b) _ Workers shall have the right to engage in concerted activities
INCLUDING THOSE for purposes of collective bargaining or for their mutual
benefit and protection. The right of legitimate labor organizations to strike and
picket, and of employers to lockout, [consistent with the national interest]
shall continue to be recognized and respected. However, no labor union may
strike and no employer may declare a lockout on grounds involving inter-union,
and intra-union disputes.

(©) In cases of bargaining deadlocks, the duly certified or
recognized bargaining agent may file a notice of strike or the employer may
file a notice of lockout with the Department. [at least thirty (20) days before
the intended date thereof. In cases of unfair labor practice, the period of
Notice shall be fifteen (15) days and in the absence of a duly certified or
recognized bargaining agent, the notice of strike may be filed by any
legitimate labor organization in behaif of its members. However, in case of


dismissal from employment of union officers duly elected in accordance with
the union constitution and by-laws, which may constitute union busting where
the existence of the union is threatened, the 15-day cooling-off period shall
not apply and the union may take action immediately }

(d) DELETED
(e) DELETED

(d) [(9] A decision to deciare a strike must be approved by a majority of,
the total union membership in the bargaining unit concemed, obtained by
secret ballot in meetings or referenda called for that purpose. A decision to
declare @ lockout must be approved by A majority of the [board of directors}
STOCK HOLDERS of the corporation or MEMBERS OF THE association or
of the partners in a partnership, obtained by secret ballot in a meeting called
for that purpose. The decision shall be valid for the duration of the dispute
based on substantially the same grounds considered when the strike or
lockout vote was taken. [The Department may, at its own initiative or upon the
request of any affected party, supervise the conduct of the secret balloting. In
every case, the union or the employer shall furnish the Department the results,
of the voting at least seven days before the intended strike or lockout, subject
to the cooling-off period herein provided]

(@) {(@)]_ When, in his opinion, there exists a labor dispute causing or
likely to cause a strike or lockout IN HOSPITAL, ELECTRICAL AND WATER
SERVICES, [in an industry indispensable to the national interest] the
Secretary of Labor and Employment may assume jurisdiction over the dispute
‘and decide it for certify the same to the Commission for compulsory
arbitration]. Such assumption [or certification] shall have the effect of
automatically enjoining the intended or impending strike or lockout as
specified in the assumption [or certification order]. I one has already taken
place at the time of assumption for certification], all sinking or focked out
employees shall immediately return to work and the employer shall
immediately resume operations and readmit all workers under the same terms
and conditions prevailing before the strike or lockout MERE
REINSTATEMENT OF AN EMPLOYEE IN THE PAYROLL SHALL NOT BE
CONSIDERED AS SUFFICIENT COMPLIANCE WITH THIS
REQUIREMENT. The Secretary of Labor and Employment [or the
Commission] may seek the assistance of law enforcement agencies to ensure
‘compiiance with this provision as well as with such orders as he may issue to
‘enforce the same.

In line with the national concem for and the highest respect accorded
to the right of patients to life and health, strikes and lockouts in hospitals,
clinics and similar medical institutions shall, to every extent possible, be
‘avoided, and all serious efforts, not only by labor and management’ but
government as well, be exhausted to substantially minimize, if not prevent,
their adverse effects on such life and health, through the exercise, however
legitimate, by labor of its right fo strike and by management to lockout. In
labor cisputes adversely affecting the continued operation of such hospitals,


clinics or medical institutions, it shall be the duty of the striking union or
lecking-out employer to provide and maintain an elfective skeletal workforce
‘of medical and other health personnel, whose movement and services shall
be unhampered and unrestricted, as are necessary to insure the proper and
‘adequate protection of the life and health of ils patients, most especially
emergency cases, for the duration of the strike oF lockout. In such cases,
therefore, the Secretary of Labor and Employment may immediately assume,
within twenty four (24) hours from knowledge of the occurrence of such a
‘trike oF lockout, jurisdiction over the same [or corti it to the Commission for
‘compulsory arbitration For this purpose, the contending parties are strictly
‘enjoined to comply with such orders, prohibitions andior injunctions as are
'ssued by the Secretary of Labor and Employment or the Commission, under
ain of immediate disciplinary action, including dismissal or loss. of
‘employment status or payment by the locking-out employer of backwages,
‘damages and other affrmatve relief, even criminal prosecution against either
‘or both of them

[The foregoing notwithstanding, the President of the Philipines shalt
‘not be precluded from determining the industries that, in his opinion, ere
indispensable to the national interest, and from intervening at any time and
‘assuming jurisdiction over any labor dispute in such industries in order 10
‘Seite or terminate the same }

(f)[(h] [Before or at any stage of the compulsory arbitration process,
the] THE partes may opt to submit their dispute to voluntary arbitration,

{g) IN AN ACTUAL STRIKE OR LOCKOUT IN A SMALL OR
MEDIUM ENTERPRISE (SME), THE SECRETARY SHALL ASSUME
JURISDICTION UPON THE REQUEST OF EITHER PARTY INVOLVED IN
THE DISPUTE. SUCH ASSUMPTION OF JURISDICTION SHALL HAVE
‘THE SAME EFFECTS AS THOSE PROVIDED UNDER PARAGRAPH (e) OF
THIS ARTICLE.

(h) [()] The Secretary of Labor and Employment [the Commission or
the voluntary arbitrator or pane! of voluntary arbitrators} shall decide or
resolve the dispute within thity (30) calendar days ffom the date of the
‘assumption of jurisdiction [or the certification or submission ofthe dispute,
the case may be]. The decision of [the President, the Secretary of Labor and
Employment [, the Commission or the voluntary arbitrator or panel of
Voluntary arbitrators] shall be final and executory ton (10) calendar days after
receipt thereot by the parties.

() WORKERS, THROUGH THEIR UNIONS, HAVE THE RIGHT TO
REFUSE TO HANDLE MERCHANDISE OF/FOR, OR PROVIDE/RECEIVE A,
‘SERVICE TO, ANY COMPANY WITH AN ONGOING LABOR DISPUTE.

) ALL WORKERS SHALL BE ENTITLED TO RECEIVE THE FULL
AMOUNT OF THEIR REGULAR WAGES FROM THEIR EMPLOYER FOR
‘THE ENTIRE DURATION OF ANY STRIKE OR LOCKOUT.”


SECTION 2. Article 264 of the Labor Code is hereby amended to read
as follows

"ARTICLE 264, Prohibited activites. — (a) No labor organization or
‘employer shall declare @ sirke or lockout without first having bargained
‘collectively in accordance with Tite Vil of this Book EXCEPT IN THE CASE
OF STRIKES AGAINST UNFAIR LABOR PRACTICE BY THE EMPLOYER.
[er without first having fled the notice required in the preceding Article or
without the necessary stike or lockout vote first having been obtained and
reported to the Department]

No strike or lockout shall be dectared after assumption of jurisdiction by the
[President or the] Secretary for after certification or submission ofthe dispute
to compulsory or voluntary arbitration or during the pendency of cases)
involving the same grounds for the strike or lockout

‘Any worker whose employment has been terminaled as a consequence of an
‘unlawful lockout shall be entitled to reinstatement with full backwages. ANY
EMPLOYER FOUND GUILTY OF ILLEGAL LOCKOUT SHALL INCUR
CRIMINAL LIABILITY AS PROVIDED FOR UNDER ARTICLE 272 OF THIS.
CODE. Ary union officer who knowingly participates in an ilegal strike and
‘any worker or union officer who knowingly participates in the commission of
legal acts during a strike may be declared fo have lost his employment right:
Provided, That mere participation of a worker in a [awful] strike, WHETHER
LAWFUL OR NOT, shall not constitute sufficient ground for termination of his
‘employmenif, even if a replacement had been hired by the employer during
such lawull strike), IF AN EMPLOYER, HIS OR HER AGENTS,
REPRESENTATIVES, OR ANY OTHER PERSON ACTING OR
PURPORTING TO ACT ON HIS OR HER BEHALF, SHOULD COMMIT A
CRIME DURING A STRIKE OR ANY OTHER CONCERTED ACTION BY
WORKERS, THE SAME SHALL BE CONSIDERED AN AGGRAVATING
CIRCUMSTANCE IN DETERMINING THE APPROPRIATE PENALTY TO.
BE IMPOSED ON SUCH PERSON FOR THE COMMISSION OF SAID
CRIME,

(0) No person shail obstruct, impede or interfere with, ESPECIALLY by
force, violence, coercion, threats or intimidation, any peaceful CONCERTED
ACTION INCLUDING picketing by employees during any labor controversy or
in the exercise ofthe right of self-crganization or collective bargaining, oF sh
aid ‘or abet such obstruction or interference. NO PICKET OR OTHER
PEACEFUL CONCERTED ACTION CONDUCTED BY WORKERS IN THE
COURSE OF A LABOR CONTROVERSY OR DISPUTE SHALL BE
IMPEDED OR INTERFERED WITH IN ANY MANNER ON THE GROUND
THAT IT IS BEING HELD IN A COMMON BUSINESS AREA SUCH AS A
MALL OR AN INDUSTRIAL PARK. WORKERS SHALL HAVE AN
ABSOLUTE RIGHT TO CONDUCT PICKETS OR OTHER CONCERTED
‘ACTIONS IN AREAS PROXIMATE TO ANY BUILDING, OFFICE, OUTLET,
BRANCH, OR SIMILAR LOCATION USED BY THEIR EMPLOYER IN THE
‘COURSE OF BUSINESS.



(o)_ No employer shall use or employ any REPLACEMENT WORKERS.
FOR STRIKERS OR striko-breakers, nor shall any person ALLOW HIMSELF
‘OR HERSELF TO be employed as a sirke-breaker OR REPLACEMENT
FOR STRIKERS, “REPLACEMENT WORKERS” AS USED IN THIS
PROVISION SHALL INCLUDE ANY PERSON LISTED IN THE ROSTER OF
MANPOWER AGENCIES CONTRACTED BY THE EMPLOYER TO
PROVIDE WORKERS ON A TEMPORARY OR “ON CALL” BASIS BUT
WHO OTHERWISE D0 NOT HAVE ANY REGULAR EMPLOYMENT WITH
THE EMPLOYER, AS WELL AS STUDENTS UNDERGOING PRACTICAL
TRAINING WITH THE EMPLOYER AS PART THEIR ACADEMIC
REQUIREMENTS, IF THE SAME ARE ASSIGNED ADDITIONAL DUTIES
‘OR REQUIRED TO WORK ADDITIONAL HOURS FOR THE PURPOSE OF
FILLING IN FOR STRIKING WORKERS,

(2) __ No public official or employee, inctuding officers and personnel of the
[New] Armed Forces of the Philippines or the [integrated] PHILIPPINE
National Police, or armed persons, shall bring in, introduce or escort in any
manner, any individual who seeks to replace strikers in entering or leaving the
Premises of a strike area, or work in place of the strikers. The police force
shall Keep out of the picket ines unless actual violence or other criminal acts
‘cour therein: [Provided, That nothing herein shall be interpreted to prevent
ny public officers from taking any measure necessary to maintain peace and
‘order, protect life and property. andior enforce the law and legal order]
VIOLATION OF THIS ‘PROVISION SHALL GIVE RISE TO CRIMINAL
LIABILITY UNDER ARTICLE 272 OF THIS CODE, WITHOUT PREJUDICE
‘TO ANY ADMINISTRATIVE LIABILITY THAT MAY BE INCURRED UNDER
OTHER LAWS OR REGULATIONS.

(e) DELETE

(0) AFTER THE UNION HAS SIGNIFIED ITS INTENTION TO RETURN TO
WORK, NO EMPLOYER SHALL REFUSE REINSTATEMENT OF
STRIKERS RETURNING TO WORK. IT SHALL ALSO BE ILLEGAL FOR
‘AN EMPLOYER TO DISCRIMINATE AGAINST RETURNING EMPLOYEES.”

SECTION 3. implementing Rules and Regulations. - Wiis tty
(90) days from the effectivity of this Act, the Secretary of Labor and
Employment, in consultation with the trade Unions, labor organizations, and
‘other stakeholders, shall issue the issue and publish the necessary rules and
regulations to implament the provisions ofthis Act

SECTION 4. Soparability Clause. - If any provision ofthis Act, or any
Part thereof, is deciared unconstitutional, the same shall not affect the valiity
and effectivity ofthe other portions

SECTION 5. Ropealing Clause. - All laws, executive order
residential decrees, prociamations, rules. regulations, issuances. and
‘enactments or parts thereof inconsistent with this Act are hereby repeated or
modified accordingly



SECTION 6. Effectivity - This Act shall take effect after fifteen (15)
days from its complete publication either in the Official Gazette or in a
newspaper of general circulation in the Philippines, whichever comes earlier.

APPROVED.