SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
(It'flfl of 
rri-l-ir.
' 
2 ‘5 
- 8
SENATE
Senate Bill No. 1 2 2 1
K l«.( 1-j  V ); 1)
Introduced by SENATOR JOEL VILLANUEVA
AN ACT RATIONALIZING GOVERNMENT INTERVENTIONS IN LABOR 
DISPUTES BY ADOPTING THE ESSENTIAL SERVICES CRITERIA IN THE 
EXERCISE OF THE ASSUMPTION OR CERTIFICATION POWER OF THE 
SECRETARY OF LABOR AND EMPLOYMENT, AND DECRIMINALIZING 
VIOLATIONS THEREOF, AMENDING FOR THIS PURPOSE ARTICLES 278[263], 
279[264] and 287[272] OF PRESIDENTIAL DECREE 442, OTHERWISE KNOWN 
AS THE LABOR CODE OF THE PHILIPPINES, AS AMENDED AND FOR OTHER
PURPOSES
EXPLANATORY NOTE
Articles 278[263], 279[264] and 287[272] of the 1974 Labor Code of the Philippines, 
as amended, are remnants of Martial Rule, which over the years have been 
rendered inconsistent with the country’s democratic principles and governance, and 
increasing use of “labor rights’ clauses” in trade agreements, multilateral or 
othenwise.
The country has long departed from strong-arm rule and from fiercely adversarial 
industrial relations. Article XIII of the 1987 Philippine Constitution promotes the 
principle of shared responsibility between workers and employers and the 
preferential use of voluntary modes in settling disputes, including conciliation, and 
enforces mutual compliance to foster industrial peace. 
The Constitution also 
guarantees the rights of all workers to self-organization, collective bargaining and 
negotiations, and peaceful concerted activities, including the right to strike in 
accordance with law, and regulates the relations between workers and employers, 
recognizing the right of labor to its just share in the fruits of production and the right 
of enterprises to reasonable returns on investments, and to expansion and growth.
Past experiences have shown us of violence in the picket lines due to forceable 
restrain on workers’ right to strike; cases of harassments, abductions and 
disappearances of unionists; “criminalization” of labor disputes; company closures; 
mass termination of workers; and high level of distrust in government and in the 
process due to perception of corruption and bias in labor justice administration as 
assumption of jurisdiction have been seen as largely for employers who at the same 
time, are the very first to ignore or resist return-to-work orders through motions for 
reconsideration and appeal up to the Supreme Court. 
This is borne by the 
approximately ten (10) cases of trade union rights violations against the Philippine


government before the International Labour Organization (ILO) and the US Trade 
Representatives.
State interventions in labor disputes under paragraph (g) of Article 278[263] of the 
Labor Code, is intrusive and an arbitrary exercise of police power. The Secretary of 
Labor and Employment is provided with very wide latitude of discretion to prevent an 
impending strike or lockout or to stop an ongoing strike or lockout by assuming 
jurisdiction over a labor dispute, which according to his/her own opinion, involve an 
“industry indispensable to national interest”. 
This overbroad discretion has seen 
labor disputes in an undergarment factory, match sticks manufacturing, hotdog, 
chicha-corn and fish sauce factory being assumed as industries indispensable to the 
national interest.
Under paragraph (g) of Article 278[263], the State restrains the exercise of the right 
to strike or lockout and direct workers to return to work and the management to 
accept the striking workers under the same terms and conditions. Defiance of a 
return to work order or non-compliance with the procedural requirement for the 
conduct of a strike/lockout is a prohibited act under paragraph (a) of Article 279[264] 
that may result to loss of employment for union officers who knowingly participate in 
an illegal strike including any worker who knowingly participate in the commission of 
illegal acts. Additionally, paragraph (a) of Article 287[272] imposes a fine of not less 
than P1,000.00 nor more than P I0,000.00 and/or imprisonment of not less than 3 
months nor more than 3 years, or both fine and imprisonment, at the discretion of the 
Court, for violation of any of the provisions of Article 264. Both the ILO and the US 
Trade Representatives have observed of disproportionate penalty of loss of 
employment, fine and imprisonment for administrative non-compliance with respect 
to the procedures laid down for notices of strike and on cooling-off periods, which 
would make the strike illegal.
Beginning July 2010, the Department of Labor and Employment implemented clear 
procedures and criteria for the exercise of the Secretary’s assumption of jurisdiction 
power through a tripartite-supported department orders (Department Order No. 40- 
G-10, Series of 2010 and Department Order No. 40-H-13, Series of 2013). 
The 
“indispensable to the national interest” criteria for assumption of jurisdiction to issue 
was aligned with the ILO criteria of “essential services” and the Constitutional 
mandate to use voluntary modes in dispute settlement through conciliation-mediation 
was expansively used and the institution of collective bargaining was strengthened. 
This has resulted in annual single digit actual strikes from July 2010 to June 2016 
ushering relative industrial peace in the workplaces. According to the National 
Conciliation and Mediation Board (NCMB) from July 2010 to June 2016, there were 
20 actual strikes, 22 assumed cases and 43 certified to the NLRC while the July 
2004 to June 2010 labor relations data showed 69 actual strikes, 140 assumed 
cases and 145 certified to the NLRC for compulsory arbitration.
Thus, the proposed bill seeks to amend Article 278[263], 279[264] and 287[272] of 
the Labor Code to rationalize government interventions in labor disputes by: (a) 
adopting the essential services criteria, meaning functions or services which if 
interrupted would endanger the life, personal safety or health of whole or part of the 
population, in the exercise of the assumption or certification power of the Secretary 
of Labor and Employment, (b) providing clear conditions in its exercise, (c) requiring


minimum service or operation in case an assumption order will issue, (d) 
decriminalize non-compliance with the procedural requirements in the exercise of the 
right to strike, (e) providing fines for violation by employer, labor organization, or 
corporation, and (f) providing a procedure for prosecution of criminal acts committed 
during a strike or lockout.
In view of the foregoing, the passage of this bill is earnestly sought.
SENATOR iOEL VILLANUEVA


eualr
SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
'1 6  
iJCT 2 5  
i :4 8
SENATE 
Ri ( i V . i> n
Senate Biii N o . l 2 2 1
Introduced by SENATOR JOEL VILLANUEVA
AN ACT RATIONALIZING GOVERNMENT INTERVENTIONS IN 
LABOR DISPUTES BY ADOPTING THE ESSENTIAL SERVICES 
CRITERIA IN THE EXERCISE OF THE ASSUMPTION OR 
CERTIFICATION POWER OF THE SECRETARY OF LABOR AND 
EMPLOYMENT, AND DECRIMINALIZING VIOLATIONS THEREOF, 
AMENDING FOR THIS PURPOSE ARTICLES 278[263], 279[264] and 
287[272] OF PRESIDENTIAL DECREE 442, OTHERWISE KNOWN AS 
THE LABOR CODE OF THE PHILIPPINES, AS AMENDED AND FOR
OTHER PURPOSES
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20
Be it enacted by the Senate and House of Representatives of the Philippines 
in Congress assembled:
Section 1. Article 278 [263] of the Labor Code is hereby amended to read as 
follows:
“Article 278 [263]. Strikes, picketing and lockouts. -
a) It is the policy of the State to encourage free trade unionism and free 
collecting bargaining.
b) Workers shall have the right to engage in concerted activities 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.
c) In case 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 [Ministry] DEPARTMENT OF LABOR AND EMPLOYMENT at least 
30 days before the intended date thereof. In cases of unfair labor practice, the 
period of notice shall be 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 behalf of its members. However, in case of
1


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
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) The notice must be in accordance with such implementing rules and 
regulations as the [Minister] SECRETARY of Labor and Employment may 
promulgate.
e) During the cooling-off period, it shall be the duty of the [Ministry] 
DEPARTMENT OF LABOR AND EMPLOYMENT to exert all efforts at the 
mediation and conciliation to effect a voluntary settlement. Should the dispute 
remain unsettled until the lapse of the requisite number of days from the 
mandatory filing of notice, the labor union may strike or the employer may 
declare a lockout.
f) A decision to declare a strike must be approved by a majority of the total 
union membership in the bargaining unit concerned, obtained by secret ballot 
in meetings or referenda called for that purpose. A decision to declare a 
lockout must be approved by a majority of the board of directors of the 
corporation or 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 [Ministry] 
DEPARTMENT OF LABOR AND EMPLOYMENT (DOLE) may 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 
[Ministry] DOLE the results of the voting at least seven days before the 
intended strike or lockout, subject to the cooling-off period herein provided.
g) When [in his opinion] there exists a labor dispute causing or likely to cause 
strike or lockout in an industry [indispensable to the national interest,] 
ENGAGED IN ESSENTIAL SERVICES, THE SECRETARY OF LABOR AND 
EMPLOYMENT MAY ASSUME JURISDICTION OVER THE DISPUTE 
PROVIDED, THAT ANY OF THE FOLLOWING CONDITIONS IS PRESENT:
1. BOTH PARTIES HAVE REQUESTED THE SECRETARY OF LABOR 
AND EMPLOYMENT TO ASSUME JURISDICTION OVER THE 
LABOR DISPUTE; OR
2. UPON REQUEST OR PETITION BY EITHER PARTY, OR MOTU 
PROPRIO ON THE PART OF THE SECRETARY OF LABOR AND 
EMPLOYMENT PROVIDED THAT A CONFERENCE CALLED BY 
THE OFFICE OF THE SECRETARY ON THE PROPRIETY OF ITS 
ISSUANCE HAS BEEN CONDUCTED.
IN SUCH CASE, THE SECRETARY OF LABOR AND EMPLOYMENT MAY 
DECIDE OR CERTIFY THE LABOR DISPUTE TO THE NATIONAL LABOR


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
RELATIONS COMMISSION FOR COMPULSORY ARBITRATION, OR TO A 
VOLUNTARY ARBITRATOR OR PANEL OF VOLUNTARY ARBITf^TORS.
SAID ASSUMPTION SHALL HAVE THE EFFECT OF AUTOMATICALLY 
ENJOINING 
AN 
IMPENDING 
STRIKE 
OR 
LOCKOUT. 
IF 
A 
STRIKE/LOCKOUT HAS ALREADY TAKEN PLACE AT THE TIME OF 
ASSUMPTION, ALL STRIKING OR LOCKED OUT EMPLOYEES AND 
OTHER EMPLOYEES SUBJECT OF THE NOTICE OF STRIKE OR 
LOCKOUT SHALL IMMEDIATELY RETURN TO WORK AND THE 
EMPLOYER 
SHALL 
IMMEDIATELY 
RESUME 
OPERATIONS 
AND 
READMIT 
ALL 
EMPLOYEES 
UNDER 
THE 
SAME 
TERMS 
AND 
CONDITIONS PREVAILING BEFORE THE STRIKE OR LOCKOUT.
ESSENTIAL 
SERVICES 
REFER 
TO 
FUNCTIONS 
OR 
SERVICES 
RENDERED BY AN ESTABLISHMENT, WHICH IF INTERRUPTED, WOULD 
ENDANGER THE LIFE, PERSONAL SAFETY OR HEALTH OF WHOLE OR 
PART OF THE POPULATION. FOR THIS PURPOSE, THE SECRETARY OF 
LABOR AND EMPLOYMENT, BY APPROPRIATE REGULATIONS, SHALL 
DETERMINE THE INDUSTRIES ENGAGED IN ESSENTIAL SERVICES 
AFTER 
CONSULTATIONS 
WITH 
THE 
NATIONAL 
TRIPARTITE 
INDUSTRIAL PEACE COUNCIL.
IN 
LABOR 
DISPUTES 
AFFECTING 
INDUSTRIES 
ENGAGED 
IN 
ESSENTIAL SERVICES, IT SHALL BE THE DUTY OF THE UNION AND 
EMPLOYER TO PROVIDE AND MAINTAIN THE OPERATION OR 
DELIVERY OF SERVICES. IN CASE OF HOSPITALS, CLINICS OR 
MEDICAL INSTITUTIONS, THE UNION AND EMPLOYER SHALL PROVIDE 
AND MAINTAIN AN EFFECTIVE AND FUNCTIONAL WORKFORCE, 
WHOSE MOVEMENT AND SERVICES SHALL BE UNHAMPERED AND 
UNRESTRICTED, AS ARE NECESSARY TO ENSURE THE PROPER AND 
ADEQUATE PROTECTION OF THE LIFE, PERSONAL SAFETY AND 
HEALTH OF THEIR PATIENTS, MOST ESPECIALLY EMERGENCY 
CASES, FOR THE DURATION OF THE LABOR DISPUTE.
h) WITHIN FIVE (5) DAYS FROM THE ISSUANCE OF THE ASSUMPTION OR 
CERTIFICATION ORDER, A PRELIMINARY CONFERENCE OR HEARING 
SHALL IMMEDIATELY BE CONDUCTED BY THE OFFICE OF THE 
SECRETARY OF LABOR AND EMPLOYMENT, THE NATIONAL LABOR 
RELATIONS COMMISSION, OR THE VOLUNTARY ARBITRATOR OR 
PANEL OF VOLUNTARY ARBITRATORS AS THE CASE MAY BE.
i) IN CASE OF ACTUAL OR IMPENDING STRIKE OR LOCKOUT IN 
INDUSTRIES THAT ARE NOT ENGAGED IN ESSENTIAL SERVICES, THE 
SECRETARY 
OF 
LABOR 
AND 
EMPLOYMENT 
MAY 
ASSUME 
JURISDICTION UPON JOINT REQUEST OF BOTH PARTIES IN THE 
LABOR DISPUTE AFTER EXHAUSTION OF MANDATORY CONCILIATION. 
EITHER OR 
BOTH 
PARTIES 
MAY ALSO OPT TO SUBMIT TO 
COMPULSORY OR VOLUNTARY ARBITRATION.


1
2
3
4
5
6
7
8 
9
j) 
The foregoing notwithstanding, the President of the Philippines shall not be 
precluded from determining industries that ARE ENGAGED IN ESSENTIAL 
SERVICES and from intervening at any time and assuming jurisdiction over 
any labor dispute in order to settle or terminate the same DURING SEVERE 
NATIONAL EMERGENCIES.
Section 2. Article 279 [264] of the Labor Code is hereby amended to read as 
follows:
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
"Article 279 [264]. Prohibited Activities.-
a) No labor organization or employer shall declare a strike or lockout without 
first having bargained collectively in accordance with Title VII of this Book 
or without first having filed the notice required in the preceding Article 
or without the necessary strike or lockout vote first having been obtained 
and reported to the Department OF LABOR AND EMPLOYMENT.
No strike or lockout shall be declared after assumption of jurisdiction 
by the President or the Secretary or after certification or submission of the 
dispute to compulsory or voluntary arbitration or during the pendency of 
cases involving the same grounds for the strike or lockout.
b) Any worker whose employment has been terminated as a consequence 
of an [unlawful] ILLEGAL lockout shall be entitled to reinstatement with full 
back wages.
Mere participation of a worker OR UNION OFFICER in a [lawful] strike 
DECLARED ILLEGAL FOR FAILURE OF THE UNION TO COMPLY 
WITH PROCEDURAL REQUIREMENTS UNDER PARAGRAPH (A) OF 
THIS ARTICLE, shall not [constitute sufficient] BE A ground for termination 
of his OR HER employment, even if a replacement had been hired by the 
employer during such [lawful] ILLEGAL strike.
c) No person shall obstruct, impede, or interfere with, by force, violence, 
coercion, threats or intimidation, any peaceful CONCERTED ACTION 
INCLUDING picketing by employees during any labor controversy or in the 
exercise of the right of self-organization or collective bargaining, or shall aid 
or abet such obstruction or interference.
Any WORKER OR union officer who knowingly participates [in an illegal 
strike and any worker or union officer who knowingly participates] in the 
commission of [illegal] UNLAWFUL acts during a strike may be declared to 
have lost his/her employment AFTER DUE PROCESS.
d) No employer shall use or employ any strike-breaker, nor shall any person be 
employed as a strike-breaker.


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
e) No person engaged in picketing shall commit any act of violence, coercion 
or intimidation or obstruct the free ingress to or egress from the employer's 
premises for lawful purposes, or obstruct public thoroughfares.
f) NO PUBLIC OFFICIAL OR EMPLOYEE, INCLUDING OFFICERS AND 
PERSONNEL OF THE ARMED FORCES OF THE PHILIPPINES OR THE 
PHILIPPINE NATIONAL POLICE, OR ARMED PERSON, PRIVATE 
SECURITY GUARDS AND SIMILAR PERSONNEL IN THE PRIVATE 
SECURITY AGENCY SHALL INTRODUCE OR ESCORT IN ANY MANNER 
REPLACEMENT WORKERS. THE POLICE FORCE SHALL KEEP OUT 
OF THE PICKET LINES UNLESS ACTUAL VIOLENCE OR OTHER 
CRIMINAL ACTS OCCUR THEREIN.
HOWEVER, THE SECRETARY OF LABOR AND EMPLOYMENT OR THE 
NATIONAL 
LABOR 
RELATIONS 
COMMISSION 
MAY 
SEEK 
THE 
ASSISTANCE OF LAW ENFORCEMENT AGENCIES TO MAINTAIN 
PEACE AND ORDER, PROTECT LIFE AND PROPERTY, AND/OR 
ENFORCE THE LAW AND LEGAL ORDER.
Section 3. Article 287 [272] of the Labor Code is hereby amended to read as 
follows:
"Article 287 [272]. [Penalties] FINES.
a) Any person, EMPLOYER, LABOR ORGANIZATION OR CORPORATION 
FOUND violating Article 264 of this Code shall be [punished by a] FINED 
[ef] not less than [one thousand pesos (P1,000.00] TEN THOUSAND 
PESOS (P10,000.00) nor more than [ten thousand pesos (PI0,000.00)] 
ONE HUNDRED THOUSAND PESOS (P100,000.00) [and/or imprisonment 
for not less than three months nor more than three (3) years, or both
such 
fine 
and imprisonment,] 
at the 
discretion 
of the 
[oeurt] 
NATIONAL 
LABOR RELATION COMMISSION. [Prosecution under this 
provision shall preclude prosecution for the same act under the Revised Penal 
Code, and vice versa.)
b) Upon the recommendation of the Secretary of Labor and Employment and the 
Secretary of National Defense, foreigners who violate the provisions of this 
Title shall be subject to immediate and summary deportation by the 
[Commission on] BUREAU OF Immigration [and Deportation] shall be 
permanently barred from reentering the country without the special permission 
of the President of the Philippines."
c) THE REGULAR COURTS SHALL HAVE JURISDICTION OVER ANY 
CRIMINAL ACTION ARISING FROM VIOLATION OF ANY OF THE 
PROVISIONS OF ART. 264 OF THE LABOR CODE, AS AMENDED, BUT 
SUBJECT TO THE REQUIRED CLEARANCE FROM THE DOLE ON CASES 
ARISING OUT OF OR RELATED TO A LABOR DISPUTE.


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
NO 
CRIMINAL 
PROSECUTION 
UNDER 
ARTICLE 
264 
MAY 
BE 
INSTITUTED WITHOUT A FINAL JUDGMENT THAT AN ILLEGAL STRIKE 
OR LOCKOUT HAS BEEN COMMITTED. THE PRESCRIPTIVE PERIOD OF 
THE CRIMINAL OFFENSE SHALL BE CONSIDERED INTERRUPTED 
DURING 
THE 
PENDENCY 
OF 
ADMINISTRATIVE 
PROCEEDINGS: 
PROVIDED, HOWEVER, THAT THE FINAL JUDGMENT IN THE SAID 
PROCEEDINGS SHALL NOT BE BINDING IN THE CRIMINAL CASE NOR 
AN EVIDENCE OF GUILT.
d) COMPLAINTS ON ACTS OR OMISSIONS OF PNP OR AFP PERSONNEL 
IN VIOLATION OF ARTICLE 264 OF THE LABOR CODE, AS AMENDED 
SHALL BE FILED WITH THEIR RESPECTIVE AGENCY WITHOUT 
PREJUDICE TO THE FILING OF THE APPROPRIATE CASES BEFORE 
THE OMBUDSMAN.
Section 4. Implementing Rules and Regulations. - The Secretary of Labor and 
Employment shall promulgate the necessary rules and regulations to implement the 
provisions of this Act.
Section 5. Separability Clause. - If any part or provision of this Act is declared 
unconstitutional or invalid, the remainder of this Act or the provisions not otherwise 
affected shall remain valid and subsisting.
Section 6. Repealing Clause. - All laws, presidential decrees, proclamations, 
executive orders, 
issuances, 
rules and regulations, 
or any part thereof, 
inconsistent with the provisions of this Act are 
hereby 
repealed, amended or 
modified accordingly.
Section 7. Effectivity. - 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,