THIRTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
1 
Third Regular Session 
1 
S. No. 
2517 
INTRODUCED BY THE HONORABLE 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. 671 5 in 1989. 
As a state policy the preferential use of voluntary arbitration in all labor -management 
disputes, other than those arising from the interpretation and 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 mkagement to resolve their differences. Specifically, Sec. 3, Article XI11 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 disuute 
including conciliation, and shall enforce their mutual compliance therewith to foster industrial 
peace". 
As the program reached its 17" year 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, refusal of one party to arbitrate and delays 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 boost voluntary arbitration as an important component of 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 o f  settling labor disputes, experience point to the need to further 
strengthen particular sections of the law. It is to this end that this measure is being introduced, 
seeking to amend the following provisions of the Labor Code: 
Art. 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. 
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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 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. 
Art. 261. 
5. The concern on the overlapping jurisdiction of Labor Arbiters and Voluntary Arbitrators 
is proposed to be addressed by amending ART. 261 o f  the Labor Code and ART. 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. 
Art. 262. 
6. 
7. 
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. 
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. 
Art. 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. Include a provision creating sheriffs 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. In 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. 
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Art. 263 
13. Art. 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. 
Art. 277 (9 
14. Art. 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 
sitme 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 
/- 
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THIRTEENTH CONGRESS OF THE 
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@V 21 
I 
REPUBLIC OF THE PHILIPPINES 
1 
Third Regular Session 
1 ’  
S E N A T E  
S.No. 3.517 
INTRODUCED BY THE HONORABLE JINGGOY EJERCITO ESTRADA 
AN ACT 
FURTHER 
STRENGTHENING 
VOLUNTARY 
ARBITRATION 
AS 
THE 
PREFERENTIAL MODE OF LABOR DISPUTE SETTLEMENT, AMENDING FOR 
THIS PURPOSE ARTICLES 217,260,261,262-A, 262-B, 263(G) AND ARTICLE 277(F), 
AND INCORPORATING A NEW ARTICLE b62-D OF PRESIDENTIAL DECREE NO. 
422, 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 PD 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” 
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Section 2. Article 260 of the same Code, otherwise hown as the Labor Code of the 
Philippines, as amended, is hereby further amended to read as: 
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“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 THESE 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 
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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 
ARBITRATEDj 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 
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RECEIPT THEREOF, THE VOLUNTARY ARBITRATOR OR PANEL OF 
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VOLUNTARY 
ARBITRATORS 
DESIGNATED 
IN 
THE 
COLLECTIVE 
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BARGAINING 
AGREEMENT 
SHALL 
COMMENCE 
VOLUNTARY 
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ARBITRATION PROCEEDINGS. WHERE THE COLLECTIVE BARGAINING 
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AGREEMENT DOES NOT SO DESIGNATE, THE BOARD SHALL CALL THE 
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PARTIES AND APPOINT A VOLUNTARY ARBITRATOR OR PANEL OF 
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VOLUNTARY ARBITRATORS, WHO SHALL THEREAFTER COMMENCE 
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ARBITRATION PROCEEDINGS IN ACCORDANCE WITH THE PRECEEDING 
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PARAGRAPH.” 
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“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.” 
Section 3. Article 261 ofthe same Code, as amended, is hereby fkther amended to read as: 
“Article 261. Jurisdiction of Voluntay 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.” 
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“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 bc 
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.” 
Section 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 [, 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, TI-IE 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. 
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rF 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. 
Section 5. Article 262-A of the same Code, as amended, is hereby hrther 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 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) 
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calendar days from the date of submission of the dispute FOR DECISION [to voluntary 
arbitration]. “FAILURE ON IIIS/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 (IO) 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 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 ARRITRATOR TO issue a writ of execution requiring either the sheriff 
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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.” 
Section 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 volunkq 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 VoIuntary Arbitrator; 
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(d) Capacity to pay of the parties; and 
(e) Fees provided for in the Revised Rules o f  Court.” 
Section 7. Article 277, paragraph (f) of the same Code, as amended, is hereby renumbered as 
Article 262-C, to read as: 
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“ARTICLE 262-C. THE SPECIAL VOLUNTARY ARBITRATION FUND. [(f)] A 
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special Voluntary Arbitration Fund is hereby established in the Board to subsidize the 
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cost of voluntary arbitration [in cases involving the interpretation of the Collective 
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Bargaining Agreement,] including the arbitrator’s fees, and for such other related 
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purposes to promote and develop voluntary arbitration. The Board shall administer the 
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Special Voluntary Arbitration Fund in accordance with the guidelines it may adopt upon 
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the recommendation of the Council, which guidelines shall be subject to the approval of 
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the Secretary of Labor and Employment, PROVIDED, THAT EIGHTY PERCENT 80% 
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OF THE FUND SHALL BE ALLOCATED FOR SUBSIDY FOR UNIONS WHICH DO 
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NOT HAVE THE CAPACITY TO PAY THEIR AGREED SHARE OF THE 
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VOLUNTARY ARBITRATOR’S FEE AS PROVIDED FOR IN THE CBA. 
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CONTINUING FUNDS NEEDED FOR THIS PURPOSE IN THE INITIAL YEARLY 
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AMOUNT OF SEVENTY-FIVE MILLION PESOS (P75,000,000.00) [fifteen million 
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pesos] shall be provided in the 119897 annual general appropriations act.’ 
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Council.” 
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“The amount o f  subsidy in appropriate cases shall be determined by the Board in 
accordance with the established guidelines issued by it upon the recommendation o f  the 
“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.” 
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Section 8. A new provision is hereby proposed to be inserted as ArticIe 262-D, to read as: 
“ARTICLE 262-D. 
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 DE- 
LISTING 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. “ 
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“THE BOARD SHALL ALSO HAVE THE P O W R  TO DELIST AND REMOVE 
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ACCREDITED VOLUNTARY ARBITRATORS FROM THE ROLL FOR JUST 
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CAUSE AND SUBJECT TO THE REQUIREMENTS OF DUE PROCESS; 
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PROVIDED, THAT THE DECISION OF THE BOARD TO DELIST OR REMOVE IS 
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FINAL AND EXECUTORY .I’ 
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Section 9. A new provision taken from Executive Order No. 251 is hereby proposed to be 
inserted as Article 262-E, to read as: 
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“ARTICLE 262-E. CONPOSITION OF THE TRIPARTITE VOLUNTARY 
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ARBITRATION ADVISORY COUNCIL”. 
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“THE TRIPARTITE VOLUNTARY ARBITRATION ADVISORY COUNCIL IS 
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HEREBY’ CREATED AND ATTACHED TO THE NATIONAL CONCILIATION AND 
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MEDIATION BOARD. THE COUNCIL SHALL ADVISE THE BOARD ON 
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MATTERS PERTAINING TO THE PROMOTION OF VOLUNTARY ARBITRATION 
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AS THE PREFERRED MODE OF DISPUTE SETTLEMENT. 
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“THE TRIPARTITE VOLUNTARY ARBITRATION ADVISORY COUNCIL 
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SHALL CONSIST OF THE EXECUTIVE DIRECTOR [ADMINISTRATOR] OF THE 
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NATIONAL CONCILIATION AND MEDIATION BOARD AS CHAIRMAN, ONE (1) 
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MEMBER FROM THE GOVERNMENT, TWO (2) MEMBERS REPRESENTING 
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LABOR, AND TWO (2) OTHER MEMBERS REPRESENTING MANAGEMENT. 
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THE MEMBERS SHALL BE APPOINTED BY THE PRESIDENT TO SERVE FOR A 
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TERM OF THREE (3) YEARS. THE CHAIRMAN AND MEMBERS THEREOF 
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SHALL SERVE WITHOUT COMPENSATION.” 
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“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.” 
Section 10. Art. 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.” 
Section 11. All laws, orders, issuances, rules and regulations or parts thereof inconsistent 
with provisions of this Act are hereby repealed, amended or modified accordingly. 
Section 12. The Secretary of Labor and Employment shall promulgate the necessary rules 
and regulations to implement the provisions of this Act. 
Section 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 ofthis Act. 
Section 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. 
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Approved. 
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