FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 632 
) 
) 
) 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Section 3 of Article XIII of the 1987 Constitution enumerates the provisions 
which guarantee the full protection of the basic rights of workers and employers. 
Based on this premise, the full exercise of workers and employers' right to go on 
strike and to lock out respectively in furtherance of their interests is encouraged by 
the State as this will be beneficial to both parties in settling problems and disputes 
arising from their relationship. 
Unfortunately, the above conditions are not made to prosper due to an 
existing legal situation wherein the Secretary of Labor and Employment can 
assume jurisdiction based merely on his opinion that the contending parties are 
engaged in activities that are considered indispensable to national interest. While 
another constitutional provision mandates the State to regulate the relations 
between workers and employers, there is a need to cure the system such that the 
contending parties shall be given the leeway to settle their problems with minimum 
government intervention. 
The proposed measure, seeks to limit the Labor Secretary's power to 
assume jurisdiction over dispute settlement to essential services only, such as 
hospital, water supply, electrical, and transportation. By doing so, the interruption 
in the delivery of these basic services, due to lockouts and strikes, would not be 
inimical to public health and safety. 
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In" view of the foregoing, support to the passage of this bill is earnestly 
sought. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 
) 
) 
) 
832 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
LIMITING THE POWER OF ASSUMPTION OR CERTIFICATION OF LABOR 
DISPUTES BY THE SECRETARY OF LABOR AND EMPLOYMENT TO 
ACTIVITIES OR UNDERTAKING WHICH INVOLVE ESSENTIAL SERVICES, 
AMENDING FOR THIS PURPOSE ARTICLE 263 (G) OF PRESIDENTIAL 
DECREE 422, OTHERWISE KNOWN AS THE LABOR CODE OF THE 
PHILIPPINES, AS AMENDED AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Represenfafives of the Philippines in 
Congress assembled: 
SECTION 1. The State recognizes the constitution of labor in national 
development and guarantees their rights among others to engage in peaceful 
concerted activities including the rights to strike in accordance with the law. 
SEC. 2. Article 263 (9) of the Labor Code, as amended is hereby further 
amended to read as follows: 
"Art. 263. Strikes, picketing and lockouts. -
xxx xxx 
(G)When [, in his opinion,] there exists a dispute causing or likely to cause a 
strike lockout in an industry [indispensable to the national interest,] 
INVOLVING ESSENTIAL SERVICES, the Secretary of Labor and 
Employment may assume jurisdiction over the dispute and decide [it or 
certify the same to the Commission for compulsory arbitration] THE SAME 
WITHIN FORTY FIVE (45) DAYS AFTER SUCH ASSUMPTION. THE 
SECRETARY'S DECISION SHALL BE FINAL AND EXECUTORY. [Such] 
THE assumption or certification ORDER shall have the effect automatically 
enjoining the intended or impending strike or lockout [as] specified [in the 
assumption or certification order] THEREIN. If [one] A STRIKE OR 
LOCKOUT has already taken place at the time of assumption [or 
certification], all striking or locked out employees UNDER PAIN OF 
CONTEMPT AND PAYMENT OF WAGES OR SALARIES OF THE 
WORKERS, shall immediately resume operations and readmit all workers 
under the same terms and conditions prevailing before the strike or lockout: 
PROVIDED, HOWEVER, THAT WHERE THERE IS NO DECISION BY 
THE SECRETARY WITHIN THE SAID FORTY-FIVE (45) DAY PERIOD, 
THE PARTIES MAY THEN EXERCISE THEIR RESPECTIVE RIGHTS 
UNDER THIS CODE. 
The Secretary of Labor and Employment [or the Commission] may seek the 
assistance of law enforcement agencies to ensure compliance with these 


, 
provisions as well as such orders as he may issue to enforce the same. 
FOR PURPOSES OF THIS SECTION, ESSENTIAL SERVICES SHALL 
MEAN HOSPITAL, WATER SUPPLY, AND ELECTRICAL SERVICES, 
TRANSPORTATION 
SERVICES, THE 
LACK OF WHICH WOULD 
ENDANGER LIFE OR PUBLIC SAFETY. 
"In line with the national concern for 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 to strike and by management to lockout. In labor disputes 
adversely affecting the continued operation of such hospitals, clinics or 
medical institutions, it shall be the duty of the striking union or locking out 
employer to provide and maintain an effective skeletal workforce of medical 
and other health personnel, whose movement and services shall be 
unhampered and unrestricted as are necessary to ensure the proper and 
adequate protection of the life and health of its patients, most especially 
emergency causes, for the duration of the strike or 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 strike or lockout, jurisdiction over the same [or certify it to the 
Commission for compulsory arbitration]. For this purpose the injunctions as 
are issued by the Secretary of Labor [or the Commission], under pain of 
immediate disciplinary action, including dismissal or loss of employment or 
payment by the locking-out employer of back wages [,1 AND OTHER 
BENEFITS, damages, ADMINISTRATIVE FINES OF NOT LESS THAN 
TEN THOUSAND PESOS (PIO,OOO.OO) AND NOT MORE THAN 
TWENTY 
THOUSAND 
PESOS 
(P20,OOO.OO) 
AND 
OTHER 
AFFIRMATIVE RELIEF, [even] INCLUDING criminal prosecution against 
either or both [of them) EMPLOYERS AND EMPLOYEES. 
, 
"The foregOing notwithstanding, the President of the Philippines shall not be 
precluded, AT ANY TIME, from [determining the industries that, in his 
'opinion, are indispensable to the national interest, and from intervening at 
any time and) assuming jurisdiction over any labor dispute in order to settle 
or terminate the same. THE PRESIDENT'S DECISION SHALL ALSO BE 
FINAL AND EXECUTORY." 
SEC. 3. The Secretary of Labor and Employment shall issue within thirty 
(30) days after the effectivity of this Act the corresponding implementing the rules 
and regulations. 
SEC. 4. Should any provision of this Act or any part thereof be declared 
invalid, the other provisions, so far as they are separable from the invalid ones, 
shall remain in force and effect. 
SEC. 5. All laws, decrees, rules or regulations and other issuances or parts 
thereof, which are inconsistent with this Act, are hereby repealed, amended or 
modified accordingly. 
SEC. 6. Act shall take effect after fifteen (15) days following its publication 
either in the Official Gazette of in a newspaper of general circulation. 
Approved,