Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS:
First Regular Session

House sittno,__ 2826

Introduced by AKBAYAN Representatives Walden F. Bello and Kaka J. Bag-ao

EXPLANATORY NOTE

The 1987 Constitution provides that the State “shall guarantee the rights of all workers
to self-organization, collective bargaining and negotiations...”

Our nation is also a signatory to the ILO Convention on the Right to Organize and
Bargain Collectively (Convention No. 98) and ILO Convention 154.

Unfortunately, based on the statistics of the Department of Labor and Employment, the
State has failed, and has failed miserably, in protecting the said right to self-organization
and collective bargaining. Records from the DOLE reveal that in 2008 there are only
118,000 workers covered by Collective Bargaining Agreements (CBA’s). It is also
common knowledge that most workers are now only casual or contractual workers
whose employment are illegally terminated before the end of six months; hence, it is
almost impossible for them to establish an effective union, though the Labor Code says
they could join one upon first day of employment.

Thus, it is essential that the State, by passing this bill, make it easier for the workers to
organize by allowing a national union or a federation, which issued the charter
certificate to the local chapter, to itself file the petition for certification election, thus
shielding the local officers from harassment and discrimination.

This bill likewise allows both labor and management to demand multi-unit and/or multi-
employer bargaining. With regard to a single employer with more than one bargaining
unit, this would rationalize the negotiating process since the entire workforce, including
rank-and-file, supervisory, and managerial employees get their salaries essentially from
the same pie.

With regard to multi-employer bargaining, this will allow workers in the same industry
to bargain collectively, as practiced in the developed countries including those in
Europe.

Also, both the workers, their employers will be able to save time, effort and cost and
simplify CBA negotiations by allowing each or both of them to demand multi-employer
and/or multi-unit bargaining.

Equally important is the ability of workers to demand up to date financial information so
that could serve as reasonable basis for their demands. This will translate to more
responsible unionism.


Finally, this bill will return the term of CBAs to three years, instead of the current five
years. This will do away with the need to negotiate for the much shorter last two years
of an existing CBA. The confusion as to when a CBA starts and ends will also be
removed. The same will also allow to come together along industry lines much sooner.

For these reasons, the passage of this bill is urgently requested.

Ahh

WALDEN EF, BELLO
<7



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

26
HOUSE BILL NO. 28

Introduced by AKBAYAN Representatives Walden F. Bello and Kaka J. Bag-20

AN ACT
STRENGTHENING THE WORKERS’ CONSTITUTIONAL RIGHT TO
COLLECTIVE BARGAINING, REPEALING AND REPLACING FOR THE
PURPOSE 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 234-A of the Presidential Decree No. 422, as amended,
otherwise known as the Labor Code of the Philippines is hereby repealed and replaced
with the following provisions:

“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 UPON THE
ISSUANCE OF THE CHARTER CERTIFICATE; PROVIDED THAT, THE
FEDERATION OR THE NATIONAL UNION WHICH ISSUED THE CHARTER
CERTIFICATE MAY ITSELF FILE THE PETITION FOR CERTIFICATION
ELECTION AND MAY REPRESENT THE LOCAL CHAPTER AND ITS
MEMBERS IN ALL OF THE DIFFERENT STAGES OF THE PETITION FOR
CERTIFICATION ELECTION CASE, INCLUDING ALL PROCEEDINGS BEFORE,
DURING, AND AFTER THE CONDUCT OF CERTIFICATION

THE LOCAL OR CHAPTER SHALL HAVE THE OBLIGATION TO
REVEAL THE NAMES OF ITS OFFICERS ONLY FROM THE START OF THE
NEGOTIATIONS FOR A COLLECTIVE BARGAINING AGREEMENT.

SECTION 2. Article 248 (c) of the Presidential Decree No. 422, as amended,
otherwise known as the Labor Code of the Philippines is hereby repealed and replaced
with the following provisions:

“Art. 248. Unfair labor practices of employers. It shall be unlawful for an
employer to commit any of the following unfair labor practice:


8) To violate the duty to bargain collectively as prescribed by this Code,
INCLUDING THE DUTY TO BARGAIN COLLECTIVELY IN CASE OF MULTI-
EMPLOYER BARGAINING AND/OR MULTI-UNIT BARGAINING, AND THE
DUTY TO BARGAIN COLLECTIVELY WITH THE FEDERATION OR NATIONAL
UNION.

SECTION 3. Article 250 of the Presidential Decree No. 422, as amended,
otherwise known as the Labor Code of the Philippines is hereby repealed and replaced
with the following provisions:

“article 250. Policy. — It is the policy of the State to promote and
emphasize the primacy of the free and responsible exercise of the right
to self-organization and collective bargaining, either through single
enterprise level negotiations or through the creation of a mechanism by
which different employers and recognized or certified sole and exclusive
bargaining agents in their establishments bargain collectively.

It is likewise the policy of the State to promote the unity of the
ifferent trade unions, federations, and national unions — especially those
working in the same industry.

Article 250-A. Disclosure of Information. ~ In collective bargaining,
the parties shall, at the request of either of them, make available such
up-to-date financial information on the economic situation of the
undertaking, which is normally submitted to relevant government
agencies, as is material and necessary for meaningful negotiations.
Where the disclosure of some of this information could be prejudicial to
the undertaking, its communication may be made condition upon a
commitment that it would be regarded as confidential to the extent
required. The information to be made available may be agreed upon by
the parties to collective bargaining.

Article 250-B. Forms of collective bargaining. — Collective
bargaining can take place either between a legitimate labor union and
the employer within a single enterprise (“single enterprise bargaining”),
between more than one sole and exclusive bargaining agent and their
corresponding employers (“multi-employer bargaining”), or between
more than one sole and exclusive bargaining agent within a single
employer and the employer (“multi-unit bargaining”).

Article 250-C. When single bargaining unit-single enterprise
bargaining available. — Any recognized or certified sole and exclusive
bargaining agent may demand negotiations wi employer for terms
and conditions of work covering employees in the bargaining unit
concerned.

Article 250-D. Procedure in single enterprise bargaining. - The
following procedure shall be observed in single enterprise bargaining

(a) A recognized or certified collective bargaining agent or an
employer that desires to negotiate shall submit such intention in writing
to the other party, together with its proposals for collective bargaining,
The other party shall submit its counter-proposal not later than ten (10)
calendar days from receipt of such notice;


(b) Should differences arise on the basis of such proposal and
counter-proposal, either party may request for a conference which shall
begin not later than ten (10) calendar days from the date of request;

{c) If the dispute is not settled, the Secretary shall intervene upon
request of either or both parties or at its own initiative and immediately
call the parties to conciliation meetings. The Secretary shall have the
power to issue subpoenas requiring the attendance of the parties to such
meetings. It shall be the duty of the parties to participate fully and
promptly in the conciliation meetings the Secretary may call;

(d) During the conciliation proceedings before the Secretary, the
Parties are prohibited from doing any act which may disrupt or impede
the early settlement of the disputes;

(e) The Secretary shall exert all efforts to settle disputes amicably;

(f) The foregoing procedure is without prejudice to the parties
adopting such procedures and processes they may deem appropriate and
necessary for the early conclusion of their negotiations.

Article 250-E. When multi-unit and/or multi-employer bargaining
Mandatory. - Sole and exclusive bargaining agents, whether or not
belonging to the same employer, may agree in writing to come together
for the purpose of collective bargaining; different employers may likewise
agree in writing to come together for purposes of collective bargaining; a
single employer may also demand collectively bargaining with more than
one bargaining unit in said single employer; provided:

(a) Only a legitimate labor organization which is the sole and
exclusive bargaining agent in the collective bargaining unit may
participate and negotiate in multi-employer and/or multi-bargaining unit
bargaining;

{b) Only employers with counterpart sole and exclusive
bargaining agents may participate and negotiate in multi-employer
bargaining;

(c) An obligation to bargain shall arise on the part of the
corresponding sole and exclusive bargaining agents or employer/s,
should multi-employer and/or multi-bargaining unit bargaining be
demanded by either a group of sole and exclusive bargaining agents or a
single employer or a group of employers;

(4) Different employers may demand multi-employer
bargaining from their corresponding sole and exclusive bargaining agents,
including those bargaining agents belonging to the same employer;

(e) Different sole and exclusive bargaining agents within the
same employer may demand multi-unit collective bargaining from the

employer;

(f) An employer may demand multi

nit collective bargaining


from the different sole and exclusive bargaining agents;

{g) Different sole and exclusive bargaining agents may
demand collective bargaining with more than one employers, even as
more than one sole and exclusive bargaining agent may belong to the
same employer.

Article 250-F, Procedure in multi-employer bargaining and/or
multi-unit bargaining. — Multi-employer and/or multi-bargaining unit
bargaining may be initiated by the labor unions or by the employer/s.

(a) Sole and exclusive bargaining agents that want to
negotiate with their employers collectively shall execute a written
agreement among themselves, which shall contain the following:

1) the names of the sole and exclusive bargaining agents that
want to avail of multi-employer or multi- unit bargaining;

2) each legitimate labor organization in the employer unit;

3) the fact that each of the labor unions are the incumbent
sole and exclusive bargaining agents for their respective employer units;

4) the durations of the collective bargaining agreements, if
any, entered into by each labor union with their respective employers.

Sole and exclusive bargaining agents which are members of the
same registered federation, national, or industry union are exempt from
execution of this written agreement.

(b) The sole and exclusive bargaining agents from different
employers that want to bargain with multi-employers and/or a single
employer in case of multi-unit-single employer bargaining shall send a
written notice to this effect to each employer concerned. The written
agreement stated in the preceding paragraph, or the certificates of
registration of the federation, national, or industry union, shall
accompany said notice.

Employers shall group themselves or use their existing
associations to engage in multi-employer bargaining. They shall send a
written notice to each of their counterpart sole and exclusive bargaining
agents indicating their desire to engage in multi-employer bargaining.
Said notice shall indicate the following:

1) _ the names of the employers who desire to avail of multi-
employer bargaining;

2) their corresponding sole and exclusive bargaining agent/s;

3) the fact that each sole and exclusive bargaining agent is an
incumbent exclusive bargaining agent;

4) the duration of the current collective bargaining
agreement, if any, entered into by each employer with their counterpart
sole and exclusive bargaining agent/s.


(©) During the course of negotiations, employers and the
corresponding sole and exclusive bargaining agents shall discuss and
agree on the following:

1) Manner by which negotiations shall proceed;
2) The scope and coverage of the negotiations and the
agreement;
3) Where appropriate, the effect of the negotiations on

current agreements or conditions of employment among the parties.

{d) In cases where the parties are unable to come to an
agreement as provided for under the preceding paragraph, the procedure
provided for under 250-D shall be followed.

(e) Two (2) signed copies of collective bargaining agreement
shall be posted for at least five (5) days in two (2) conspicuous areas in
each workplace of the employer or employers units concerned. Said
collective bargaining agreement shall cover only those employees in the
bargaining units which have ratified it.

Any multi-employer and/or multi-bargaining unit CBA shall cover
all of the terms and conditions of employment otherwise covered by
single enterprise bargaining. However, in case a single enterprise CBA and
a multi-employer or multi-bargaining unit CBA are concurrently in effect
for a bargaining unit and there is a conflict between the CBA’s, the
provision that is more favorable to the worker shall prevail.

Article 250-G. Federation and National Union's Role in Collective
Bargaining. ~ Federations and National Unions shall have the right to
represent their local unions or local chapters, and all their members, in all
aspects of collective bargaining, subject to the right of all of the members
of the bargaining unit to ratify or reject any negotiated collective
bargaining agreement.

The principal in any collective bargaining agreement and in the
negotiations thereof shall be the federation or the national union.
However, negotiations shall be jointly conducted by the
federation/national union and the local or chapter. Any agreement must
be ratified by a majority of the total number of covered employees in all
of the bargaining units.

Furthermore, a collective bargaining agreement must be ratified
by the majority of the members of each bargaining unit, and only the
bargaining units which ratified the CBA shall be bound by the agreement.

Section 4, Art. 253-A is hereby repealed and replaced with the following
provisions:

Art. 253-A. Terms of a collective bargaining agreement. Any
Collective Bargaining Agreement that the parties may enter into shall be
for a term of THREE (3) years. No petition questioning the majority status
of the incumbent bargaining agent shall be entertained and no
Certification election shall be conducted by the Department of Labor and


Employment outside of the sixty-day period immediately before the date
of expiry of such THREE-year term of the Collective Bargaining
Agreement. ANY PARTY TO A COLLECTIVE BARGAINING AGREEMENT
MAY SUBMIT A PROPOSAL TO THE OTHER PARTY NOT EARLIER THAN
SIX (6) MONTHS PRIOR TO THE EXPIRATION OF THE CBA.

Any agreement concluded after the expiration of the CBA shall
retroact to the day after the expiration of such CBA.

The effectivity dates of the multi-unit and/or multi-employer CBA
shall prevail over those of the local CBA’s — including for purposes of
determining the freedom period.

SECTION 5. Article 263 of the Presidential Decree No. 422, as amended,
otherwise known as the Labor Code of the Philippines is hereby repealed and replaced
with the following provisions:

Art. 263. Strikes, picketing and lockouts.
XXX

c) In case of bargaining deadlocks, including those in multi-employer and/or
multi-unit bargaining, the duly certified or recognized bargaining agent/s may file
a notice of strike or the employer may file a notice of lockout with the
Department at least 30 day 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
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.

In case of multi-employer and/or multi-unit bargaining and/or collective
bargaining agreements, only those employers who commit unfair labor practice
or who violate the duty to bargain collectively may be the subject of a notice of
strike.

XxX

(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. IN CASE OF MULTI-EMPLOYER
AND/OR MULTI-UNIT BARGAINING OR COLLECTIVE BARGAINING AGREEMENT,
‘A STRIKE CAN BE LAUNCHED ONLY BY A UNION WHICH APPROVED THE STRIKE
BY A MAJORITY VOTE OF ITS MEMBERS. 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 DOLE 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 DOLE the results of the
voting at least seven days before the intended strike or lockout, subject to the



cooling-off period herein provided.

SECTION 6. Implementing Rules and Regulations. Within thirty (30) days from
the effectivity of this Act, the Secretary of Labor and Employment, in consultation with
the trade unions, labor organizations, and other stakeholders, shalll issue and publish the
necessary rules and regulations to implement the provisions of this Act.

SECTION 7. Separability Clause. ~ If any provision of this Act, or any parts
thereof, is declared unconstitutional, the same shall not affect the validity and
effectivity of the other portions.

SECTION 8. Repealing Clause. — All laws, executive orders, presidential decrees,
proclamations, rules, regulations, issuances and enactments of parts thereof
inconsistent with this Act are hereby repealed or modified accordingly.

SECTION 9. Effectivity. — This Act shall take effect after fifteen (15) days from its
complete publication in the Official Gazette of in a newspaper of general circulation in

the Philippines, whichever comes earlier.

APPROVED,