,J 
SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
NOV 11 
A9 :46 
SEN~T» 
S. No. 
1~13 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The Presidential Decree No. 442, also known as the Labor Code, Article 248, makes it an 
unfair labor practice for employees "to contract out services or functions being performed by 
union members ... " Clearly, the provision does not cover situations where employers merely 
threaten to contract out services being performed by tpe latter. A threat has the same coercive 
effect as actually contracting out services as it instills fear in the laborer of losing his job, 
This bill extends the protection of Article 248 by making it unlawful for employers to 
threaten to contract out services being performed by union members.' 
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Il..-dw,- 4.h.,A.v-. J~ 
tJJIf' MIRIAM DEF~SOR sit1TIAfO 
, This bill was originally filed during the Thirteenth Congress, First Regular Session. 
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SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.No. 1913 
Introduced by Senator Miriam Defensor Santiago 
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AN ACT 
. 
'13 
NOV 11 
A9 :46 
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AMENDING PRESIDENTIAL DECREE NO. 442, ALSO KNOWN 
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AS THE LABOR CODE OF THE PHILIPPINES, ARTICLE 248, MAKING IT UNLAWFUL 
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FOR EMPLOYERS TO THREATEN TO CONTRACT OUT SERVICES 
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BEING PERFORMED BY UNION MEMBERS 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. P.O. No. 442, also known as'the Labor Code of the Philippines, Article 
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248, is hereby amended to read as follows: 
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"Article 248. Unfair labor practices of employers. - It shall be unlawful 
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for an employer to commit any of the following unfair labor practic~: 
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(a) To interfere with, restrain or coerce employees in the exercise of their 
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right to self-organization; 
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(b) To require as a condition of employment that a person or an employee 
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shall not join a labor organization or shall with-draw from one to which he 
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belongs; 
IS 
(c) [To contract out services or functions being performed by union 
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members when such will interfere with, restrain or coerce employees in the 
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exercise of their rights to self-organizatiou;], TO PROMISE, TO THREATEN, 
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OR TO TAKE ANY OTHER ACTION TO HIRE A PERMANENT 
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REPLACEMENT OR AN EMPLOYEE WHO 
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(A) AT THE COMMENCEMENT OF A LABOR DISPUTE WAS 
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AN EMPLOYEE OF THE EMPLOYER IN A BARGAINING 
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UNIT WHICH A LABOR ORGANIZATION (1) WAS THE 
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CERTIFIED OR RECOGNIZED EXCLUSIVE BARGAINING 
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REPRESENTATIVE; OR (2) AT LEAST THIRTY (30) DAYS 
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PRIO,R TO THE COMMENCEMENT OF THE DISPUTE HAD 
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FILED A PETITION FOR CERTIFICATION ELECTION 
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PURSUANT TO ARTICLES 256 AND 257 OF THIS CODE, 
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AND THE BUREAU OF LABOR RELATIONS HAS NOT 
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COMPLETED THE REPRESENTATION PROCEEDING; AND 
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(B) IN CONNECTION WITH THAT DISPUTE HAS ENGAGED IN 
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CONCERTED ACTIVITIES 
FOR THE PURPOSE 
OF 
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COLLECTIVE BARGAINING OR OTHER MUTUAL AID OR 
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PROTECTION OR DENY ANY OTHER EMPLOYMENT 
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RIGHT OR PRIVILEGE TO AN EMPLOYEE WHO IS 
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WORKING FOR OR HAS UNCONDITIONALLY OFFERED 
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TO RETURN TO WORK FOR THE EMPLOYER, OUT OF A 
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PREFERENCE FOR ANY OTHER INDIVIDUAL, THAT IS 
: 
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. 
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BASED 
ON THE FACT THAT THE' INDIVIDUAL IS 
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PERFORMING, HAS PERFORMED, OR HAS INDICATED A 
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WILLLINGNESS TO PERFORM BARGAINING UNIT WORK 
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FOR THE EMPLOYER DURING THE LABOR DISPUTE. 
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(d) To initiate, dominate, assist or otherwise interfere with the formation 
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or administration of any labor organization, including the giving of financial or 
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other support to it or its organizers or supporters; 
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(e) To discriminate in regard to wages, hours of work and other terms and 
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conditions of employment in order to encourage or discourage membership in any 
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labor organization. Nothing in this Code or in any other law shall stop the parties 
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from requiring membership in a recognized collective bargaining agent as a 
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condition for employment, except those employees who are already members of 
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another union at the time of the signing of the collective bargaining agreement. 
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Employees of an appropriate bargaining unit who are not members of the 
, 
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recognized collective bargaining agent may be assessed a reasonable fee 
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equivalent to the dues and other fees paid by members of the recognized 
collective bargaining agent, if such non-union members accept the benefits under 
the collective bargaining agreement: Provided, that the individual fluthorization 
required under Article 242, paragraph (0) of this Code shall not apply to the non-
members of the recognized collective bargaining agent; 
(f) To dismiss, discharge or otherwise prejudice or discriminate against an 
employee for having given or being abont to give testimony under this Code; 
(g) To violate the duty to bargain collectively as prescribed by this Code; 
(h) To pay negotiation or attorney'sfees to the union or its officers or 
agents as part of the settlement of any issue in collective bargaining or any other 
dispute; or 
(i) To violate a collective bargaining agreement. 
The provisions of the preceding paragraph notwithstanding, only the 
officers and agents of corporations, associations or partnerships who have actually 
paJticipated in, authorized or ratified unfair labor practices shall be held 
criminally liable." 
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SECTION 2. Separability Clause. - If any provision or part hereof is held invalid or 
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unconstitutional, the ren:ainder of the law or the provision not otherwise affected shall remain 
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valid and subsisting. 
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SECTION 3. Repealing Clause. - Any law, presidential decree or issuance, executive 
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order, letter of instruction, administrative order, rule, or regulatiQn contrary to or inconsistent 
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with the provisions of this Act is hereby repealed, modified, or amended accordingly. 
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SECTION 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
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publication in at least two (2) newspapers of general circulation. 
Approved, 
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