Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bill No. it)

Introduced by TUCP Partylist Representative
HON. RAYMOND DEMOCRITO C. MENDOZA

EXPLANATORY NOTE

The TUCP Party-list refiles this Bill, rationalizing government interventions in
labor disputes, particularly by providing a clear framework for the exercise of the
Secretary of Labor and Employment's assumption of jurisdiction power. The Bill is
part of the TUCP’s legislative initiatives since the 14th Congress to deliver on the
long-pending commitment of the country to address the gaps, in law and practice, in
our compliance with ratified international conventions. The International Labour
Organization (ILO) Committee on the Application of Standards (CAS) and the
Committee of Experts on the Application of Conventions and Recommendations
(CEACR) has repeatedly observes no significant progress has thus been achieved in
this regard and the country has just been referring to pending legislative amendments
for numerous years.

There is manifest urgency in enacting this Bill into law in the 20th Congress.
First, this Bill, along with the other measures filed by TUCP Party-list in response to
the ILO Committee of Experts observations and direct requests on the country's
observance of Convention Nos. 87 and 98, or the freedom of association and
collective bargaining conventions, would constitute substantial compliance in
removing the country from the list of the world's 10 worst countries for workers, as
ranked by the International Trade Union Confederation (ITUC) Global Rights Index.
The country has been on the list for nine consecutive years, starting in 2017.
Additionally, the enactment of these bills into law would help remove the Philippines
from the list of countries regularly subjected to evaluation of substantial progress by
the ILO Committee on the Application of Standards (CAS) and the Committee of
Experts. Secondly, trade union rights violations or non-compliance with international
labour standards are matters that affect our country's effort to be part of the UN
Security Council and directly support our whole-of-society efforts to position the
Philippines as a competitive global investment hub where tariff-free access, foreign
direct investments, and free trade agreements are increasingly tied to the protection of
fundamental labor rights and international labor standards. Thirdly, correcting the
decades-long curtailment of workers! right to strike and bargain collectively would be
‘a legacy of the 20th Congress and the administration of President Ferdinand
"Bongbong” Marcos, Jr., and fourth, removing the obstacle to collective bargaining
could deliver on an enterprise-based negotiated wage increase making legislated
minimum wage genuincly a mere safety net for new entrants to the labor force.



The Sccretary of Labor and Employment’s assumptive power over labor
disputes has been noted by the ILO Committee of Experts as overbroad under the
“national interest criteria," and urges for legislative measures that ensure that
Government intervention leading to compulsory arbitration is limited to essential
services in the strict sense of the term and any restrictions on the right to strike in
essential services should be accompanied by fair, impartial, and expedited procedures
for resolving labor disputes as a compensatory guarantee.

In practice, the TUCP has observed labor disputes in factories producing
snacks, condiments, hot dog products, fish sauce, and women's undergarments, among
others, which have been declared an industry indispensable to the national interest,
effectively restricting workers’ rights to strike and negotiate for better terms and
conditions of employment, Moreover, in a long line of cases, the resolution assumed
labor disputes took years to attain finality, rendering any favorable decision pyrthic,
as union members were already dead or separated, and the union had disbanded.

Thus, the Bill aims to address the emasculating effect of Article 278[263] (g) of
the Philippine Labor Code on the constitutional rights of workers to self-organization,
collective bargaining, negotiations, and peaceful concerted activities, including the
right to strike in accordance with the law and align the provision with the principles
embodied in ILO Convention Nos. 87 and 08. Article 278[263}(g) of the Philippine
Labor Code accords to the Secretary of Labor and Employment an overbroad power
to restrict the right to strike through the assumption of jurisdiction over a labor dispute
based on his/her opinion is an "industry indispensable to the national interest" and
without requisite compensatory guarantee of fair, impartial and speedy conciliation or
compulsory arbitration resolution process, the award of which is binding on both

parties.

Accordingly, the Bill proposes (a) to ensure that Government intervention
through the Secretary of Labor and Employment is confined to labor disputes in
industries engaged in essential services in the strict sense of the term, and any
restrictions on the right to strike in essential services is accompanied by a fait,
impartial, and speedy conciliation or compulsory arbitration resolution process within
fifteen (15) days as a compensatory guarantee, (b) removes the certification of the
assumed labor dispute to the National Labor Relations Commission (NLRC), (c)
recognizes the exercise by the parties of their rights in the event that the Secretary of
Labor and Employment failed to resolve the labor dispute within the prescribed
fifteen (15) day period, (d) provision of minimum service requirement, and (e) the
President of the Philippines is not precluded from issuing the list of industries
engaged in essential services after consultation with the National Tripartite Industrial
Peace Council (NTIPC) and from intervening in such labor dispute to expedite
settlement or terminate the same on grounds of declared public health or acute
national emergency.

In view of the foregoing, the passagg’6F this Bill is earnestly so

TUCP Partylist Representative


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bill No._ 30

Introduced by TUCP Partylist Representative
HON. RAYMOND DEMOCRITO C. MENDOZA

AN ACT
RATIONALIZING GOVERNMENT INTERVENTIONS IN LABOR
DISPUTES BY ADOPTING THE ESSENTIAL SERVICES CRITERIA IN THE

EXERCISE OF THE ASSUMPTION OF JURISDICTION OF THE
SECRETARY OF LABOR AND EMPLOYMENT, AMENDING FOR THE
PURPOSE ARTICLE 278 [263] (G) OF PRESIDENTIAL DECREE NO. 442,
AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE

PHILIPPINES

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Article 278 [263](g) of Presidential Decree 442, as amended, otherwise
known as The Labor Code of the Philippines, is hereby amended to read as follows:

"Art. 278. Strikes, picketing and lockouts. - Xxx xxx

(g) When [;-4n-his-opinion;] there exists a labor dispute causing or
likely to cause a strike or lockout in an industry [1

indispensablete- the
nationatinterest] ENGAGED IN ESSENTIAL SERVICES, the Secretary of
Labor and Employment may assume jurisdiction over the dispute and decide

fi i}
THE SAME WITHIN FIFTEEN (15) DAYS FROM DATE OF THE
ASSUMPTION ORDER. [Steh] THE assumption [or certification] ORDER
shall have the effect of automatically enjoining the intended or impending
strike or lockout [as speeified-in-the-assumption-or-certifieation-order]. If
[ene] A STRIKE OR LOCKOUT has already taken place at the time of
assumption [or-eertifiestion], all striking or locked out employees shall
immediately retum to work and the employer shall immediately resume
operations and readmit all workers under the same terms and conditions
prevailing before the strike or lockout {;:] : [Fhe-Seeretary-of-Labor-and
Employment—or—the—Commission—may—seek—the—assistance—of aw


=} PROVIDED,
HOWEVER, THAT WHERE THERE IS NO DECISION BY THE
SECRETARY OF LABOR AND EMPLOYMENT WITHIN THE SAID
FIFTEEN-DAY PERIOD, THE PARTIES MAY EXERCISE THEIR
RESPECTIVE RIGHTS UNDER THIS CODE.

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 IN CONSULTATION WITH THE NATIONAL
TRIPARTITE INDUSTRIAL PEACE COUNCIL (NTIPC).

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,
ESPECIALLY IN EMERGENCY CASES, FOR THE DURATION OF THE
LABOR DISPUTE.

The foregoing notwithstanding, the President of the Philippines shall not be
precluded from [determining—the] ISSUING A LIST OF industries
ENGAGED IN ESSENTIAL SERVICES [thattn-his-opinion,] AFTER
CONSULTATION WITH THE NTIPC, [areindispensable-to-the-national
nterest,] and from intervening at any time and assuming jurisdiction over any
such labor dispute in order to EXPEDITE settleMENT or terminate the same
ON GROUNDS OF DECLARED PUBLIC HEALTH OR ACUTE
NATIONAL EMERGENCY."

SEC. 2. If any provision or part of this Act is declared unconstitutional or

invalid, the remaining parts or provisions not affected shall remain in full force and

SEC. 3. All laws, executive orders, rules and regulations or parts thereof

which are inconsistent with this Act, are hereby amended or repealed accordingly.

SEC. 4. This Act shall take effect fifteen (15) days after its publication in the

Official Gazette or in a newspaper of general circulation.

Approved,