Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

7226

Introduced by TUCP Party-List Representative
RAYMOND DEMOCRITO C. MENDOZA

EXPLANATORY NOTE

The Philippine Constitution guarantees “the rights of all workers to self-
organization, collective bargaining and negotiations, and peaceful concerted
activities, including the right to strike in accordance with law”. However,
the Labor Code restricts this provision by the DOLE Secretary’s power to
assume jurisdiction over a labor dispute in an “industry indispensable to
national interest”.

This proposed amendment will restrict intervention only to essential
services, and hopefully discontinue indiscriminate assumption of cases. The
exclusive grant upon the President of the Philippines of the authority to
handle "national interest labor disputes" ("essential services" as hereby
proposed) adds a peculiar dimension to its exclusivity. It is expected that
the high political accountability that goes with every assumption or
certification will result to a more judicious exercise of this awesome power.

The proposed amendment will bring Philippine law into compliance with ILO
Convention Nos. 87 and 98 on Freedom of Association and the Right to
Collective Bargaining in relation to the right to strike, which the Philippines
is obliged to observe as a member State of the International Labor
Organization (ILO).


The change of the operative phrase from "indispensable to national interest”
to “performing essential services" is designed to strictly limit the
applicability of the authority discussed the barest minimum for two (2)
obvious reasons: Firstly, the authority under discussion is very persuasive
in its effects and sweeping in its operation. The injunction inherent in, or
issued under, this authority enjoins the strike itself while injunction in
ordinary cases must be based on the strict requirements of Article 218 (e)
of the Labor Code. The purpose for such an injunction is not to enjoin the
strike itself but only unlawful activities. Secondly, it is in consonance with
the Constitutional mandate to reduce to the barest minimum State
interference in the form of compulsory arbitration as to even prohibit the
issuance of injunctions in labor cases.

In view of the foregoing, the passage of this bill is earnestly sought.

RAYMOND DEMOCRITO C. MENDOZA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

7226

Introduced by TUCP Party-List Representative
RAYMOND DEMOCRITO C. MENDOZA

AN ACT
LIMITING THE POWER TO ASSUME JURISDICTION
OVER LABOR DISPUTES INVOLVING ESSENTIAL SERVICES
BY THE PRESIDENT OF THE PHILIPPINES,
AMENDING FOR THIS PURPOSE ARTICLE 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. Short Title. - This Act shall be known as the “Assumption of
Jurisdiction Act”.

Section 2. Essential Services. - Article 263 (g) of the Labor Code is
hereby amended to read as follows:

“ARTICLE 263. Strikes, picketing and lockouts. ~ Xxx xxx

*(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] PERFORMING ESSENTIAL SERVICES, the
[Secretary of Labor and Employment] PRESIDENT OF THE
PHILIPPINES may assume jurisdiction over the dispute and decide
[it or certify the same to the Commission for compulsory
arbitration] THE SAME WITHIN FIFTEEN (15) DAYS AFTER
SUCH ASSUMPTION. [Such] THE assumption [or certification]



ORDER shall have the effect of 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 shall immediately
return-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. PROVIDED,
HOWEVER, THAT WHERE THERE IS NO DECISION BY THE
PRESIDENT WITHIN THE SAID FIFTEEN-DAY PERIOD, THE
PARTIES MAY THEN EXERCISE THEIR RESPECTIVE RIGHTS
UNDER THIS CODE.

“The [Secretary of Labor and Employment or the Commission]
PRESIDENT may seek the assistance of law enforcement agencies
to ensure compliance with this provision as well as with such orders
as he may issue to enforce the same.

“In line with the national concern for and 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 insure the proper and adequate protection of the life and health of
its patients, most especially emergency cases, for the duration of the
strike or lockout. In such cases, therefore, the [Secretary of Labor
and Employment] PRESIDENT OF THE PHILIPPINES may
immediately assume, within twenty four (24) hours from knowledge
of the occurrence of such a strike or lockout, jurisdiction over the
same [or certify it to the Commission for compulsory
arbitration]. For this purpose, the contending parties are strictly
enjoined to comply with such orders, prohibitions and/or injunctions
as are issued by the [Secretary of Labor and Employment or the
Commission] PRESIDENT, under pain of immediate disciplinary
action, including dismissal or loss of employment status or payment
by the locking-out employer of backwages, damages and other


affirmative relief, even criminal prosecution against either or both of
them.

“The foregoing notwithstanding, the President of the Philippines shall
not be precluded 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 such labor
dispute INVOLVING ESSENTIAL SERVICES PROVIDING
POWER, TERTIARY-CARE HOSPITAL AND WATER, THE
INTERRUPTION OF SUCH SERVICES COULD ENDANGER THE
LIFE, SAFETY OR HEALTH OF THE GENERAL PUBLIC, in order to
settle or terminate the same. THE DECISION OF THE PRESIDENT
SHALL BE FINAL AND EXECUTORY.”

Section 3. Separability Provi:

ions. -- If any part of this Act is held invalid

or declared unconstitutional, the same shall not affect the validity and

effectivity of the other parts thereof.

Section 4. Repealing Clause. -- All laws, decrees, executive orders, rules
and regulations or parts thereof, which are inconsistent with this Act, are

hereby repealed, amended or modified accordingly.

Section 5. Effectivity. - This Act shall take effect fifteen (15) days after

its publication in at least two newspapers of general circulation.

Approved,