CONGRESS OF THE PHILIPPINES —)
THIRTEENTH CONGRESS
First Regular Session )

HOUSE OF REPRESENTATIVES

House Bill No,__ 1354

By Representative DEL R. DE GUZMAN

EXPLANATORY NOTE

Book Five of the Labor Code on Labor Relations has, under Article 211, the
expressed policy to promote and emphasize the primacy of collective bargaining and
negotiations, to promote free trade unionism, and foster the free and voluntary organization
of a strong and united labor movement. However, the interpretation and application of the
provisions concerning labor unions have greatly eroded the capacity of workers to organize
themselves in pursuit of genuine collective bargaining. More specifically, the present
process by which legitimate labor unions are formed, registered, and certified is
characterized by such delay and needless technicality which invariably deny workers their
right to self-organization.

This bill entitled addresses this and protects workers in their exercise of the right to
self-organization by preventing undue interference and expediting the process of registration
and certification of labor organizations. More particularly, this bill:

1) Guarantees the expeditious nature of certification elections by:

emphasizing the employer's limited role as a bystander, thereby eliminating
employer interference which is an incessant cause of delay;

restricting the grounds for cancellation of tinion registration, limiting the same to
causes which are sufficiently grave or which are voluntary on the part of the
workers; and by

©) clarifying that the filing of a petition for cancellation filed against the union does not

suspend a petition for certification elections.

a)

b)

2) Promotes free trade unionism and fosters the free and voluntary organization of a strong
and united labor movement by:


a) allowing rank and file employees and supervisory employees to join the same
federation or national union;

providing that the commingling of rank and file employees and supervisory
employees in the same federation or national union is not a ground for the
cancellation of registration; and

encouraging affiliation with federations and national unions.

b)

°)

These proposed amendments to the Labor Code of the Philippines greatly enhance
the Philippines’ compliance with international obligations pertaining to non-dissolution of
workers’ organization through administrative authority (International Labor Organization
Convention No. 87) and strengthening workers’ right to self-organization and collective
bargaining (International Labor Organization Convention No. 98)

Approval of this bill is therefore earnestly sought.

DEL/R} DE GUZMAN


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

THIRTEENTH CONGRESS
First Regular Session
House Bi No, _1352

By Representative DEL R. DE GUZMAN

AN ACT STRENGTHENING THE WORKERS’CONSTITUTIONAL RIGHT TO
SELF-ORGANIZATION, AMENDING 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 of Presidential Decree no. 442, as amended, otherwise
known as the Labor Code of the Philippines, is hereby amended further as follows:

“ART. 234. Requirements Of Registration. - [Any applicant labor
organization, association or group of unions or workers] A FEDERATION,
NATIONAL UNION OR INDUSTRY OR TRADE UNION CENTER
OR AN INDEPENDENT UNION shall acquire legal personality and shall be
entitled to the rights and privileges granted by law to legitimate labor
organizations upon issuance of the certificate of registration based on the
following requirements:

“XXX

“XXX be

“(C)_ IN CASE THE APPLICANT IS AN INDEPENDENT UNION,
[Tthe names of all its members comprising at least twenty percent (20%) of all

the employees in the bargaining unit where it seeks to operate;

“XXX



“XXX.”

SEC. 2. A Sub-Article to Article 234 of the Labor Code is hereby inserted to read as
follows:

“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 ONLY FOR PURPOSES OF FILING A
PETITION FOR CERTIFICATION ELECTION FROM THE DATE IT
WAS ISSUED A CHARTER CERTIFICATE.

“THE CHAPTER SHALL BE ENTITLED TO ALL OTHER RIGHTS
AND PRIVILEGES OF A LEGITIMATE LABOR ORGANIZATION
ONLY UPON THE SUBMISSION OF THE FOLLOWING
DOCUMENTS IN ADDITION TO ITS CHARTER CERTIFICATE:

“(A) THE NAMES OF THE CHAPTER’S OFFICERS, THEIR
ADDRESSES, AND THE PRINCIPAL OFFICE OF THE, CHAPTER;
AND

“(B) THE CHAPTER’S CONSTITUTION AND BY-LAWS:
PROVIDED, THAT WHERE THE CHAPTER’S CONSTITUTION AND
BY-LAWS IS THE SAME AS THAT OF THE FEDERATION OR THE
NATIONAL UNION, THIS FACT SHALL BE INDICATED
ACCORDINGLY.

“THE ADDITIONAL SUPPORTING REQUIREMENTS SHALL BE
CERTIFIED UNDER OATH BY THE SECRETARY OR TREASURER
OF THE CHAPTER AND ATTESTED BY ITS PRESIDENT.

“ANY FORM OF MISREPRESENTATION, FALSE STATEMENT
OR FRAUD COMMITTED BY INDIVIDUAL OFFICERS OR
MEMBERS SHALL NOT BE A GROUND FOR CANCELLATION BUT
SHALL SUBJECT THE ERRING OFFICERS OR MEMBERS TO
SUSPENSION, EXPULSION FROM MEMBERSHIP, OR ANY OTHER
APPROPRIATE PENALTY.”

SEC. 3. Article 238 of the Labor Code is amended to read as follows:


“ART. 238. Cancellation Of Registration{; Appeal]. - The certificate of
registration of any legitimate labor organization, whether national or loci,
[shall] MAY be cancelled by the Bureau [if it has reason to believe], after due
hearing, {that the said labor organization no longer meets one (1) or more of the
requirements herein prescribed] ONLY ON THE GROUNDS SPECIFIED
. IN ARTICLE 239 HEREOF.”

SEC. 4, Sub-Articles to Article 238 of the Labor Code are hereby inserted to read as
follows:

“ART. 238-A. EFFECT OF A PETITION FOR CANCELLATION OF
REGISTRATION. - A PETITION FOR CANCELLATION OF UNION
REGISTRATION SHALL NOT SUSPEND THE PROCEEDINGS FOR
CERTIFICATION ELECTION NOR SHALL IT PREVENT THE FILING
OF A PETITION FOR CERTIFICATION ELECTION.

“IN CASE OF CANCELLATION, NOTHING HEREIN SHALL
RESTRICT THE RIGHT OF THE UNION TO SEEK JUST AND
EQUITABLE REMEDIES IN THE APPROPRIATE COURTS.

“ART. 238-B. EFFECT OF INCLUSION AS MEMBERS OF
EMPLOYEES OUTSIDE THE BARGAINING UNIT. - THE INCLUSION
AS UNION MEMBERS OF EMPLOYEES OUTSIDE THE
BARGAINING UNIT SHALL NOT BE A GROUND FOR THE
CENCELLATION OF THE REGISTRATION OF THE UNION. SAID
EMPLOYEES ARE AUTOMATICALLY DEEMED REMOVED FROM
THE LIST OF MEMBERSHIP OF SAID UNION.”

SEC. 5. Article 239 of the Labor Code is amended to read as follows:

“ART. 239. Grounds For Cancellation Of Union Registration, - The
following [shall] MAY constitute grounds for cancellation of union registration:

[(A) _ Misrepresentation, false statement or fraud in connection with the
adoption or ratification of the..Constitution” and By-Laws or amendments
thereto, the minutes of ratification, the list of members who took part in the
ratification);

“(A) [@)] Failure {to submit the documents mentioned in the preceding
paragraph within thirty (30) days from the adoption or ratification of the
Constitution and By-Laws or amendments thereto] OF THE UNION TO
MAINTAIN THE MINIMUM MEMBERSHIP REQUIREMENT
PRESCRIBED IN ARTICLE 234 (C) HEREOF;


[(C) _ Misrepresentation, false statements or fraud in connection with the
election of officers, minutes of the election of officers, the list of voters, or
failure to submit these documents together with the list of the newly elected-
appointed officers and their postal addresses within thirty (30) days from
election;

(D) Failure to submit the annual financial report to the Bureau within
thirty (30) days after the closing of every fiscal year and misrepresentation, false
entries or fraud in the preparation of the financial report itself

(E) Acting as a labor contractor or engaging in the “cabo” system, or
otherwise engaging in any activity prohibited by law;

(©) Entering into collective bargaining agreements which provide terms
and conditions of employment below minimum standards established by laws

(G)_ Asking for or accepting attorneys fees or negotiation fees from
employers;

(H) Other than for mandatory activities under this Code, checking off
special assessments or any other fees without duly signed individual written
authorizations of the members; *

© Failure to submit list of individual members to the bureau once a
year or whenever required by the Bureau; and

() Failure to comply with the requirements under Articles 237 and
238.)

“(B) USING THE UNION AS A GUISE TO ENGAGE IN ANY
ACTIVITY PROHIBITED BY LAW; AND

«(C) VOLUNTARY DISSOLUTION BY THE MEMBERS.”

SEC. 6. A Sub-Article to Article 242 of the Labor Code is hereby inserted to read as
follows: .

“ART. 242-A. REPORTORIAL REQUIREMENTS. - THE
FOLLOWING ARE DOCUMENTS REQUIRED TO BE SUBMITTED
TO THE BUREAU BY THE LEGITIMATE LABOR ORGANIZATION
CONCERNED:



(A) ITs CONSTITUTION AND BY-LAWS, OR
AMENDMENTSTHERETO, THE MINUTES OF RATIFICATION, AND
THE LIST OF MEMBERS WHO TOOK PART IN THE RATIFICATION
OF THE CONSTITUTION AND BY-LAWS WITHIN THIRTY (30)
DAYS FROM ADOPTION OR RATIFICATION OF THE
CONSTITUTION AND BY-LAWS OR AMENDMENTS THERETO;

(B) ITS LIST OF OFFICERS, MINUTES OF THE ELECTION
OF OFFICERS, AND LIST OF VOTERS WITHIN THIRTY (30) DAYS
FROM ELECTION;

(C) ITS ANNUAL FINANCIAL REPORT WITHIN THIRTY (30)
DAYS AFTER THE CLOSE OF EVERY FISCAL YEAR; AND

(D) ITS LIST OF MEMBERS AT LEAST ONCE A YEAR OR
WHENEVER REQUIRED BY THE BUREAU.

FAILURE TO COMPLY WITH THE ABOVE REQUIREMENTS
SHALL NOT BE A GROUND FOR CANCELLATION OF UNION
REGISTRATION BUT SHALL SUBJECT THE ERRING OFFICERS OR
MEMBERS TO SUSPENSION, EXPULSION FROM MEMBERSHIP, OR
ANY APPROPRIATE PENALTY.”

SEC. 7. Article 245 of the'Labor Code is hereby amended as follows:

“ART. 245. Ineligibility Of Managerial Employees To Join Any Labor
Organization; Right Of Supervisory Employees. - Managerial employees are not
eligible to join, assist or form any labor organization. Supervisory employees
shall not be eligible for membership in {a labor organization] COLLECTIVE
BARGAINING UNITS of the rank-and-file employees but may join, assist or
form separate COLLECTIVE BARGAINING UNITS AND/OR
LEGITIMATE labor organizations of their own. THE RANK AND FILE
UNION AND THE SUPERVISORS’ UNION OPERATING WITHIN
THE SAME ESTABLISHMENT MAY JOIN THE SAME FEDERATION
OR NATIONAL UNION.” n:

SEC. 8. Article 256 of the Labor Code is hereby amended as follows:

“ART. 256. Representation Issue In Organized Establishments, - In
organized establishments, when a verified petition questioning the majority
status of the incumbent bargaining agent is filed BY ANY LEGITIMATE
LABOR ORGANIZATION INCLUDING A NATIONAL UNION OR
FEDERATION WHICH HAS ALREADY ISSUED A CHARTER


CERTIFICATE TO ITS LOCAL CHAPTER PARTICIPATING IN THE
CERTIFICATION ELECTION OR A LOCAL CHAPTER WHICH HAS
BEEN ISSUED A CHARTER CERTIFICATE BY THE NATIONAL
UNION OR FEDERATION before the Department of Labor and
Employment within the sixty (60)-day period before the expiration of the
collective bargaining agreement, the med-arbiter shall automatically order an
election by secret ballot when the verified petition is supported by the written
consent of at least twenty-five percent (25%) of all the employees in the
bargaining unit to ascertain the will of the employees in the appropriate
bargaining unit. To have a valid election, at least a majority of all eligible voters
in the unit must have cast their votes. The labor union receiving the majority of
the valid votes cast shall be certified as the exclusive bargaining agent of all the
workers in the unit. When an election which provides for three or more choices
results in no choice receiving a majority of the valid votes cast, a run-off election
shall be conducted between the labor unions receiving the two highest number
of votes: Provided, that the total number of votes for all contending unions is at
least fifty percent (50%) of the number of votes cast.

“XXX”
SEC. 9. Article 257 of the Labor Code is hereby amended as follows:

“ART. 257. Petitions In Unorganized Establishments. - In any
establishment where there is no certified bargaining agent, a certification
election shall automatically be conducted by the med-arbiter upon the filing of a
petition by [A] ANY legitimate labor organization{.], INCLUDING A
NATIONAL UNION OR FEDERATION WHICH HAS ALREADY
ISSUED A CHARTER CERTIFICATE TO ITS LOCAL/CHAPTER
PARTICIPATING IN THE CERTIFICATION ELECTION OR A
LOCAL/CHAPTER WHICH HAS BEEN ISSUED A CHARTER
CERTIFICATE BY THE NATIONAL UNION OR FEDERATION. IN
= CASES WHERE THE: PETITION WAS FILED BY A NATIONAL
r UNION OR FEDERATION, IT SHALL NOT BE REQUIRED TO

DISCLOSE THE NAMES OF THE LOCAL CHAPTER’S OFFICERS

AND MEMBERS.” ~ ae

SEC. 10. A Sub-Article to Article 258 of the Labor Code.is hereby inserted to read as
follows:

“ART. 258-A. EMPLOYER AS BY-STANDER. - IN ALL CASES,
WHETHER THE PETITION FOR CERTIFICATION ELECTION IS
FILED BY AN EMPLOYER OR A_ LEGITIMATE LABOR
ORGANIZATION, THE EMPLOYER SHALL NOT BE CONSIDERED



A PARTY THERETO WITH A CONCOMITANT RIGHT TO OPPOSE
A PETITION FOR CERTIFICATION ELECTION. THE EMPLOYER'S
PARTICIPATION IN SUCH PROCEEDINGS SHALL BE LIMITED TO:
(1) BEING NOTIFIED OR INFORMED OF PETITIONS OF SUCH
NATURE, AND (2) SUBMITTING THE LIST OF EMPLOYEES
DURING THE PRE-ELECTION CONFERENCE SHOULD THE MED:
ARBITER ACT FAVORABLY ON THE PETITION.”

SEC. 11. Separability Clause. - If any part, section or provision of this Act shall be
held invalid or unconstitutional, the other provisions shall not be affected thereby.

SEC. 12. Repealing Clause. - Presidential Decree No. 442, as amended, otherwise
known as the Labor Code of the Philippines, and all other acts, laws, presidential issuances,

rules and regulations are hereby repealed, modified or amended accordingly.

SEC. 13. Effectivity Clause, - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,