EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
of 10? feccrclatp
SENATE
S. B. NO. 712
*19 JUL24 A 9 52
RECEIVfcD QV,
Introduced by SENATOR JOEL VILLANUEVA
AN ACT RATIONALIZING GOVERNMENT INTERVENTIONS IN 
LABOR DISPUTES BY ADOPTING THE ESSENTIAL SERVICES 
CRITERIA IN THE EXERCISE OF THE ASSUMPTION OR 
CERTIFICATION POWER OF THE SECRETARY OF LABOR 
AND EMPLOYMENT, AND DECRIMINALIZING VIOLATIONS 
THEREOF, AMENDING FOR THE PURPOSE ARTICLES 
278[263], 279[264] and 287[272] OF PRESIDENTIAL DECREE 
442, OTHERWISE KNOWN AS THE LABOR CODE OF THE 
PHILIPPINES, AS AMENDED AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Articles 278[263], 279[264] and 287[272] of the 1974 Labor Code of the 
Philippines, as amended, are remnants of Martial Rule, which over the years 
have been rendered inconsistent with the country’s democratic principles and 
governance, and increasing use of “labor rights’ clauses” in trade agreements, 
multilateral or otherwise.
The country has long departed from strong-arm rule and from fiercely 
adversarial industrial relations. Article XIII of the 1987 Philippine Constitution 
promotes the principle of shared responsibility between workers and 
employers and the preferential use of voluntary modes in settling disputes, 
including conciliation, and enforces mutual compliance to foster industrial 
peace. The Constitution also 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, and regulates 
the relations between workers and employers, recognizing the right of labor to 
its just share in the fruits of production and the right of enterprises to 
reasonable returns on investments, and to expansion and growth.


Past experiences have shown us of violence in the picket lines due to 
forcible restraint on workers’ right to strike; cases of harassments, abductions 
and disappearances of unionists; “criminalization” of labor disputes; company 
closures; mass termination of workers; and high level of distrust in 
government and in the process under the law. 
This is largely due to the 
perception of corruption and bias in labor justice administration since 
decisions by the Secretary of Labor to assume jurisdiction over a labor 
dispute have been seen as largely favoring employers, who at the same time, 
are the very first ones to ignore or resist return-to-work orders by filing 
numerous motions for reconsideration and appeals to higher courts. This is 
borne by the approximately ten (10) cases of trade union rights violations 
against 
the 
Philippine 
government 
before 
the 
International 
Labour 
Organization (ILO) and the US Trade Representatives.
State interventions in labor disputes under paragraph (g) of Article 
278(263] of the Labor Code have been largely viewed as intrusive and an 
arbitrary exercise of police power. The Secretary of Labor and Employment is 
provided with very wide latitude of discretion to prevent an impending strike or 
lockout or to stop an ongoing strike or lockout by assuming jurisdiction over a 
labor dispute, which according to his/her own opinion, involve an “industry 
indispensable to national interest.” This overbroad discretion has seen labor 
disputes in an undergarment factory, match sticks manufacturing, hotdog, 
chicha-corn and fish sauce factory being assumed by the Secretary of Labor 
after his determination that these industries are indispensable to the national 
interest.
Under paragraph (g) of Article 278(263], the State restrains the 
exercise of the right to strike or lockout and direct workers to return to work 
and the management to accept the striking workers under the same terms 
and conditions. Defiance of a return to work order or non-compliance with the 
procedural requirement for the conduct of a strike/lockout is a prohibited act 
under paragraph (a) of Article 279(264] that may result in loss of employment 
for union officers who knowingly participate in an illegal strike, including any 
worker who knowingly participate in the commission of illegal acts. 
Additionally, paragraph (a) of Article 287(272] imposes a fine of not less than 
Phpl ,000 nor more than Phpl0,000 and/or imprisonment of not less than 
three months nor more than three years, or both fine and imprisonment, at the 
discretion of the Court, for violation of any of the provisions of Article 264.
In this regard, both the ILO and the US Trade Representatives have 
observed that the penalties of loss of employment, fine and imprisonment for 
administrative non-compliance is disproportionate to the procedures laid down 
for notices of strike and on cooling-off periods, the absence of which would 
make the strike illegal.
Beginning July 2010, the Department of Labor and Employment 
(DOLE) implemented clear procedures and criteria for the exercise of the 
Secretary’s assumption of jurisdiction power through a tripartite-supported 
department orders (Department Order No. 40-G-10, Series of 2010 and 
Department Order No. 40-H-13, Series of 2013). Under these issuances, the


“indispensable to the national interest" criteria for assumption of jurisdiction 
was aligned with the ILO criteria of “essential services.” Through this, the 
Constitutional mandate to use voluntary modes in dispute settlement through 
conciliation-mediation was expansively used and the institution of collective 
bargaining was strengthened. This has resulted in annual single digit actual 
strikes from July 2010 to June 2016 ushering relative industrial peace in the 
workplaces. According to the National Conciliation and Mediation Board 
(NCMB), from July 2010 to June 2016, there were 20 actual strikes, 22 
assumed cases and 43 certified to the NLRC while the July 2004 to June 
2010 labor relations data showed 69 actual strikes, 140 assumed cases and 
145 certified to the NLRC for compulsory arbitration.
Thus, the proposed bill seeks to amend Article 278(263], 279(264] and 
287(272] of the Labor Code to rationalize government interventions in labor 
disputes by: (a) adopting the essential services criteria, i.e., functions or 
services which if interrupted would endanger the life, personal safety or health 
of whole or part of the population, in the exercise of the assumption or 
certification power of the Secretary of Labor and Employment, (b) providing 
clear conditions in its exercise, (c) requiring minimum service or operation in 
case an assumption order will issue, (d) decriminalizing non-compliance with 
the procedural requirements in the exercise of the right to strike, (e) providing 
fines for violation by employer, labor organization, or corporation, and (f) 
providing a procedure for prosecution of criminal acts committed during a 
strike or lockout.
The immediate passage of this bill is earnestly sought.
SENATOR/HDEL VILLANUEVA


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
of tl)e ^ ftrrtjrrp
SENATE
S. B. NO. 712
•19 JUL 24 A9 52
RECEi'iyc.D b i.
Introduced by SENATOR JOEL VILLANUEVA
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AN ACT RATIONALIZING GOVERNMENT INTERVENTIONS IN 
LABOR DISPUTES BY ADOPTING THE ESSENTIAL SERVICES 
CRITERIA IN THE EXERCISE OF THE ASSUMPTION OR 
CERTIFICATION POWER OF THE SECRETARY OF LABOR AND 
EMPLOYMENT, AND DECRIMINALIZING VIOLATIONS THEREOF, 
AMENDING FOR THE PURPOSE ARTICLES 278[263], 279[264] and 
287[272] OF PRESIDENTIAL DECREE 442, OTHERWISE KNOWN AS 
THE LABOR CODE OF THE PHILIPPINES, AS AMENDED AND FOR
OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
sec tio n 1. Article 278 [263] of the Labor Code is hereby amended to read 
as follows:
“Article 278 [263]. Strikes, picketing and lockouts. -
a) It is the policy of the State to encourage free trade unionism and free 
collecting bargaining.
b) Workers shall have the right to engage in concerted activities for 
purposes of collective bargaining or for their mutual benefit and 
protection. The right of legitimate labor organizations to strike and 
picket and of employers to lockout [, consistent with the national 
interest,] shall continue to be recognized and respected. However, no 
labor union may strike and no employer may declare a lockout on 
grounds involving inter-union and intra-union disputes.
c) In case of bargaining deadlocks, the duly certified or recognized 
bargaining agent may file a notice of strike or the employer may file a 
notice of lockout with the [Ministry] DEPARTMENT OF LABOR AND


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EMPLOYMENT at least 30 days 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.
d) The notice must be in accordance with such implementing rules and 
regulations as the [Minister] SECRETARY of Labor and Employment 
may promulgate.
e) During the cooling-off period, it shall be the duty of the [Ministry] 
DEPARTMENT OF LABOR AND EMPLOYMENT to exert all efforts at 
the mediation and conciliation to effect a voluntary settlement. Should 
the dispute remain unsettled until the lapse of the requisite number of 
days from the mandatory filing of notice, the labor union may strike or 
the employer may declare a lockout.
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. 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 [Ministry] DEPARTMENT OF LABOR AND 
EMPLOYMENT may 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 [Ministry] DOLE the 
results of the voting at least seven days before the intended strike or 
lockout, subject to the cooling-off period herein provided.
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,] ENGAGED IN ESSENTIAL SERVICES, the Secretary of 
Labor and Employment may assume jurisdiction over the dispute, 
PROVIDED, THAT ANY OF THE FOLLOWING CONDITIONS IS 
PRESENT:
1. BOTH PARTIES HAVE REQUESTED THE SECRETARY OF 
LABOR AND EMPLOYMENT TO ASSUME JURISDICTION 
OVER THE LABOR DISPUTE; OR
2. UPON REQUEST OR PETITION BY EITHER PARTY. OR 
MOTU PROPRIO ON THE PART OF THE SECRETARY OF


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LABOR 
AND 
EMPLOYMENT, 
PROVIDED, 
THAT 
A 
CONFERENCE 
CALLED 
BY 
THE 
OFFICE 
OF 
THE 
SECRETARY ON THE PROPRIETY OF ITS ISSUANCE HAS 
BEEN CONDUCTED.
IN SUCH CASE, THE SECRETARY OF LABOR AND EMPLOYMENT 
MAY DECIDE OR CERTIFY THE LABOR DISPUTE TO THE 
NATIONAL LABOR RELATIONS COMMISSION FOR COMPULSORY 
ARBITRATION, OR TO A VOLUNTARY ARBITRATOR OR PANEL OF 
VOLUNTARY ARBITRATORS.
SAID 
ASSUMPTION 
SHALL 
HAVE 
THE 
EFFECT 
OF 
AUTOMATICALLY 
ENJOINING 
AN 
IMPENDING 
STRIKE 
OR 
LOCKOUT. IF A STRIKE/LOCKOUT HAS ALREADY TAKEN PLACE 
AT THE TIME OF ASSUMPTION, ALL STRIKING OR LOCKED OUT 
EMPLOYEES AND OTHER EMPLOYEES SUBJECT OF THE 
NOTICE OF STRIKE OR LOCKOUT SHALL IMMEDIATELY RETURN 
TO WORK AND THE EMPLOYER SHALL IMMEDIATELY RESUME 
OPERATIONS AND READMIT ALL EMPLOYEES UNDER THE SAME 
TERMS AND CONDITIONS PREVAILING BEFORE THE STRIKE OR 
LOCKOUT.
ESSENTIAL SERVICES REFER TO FUNCTIONS OR SERVICES 
RENDERED BY AN ESTABLISHMENT, WHICH IF INTERRUPTED, 
WOULD ENDANGER THE LIFE, PERSONAL SAFETY OR HEALTIH 
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 
AFTER 
CONSULTATIONS WITH THE NATIONAL TRIPARTITE INDUSTRIAL 
PEACE COUNCIL.
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, 
MOST ESPECIALLY EMERGENCY CASES, FOR THE DURATION 
OF THE LABOR DISPUTE.


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h) WITHIN 
FIVE 
(5) 
DAYS 
FROM 
THE 
ISSUANCE 
OF 
THE 
ASSUMPTION OR CERTIFICATION ORDER, A PRELIMINARY 
CONFERENCE 
OR 
HEARING 
SHALL 
IMMEDIATELY 
BE 
CONDUCTED BY THE OFFICE OF THE SECRETARY OF LABOR 
AND 
EMPLOYMENT. 
THE 
NATIONAL 
LABOR 
RELATIONS 
COMMISSION, OR THE VOLUNTARY ARBITRATOR OR PANEL OF 
VOLUNTARY ARBITRATORS AS THE CASE MAY BE.
i) IN CASE OF ACTUAL OR IMPENDING STRIKE OR LOCKOUT IN 
INDUSTRIES 
THAT 
ARE 
NOT 
ENGAGED 
IN 
ESSENTIAL 
SERVICES, THE SECRETARY OF LABOR AND EMPLOYMENT MAY 
ASSUME JURISDICTION UPON JOINT REQUEST OF BOTH 
PARTIES IN THE LABOR DISPUTE AFTER EXHAUSTION OF 
MANDATORY CONCILIATION. EITHER OR BOTH PARTIES MAY 
ALSO OPT TO SUBMIT TO COMPULSORY OR VOLUNTARY 
ARBITRATION.
j) THE FOREGOING NOTWITHSTANDING, THE PRESIDENT OF THE 
PHILIPPINES SHALL NOT BE PRECLUDED FROM DETERMINING 
INDUSTRIES THAT ARE ENGAGED IN ESSENTIAL SERVICES, 
AND FROM INTERVENING AT ANY TIME AND ASSUMING 
JURISDICTION OVER ANY LABOR DISPUTE IN ORDER TO 
SETTLE OR TERMINATE THE SAME DURING SEVERE NATIONAL 
EMERGENCIES.
SEC. 2. Article 279 [264] of the Labor Code is hereby amended to read as 
follows:
"Article 279 [264], Prohibited Activities.-
a) No labor organization or employer shall declare a strike or lockout 
without first having bargained collectively in accordance with Title VII 
of this Book or without first having filed the notice required in the 
preceding Article or without the necessary strike or lockout vote first 
having been obtained and reported to the [Ministry] DEPARTMENT 
OF LABOR AND EMPLOYMENT.
No strike or lockout shall be declared after assumption of jurisdiction 
by the President or the [Minister] SECRETARY or after certification or 
submission of the dispute to compulsory or voluntary arbitration or 
during the pendency of cases involving the same grounds for the 
strike or lockout.
Any worker whose employment has been terminated as a 
consequence of [any unlawful] AN ILLEGAL lockout shall be entitled 
to reinstatement with full backwages. Any WORKER OR union officer 
who knowingly participates [in an illegal strike and any worker or 
union officer who knowingly participates] in the commission of


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[illegal] UNLAWFUL acts during a strike may be declared to have lost 
his/HER employment AFTER DUE PROCESS. [Provided, That] Mere 
participation of a worker OR UNION OFFICER in a [lawful] strike 
DECLARED ILLEGAL FOR FAILURE OF THE UNION TO COMPLY 
WITH PROCEDURAL REQUIREMENTS UNDER PARAGRAPH (A) 
OF THIS ARTICLE, shall not [constitute sufficient] BE A ground for 
termination of his OR HER employment, even if a replacement had 
been hired by the employer during such [lawful] ILLEGAL strike.
b) No person shall obstruct, impede, or interfere with, by force, violence, 
coercion, threats or intimidation, any peaceful CONCERTED ACTION 
INCLUDING picketing by employees during any labor controversy or 
in the exercise of the right of self-organization or collective 
bargaining, or shall aid or abet such obstruction or interference.
c) No employer shall use or employ any strike-breaker, nor shall any 
person be employed as a strike-breaker.
d) No public official or employee, including officers and personnel of the 
[New] Armed 
Forces of the 
Philippines or the 
[Integrated] 
PHILIPPINE National Police, or armed person, PRIVATE SECURITY 
GUARDS AND SIMILAR PERSONNEL IN THE PRIVATE SECURITY 
AGENCY shall bring in, introduce or escort in any manner, [any 
individual who seeks to replace strikers in entering or leaving the 
premises of a strike area, or work in the place of the strikers] 
REPLACEMENT WORKERS. The police force shall keep out of the 
picket lines unless actual violence or other criminal acts occur 
therein[: Provided, That nothing herein shall be interpreted to prevent 
any public officer from taking any measure necessary ] HOWEVER, 
THE SECRETARY OF LABOR AND EMPLOYMENT OR THE 
NATIONAL LABOR RELATIONS COMMISSION MAY SEEK THE 
ASSISTANCE OF LAW ENFORCEMENT AGENCIES to maintain 
peace and order, protect life and property, and/or enforce the law and 
legal orders.
e) No person engaged in picketing shall commit any act of violence, 
coercion or intimidation or obstruct the free ingress to or egress from 
the employer's premises for lawful purposes, or obstruct public 
thoroughfares.
SEC. 3. Article 287 [272] of the Labor Code is hereby amended to read as 
follows:
"Article 287 [272]. [Penalties] FINES.
a) Any 
person, 
EMPLOYER, 
LABOR 
ORGANIZATION 
OR 
CORPORATION FOUND violating any of the provisions of Article 264


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of this Code shall be punished by a fine of not less than [one 
thousand pesos (P1,000.00] TEN THOUSAND PESOS (P10.000.00) 
nor more than [ten thousand pesos (PIO.OOO.OO)] ONE HUNDRED 
THOUSAND PESOS (PI00,000.00) [and/or imprisonment for not less 
than three months nor more than three (3) years, or both such 
fine and imprisonment,] at the discretion of the [court] NATIONAL 
LABOR RELATIONS COMMISSION. [Prosecution under this provision 
shall preclude prosecution for the same act under the Revised Penal 
Code, and vice versa ]
b) Upon the recommendation of the [Minister] SECRETARY of Labor and 
Employment and the [Minister] Secretary of 
National Defense, 
foreigners who violate the provisions of this Title shall be subject to 
immediate and summary deportation by the [Commission on] BUREAU 
OF Immigration [and Deportation] and shall be permanently barred 
from re-entering the country without the special permission of the 
President of the Philippines.
c) THE REGULAR COURTS SHALL HAVE JURISDICTION OVER ANY 
CRIMINAL ACTION ARISING FROM VIOLATION OF ANY OF THE 
PROVISIONS OF ARTICLE 264 OF THE LABOR CODE, AS 
AMENDED, SUBJECT TO THE REQUIRED CLEARANCE FROM THE 
DEPARTMENT OF 
LABOR AND 
EMPLOYMENT ON 
CASES 
ARISING OUT OF OR RELATED TO A LABOR DISPUTE.
NO CRIMINAL PROSECUTION UNDER ARTICLE 264 MAY BE 
INSTITUTED WITHOUT A FINAL JUDGMENT THAT AN ILLEGAL 
STRIKE 
OR 
LOCKOUT 
HAS 
BEEN 
COMMITTED. 
THE 
PRESCRIPTIVE PERIOD OF THE CRIMINAL OFFENSE SHALL BE 
CONSIDERED 
INTERRUPTED 
DURING 
THE 
PENDENCY OF 
ADMINISTRATIVE PROCEEDINGS: PROVIDED, HOWEVER, THAT 
THE FINAL JUDGMENT IN THE SAID PROCEEDINGS SHALL NOT 
BE BINDING IN THE CRIMINAL CASE NOR SHALL IT CONSTITUTE 
AS AN EVIDENCE OF GUILT.
d) COMPLAINTS ON ACTS OR OMISSIONS OF THE PERSONNEL OF 
THE PHILIPPINE NATIONAL POLICE OR THE ARMED FORCES OF 
THE PHILIPPINES IN VIOLATION OF ARTICLE 264 OF THIS CODE 
SHALL BE FILED WITH THE CONCERNED AGENCY, WITHOUT 
PREJUDICE TO THE FILING OF THE APPROPRIATE CASES 
BEFORE THE OMBUDSMAN.
SEC. 4. Implementing Rules and Regulations. -  Within sixty (60) days from 
the effectivity of this Act, the Secretary of Labor and Employment, in 
consultation with the relevant stakeholders, shall promulgate the necessary 
rules and regulations to implement the provisions of this Act.


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SEC. 5. Separability Clause. - If any part or provision of this Act is declared 
unconstitutional or invalid, the remainder of this Act or the provisions not 
otherwise affected shall remain valid and subsisting.
SEC. 6. Repealing Clause. - All laws, presidential decrees, proclamations, 
executive orders, issuances, rules and regulations, 
or any part thereof, 
inconsistent with the provisions of this Act are 
hereby 
repealed, 
amended or modified accordingly.
SEC. 7. Effectivity. - This Act shall take effect fifteen (15) days after its 
complete publication in the official gazette or in at least two (2) newspapers of 
national circulation.
Approved,