FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
1 
S.B.NO. 
606 
Introduced by Senator JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Section 3 of Article Xlll of the 1987 Constitution enumerates the provisions 
which guarantee the full protection of the basic rights of workers and employers. 
Based on this premise, the full exercise of workers and employers' right to go on 
strike and to lock out respectively in furtherance of their interests is encouraged 
by the State as this will be beneficial to both parties in settling problems and 
disputes arising from their relationship. 
Unfortunately, the above conditions are not made to prosper due to an 
existing legal situation wherein the Secretary of Labor and Employment can 
assume jurisdiction based merely on his opinion that the contending parties are 
engaged in activities that are considered indispensable to national interest. 
While another constitutional provision mandates the State to regulate the 
relations between workers and employers, there is a need to cure the system 
such that the contending parties shall be given the leeway to settle their 
problems with minimum government intervention. 
The proposed measure, seeks to limit the Labor Secretary's power to 
assume jurisdiction over dispute settlement to essential services only, such as 
hospital, water supply, electrical, and transportation. By doing so, the interruption 
in the delivery of these basic services, due to lockouts and strikes, would not be 
inimical to public health and safety. 
sought. 
In view of the foregoing, support to the passage of this bill is earnestly 
Senator 


FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
S E N A T E  
S. B. No. 
606 
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Introduced by Senator JINGGOY EJERCITO ESTRADA 
AN ACT 
LIMITING THE POWER OF ASSUMPTION OR CERTIFICATION OF LABOR 
DISPUTES BY THE SECRETARY OF LABOR AND EMPLOYMENT TO 
ACTIVITIES OR UNDERTAKING WHICH INVOLVE ESSENTIAL SERVICES, 
AMENDING FOR THIS PURPOSE ARTICLE 263 (G) OF PRESIDENTIAL 
DECREE 422, 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: 
SECTlON 1. The State recognizes the constitution of labor in national 
development and guarantees their rights among others to engage in peaceful 
concerted activities including the rights to strike in accordance with the law. 
SEC. 2. Article 263 (9) of the Labor Code, as amended is hereby further 
amended to read as follows: 
"Art. 263. Strikes, picketing and lockouts. - 
xxx xxx 
(G)When [, in his opinion,] there exists a dispute causing or likely to cause 
a strike lockout in an industry [indispensable to the national interest,] 
INVOLVING ESSENTIAL SERVICES, the Secretary of Labor and 
Employment may assume jurisdiction over the dispute and decide [it or 
certify the same to the Commission for compulsory arbitration] THE SAME 
WITHIN FORTY FIVE (45) DAYS AFTER SUCH ASSUMPTION. THE 
SECRETARY'S DECISION SHALL BE FINAL AND EXECUTORY. [Such] 
THE assumption or certification ORDER shall have the effect 
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 UNDER PAIN OF 
CONTEMPT AND PAYMENT OF WAGES OR SALARIES OF THE 
WORKERS, 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 SECRETARY WITHIN THE SAID FORTY-FIVE (45) 


DAY PERIOD, THE PARTIES MAY THEN EXERCISE THEIR 
RESPECTIVE RIGHTS UNDER THIS CODE. 
The Secretary of Labor and Employment [or the Commission] may seek 
the assistance of law enforcement agencies to ensure compliance with 
these provisions as well as such orders as he may issue to enforce the 
same. FOR PURPOSES OF THIS SECTION, ESSENTIAL SERVICES 
SHALL MEAN HOSPITAL, WATER SUPPLY, AND ELECTRICAL 
SERVICES, TRANSPORTATION SERVICES, THE LACK OF WHICH 
WOULD ENDANGER LIFE OR PUBLIC SAFETY. 
"In line with the national concern for 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 
ensure the proper and adequate protection of the life and health of its 
patients, most especially emergency causes, for the duration of the strike 
or lockout. In such cases, therefore, the Secretary of Labor and 
Employment may immediately assume, within twenty-four (24) hours from 
knowledge of the occurrence of such strike or lockout, jurisdiction over the 
same [or certify it to the Commission for compulsory arbitration]. For this 
purpose the injunctions as are issued by the Secretary of Labor [or the 
Commission], under pain of immediate disciplinary action, including 
dismissal or loss of employment or payment by the locking-out employer 
of back wages [ , I  AND OTHER BENEFITS, damages, ADMINISTRATIVE 
FINES OF NOT LESS THAN TEN THOUSAND PESOS (Pl0,OOO.OO) 
AND NOT MORE THAN TWENTY THOUSAND PESOS (P20,OOO.OO) 
AND OTHER AFFIRMATIVE RELIEF, [even] INCLUDING criminal 
prosecution against either or both [of them] EMPLOYERS AND 
EMPLOYEES. 
"The foregoing notwithstanding, the President of the Philippines shall not 
be precluded, AT ANY TIME, 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 labor dispute in order to 
settle or terminate the same. THE PRESIDENT'S DECISION SHALL 
ALSO BE FINAL AND EXECUTORY." 
SEC, 3. The Secretary of Labor and Employment shall issue within thirty 
(30) days after the effectivity of this Act the corresponding implementing the rules 
and regulations. 
SEC. 4. Should any provision of this Act or any part thereof be declared 
invalid, the other provisions, so far as they are separable from the invalid ones, 
shall remain in force and effect. 


SEC. 5. All laws, decrees, rules or regulations and other issuances or 
parts thereof, which are inconsistent with this Act, are hereby repealed, amended 
or modified accordingly. 
SEC. 6. Act shall take effect after fifteen (15) days following its publication 
either in the Official Gazette of in a newspaper of general circulation. 
Approved,