SIXTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES
First Regular Session

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriquez, Jr.

House Bill No. _ 4225

EXPLANATORY NOTE

This bill was approved by the Committee Basic Education and Culture during the
Fifteenth Congress. During the Fourteenth Congress, it was approved by the House of
Representatives and transmitted to the Senate where it was not acted upon.

This bill seeks to convert the Gusa National High School Annex at Barangay
Cugman, City of Cagayan de Oro, into a separate, independent and distinct high school to
be known as Cugman National High School

Itis the declared policy of the State to protect and promote the right of all citizens to
quality education at all levels and take appropriate steps to make education accessible to all
Further, Section 2(1), Article XIV of the Constitution provides that:

“The State shall establish, maintain, and support a complete,
adequate, and integrated system of education relevant to the needs of the
people and society.”

Cagayan de Oro City is the center of education in Northen Mindanao, being the site
of several educational institutions and universities. The city is composed of eighty (80)
barangays which includes Barangay Cugman which is strategically situated along the
highway leading to Agusan and Bukidnon, Thus, if converted into a separate, independent
and distinct high school, the Gusa National High Schoo! will cater to the educational needs
not only of the barangay but also of other adjacent barangays from nearby areas.

The increase in the number of high school enrollees in the city has led to the
shortage of facilities in the Gusa National High School, Hence, a big number of student
enrollees have to be absorbed by the annex school. However, administrative problems faced
by the mother school require the conversion of the Gusa National High School Annex into a
distinct high school to assure better administration of both educational institutions.

In view of the foregoing, approval of this bill is earnestly sought

RUFU6 B. RO! EZ

MAXIMO B, UEZ, JR.


SIXTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriquez, Jr.

House Bill No. 4225

AN ACT
SEPARATING THE GUSA NATIONAL HIGH SCHOOL - CUGMAN ANNEX IN
BARANGAY CUGMAN, CITY OF CAGAYAN DE ORO FROM THE GUSA NATIONAL
HIGH SCHOOL, CONVERTING IT INTO AN INDEPENDENT NATIONAL HIGH SCHOOL.
TO BE KNOWN AS CUGMAN NATIONAL HIGH SCHOOL AND APPROPRIATING
FUNDS THEREFOR.

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

SECTION 1, Separation and Conversion into a National High Schoo! - The Gusa National
High School - Cugman Annex in Baragngay Cugman, City of Cagayan de Oro is hereby
separated from the Gusa National High School and converted into an independent national
high school to be known as Cugman National High School.

SEC. 2. Transfer of Assets and Liabilities — All personnel, assets, liabilities and records of
the Gusa National High School - Cugman Annex, are hereby transferred to and absorbed by
the Cugman National High School.

SEC 3. Appropriations - The Secretary of Education shall immediately include in the
Department's program the operationalization of the Cugman National High School, the initial
funding of which shall be charged against the current year’s appropriations of the Gusa
National High School - Cugman Annex. Thereatfter, the amount necessary for the continued
operation of the school shall be included in the annual General Appropriations Act.

SEC 4. Implementation - The Secretary of Education shall issue rules and regulations that
may be necessary to cay out the purpose of this Act.

SEC 5. Effectivity — This Act shall take effect fifteen (15) days after its publication in the
Official Gazette.

Approved,


SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez
Representative Maximo B. Rodriguez, Jr.

House Bill No. 4226

EXPLANATORY NOTE

This bill was approved by the Committee Basic Education and Culture during the
Fifteenth Congress. During the Fourteenth Congress, it was approved by the House of
Representatives and transmitted to the Senate where it was not acted upon.

This bill seeks to establish an Integrated Elementary and High School in Barangay
Gusa, City of Cagayan de Oro.

Section 1 of Article XIV of the Constitution provides that:

“The State shall protect and promote the right of all citizens
to quality education at all levels and shall take appropriate steps to
make such education accessible to all."

Education will not only foster knowledge and productivity for our country but will also
reflect the quality of citizens we have. A nation cannot expect to progress if its people,
particularly the young, are uneducated, unskilled and unschooled. Statistics show, however,
that in the semi-urban areas, there Is a decreasing number of student population particularly
in the high school level due to lack of secondary schools accessible to elementary graduates
who are willing and eager to continue their studies

Barangay Gusa is one of the fastest growing barangays in Cagayan de Oro City. It
needs an educated citizenry for its progress. Hence, the establishment of an integrated
elementary and high school in Barangay Gusa is recommended

In view thereof, the approval of this bill is earnestly sought

wesc Mfc JR.



SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriquez, Jr.

House Bill No. _ 4226

AN ACT
CONVERTING THE LAPASAN NATIONAL HIGH SCHOOL - GUSA ANNEX AND THE
GUSA ELEMENTARY SCHOOL IN BARANGAY GUSA, CITY OF CAGAYAN DE ORO,
PROVINCE OF MISAMIS ORIENTAL INTO AN INTEGRATED NATIONAL SCHOOL TO
BE KNOWN AS GUSA INTEGRATED NATIONAL ELEMENTARY AND HIGH SCHOOL
AND APPROPRIATING FUNDS THEREFOR.

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

SECTION 1. Conversion into an Integrated National School — The Lapasan National High
‘School - Gusa Annex and the Gusa Elementary School in Barangay Gusa, City of Cagayan
de Oro, Province of Misamis Oriental are hereby converted into an integrated national
school to be known as Gusa Integrated National Elementary and High School.

SEC. 2. Transfer of Assets and Liabilities. — All personnel, assets, liabilities and records of
the Lapasan National High School—Gusa Annex and the Gusa Elementary School are
hereby ‘transferred to and absorbed by the Gusa Integrated National Elementary and High
School

SEC. 3. Appropriations - The Secretary of Education shall immediately include in the
Department's program the operationalization of the Gusa Integrated National Elementary
and High School, the initial funding of which shall be charged against the current year's
appropriations of the Lapasan National High School - Gusa Annex and the Gusa
Elementary School. Thereafter, the amount necessary for the continued operation of the
school shall be included in the annual General Appropriations Act.

SEC 4, Implementation. - The Secretary of Education shall issue rules and regulations that
may be necessary to carry out the purpose of this Act

SEC 5. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the
Official Gazette.

Approved,


f ceriyen oN
SIXTEENTH CONGRESS ) S ERED *\
REPUBLIC OF THE PHILIPPINES.) DAE as
First Regular Session ) py

HOUSE OF REPRESENTATIVI

Introduced by Representative Rufus B. Rodriguez‘and¥

Representative Maximo B. Rodriguez, Jr.

House Bill No, 4227

EXPLANATORY NOTE

This bill seeks to provide amendments to certain provisions of the Labor Code of the
Philippines and make it more consistent with jurisprudence and other legislations.

‘One amendment pushes to promote women's welfare and status and expands the
scope of acts of discrimination by an employer against women as enumerated under Art 135
of the Labor Code, as amended. As enshrined in the 1987 Constitution, Article 1,
Section 14 provides that, “The State recognizes the role of women in nation-building, and
shall ensure the fundamental equality before the law of women and men’. It likewise
declares that, “The State shall promote equality of employment opportunities for all”.

Notwithstanding, much has to be done because a study conducted by the Bureau of
Women and Young Workers and the National Statistics Office revealed that women
employees generally earn less than their male counterparts, they are predominantly in low-
skilled jobs, and only a few of them advance to the top of the organizational hierarchy. Thus,
one can see the disparities engendered by sexual discrimination. It is indeed a reality that
calls for a positive and concerted action

The amendment seeks to encourage employers to recruit and hire more women in
the workplace thereby eliminating the big stumbling block to women’s employability,
considering that there are more equally or even more talented, skilled and qualified women
in the country today,

Another amendments proposed in this bill is with regard to the security of tenure of
workers. The competition necessitated by the integration of world markets has pushed
domestic industries to devise various flexible work arrangements in order to survive.
Unfortunately, the Labor Code provisions are not responsive to these changes. While two
flexible forms of employment are recognized by the Labor Code, namely project and
seasonal employment, the rights of workers under such arrangement required the
intervention of the Supreme Court in the interpretation of Articles 280 and 281.

Further, the other amendments introduced in this bill strengthen the rights of workers
particularly when it comes to their right to organize and peaceably assemble to be able to
Voice out their concerns and protect their rights.

In the case of St. Martin Funeral Homes vs. NLRC, dated September 16, 1998, the
‘Supreme Court came out with a ruling that from then on, "Judicial review’ over decisions of
the NLRC shall first be lodged before the Court of Appeals. While the obvious purpose of
the Supreme Court was to de-clog its docket, such ruling was clearly a case of “judicial
legislation" since the Court itself acknowledged in the same aforecited case that Congress
did intend to provide for judicial review of the adjudications of the NLRC in labor cases by
‘the Supreme Court, but there was an inaccuracy in the term used for the intended mode of
review. Thus, this Bill now intends to clearly put into law the accurate “intended mode of


review" of the NLRC decisions directly to the Supreme Court via Petition for Certiorari under
Rule 65 of the Rules of Court.

Another amendment that this bill introduces is with regard to the rights of workers to
organize and peaceably assemble. The passage of years and the actual experience of
workers and trade unions in collectively asserting their interests have, however, revealed
certain difficulties and inadequacies in the prevailing framework of the Labor Code.
Oftentimes, these shortcomings in the statute have hindered the complete futfillment of the
fundamental rights enshrined in the Constitution, recognized under international human
rights law, and which form the firm and essential basis for our system of labor relations. Its
time that the letter of the law be modified to more adequately reflect the spirit of the rights it
has been crafted to implement.

In view of the foregoing, immediate approval of this bill is earnestly requested

wohl avs
7

a Y) Z)
MAXIMO B. ROPRIGUEZ, JR.


SIXTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

4227

House Bill No.

AN ACT
PROVIDING FOR OMNIBUS AMENDMENTS TO PRESIDENTIAL DECREE NO. 442,
OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES, AS AMENDED, BY
AMENDING THE PROVISIONS ON DISCRIMINATION AGAINST WOMEN, SECURITY OF
TENURE AND RIGHTS OF WORKERS TO ORGANIZE

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

SECTION 4. Article 136 of Presidential Decree No. 442, as amended, otherwise known as
the Labor Code of the Philippines, is hereby amended to read as follows:

“ART. 135. Discrimination Prohibited. ~ It shall be unlawful for any employer
to discriminate against any woman employee with the respect to terms and
conditions of employment solely on account of her sex

The following are acts of discrimination

(a) Payment of a lesser compensation, including wage, salary or other form of

remuneration and fringe benefits, to a female employee as against a male

employee, for work of equal value;

(b) Favoring a male employee over a female employee with respect to promotion,

assignment, training opportunities, study and scholarship grants solely on
account of their sexes; and
Favoring a male employee over a female employee with respect to dismissal
of personnel or the application of any retrenchment policy of the employer
solely on account of their sexes.
Criminal liability for the willful commission of any unlawful act as provided in
this article or any violation of the rules and regulations issued pursuant to Section 2
hereof shall be penalized as provided in Articles 288 and 289 of this Code: Provided,
That the institution of any criminal action under this provision shall not bar the
aggrieved employee from filing an entirely separate and distinct action for money
claims, which may include claims for damages and other affirmative relief. The
actions hereby authorized shall proceed independently of each other.”

(c

SEC 2. Article 137 of the Labor Code is hereby amended to read as follows:

“ART. 187. Prohibited Acts. - (a) It shall be unlawful for any employer:

(1) To deny any woman employee the benefits provided for in this
Chapter or to discharge any woman employed by him for the purpose of preventing
her from enjoying any of the benefits provided under this Code

(2) To discharge such woman on account of her pregnancy, or while on
leave or in confinement due to her pregnancy;

(3) To discharge or refuse the admission of such woman upon returning
to her work for rear that she may again be pregnant; or

(4) To deny any woman the benefits of employment or other statutory
benefits under our laws by reason of her sex.”


SEC 3. Book III of the Labor Code is hereby further amended to include Title IV entitled
“Security of Tenure”. The Sections 4-14 of this Act shall comprise the new Articles 156-165
of the Labor Code.

SEC 4. Article 156 of the Labor Code shall read as follows:
“article 156. Classification of workers.- Work arrangements based on
security of tenure shall be as follows: (a) contracts with an indefinite
period; and (b) contracts with a definite period. In general, an
employment contract shall be for an indefinite period, unless otherwise
stipulated and allowed by conditions stated in Article 158.”

SEC 5. Article 167 of the Labor Code shall read as follows
“article 187. Secunty of tenure. - Contracts with an indefinite period
shall not be terminated except for just or authorized cause under Book
‘VI. Contracts with a definite period shall not be terminated except: (a)
for just cause or authorized cause under Book VI; and (b) upon
expiration of the stipulated period.”

SEC 6, Article 158 of the Labor Code shall read as follows:
“Article 158. Contracts for definite period: when allowed. - Contracts
for a definite period shalll be allowed only in the following situations:
(a) Replacement of an employee who is temporarily absent;
(b) Temporary increase in the volume of business, which in no
case shall exceed six (6) months in a twelve (12) month period;
(c) To meet expansion of a company's activity, consisting of the
launch of a new production line, product or service, which in no case
shall be less than six (6) months nor more than three (3) years
Provided, That employees still hired after the contract for definite
period shall be under a new contract for an indefinite period;
(4) Parttime contracts, where the employee undertakes to render
services for a number of hours or days less than two thirds (2/3) of the
usual number of working hours for the same position in the
establishment;
(e) Construction work, in which case the duration of the project or
a specific phase thereof shall be indicated in the contract and made
known to the employee at the commencement of the employment
relationship: Provided, That pertinent rules and regulations issued by
the Department of Labor and Employment (DOLE) on employment in
the construction industry shall continue to remain in full force and
effect;
(f) Professional sports;
(g) Corporate officers, and those occupying managerial,
confidential, or technical positions;
(h) Overseas Filipino Workers: Provided, That such OFWs work
under contracts of employment consistent with Philippine Overseas
Employment Authority (POEA) rules and regulations;
(i) Officials of private academic institutions
(j) Seasonal positions or jobs in the tourism, agriculture, and
entertainment sectors: Provided, That the duration of the season shall
be specified in the contract of employment and made known to the
employee at the commencement of the employment relationship; or
(k) Other cases where, based on the nature of the work to be
performed or on the circumstances under which it is to be performed,


SEC 7. Article

SEC 8. Article

SEC 9, Article

and with no fraud, duress or coercion, practiced upon the worker, the
employment relationship cannot be of indefinite duration.”

169 of the Labor Code shall read as follows:

“Article 169. Contracts for definite period; form and contents. — The
contract for a definite period shall be in writing and signed by the
employer and employee, stating the following

precise purpose of employment;

name and qualifications of the employee;

description of the job;

wages and other terms and conditions of employment,

date of expiry of the contract; and

stipulations for renewal: Provided, That renewal must be
once only, and the total duration of the contract, including
renewal, may not exceed two (2) years: Provided further,
That an employee for an indefinite period allowed to work
after the expiry of the stipulated period without the benefit
of a renewed contract shall be deemed engaged for an
indefinite period.

A\l of the foregoing contents of a contract for a definite period
shall be made known to the employee at the commencement of the
employment relationship.

Every contract of employment for @ definite period shall be
made available by the employer upon written demand by the
Secretary of Labor and Employment or his/her authorized
representative. Failure to produce such a written contract upon due
demand by the Secretary or his/her authorized representative or upon
issuance of a subpoena duces fecum by the National Labor Relations
Commission (NLRC) shall give rise to the presumption that the
arrangement is for an indefinite period.”

=paogss

160 of the Labor Code shall read as follows:

“Article 160. Ratio between employees for an indefinite and a definite
period. - In no case shall the number of employees under contracts
for definite period exceed thirty percent (30%) of the total number of
rank-and-file employees. A violation of this provision shall result in the
automatic conversion of all such arrangements into contracts for an
indefinite period,”

161 of the Labor Code shall read as follows:

“Article 161, Rights and privileges of an employee for a definite or
indefinite period. - An employee for a definite or indefinite period shall
have the following rights and privileges:

(a) safe and healthful working conditions;

(b) labor standards, such as service incentive leave, rest days,
overtime pay, holiday pay, and 13" month pay;

(c) social security and welfare benefits; and

(d) _ setf-organization, collective bargaining, and peaceful concerted
action,

In addition, the Bureau of Internal Revenue (BIR) shall, in
appropriate revenue regulations, grant employees for a definite period
a privileged personal income tax exemption, which shall be higher
than those provided in each income bracket based on existing
schedules.”

SEC 10. Article 162 of the Labor Code shall read as follows:


“Article 162. Probationary status; nature. — A contract of employment

may stipulate a probationary period to test the skills or abilities of a
prospective employee for a definite or indefinite period. A probationary
employee may be terminated for the following reasons: (a) just or
authorized cause under Book VI; or (b) when the probationary
employee fails to qualify as an employee for a definite or indefinite
period in accordance with reasonable standards made known by the
employer at the time of engagement.”

SEC 11. Article 163 of the Labor Code shall read as follows:
“Article 163. Probationary status; periods. — The duration of
probationary employment varies according to the annual gross basic
salary of the probationary employee.

For employees with an annual gross basic salary below One
Hundred Twenty Thousand Pesos (P120,000.00), the probationary
period shall not exceed three (3) months. Employees with an annual
gross basic salary of One Hundred Twenty Thousand Pesos
(P120,000.00) the probationary period may exceed three (3) months
but shall not be more than one (1) year.

The probationary period of professors, instructors, and
teachers shall be subject to law and standards established by the
Department of Education (DepEd) and the Commission on Higher
Education (CHED).

For the purpose of this Act, ‘basic salary” shall refer to all
remunerations or eamings paid by an employer for services rendered,
but shall not include allowances and monetary benefits which are not
considered or integrated as part of the regular or basic salary, such as
the equivalent of unused vacation and sick leave credits, overtime,
premium, night differential and holiday pay, and costot-living
allowances.”

SEC 12, Article 164 of the Labor Code shall read as follows:
“Article 164. Non-diminution of status and benefits. - There shall be
no demotion in rank or diminution of pay or illegal dismissal of any
person already employed upon the effectivity of this Act. Henceforth,
regular employees as defined under the former Article 280 of the
Labor Code shall be deemed under contracts for an indefinite period.”

SEC 13. Article 165 of the Labor Code shall read as follows:
“Ariicle 165, Recruitment and placement. — For purposes of hiring
employees for definite and indefinite periods, the services of private
recruitment and placement agencies (PRPAs) shall be made available
in accordance with DOLE rules and regulations.”

SEC 14. Article 288 (formerly Article 279) of the Labor Code is hereby amended to read as
follows:
“Article 287. Effect of illegal dismissal. - An employee who Is unjustly
dismissed from work shall be entitled to reinstatement without loss of
seniority rights and other privileges and to his full back wages,
inclusive of allowances, and to his other benefits or their monetary
equivalent computed from the time his compensation was withheld
from him up to the time of his actual reinstatement.
If reinstatement is not possible, the unjustly dismissed
employee engaged for an indefinite period shall be entitled to
separation pay in the amount of one (1) month pay or at least one (1)


month pay for every year of service, whichever is higher. For
employees engaged for a definite period, the amount of separation
pay shall be one (1) month pay or the remaining basic salary for the

Unexpired portion of the contract, whichever is higher.”

SEC 15. Article 217 of the Labor Code is hereby further amended to read as follows:

Article 217. Jurisdiction of Labor Arbiters and the Commission. (a) Except as
otherwise provided under this Code, the Labor Arbiters shall have original and
exclusive jurisdiction to hear and decide, within thirty (30) calendar days after
the submission of the case by the parties for decision without extension, even in
the absence of stenographic notes, the following cases involving all workers,

whether agricultural or non-agricultural:
(1) Unfair labor practice cases;

(2) Termination disputes[;] EXCEPT THOSE INVOLVING WORKERS
COVERED BY COLLECTIVE BARGAINING AGREEMENTS WHICH
SHALL BE SUBJECT TO THE GRIEVANCE MACHINERY AND

VOLUNTARY ARBITRATION;
XXX XXX XXX

SEC 16, Article 223 of the Labor Code of the Philippines is hereby further amended to

as follows:

‘Article 223, Appeal. - Decisions, awards or orders of the Labor Arbiter are final
and executory unless appealed to the Commission by any or both parties within

(10) calendar days from receipt of such decisions, awards or orders.

APPEAL OR PETITION FROM THE DECISIONS, AWARDS OR ORDERS OF
THE LABOR ARBITER SHALL BE ENTERTAINED BY ANY COURT OR
AGENCY, EXCEPT BY THE COMMISSION. Such appeal OR PETITION may

be entertained only on any of the following grounds:

(a) if there is prima facie evidence of abuse of discretion on the part of

the Labor Arbiter;

(b) If the decision, order or award was secured through fraud or

coercion, including graft and corruption;
(c)_ ifmade purely on questions of law; and

(d) If serious errors in the findings of facts are raised which would

cause grave or irreparable damage or injury to the appellant.

In case of judgment involving monetary award, an appeal by the employer
may be perfected only upon the posting of a cash or surety bond issued by a
reputable bonding company duly accredited by the Commission in the amount

equivalent to the monetary award in the judgment appealed from.

In any event, the decision of the Labor Arbiter reinstating a dismissed or
separated employee insofar as the reinstatement aspect is concerned shall
immediately be executory, even pending appeal. The employee shall either be
admitted back to work under the same terms and conditions prevailing prior to
his dismissal or separation or, at the option of the employer, merely reinstated
in the payroll. IN CASE THE EMPLOYER SHALL OPT FOR PAYROLL
REINSTATEMENT, THE DISMISSED EMPLOYEE SHALL BE PAID HIS
SALARIES / WAGES AND OTHER BENEFITS DURING THE PENDENCY OF
THE APPEAL IN THE COMMISSION. The posting of a bond by the employer

shall not stay the execution of the reinstatement provided herein.

To discourage frivolous or dilatory appeals, the Commission or the Labor
‘Arbiter shall impose reasonable penalty, including fines or censures, upon

erring parties.

In all cases, the appeliant shall furnish a copy of the memorandum of
appeal to the other party who shall file an answer not later than ten (10)

calendar days from receipt hereof.

read


The Commission shall decide all cases within [twenty (20)] THIRTY (30)
calendar days from receipt of the answer of the appellee.

‘The decision of the Commission shall be final and executory after ten (10)
calendar days from receipt thereof by the parties. IN CASE A MOTION FOR
RECONSIDERATION IS FILED, THE DECISION SHALL BE EXECUTORY
AFTER TEN (10) CALENDAR DAYS FROM RECEIPT OF THE RESOLUTION
OF SUCH MOTION.

‘Any law enforcement agency may be deputized by the Secretary of Labor
and Employment or the Commission in the enforcement of decisions, awards or
orders.

SEC 17. Article 224 the Labor Code is hereby further amended to read as follows

Article 224. Execution of Decisions, Orders or Awards.-

(A) DECISIONS, RESOLUTIONS OR AWARDS OF THE COMMISSION
SHALL BE REVIEWABLE ONLY BY THE SUPREME COURT ON
CERTIORARI UNDER RULE 65 OF THE RULES OF COURT SOLELY ON
QUESTIONS OF LAW OR JURISDICTION IN THE EXERCISE OF ITS
POWERS UNDER PARAGRAPH (1) SECTION 5, ARTICLE VIIl OF THE
CONSTITUTION.

[(a)] (B) The Secretary of Labor and Employment or any Regional Director, the
Commission or any Labor Arbiter, or Med-Arbiter or Voluntary Arbitrators may,
‘motu propio or on motion of any interested party, issue a writ of execution on a
judgment within five (5) years from the date it becomes final and executory,
requiring a sheriff or a duly deputized officer to execute or enforce final
decisions, orders or awards of the Secretary of Labor and Employment or
Regional Director, the Commission, the Labor Arbiter or Med-Arbiter or
Voluntary Arbitrator or panel of Voluntary Arbitrators. In any case, it shall be
the duty of the responsible officer to separately furnish immediately the
counsels-of-record and the parties with copies of said decisions, orders or
awards. Failure to comply with the duty prescribed herein shall subject such
responsible officer to appropriate administrative sanctions.

[(b)] (C) The Secretary of Labor and Employment, and the Chairman of the
Commission may designate special sheriffs and take any measure under
existing laws to ensure compliance with their decisions, orders or awards and
those of Labor Arbiters and Voluntary Arbitrators or panel of Voluntary
Arbitrators, including the imposition of administrative fines which shall not be
less than five hundred pesos (P500.00) nor more than ten thousand pesos
(P10,000.00)

SEC 18, Article 234-A of the Labor Code is hereby deleted and replaced with the following

provisions:
ARTICLE 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 CHAPTER
CERTIFICATE INDICATING THE ESTABLISHMENT OF THE LOCAL
CHAPTER. THE CHAPTER SHALL ACQUIRE LEGAL PERSONALITY UPON
THE ISSUANCE OF THE CHARTER CERTIFICATE: PROVIDED, THAT THE
FEDERATION OR THE NATIONAL UNION WHICH ISSUED THE CHARTER
CERTIFICATE MAY ITSELF FILE THE PETITION FOR CERTIFICATION
ELECTION AND MAY REPRESENT THE LOCAL CHAPTER AND ITS
MEMBERS IN ALL OF THE DIFFERENT STAGES OF THE PETITION FOR
CERTIFICATION ELECTION CASE, INCLUDING ALL PROCEEDING
BEFORE, DURING, AND AFTER THE CONDUCT OF CERTIFICATION.


THE LOCAL OR CHAPTER SHALL HAVE THE OBLIGATION TO REVEAL
THE NAMES OF ITS OFFICERS ONLY FROM THE START OF THE
NEGOTIATIONS FOR A COLLECTIVE BARGAINING AGREEMENT

SEC 19. Article 248 (g) the Labor Code Is hereby deleted and replaced with the following
provisions:
‘Article 248, Unfair labor practices of the employers. It shall be unlawful for an
employer to commit any following unfair labor practice:

ot &

G) TO VIOLATE THE DUTY TO BARGAIN COLLECTIVELY AS
PRESCRIBED BY THIS CODE, INCLUDING THE DUTY TO BARGAIN
COLLECTIVELY IN CASE OF MULTI-EMPLOYER BARGAINING AND/OR
MULTI-UNIT BARGAINING AND THE DUTY TO BARGAIN COLLECTIVELY
WITH THE FEDERATION OR NATIONAL UNION.

SEC 20. Article 250 the Labor Code is hereby deleted and replaced with the following

provisions:
ARTICLE 250. POLICY — IT IS THE POLICY OF THE STATE TO PROMOTE
AND EMPHASIZE THE PRIMACY OF THE FREE AND RESPONSIBLE
EXERCISE OF THE RIGHT TO SELF-ORGANIZATION AND COLLECTIVE
BARGAINING EITHER THOUGH SINGLE ENTERPRISE LEVEL
NEGOTIATIONS OR THROUGH THE CREATION OF THE MECHANISM BY
WHICH DIFFERENT EMPLOYERS AND RECOGNIZED OR CERTIFIED
SOLE AND EXCLUSIVE BARGAINING AGENTS IN THEIR
ESTABLISHMENTS BARGAIN COLLECTIVELY.

IT IS LIKEWISE THE POLICY OF THE STATE TO PROMOTE THE

UNITY OF THE DIFFERENT TRADE UNIONS, FEDERATIONS, AND
NATIONAL UNIONS — ESPECIALLY THOSE WORKING IN THE SAME
INSDUSTRY.

ARTICLE 250-A. DISCLOSURE OF INFORMATION — IN COLLECTIVE
BARGAINING, THE PARTIES SHALL AT THE REQUEST OF EITHER OF
THEM, MAKE AVAILABLE SUCH UP-TO-DATE FINANCIAL INFORMATION
ON THE ECONOMIC SITUATION OF THE UNDERTAKING, WHICH IS
NORMALLY SUBMITTED TO RELEVANT GOVERNMENT AGENCIES, AS IS
MATERIAL AND NECESSARY FOR MEANINGFUL NEGOTIATIONS.
WHERE THE DISCLOSURE OF SOME OF THIS INFORMATION COULD BE
PREJUDICIAL TO THE UNDERTAKING, ITS COMMUNICATION MAY BE
MADE CONDITIONED UPON A COMMITMENT THAT IT WOULD BE
REGARDED AS CONFIDENTIAL TO THE EXTENT REQUIRED. THE
INFORMATION TO BE MADE AVAILABLE MAY BE AGREED UPON BY
THE PARTIES TO COLLECTIVE BARGAINING.”

ARTICLE 250-B. FORMS OF COLLECTIVE BARGAINING ~ COLLECTIVE
BARGAINING CAN TAKE PLACE EITHER BETWEEN A LEGITIMATE
LABOR UNION AND THE EMPLOYER WITHIN A SINGLE ENTERPRISE
(“SINGLE ENTERPRESE BARGAINING’), BETWEEN MORE THAT ONE
SOLE AND EXCLUSIVE BARGAINING AGENT AND THEIR
CORRESPONDING EMPLOYERS (“MULTI-EMPLOYER BARGAINING”), OR
BETWEEN MORE THAT ONE SOLE AND EXCLUSIVE BARGAINING
AGENT WITHIN A SINGLE EMPLOYER AND THE EMPLOYER (“MULTI-
UNIT BARGAINING”).


ARTICLE 250-C. WHEN SINGLE BARGAINING UNIT-SINGLE ENTERPRISE
BARGAINING AVAILABLE — ANY RECOGNIZED OR CERTIFIED SOLE
AND EXCLUSIVE BARGAINING AGENT MAY DEMAND NEGOTIATIONS
WITH ITS EMPLOYER FOR TERMS AND CONDITIONS OF WORK
COVERING EMPLOYEES IN THE BARGAINING UNIT CONCERNED.

ARTICLE 250-D. PROCEDURE IN SINGLE ENTERPRISE BARGAINING —
THE FOLLOWING PROCEDURE SHALL BE OBSERVED IN THE
ENTERPISE BARGAINING.

(a) A RECOGNIZED OR CERTIFIED COLLECTIVE BARGAINING
AGENT OR AN EMPLOYER THAT DESIRES TO NEGOTIATE SHALL
SUBMIT SUCH INTENTION IN WRITING TO THE OTHER PARTY,
TOGETHER WITH ITS PROPOSALS FOR COLLECTIVE
BARGAINING THE OTHER PARTY SHALL SUBMIT ITS COUNTER-
PROPOSAL NOT LATER THAN TEN (10) CALENDAR DAYS FROM
RECEIPT OF SUCH NOTICE;

(b) SHOULD DIFFERENCES ARISE ON THE BASIS OF SUCH
PROPOSAL AND COUNTER-PROPOSAL, EITHER PARTY MAY
REQUEST FOR CONFERENCE WHICH SHALL BEGIN NOT LATER
THAN (10) CALENDAR DAYS FROM THE DATE OF REQUEST;

(c) IF THE DISPUTE IS NOT SETTLED, THE SECRETARY SHALL
INTERVENE UPON REQUEST OF EITHER OR BOTH PARTIES OR
ITS OWN INITIATIVE AND IMMEDIATELY CALL THE PARTIES TO
CONCILIATION MEETING THE SECRETARY SHALL HAVE THE
POWER TO ISSUE SUBPOENAS REQUIRING THE ATTENDANCE
OF THE PARTIES TO SUCH MEETING. IT SHALL BE THE DUTY OF
THE PARTIES TO PARTICIPATE FULLY AND PROMPTLY IN THE
CONCILIATION MEETING THE SECRETARY MAY CALL;

(d) DURING THE CONCILIATION PROCEEDINGS BEFORE THE
SECRETARY, THE PARTIES ARE PROHIBITED FROM DOING ANY
ACT WHICH MAY DISRUPT OR IMPEDE THE EARLY SETTLEMENT
OF THE DISPUTES;

(e) THE SECRETARY SHALL EXERT ALL EFFORTS TO SETTLE
DISPUTES AMICABLY;

(f) THE FOREGOING PROCEDURE IS WITHOUT PROJUDICE TO
THE PARTIES ADOPTING SUCH PROCEDURES AND PROCESSES
THEY MAY DEEM APPROPRIATE AND NECESSARY FOR THE
EARLY CONCLUSION OF THEIR NEGOTIATIONS.

ARTICLE 250-E. WHEN MULTI-UNIT AND/OR MULTI-EMPLOYER
BARGAINING MANDATORY - SOLE AND EXCLUSIVE BARGAINING
AGENTS, WHETHER OT NOT BELONGING TO THE SAME EMPLOYER,
MAY AGREE IN WRITING TO COME TOGETHER FOR THE PURPOSE OF
COLLECTIVE BARGAINING. DIFFERENT EMPLOYERS MAY LIKEWISE
ARGEE IN WRITING TO COME TOGETHER FOR PURPOSE OF
COLLECTIVE BARGAINING; A SINGLE EMPLOYER MAY ALSO DEMAND
COLLECTIVELY BARGAINING WITH MORE THAN ONE BARGAINING UNIT
IN SAID SINGLE EMPLOYER; PROVIDED:


(a) ONLY A LEGITIMATE LABOR ORGANIZATION WHICH IS THE
SOLE AND EXCLUSIVE BARGAINING AGENT IN THE COLLECTIVE
BARGAINING UNIT MAY PARTICIPATE AND NEGOTIATE IN MULTI-
EMPLOYER AND/OR MULTI-BARGAINING UNIT BARGAINING;

(b) ONLY EMPLOYERS WITH COUNTERPART SOLE AND
EXCLUSIVE BARGAINING AGENTS MAY PARTICIPATE AND
NEGOTIATE IN MULTI-EMPLOYER BARGAINING;

(c) AN OBLIGATION TO BARGAIN SHALL ARISE ON THE PART OF
THE CORRESPONDING SOLE AND EXCLUSIVE BARGAINING
AGENT OR EMPLOYER/S, SHOULD MULTI-EMPLOYER AND/OR
MULTI-BARGAINING UNIT BARGAINING BE DEMANDED BY
EITHER A GROUP OF SOLE EXCLUSIVE BARGAINING AGENTS
OR A SINGLE EMPLOYER OR A GROUP OF EMPLOYERS;

(d) DIFFERENT EMPLOYERS MAY DEMAND MULTI-EMPLOYER
BARGAINING FROM THEIR CORRESPONDING SOLE AND
EXCLUSIVE BARGAINING AGENTS, INCLUDING THOSE
BARGAINING AGENTS BELONGING TO THE SAME EMPLOYER;

(e) DIFFERENT SOLE AND EXCLUSIVE BARGAINING AGENTS
WITHIN THE SAME EMPLOYER MAY DEMAND MULTI-UNIT
COLLECTIVE BARGAINING FORM THE EMPLOYER;

(f) AN EMPLOYER MAY DEMAND MULTI-UNIT COLLECTIVE
BARGAINING FROM THE DIFFERENT SOLE AND EXCLUSIVE
AGENTS;

(g) DIFFERENT SOLE AND EXCLUSIVE BARGAINING AGENTS
AMY DEMAND COLLECTIVE BARGAINING WITH MORE THAN ONE
EMPLOYERS, EVEN AS MORE THAN ONE SOLE AND EXCLUSIVE
BARGAINING AGENT AMY BELONG TO THE SAME EMPLOYER.

ARTICLE 250-F. PROCEDURE IN MULTI-EMPLOYER BARGAINING
AND/OR MULTI-UNIT BARGAINING — MULTI-EMPLOYER AND/OR MULTI-
BARGAINING UNIT BARGAINING MAY BE INITIATED BY THE LABOR
UNIONS OR BY THE EMPLOYERIS.

(a) SOLE AND EXCLUIVE BARGAINING AGENTS THAT WANT TO
NEGOTIATE WITH THEIR EMPLOYERS COLLECTIVELY SHALL
EXECUTE A WRITTEN AGREEEMENT AMONG THEMSELVES,
WHICH SHALL CONTAIN THE FOLLOWING:

4) THE NAMES OF THE SOLE AND EXCLUSIVE
BARGAINING AGENTS THAT WANT TO AVAIL OF MULTI-
EMPLOYER OR MULTI-UNIT BARGAINING;

2) EACH LEGITIMATE LABOR ORGANIZATION IN THE
EMPLOYER UINIT;

3) THE FACT THAT EACH OF THE LABOR UNIONS ARE THE
INCUMBENT SOLE AND EXCLUSIVE AND EXCLUSIVE


BARGAINING AGENTS FOR THEIR RESPECTIVE
EMPLOYER UNITS;

4) THE DURATIONS OF THE COLLECTIVE BARGAINING
AGREEMENTS, IF ANY, ENTERED INTO BY EACH LABOR
UNION WITH THEIR RESPECTIVE EMPLOYERS.

SOLE AND EXCLUSIVE BARGAINING AGENTS WHICH ARE
MEMBERS OF THE SAME REGISTERED FEDERATION,
NATIONAL, OR INSDUSTRY UNION ARE EXEMPT FROM
EXECUTION OF THIS WRITTEN AGREEMENT.

(b) THE SOLE AND EXCLUSIVE BARGAINING AGENTS FROM
DIFFERENT EMPLOYERS THAT WANT TO BARGAIN WITH MULTI-
EMPLOYERS AND/OR A SINGLE EMPLOYER AND/ OR A SINGLE
EMPLOYER IN CASE OF MULTI-UNIT-SINGLE EMPLOYER
BARGAINING SHALL SEND A WRITTEN NOTICE TO THIS EFFECT
TO EACH EMPLOYER CONCERED. THE WRITTEN AGREEMENT
STATED IN THE PRECEDING PARAGRAPH, OR THE CERTIFICATE
OF REGISTRATION OF THE FEDERATION, NATIONAL, OR
INDUSTRY UNION, SHALL ACCOMPANY SAID NOTICE.

EMPLOYERS SHALL GROUP THEMSELVES OR USE THEIR
EXISTING ASSOCIATION TO ENGAGE IN MULTI-EMPLOYER
BARGAINING. THEY SHALL SEND A WRITTEN NOTICE TO EACH
OF THEIR COUNTERPART SOLE AND EXCLUSIVE BARGAINING
AGENTS INDICATING THEIR DESIRE TO ENGAGE IN MULTI-
EMPLOYER BARGAINING SAID NOTICE SHALL INDICATE THE
FOLLOWING:

4) THE NAMES OF THE EMPLOYERS WHO DESIRE TO
AVAIL OF MULTI-EMPLOYER BARGAINING;

2) THEIR CORRESPONDING SOLE AND EXCLUSIVE
BARGAINING AGENTS;

3) THE FACT THAT EACH SOLE AND EXCLUSIVE
BARGAINING AGENT IS AN INCUMBENT EXCLUSIVE
BARGAINING AGENT;

4) THE DURATION OF THE CURRENT COLLECTIVE
BARGAINING AGREEMENT, IF ANY, ENTERED INTO BY
EACH EMPLOYER WITH THEIR COUNTERPART SOLE AND
EXCLUSIVE BARGAINING AGENT/S;

(c) DURING THE COURSE OF NEGOTIATIONS, EMPLOYERS AND
THE CORRESPONDING SOLE AND EXCLUSIVE BARGAINING
AGENTS SHALL DISCUSS AND AGREE ON THE FOLLOWING:

4) MANNER BY WHICH NEGOTIATIONS SHALL PROCEED;

2) THE SCOPE AND COVERAGE OF THE NEGOTIATIONAND
THE AGREEMENTS;

3) WHERE APPOPRIATE, THE EFFECT OF THE
NEGOTIATIONS ON CURRENT AGREEMENT OR


CONDITIONS OF THE EMPLOYMENT AMONG THE
PARTIES.

(d) IN CASES WHERE THE PARTIES ARE UNABLE TO COME TO
AN AGREEMENT AS PROVIDED FOR UNDER THE PRECEDING
PARAGRAPH, THE PROCEDURE PROVIDED FOR UNDER 250-D
SHALL BE FOLLOWED.

(e) TWO (2) SIGNED COPIES OF COLLECTIVE BARGAINING
AGREEMENT SHALL BE POSTED FOR AT LEAST FIVE (5) DAYS IN
TWO (2) CONSPICUOUS AREAS IN EACH WORKPLACE OF THE
EMPLOYER OR EMPLOYERS UNITS CONCERNED, SAID
COLLECTIVE BARGAINING AGREEMENT SHALL COVER ONLY
THOSE EMPLOYEES IN THE BARGAINING UNITS WHICH HAVE
RATIFIED IT.

ANY MULTI-EMPLOYER AND/OR MULTI-BARGAINING UNIT
CBA SHALL COVER ALL OF THE TERMS AND CONDITIONS OF
EMPLOMENT OTHERWISE COVERED BY SINGLE ENTERPRISE
BARGAINING. HOWEVER, IN CASE A SINGLE ENTERPRISE CBA
AND A MULTI-EMPLOYER OR MULTI-BARGAINING UNIT CBA ARE
CONCURRENTLY IN EFFECT FOR A BARGAINING UNIT AND
THERE IS A CONFLICT BETWEEN THE CBA’S, THE PROVISION
THAT IS MORE FAVORABLE TO THE WORKER SHALL PREVAIL.

ARTICLE 250-G. FEDERATION AND NATIONAL UNION’S ROLE IN
COLLECTIVE BARGAINING — FEDERATIONS AND NATIONAL
UNIONS SHALL HAVE RIGHT TO REPRESENT THEIR LOCAL
UNIONS OR LOCAL UNIONS OR LOCAL CHAPTERS, AND ALL
THEIR MEMBERS, IN ALL ASPECTS OF_ COLLECTIVE
BARGAINING, SUBJECT TO THE RIGHT OF ALL THE MEMBERS
OF THE BARGAINING UNIT TO RATIFY OR REJECT ANY
NEGOTIATED COLLECTIVE BARGAINING AGREEMENT.

THE PRINCIPAL IN ANY COLLECTIVE BARGAINING
AGREEMENT AND THE NEGOTIATIONS THEREOF SHALL BE THE
FEDERATION OR THE NATIONAL UNION. HOWEVER,
NEGOIATIONS SHALL BE JOINTLY CONDUCTED BY THE
FEDERATION/NATIONAL UNION AND THE LOCAL OR CHAPTER.
ANY AGREEMENT MUST BE RATIFIED BY A MAJORITY OF THE
TOTAL NUMBER OF COVERED EMPLOYEES IN ALL OF THE
BARGAINING UNITS.

FURTHERMORE, A COLLECTIVE BARGAINING
AGREEMENT MUST BE RATIFIED BY THE MAJORITY OF THE
MEMBER OF THE EACH BARGAINING UNIT, AND ONLY THE
BARGAINING UNITS WHICH RATIFIED THE CBA SHALL BE
BOUND BY THE AGREEMENT.

SEC 21. Article 253-A of the Labor Code is hereby deleted and replaced with the following

provisions:
ARTICLE 253-4. TERMS OF A COLLECTIVE BARGAINING AGREEMENT.
ANY COLLECTIVE BARGAINING AGREEMENT THAT THE PARTIES MAY
ENTER INTO SHALL BE FOR A TERM OF THREE (3) YEARS. NO PETITION
QUESTIONING THE MAJORITY STATUS OF THE INCUMBENT
BARGAINING AGENT SHALL BE ENTERTAINED AND NO CERTIFICATION
ELECTION SHALL BE CONDUCTED BY THE DEPARTMENT OF LABOR
AND EMPLOYMENT OUTSIDE OF THE SIXTY-DAY PERIOD IMMEDIATELY


BEFORE THE DATE OF EXPIRY OF SUCH THREE-YEAR TERM OF THE
COLLECTIVE BARGAINING AGREEMENT. ANY PARTY TO A COLLECTIVE
BARGAINING AGREEMENT MAY SUBMIT A PROPOSAL TO THE OTHER
PARTY NOT EARLIER THAN SIX (6) MONTH PRIOR TO THE EXPIRATION
OF THE CBA.

ANY AGREEMENT CONCLUDED AFTER THE EXPIRATION OF THE
CBA SHALL RETROACT TO THE DAY AFTER THE EXPIRATION OF SUCH
CBA.

THE EFFECTIVITY DATES OF THE MULTI-UNIT AND/OR MULTI-
EMPLOYER CBA SHALL PREVAIL OVET THOSE OF THE LOCAL CBA's ~
INCLUDING FOR PURPOSES OF DETERMINING THE FREEDOM PERIOD.

SEC 22. Article 260 the Labor Code is hereby further amended to read as follows
‘Article 260. Grievance Machinery and Voluntary Arbitration. - The parties to a
Collective Bargaining Agreement shall include therein provisions that will
ensure the mutual observance of its terms and conditions. They shall establish
a machinery for the adjustment and resolution of grievances arising from the
implementation or interpretation of the collective bargaining agreements and
those arising from the interpretation or enforcement of company personnel
policies[] WHICH REMAIN UNRESOLVED AFTER EXHAUSTION OF THE
GRIEVANCE PROCEDURE INCLUDING ALL TERMINATION CASES
INVOLVING WORKERS COVERED BY COLLECTIVE BARGAINING
AGREEMENTS. FOR THIS PURPOSE, THE PARTIES AND THE BOARD
SHALL ENSURE THAT GRIEVANCE MECHANISMS ARE IN PLACE IN ALL
ORGANIZED ESTABLISHMENTS AND SHALL CONTINUOUSLY WORK TO
ENHANCE AND STRENGTHEN THIS GRIEVANCE MACHINERY.

All grievances submitted to the grievance machinery which are not
settled within seven (7) calendar days from the date of its submission TO THE
LAST STEP PRIOR TO VOLUNTARY ARBITRATION shall automatically be
referred to voluntary arbitration prescribed in the Collective Bargaining
Agreement
For this purpose, parties to a Collective Bargaining Agreement shall name and
designate in advance a Voluntary Arbitrator or Panel of Voluntary Arbitrators,
[or include in the agreement a procedure for the selection of such Voluntary
Arbitrator or Panel of Voluntary Arbitrators preferably from the listing of
qualified Voluntary Arbitrators duly accredited by the Board. In case the parties
fail to NAME AND DESIGNATE IN ADVANCE [select] a Voluntary Arbitrator or
Panel of Voluntary Arbitrators, the Board shall designate the Voluntary
Arbitrator or Panel of Voluntary Arbitrators [, as may be necessary, pursuant to
the selection procedure agreed upon in the Collective Bargaining Agreement,]
which shall act with the same force and effect as if the Arbitrator or panel of
Arbitrators has been SO NAMED AND DESIGNATED [selected by the parties
as described above].

IF THE COLLECTIVE BARGAINING AGREEMENT DOES NOT

SPECIFY THE NUMBER OF ARBITRATORS, THE CASE SHALL BE
SUBMITTED, HEARD AND RESOLVED BY A SOLE ARBITRATOR, UNLESS
THE PARTIES AGREE OTHERWISE.
IF ONE OF THE PARTIES REFUSES TO SUBMIT THE UNRESOLVED
GRIEVANCES TO VOLUNTARY ARBITRATION, THE WILLING PARTY
SHALL INITIATE SUBMISSION TO ARBITRATION BY SERVING A NOTICE
TO ARBITRATE UPON THE OTHER PARTY TO A COLLECTIVE
BARGAINING AGREEMENT. THE NOTICE SHALL STATE THE ISSUE OR
ISSUES TO BE ARBITRATED, COPY THEREOF FURNISHED THE BOARD
AND/OR THE VOLUNTARY ARBITRATOR OR PANEL OF ARBITRATORS
DESIGNATED IN THE COLLECTIVE BARGAINING AGREEMENT.


IF THE PARTY UPON WHOM THE NOTICE IS SERVED FAILS OR
REFUSES TO RESPOND FAVORABLY WITHIN SEVEN (7) DAYS FROM
RECEIPT THEREOF, THE VOLUNTARY ARBITRATOR OR PANEL OF
VOLUNTARY ARBITRATORS DESIGNATED IN| THE COLLECTIVE
BARGAINING AGREEMENT SHALL COMMENCE VOLUNTARY
ARBITRATION PROCEEDINGS. WHERE THE COLLECTIVE BARGAINING
AGREEMENT DOES NOT SO DESIGNATE, THE BOARD SHALL CALL THE
PARTIES AND APPOINT A VOLUNTARY ARBITRATOR OR PANEL OF
VOLUNTARY ARBITRATORS, WHO SHALL THEREAFTER COMMENCE
ARBITRATION PROCEEDINGS IN ACCORDANCE WITH THE PRECEEDING
PARAGRAPH.

IN INSTANCES WHERE PARTIES FAIL TO SELECT A VOLUNTARY
ARBITRATOR OR PANEL OF VOLUNTARY ARBITRATORS, THE
REGIONAL BRANCH DIRECTOR OF THE BOARD SHALL DESIGNATE THE
VOLUNTARY RBITRATOR OR PANEL OF VOLUNTARY ARBITRATORS,
AS MAY BE NECESSARY, WHICH SHALL HAVE THE SAME FORCE AND
EFFECT AS IF HE PARTIES HAVE SELECTED THE ARBITRATOR.

SEC 23. Article 261 the Labor Code is hereby further amended to read as follows:
Article 261. Jurisdiction of Voluntary Arbitrators or Panel of Voluntary
Arbitrators. - The Voluntary Arbitrator or Panel of Voluntary Arbitrators shall
have original and exclusive jurisdiction to hear and decide ALL unresolved
grievances:

1. Arising from the implementation or interpretation of the collective

bargaining agreements; [and]

2, [those] Arising from the interpretation or enforcement of company

personnel policies referred to in the immediately preceding article,

INCLUDING CASES OF TERMINATION OF WORKERS COVERED

BY COLLECTIVE BARGAINING AGREEMENTS;

3. RELATING TO WAGE DISTORTION ISSUES UNDER RA 6727;

AND

4, ARISING FROM PRODUCTIVITY INCENTIVE PROGRAMS UNDER

RA 6971.

Accordingly, violation of a Collective Bargaining Agreement, except
those which are gross in character, shall no longer be treated as unfair labor
practice and shall be resolved as grievances under the Collective Bargaining
Agreement. For purposes of this article, gross violation of Collective Bargaining
Agreement shall mean flagrant and/or malicious refusal to comply with the
economic provisions of such agreement.

The Commission, its Regional Offices and the Regional Directors of the
Department of Labor and Employment shall not entertain disputes, grievances
or matters under the exclusive and original jurisdiction of the Voluntary
Arbitrator or Panel of Voluntary Arbitrators and shall immediately dispose and
refer the same to the Grievance Machinery or Voluntary Arbitration provided in
the Collective Bargaining Agreement.

SEC 24. Article 262 he Labor Code is hereby further amended to read as follows:
‘Article 262. Jurisdiction over other labor disputes - The Voluntary Arbitrator or
Panel of Voluntary Arbitrators [, upon agreement of the parties,] shall also hear
and decide all other labor disputes [including unfair labor practices and
bargaining deadlocks] IN ANY OF THE FOLLOWING SITUATIONS:

A. UPON AGREEMENT OF THE PARTIES.
B. IF THE PARTIES ARE NOT COVERED BY A COLLECTIVE
BARGAINING AGREEMENT, THE PARTY-COMPLAINANT, MAY AT


HIS/HER OPTION, SUBMIT THE CLAIM OR DISPUTE TO EITHER
THE VOLUNTARY ARBITRATOR OR PANEL OF VOLUNTARY
ARBITRATORS, OR TO THE NATIONAL LABOR RELATIONS
COMMISSION AND ITS LABOR ARBITERS.

IF THERE IS NEITHER A PROVISION NOR AGREEMENT AS
TO THE VOLUNTARY ARBITRATOR TO BE APPOINTED BY THE
PARTIES, THE SAME SHALL BE APPOINTED BY THE BOARD
FROM THE LIST OF ACTIVE AND ACCREDITED VOLUNTARY
ARBITRATORS.

C. WHEN THE DISPUTE IS CERTIFIED BY THE SECRETARY OF
LABOR AND EMPLOYMENT TO THE BOARD FOR VOLUNTARY
ARBITRATION IN ACCORDANCE WITH ARTICLE 263 (G) OF THIS
CODE.

SEC 25, Article 262-A of the Labor Code is hereby further amended to read as follows:
‘Article 262-A. Procedures - The Voluntary Arbitrator or Panel of Voluntary
‘Arbitrators shall have the power to ADMINISTER OATHS, hold hearings,
receive evidences, SUBPOENA WITNESSES TO APPEAR IN HEARINGS
AND TO PRODUCE DOCUMENTS, TO CITE FOR DIRECT AND INDIRECT
CONTEMPT AND IMPOSE APPROPRIATE PENALTIES THEREFOR IN
ACCORDANCE WITH LAW and take whatever action is necessary to resolve
the issue or issues subject of the dispute, including efforts to effect a voluntary
settlement between parties.

‘Al parties to the dispute shall be entitled to attend the arbitration
proceedings. The attendance of any third party or the exclusion of any witness
from the proceedings shall be determined by the voluntary arbitrator or Panel of
Voluntary Arbitrators. Hearings may be adjoumed for a cause or upon
agreement by the parties.

Unless the parties agree otherwise, it shall be mandatory for the
voluntary arbitrator or Panel of Voluntary Arbitrators to render an award or
decision within twenty (20) calendar days from the date of submission of the
dispute FOR DECISION [to voluntary arbitration]. FAILURE ON HIS/HER OR
THEIR PART TO RENDER AN AWARD OR A DECISION WITHIN SUCH
PRESCRIBED PERIOD SHALL BE SUFFICIENT CAUSE FOR THE BOARD
TO DELIST OR REMOVE THEIR NAMES FROM THE LIST OF ACCREDITED
VOLUNTARY ARBITRATORS AND BAR THEM FROM PRACTICE OF THE
VOLUNTARY ARBITRATION PROFESSION; PROVIDED, HOWEVER, THAT
DUE PROCESS IS OBSERVED. IN SUCH CASES, IT SHALL BE
UNLAWFUL FOR THE VOLUNTARY ABITRATOR OR PANEL OF
VOLUNTARY ARBITRATORS TO REFUSE OR FAIL TO TURN OVER TO
THE BOARD THE RECORD OF THE CASES WITHIN TEN (10) CALENDAR
DAYS AFTER ITS DEMAND FOR THE SAME FOR FURTHER DISPOSITION
IN ACCORDANCE WITH THE PRECEEDING PARAGRAPHS.

The award or decision of the voluntary arbitrator or Panel of Voluntary
Arbitrators shall contain the facts and the law on which it is based. It shall be
final and executory after ten (|) calendar days from receipt of the copy of the
award or decision by the parties. THE FINAL DECISION OF THE
VOLUNTARY ARBITRATOR OR PANEL OF VOLUNTARY ARBITRATORS
SHALL BE IMMEDIATELY EXECUTORY UNLESS RESTRAINED BY THE
SUPREME COURT WHICH ALONE SHALL REVIEW THE AWARD OR
DECISION IN A PETITION FOR CERTIORARI UNDER RULE 65 OF THE
RULES OF COURT.

Upon motion of any interested party, the Voluntary Arbitrator or Panel of
Voluntary Arbitrators SHALL ISSUE THE WRIT OF EXECUTION. [or the Labor


Arbiter in the region where the movant resides, i] In case of the absence or
incapacity of the Voluntary Arbitrator or Panel of Voluntary Arbitrators, for any
reason, THE BOARD SHALL DESIGNATE, UPON CONSULTATION WITH
THE PARTIES, ANOTHER VOLUNTARY ARBITRATOR TO issue a writ of
execution requiring either the sheriff of the NATIONAL CONCILIATION AND
MEDIATION BOARD, DEPARTMENT OF LABOR AND EMPLOYMENT,
NATIONAL LABOR RELATIONS COMMISSION, [Commission or regular
courts] or any public official whom the parties may designate in the submission
agreement to execute the final decision [, order or award]. IN ORDER TO
FACILITATE THIS FUNCTION, THE POSITION OF SHERIFF IS HEREBY
CREATED IN ALL REGIONAL BRANCHES OF THE BOARD.

FOR THIS MATTER, THE BOARD MAY DEPUTIZE ANY LAW
ENFORCEMENT AGENCY TO ASSIST IN THE EFFECTIVE ENFORCEMENT
OF DECISIONS, AWARDS, RESOLUTIONS OR ORDERS] OF VOLUNTARY
ARBITRATORS OR PANEL OF ARBITRATORS.

SEC 26. Article 262-B of the Labor Code is hereby further amended to read as follows:
Article 262-B. Cost of Voluntary Arbitration and Voluntary Arbitrators fee. -The
parties to a Collective Bargaining Agreement shall provide therein a
proportionate sharing scheme on the cost of voluntary arbitration including the
PAYMENT OF voluntary arbitrator's feeS. The fixing of fees of Voluntary
Arbitrators or panel of voluntary arbitrators, whether shouldered wholly by the
parties or TO BE subsidized by the Special Voluntary Action Fund] SHALL
BE MADE IN ACCORDANCE WITH THE GUIDELINES ISSUED BY THE
BOARD UPON RECOMMENDATION OF THE TRIPARTITE VOLUNTARY
ARBITRATION ADVISORY COUNCIL AND APPROVED BY THE
SECRETARY OF LABOR AND EMPLOYMENT AND shall take into account
the following factors:

(a) Nature of the case;

(b) Time consumed in hearing the case;

(c) Professional standing of the Voluntary Arbitrator;
(d) Capacity to pay of the parties; and

(e) Fees provided for in the Revised Rules of Court.

SEC 27, Article 277, paragraph (f) of the Labor Code Is hereby renumbered as Article 262-C,
to read as:

ARTICLE 262-C, THE SPECIAL VOLUNTARY ARBITRATION FUND. [(f)] A
Special Voluntary Arbitration Fund is hereby established in the Board to
Subsidize the cost of voluntary arbitration {in cases involving the interpretation
of the Collective Bargaining Agreement] including the arbitrator's fees, and for
such other related purposes to promote and develop voluntary arbitration. The
Board shall administer the Special Voluntary Arbitration Fund in accordance
with the guidelines it may adopt upon the recommendation of the Council,
which guidelines shall be subject to the approval of the Secretary of Labor and
Employment, PROVIDED, THAT EIGHTY PERCENT 80% OF THE FUND
SHALL BE ALLOCATED FOR SUBSIDY FOR UNIONS WHICH DO NOT
HAVE THE CAPACITY TO PAY THEIR AGREED SHARE OF THE
VOLUNTARY ARBITRATOR'S FEE AS PROVIDED FOR IN THE CBA.
CONTINUING FUNDS NEEDED FOR THIS PURPOSE IN THE INITIAL
YEARLY AMOUNT OF SEVENTY-FIVE MILLION PESOS (Php75,000,000.00)
[fifteen million pesos] shall be provided in the [1989 and subsequent] annual
general appropriations act.

The amount of subsidy in appropriate cases shall be determined by the
Board in accordance with the established guidelines issued by it upon the
recommendation of the Council.


THE REMAINING TWENTY PERCENT (20%) OF THE FUND shall
[also] be utilized for the operation of the council, the training and education of
Voluntary Arbitrators and the Voluntary Arbitration Program.

SEC 28. A new provision is hereby inserted as Article 262-D, to read as follows’
ARTICLE 262-D. ACCREDITATION AND DE-ACCREDITATION OF
VOLUNTARY ARBITRATORS. - THE BOARD SHALL HAVE THE POWER
TO ACCREDIT VOLUNTARY ARBITRATORS AND MAINTAIN A ROLL OF
ACCREDITED VOLUNTARY ARBITRATORS IN ACCORDANCE WITH THE
CRITERIA AND GUIDELINES IT SHALL ESTABLISH.

THE ACCREDITATION OF AN INDIVIDUAL AS VOLUNTARY
ARBITRATOR SHALL BE SUBJECT TO THE CONDITION THAT HE MEETS
ALL THE QUALIFICATIONS PRESCRIBED BY THE BOARD FOR
ACCREDITATION. IF FOUND QUALIFIED, ACCREDITATION AS
VOLUNTARY ARBITRATOR SHALL BE ON A LIFETIME BASIS, UNLESS
DELISTED PURSUANT TO THE DELISTING GUIDELINES APPROVED BY
THE TRIPARTITE VOLUNTARY ARBITRATION ADVISORY COUNCIL. TO
MAINTAIN THEIR ACTIVE STATUS, HOWEVER, VOLUNTARY
ARBITRATORS SHALL BE REQUIRED TO ATTEND THE ARBITRATORS’
CONTINUING RETOOLING PROGRAM (ACRP), SUBJECT TO THE
GUIDELINES WHICH THE COUNCIL AND THE BOARD SHALL ADOPT.

ONLY ARBITRATORS WITH ACTIVE STATUS SHALL BE
INCLUDED IN THE LIST OF ACTIVE ARBITRATORS BEING
DISSEMINATED TO LABOR AND MANAGEMENT FOR SELECTION AND
APPOINTMENT PURPOSES.

THE BOARD SHALL ALSO HAVE THE POWER TO DELIST AND
REMOVE ACCREDITED VOLUNTARY ARBITRATORS FROM THE ROLL
FOR JUST CAUSE AND SUBJECT TO THE REQUIREMENTS OF DUE
PROCESS: PROVIDED, THAT THE DECISION OF THE BOARD TO DELIST
OR REMOVE !S FINAL AND EXECUTORY.

SEC 29. A new provision taken from Executive Order No. 251 is hereby inserted as Article
262-E, to read as follows:
ARTICLE 262-E. COMPOSITION OF THE TRIPARTITE VOLUNTARY
ARBITRATION ADVISORY COUNCIL

THE TRIPARTITE VOLUNTARY ARBITRATION ADVISORY
COUNCIL IS HEREBY’ CREATED AND ATTACHED TO THE NATIONAL
CONCILIATION AND MEDIATION BOARD. THE COUNCIL SHALL ADVISE
THE BOARD ON MATTERS PERTAINING TO THE PROMOTION OF
VOLUNTARY ARBITRATION AS THE PREFERRED MODE OF DISPUTE
SETTLEMENT.

THE TRIPARTITE VOLUNTARY ARBITRATION ADVISORY
COUNCIL SHALL CONSIST OF THE EXECUTIVE DIRECTOR OF THE
NATIONAL CONCILIATION AND MEDIATION BOARD AS CHAIRMAN, ONE
(1) MEMBER FROM THE GOVERNMENT, TWO (2) MEMBERS
REPRESENTING LABOR, AND TWO (2) OTHER MEMBERS
REPRESENTING MANAGEMENT. THE MEMBERS SHALL BE APPOINTED
BY THE PRESIDENT TO SERVE FOR A TERM OF THREE (3) YEARS. THE
CHAIRMAN AND MEMBERS THEREOF SHALL SERVE WITHOUT
COMPENSATION.

IN ORDER TO FURTHER STRENGTHEN VOLUNTARY
ARBITRATION, THE PRESIDENT AND EXECUTIVE VICE-PRESIDENT OF
THE PHILIPPINE ASSOCIATION ON VOLUNTARY ARBITRATION, INC.
SHALL ALSO BECOME MEMBERS OF THE TRIPARTITE VOLUNTARY
ARBITRATION ADVISORY COUNCIL.


SEC 30. Article 263 of the Labor Code is hereby further amended to read as follows:
Article 263. PEACEFUL CONCERTED ACTIONS, Strikes, picketing and
lockouts. — (a) It is the policy of the State to encourage free trade unionism and
free collective bargaining

(b) Workers shall have the right to engage in concerted activities
INCLUDING THOSE 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 @ lockout on grounds involving inter-union and
intra-union disputes.

(c) In cases 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 Department. [at least thirty (30) days before the intended date
thereof, In cases of unfair labor practice, the period of notice shall be fifteen
(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 18-
day cooling-off period shall not apply and the union may take action
immediately.]”

SEC 31. Subparagraphs (d) and (e) of Article 263 of the Labor Code are hereby deleted.

SEC 32. The succeeding subparagraphs of Article 263 of the Labor Code are hereby

amended to read as follows:
[(] (D) A decision to declare a strike must be approved by a majority of the
fotal union membership in the bargaining unit concerned, obtained by secret
ballot in meetings or referenda called for that purpose. A decision to deciare a
lockout must be approved by A majority of the [board of directors] STOCK
HOLDERS of the corporation or MEMBERS OF THE 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 Department may, at 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 Department the results of the voting at
least seven days before the intended strike or lockout, subject to the cooling-off
period herein provided.]

[(g)] (E) When, in his opinion, there exists a labor dispute causing or likely to
cause a strike or lockout IN HOSPITALS, MEDICAL INSTITUTIONS,
ELECTRICAL AND WATER SERVICES, [in an industry indispensable to the
national interest] 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]. Such assumption for certification}
shall have the effect of automatically enjoining the intended or impending strike
or lockout as specified in the assumption [or certification] order. if one has
already taken place at the time of assumption [or certification], all striking or
locked out employees shall immediately return to work and the other employer
shall immediately resume operations and readmit all workers under the same
terms and conditions prevailing before the strike or lock out. MERE
REINSTATEMENT OF AN EMPLOYEE IN THE PAYROLL SHALL NOT BE


CONSIDERED AS SUFFICIENT COMPLIANCE WITH THIS REQUIREMENT.
The Secretary of Labor and Employment for the Commission] 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 heath, 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 or other
personnel, whose movement and services shall be unhampered and
Unrestricted, as are necessary to insure the proper and adequate protection of
life and health of its patients, most especially emergency cases, for the duration
of the strike or lock-out, 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 a strike or lock out, 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, 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 labor dispute in such industries in order to settle or
terminate the same]

[(h)] (F) [Before or at any stage of the compulsory arbitration process, the]
THE parties may opt to submit their dispute to voluntary arbitration.

(G) IN AN ACTUAL STRIKE OR LOCKOUT IN A SMALL OR MEDIUM
ENTERPRISE (SME), THE SECRETARY SHALL ASSUME JURISDICTION
UPON THE REQUEST OF EITHER PARTY INVOLVED IN THE DISPUTE.
SUCH ASSUMPTION OF JURISDICTION SHALL HAVE THE SAME
EFFECTS AS THOSE PROVIDED UNDER PARAGRAPH (E) OF THIS
ARTICLE.

[()] (H) The Secretary of Labor and Employment [, the Commission or the
Voluntary arbitrator or panel of voluntary arbitrators] shall decide or resolve the
dispute within thirty (30) calendar days from the date of the assumption of
jurisdiction for the certification or submission of the dispute, as the case may
be]. The decision of the President or the Secretary of Labor and Employment [,
the Commission or the voluntary arbitrator or panel of voluntary arbitrators]
shall be final and executory ten (10) calendar days after receipt thereof by the
parfies. NO MOTION FOR RECONSIDERATION OF THE DECISION SHALL
BE ENTERTAINED.

() WORKERS, THROUGH THEIR UNIONS, HAVE THE RIGHT TO REFUSE
TO HANDLE MERCHANDISE OF/FOR, OR PROVIDE / RECEIVE A SERVICE


TO, ANY COMPANY WITH AN ONGOING LABOR DISPUTE, AND SUCH
REFUSAL ALONE SHALL NOT BE CONSIDERED A STRIKE UNDER
ARTICLE 212 (0).

(J) ALL WORKERS SHALL BE ENTITLED TO RECEIVE THE FULL
AMOUNT OF THEIR REGULAR WAGES FROM THEIR EMPLOYER FOR
THE ENTIRE DURATION OF ANY STRIKE OR LOCKOUT.

SEC 33. Article 264 of the Labor Code is hereby further amended to read as follows
Article 264. Prohibited Activities. — (a) No labor organization or employer shall
declare a strike or lockout without first having bargained collectively in
accordance with Title Vil of this Book EXCEPT IN THE CASE OF STRIKES
AGAINST UNFAIR LABOR PRACTICE BY THE EMPLOYER. [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
Department]

No strike or lockout shall be declared atter assumption of jurisdiction by
the [President or the] 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 an unlawful lockout shall be entitled to reinstatement with full backwages.
ANY EMPLOYER FOUND GUILTY OF ILLEGAL LOCKOUT SHALL INCUR
CRIMINAL LIABILITY AS PROVIDED FOR UNDER ARTCLE 272 OF THIS
CODE, Any union officer who knowingly participates in an illegal strike and any
worker or union officer who knowingly participates in the commission of illegal
acts during a strike may be declared to have lost his employment right:
Provided, That mere participation of a worker in a [lawful] strike, WHETHER
LAWFUL OR NOT, shall not constitute sufficient ground for termination of his
employment [, even if a replacement had been hired by the employer during
such lawful strike]. IF AN EMPLOYER, HIS OR HER AGENTS,
REPRESENTATIVES, OR ANY OTHER PERSON ACTING OR PURPORTING
TO ACT ON HIS OR HER BEHALF, SHOULD COMMIT A CRIME DURING A
STRIKE OR ANY OTHER CONCERTED ACTION BY WORKERS, THE SAME
SHALL BE CONSIDERED AS AGGRAVATING CIRCUMSTANCE IN
DETERMINING THE APPROPRIATE PENALTY TO BE IMPOSED ON SUCH
PERSON FOR THE COMMISSION OF SAID CRIME,

(b) No person shall obstruct, impede or interfere with, ESPECIALLY 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 to self-organization or collective bargaining, or shall aid or
abet such obstruction or interference. NO PICKET OR OTHER PEACEFUL
CONCERTED ACTION CONDUCTED BY WORKERS IN THE COURSE OF A
LABOR CONTROVERSY OR DISPUTE SHALL BE IMPEDED OR
INTERFERED WITH IN ANY MANNER ON THE GROUND THAT IT IS BEING
HELD IN A COMMON BUSINESS AREA SUCH AS A MALL OR AN
INDUSTRIAL PARK. WORKERS SHALL HAVE AN ABSOLUTE RIGHT TO
CONDUCT PICKETS OR OTHER CONCERTED ACTIONS IN AREAS
PROXIMATE TO ANY BUILDING, OFFICE, OUTLET, BRANCH, OR SIMILAR
LOCATION USED BY THEIR EMPLOYER IN THE COURSE OF BUSINESS

(c) No employer shall use or employ any REPLACEMENT WORKERS FOR
STRIKERS OR strike-breakers, nor shall any person ALLOW HIMSELF OR
HERSELF TO be employed as a strike-breaker OR REPLACEMENT FOR


STRIKERS. “REPLACEMENT WORKERS” AS USED IN THIS PROVISION
SHALL INCLUDE ANY PERSON LISTED IN THE ROSTER OF MANPOWER
AGENCIES CONTRACTED BY THE EMPLOYER TO PROVIDE WORKERS
ON A TEMPORARY OR “ON CALL” BASIS BUT WHO OTHERWISE DO
NOT HAVE ANY REGULAR EMPLOYMENT WITH THE EMPLOYER,
STUDENTS UNDERGOING PRACTICAL TRAINING WITH THE EMPLOYER
AS PART OF THEIR ACADEMIC REQUIREMENTS, IF THE SAME ARE
ASSIGNED ADDITIONAL DUTIES OR REQUIRED TO WORK ADDITIONAL
HOURS FOR THE PURPOSE OF FILLING IN FOR STRIKING WORKERS,
AS WELL AS CASUAL, CONTRACTUAL, AGENCY AND OTHER SUCH
TYPES OF WORKERS, WHETHER OR NOT EMPLOYED BEFORE THE
EXISTENCE OF THE LABOR DISPUTE, IF THEY ARE GIVEN TASKS
ASSIGNED TO STRIKING WORKERS.

(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 persons, 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 place of the strikers. 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 officers
from taking any measure necessary to maintain peace and order, protect life
and property, and/or enforce the law and legal order] VIOLATION OF THIS
PROVISION SHALL GIVE RISE TO CRIMINAL LIABILITY UNDER ARTICLE
272 OF THIS CODE, WITHOUT PREJUDICE TO ANY ADMINISTRATIVE
LIABILITY THAT MAY BE INCURRED UNDER OTHER LAWS OR
REGULATIONS.

SEC 34, Subparagraph (e) of Article 264 of the Labor Code is hereby amended to read as
follows:
(e) AFTER THE UNION HAS SIGNIFIED ITS INTENTION TO RETURN TO
WORK, NO EMPLOYER SHALL REFUSE REINSTATEMENT OF STRIKERS
RETURNING TO WORK. IT SHALL ALSO BE ILLEGAL FOR AN
EMPLOYER TO DISCRIMINATE AGAINST RETURNING EMPLOYEES.

SEC 35. The Secretary of Labor and Employment shall promulgate the necessary rules and
regulations to implement the provisions of this Act.

SEC 36. Renumbering - The Department of Labor and Employment (DOLE) shall cause
the renumbering of affected provisions of the Labor Code, as amended.

SEC 37. Separability Clause - If any provision, or part hereof, is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected shall
remain valid and subsisting

SEC 38. Repealing Clause - Any law, presidential decree or Issuance, executive order,
letter of instruction, administrative order, rule or regulation contrary to or inconsistent with,
the provisions of this Act is hereby repealed, modified or amended accordingly.

SEC 39. Effectivity Clause. - This Act shall take effect fifteen (15) days after its publication
in at least two (2) newspapers of general circulation

Approved,


‘SIXTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
__ Representative Maximo 8. Rodriquez, Jr._

House Bill No, 4228

EXPLANATORY NOTE

Republic Act No. 7160, otherwise known as the Local Government Code of the Philippines
was enacted in 1991, almost 20 years ago. Itis high time that amendments to this law are
enacted to make it more appropriate to the current situation prevailing in the Philippines

Some amendments proposed by this bill are as follows:
1, The increase in the LGUs allotment from 40 % to 60%;
2. The exemption of certain municipalities from requirements of cityhood subject to
some conditions;
3. The integration of solid waste management collection and disposal as a basic
service;

The modification of the composition of the local development council;

The deduction of the cost of devolved functions, including the cost of city hospitals,

less capital outlays, from the Internal Revenue Allotment before it is divided among

the local government units;

6. The amendment of the basis of amounts stipulated in Section 393 of the Local
Government Code so that the benefits intended for barangay officials can be
adjusted to present level, and reflect the original intention of the law;

7. The professionalization of the delivery of various basic social services by making the
qualifications of these social welfare and development officers equivalent and
comparable with their counterparts in the local government units. Setting certain
parameters as to who would qualify as social welfare and development officers and
making mandatory their appointment in municipal governments are steps in the right
direction;

8. The rationalization of the computation of the IRA to LGUs by replacing as a basis for
determining the share of each province, city or municipality “equal sharing” with
“revenue capacity,” and insuring that LGUs with lower tax base will get bigger shares
under this revenue capacity criterion;

9. The allowance of an increase in the number of barangay tanods in proportion to the
population of the barangay as approved by the municipal or city council;

40. The inclusion of the local treasurer, local budget officer and the local planning and
development coordinator in the Local Health Board;

44. The inclusion among the priority areas for the Special Education Fund (SEF)
coverage the budget of the payment of electric and water bills, payment of salaries,
allowances, and other benefits of non-teaching personnel, procurement of service
vehicles for conveyance of teachers and non-teaching personnel, establishment and
maintenance of extension classes, including the creation of teacher items for said
classes, purchase of prescribed textbooks, teaching aids, and other instructional
materials;

12. The addition of a provision making mandatory the appointment of a cooperatives
officer in the provincial and city goveriments;

48.Giving the Local Government Units through their Sanggunian Panialawigan,
Panlunsod or Bayan the power to declare local holidays;

OR


44, The inclusion of a representative from the senior citizens in the Local Development
Council

All these amendments are necessary to improve the services that an LGU provides
for the betterment of the lives of their constituents.

In view of the foregoing, immediate passage of this bill is earnastly requested.

RUFU$ B. RODR{GUEZ

ly

MAXIMO B. Ronpsuez, JR.



SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and

Representative Maximo B. Rodriquez, Jr.

House Bill No. 4228

AN ACT

PROVIDING FOR OMNIBUS AMENDMENTS TO REPUBLIC ACT
OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991.

NO. 7160,

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

assembled:

SECTION 1. Section 13 of Republic Act No. 7160, otherwise known as the Local

Government Code of 1991, is hereby amended to read as follows:

“SEC. 13. Naming of Local Government Units and Public Places,
Streets and Structures AND DECLARING LOCAL HOLIDAYS. ~
(a) The sangguniang panialawigan may, in consultation with the
NATIONAL HISTORICAL INSTITUTE (NHI) AND LOCAL
HISTORICAL ASSOCIATIONS, IF ANY, change the name of the
following within its territorial jurisdiction:

xxx

“(b) The sanggunians of highly urbanized cities and of component
cities whose charters prohibit their voters from voting for provincial
elective officials, hereinafter referred to in this Code as
independent component cities, may, in consultation with the
NATIONAL HISTORICAL INSTITITE (NHI) AND LOCAL
HISTORICAL ASSOCIATIONS, IF ANY, change the name of the
following within its territorial jurisdiction

xxx

“(c) The sanggunians of component cities and municipalities may,
in consultation with the NATIONAL HISTORICAL INSTITUTE
(NHI) AND LOCAL HISTORICAL ASSOCIATIONS, IF ANY,
change the name of the following within its territorial jurisdiction:
XX

“THE LOCAL SANGGUNIANS, EXCEPT THE SANGGUNIANG
BARANGAY, IN CONSULTATION WITH THE NATIONAL
HISTORICAL INSTITUTE (NHI) AND LOCAL HISTORICAL
ASSOCIATIONS, IF ANY, AND THE DEPARTMENT OF LABOR

AND

EMPLOYMENT (DOLE), THROUGH AN ORDINANCE DULY
APPROVED BY THREE-FOURTHS (3/4) VOTE OF ALL THEIR
RESPECTIVE MEMBERS, MAY DECLARE NOT MORE THAN
TWO (2) SPECIAL PUBLIC HOLIDAYS, WHICH MAY EITHER
BE A WORKING OR NONWORKING HOLIDAY.”


SEC 2. Section 17 of Republic Act No. 7160 is hereby amended to read as follows:
“Section 17. Basic Services and Facilities. a) x0000000000

“(b) Such basic services and facilities include, but are not limited to the following

(1) 30000010001000X200KXXHHHHHOOOO

"(2) For a Municipality:
“(vi) INTEGRATED solid WASTE COLLECTION AND
disposal system or environmental management system
and services or facilities related to general hygiene and
sanitation
*XHKKXK KKH KKK AK KKK AKAN,
“(ili) INTEGRATED SOLID WASTE COLLECTION AND
DISPOSAL SYSTEM = =OR_ —_ENVIRONMENT
MANAGEMENT SYSTEM AND SERVICES OR
FACILITIES RELATED TO GENERAL HYGIENE AND
SANITATION.”

SEC 3, Section 102 of Republic Act No. 7160 is hereby amended to read as follows:
SEC. 102, Creation and Composition. ~
(a) There shall be established a local health board in every
province, city or municipality, The composition of the local
health board shall be as follows
(1) The provincial health board shall be headed
by the governor as chairman, the provincial
health officer as vice-chairman, the chairman
of the committee on health of the

Sangguniang Panlalawigan, THE
PROVINCIAL TREASURER, — THE
PROVINCIAL PLANNING AND
DEVELOPMENT COORDINATOR, a

representative from the private sector or non-
governmental organizations involved in health
services, and a representative of the
Department of Health in the province, as
members;

(2) The city health board shall be headed by the
city mayor as chairman, the city health officer
as vice-chairman, and the chairman of the
committee on health of the Sangguniang
Panlungsod, THE CITY TREASURER, THE
CITY BUDGET OFFICER, THE CITY
PLANNING AND DEVELOPMENT
COORDINATOR, a representative from the
private sector. or non-governmental
organizations involved in health services, and
a representative of the Department of Health
in the city, as members; and

(3) The municipal health board shall be headed
by the municipal mayor as chairman, the
municipal health officer as vice-chairman, and
the chairman of the committee on health of
the Sangguniang Bayan, THE MUNICIPAL
TREASURER, THE MUNICIPAL BUDGET
OFFICER, THE MUNICIPAL PLANNING


AND DEVELOPMENT COORDINATOR, a
representative from the private sector or non-
governmental organizations involved in health
services, and a representative of the
Department of Health in the municipality, as
members

2X HK 00K

SEC 4, Section 107 of Republic Act No. 7160 is hereby amended to read as follows
“SEC. 107. Composition of Local Development Councils. - The
composition of the local development council shall be as follows:

(a) The barangay development council shall be headed by the
punong barangay and shall be composed of the following members:
(1) Members of the sangguniang barangay;
(2) Representatives of nongovernmental _ organizations
Operating in the barangay, who shall constitute not [less] MORE
than one fourth (1/4) of the members of the fully organized
couneil;
(3) Arepresentative of the congressman
(b) The city or municipal development council shall be headed by the
mayor and shall be composed of the following members.
(1) [All punong barangays] LIGA NG MGA BARANGAY
OFFICERS in the city or municipality;
(2) The chairman of the committee on appropriations of the
Sangguniang panlungsod or sangguniang bayan;
(3) The congressman or his representative; and
(4) Representatives of nongovernmental organizations
operating in the city or municipality, as the case may be, who shall
constitute not fless] MORE. than one-fourth (1/4) of the members
of the fully organized council
(c) The provincial development council shall be headed by the
governor and shall be composed of the following members:
(1) [All mayors of component cities and municipalities:]
PRESIDENT AND VICE PRESIDENT OF THE LEAGUE OF
MUNICIPALITIES, MAYORS OF COMPONENT CITIES AND A
MAYOR REPRESENTING THE LEGISLATIVE DISTRICT TO BE
APPOINTED BY THE PRESIDENT OF THE LEAGUE OF
MUNICIPALITY;
(2) The chairman of the committee on appropriations of the
sangguniang panialawigan;
(3). The congressman or his representative; and
(4) Representatives of nongovernmental organizations operating
in the province, who shall constitute not [less] MORE than one-
fourth (1/4) of the members of the fully organized council

PROVIDED, THAT SENIOR CITIZENS SHOULD BE PROPERLY
REPRESENTED IN THE LOCAL DEVELOPMENT COUNCILS.

SEC 5, Section 272 of Republic Act No. 7160 is hereby amended to read as follows:
“Sec. 272, — The proceeds from the additional one percent (1%)
tax on real property accruing to the SEF shall be automatically
released to the local school boards: Provided, That in case of
provinces, the proceeds shall be divided equally between the
provincial and municipal school boards: Provided, however, That
the proceeds shall be allocated for the operation and maintenance


of public schools, INCLUDING THE PAYMENT OF ELECTRIC
AND WATER BILLS; construction and repair of school buildings,
facilities and equipment, PAYMENT OF SALARIES,
ALLOWANCES, AND OTHER BENEFITS OF TEACHING AND
NON-TEACHING PERSONNEL, PROCUREMENT OF SERVICE
VEHICLES FOR USE IN THE TRANSPORT OF TEACHERS
AND NON-TEACHING PERSONNEL, ESTABLISHMENT AND
MAINTENACE OF EXTENSION CLASSES, INCLUDING THE
CREATION OF TEACHER ITEMS FOR SAID CLASSES,
educational research, purchase of [books,] PRESCRIBED
TEXTBOOKS, periodicals, TEACHING AIDS, OTHER
INSTRUCTIONAL MATERIALS, and sports development as
determined and approved by the Local School Board.”

SEC 6. Section 284 of Republic Act No. 7160 is hereby amended to read as follows
“Section 284. - Allotment of Internal Revenue Taxes — Local
Government Units shall have a share in the national internal
revenue taxes based in the collection of the third fiscal year
preceding the current fiscal year as follows:

a. ON the first year of the effectivity of this Code, thirty percent
(30%);
b. On the second year, thirty five percent (35%) [and];
¢. On the third year UNTIL SEVENTH YEAR [and thereafter], forty
percent (40%);
D. ON THE EIGHT YEAR, FIFTY PERCENT (50%); AND
E. ON THE NINTH YEAR AND THEREAFTER, SIXTY PERCENT
(60%)

XXX

SEC 7. Section 285 of Republic Act No. 7160 is hereby amended to read as follows:
“SECTION 285. ALLOCATION TO LOCAL GOVERNMENT
UNITS. THE SHARE OF THE LOCAL GOVERNMENT UNITS IN
THE INTERNAL REVENUE ALLOTMENT SHALL BE
ALLOCATED, AFTER DEDUCTING THEREFROM THE COST
OF DEVOLVED FUNCTIONS AND PERSONNEL, AND THE
COST OF CITY-FUNDED HOSPITALS, EXCLUDING CAPITAL
OUTLAYS, INCREASED AT THE RATE OF TEN PERCENT
(10%) PER ANNUM FROM THE EFFECTIVITY OF THIS CODE.
THE TOTAL COST SO DEDUCTED SHALL BE DISTRIBUTED
AND DIRECTLY REMITTED TO THE LOCAL GOVERNMENT
UNITS CONCERNED AND THE NET OR BALANCE OF THE
INTERNAL REVENUE ALLOTMENT SHALL BE ALLOCATED
IN THE FOLLOWING MANNER:

a)Provinces - Twenty-three percent (23%);
b)Cities  - ‘Twenty-three percent (23%);
¢) Municipalities- Thirty-four percent (34%);

d) Barangays - Twenty percent (20%);

Provided, however, that the shares of each province, city and
municipality shall be determined on the basis of the following
formula
a) Population - [Fifty percent (50%)] FIFTY FIVE PERCENT
(55%)
b) Land Area - [Twenty-five percent (25%)] TWENTY PERCENT
(20%)


c) [Equal Sharing] REVENUE CAPACITY - Twenty- five percent
(25%)

Provided, further, that the share of each barangay with a
population of not less than one hundred (100) inhabitants shall not
be less than Eighty Thousand pesos (P80,000,000) per annum
chargeable against the twenty percent (20%) share of the
barangay from the internal revenue allotment, and the balance to
be allocated on the basis of the following formula:

a) On the year of the effectivity of this Code’

1) Population = Forty percent (40%); and
2)Equal sharing - —_Sixty percent (60%)

b) On the second year
41) Population - Fifty percent (50%); and
2)Equal sharing - —_‘Fifty percent (50%)

) On the third year
1) Population - Sixty percent (60%); and
2)Equal sharing - —_‘Forty percent (40%)

Provided, finally, that the financial requirements of barangays
created by local government units after the effectivity of this Code
shall be the responsibility of the local government units
concerned.”

SEC 8, Section 286 of Republic Act 7160 is hereby amended to read as follows:
“Section 286. Automatic [Release] RETENTION of Shares-a) The
share of each local government unit shall be [release] RETAINED
AUTOMATICALLY BY THE CONCERNED LOCAL
GOVERNMENT UNIT, without need of any further action, [directly
to] By the provincial, city, municipal or barangay treasurer, as the
case maybe, on a quarterly basis within five (5) days after the end
of each quarter, and which shall be subject to any lien or holdback
that may be imposed by the national government for whatever
purpose.

b) xxx

SEC 9, Section 287 of Republic Act 7160 is hereby amended to read as follows:
Section 287.Local Development Projects.- Each local
government unit shall appropriate in its annual budget no less
than twenty percent (20%) of its annual internal revenue allotment
for development projects: PROVIDED, THAT IT SHALL BE
MANDATORY TO INCLUDE PROJECTS FOR THE BENEFIT OF
SENIOR CITIZENS. Copies of the development plans of local
government units shall be furnished the Department of Interior and
Local Government.

SEC 10. Section 393 of Republic Act 7160 is hereby amended to read as follows:
SEC. 393. Benefits of Barangay Officials. - (a) Barangay
Officials, including barangay tanods and members of the lupong
tagapamayapa, shall receive honoraria, allowances and such
other emoluments as may be authorized by law or barangay,
municipal or city ordinance in accordance with the provisions of
this Code, but in no case shall it be less than [one thousand
pesos (P1,000.00)] TWO THOUSAND PESOS (P2,000.00) per


month for the punong barangay and [Six hundred pesos
(P600.00)] ONE THOUSAND EIGHT HUNDRED (P1,800.00) per
month for the sangguniang barangay members, barangay
treasurer and barangay secretary: Provided, however, That the
annual appropriations for personal services shall be subject to the
budgetary limitations prescribed under Title Five, Book 11 of this
Code.

(b) The punong barangay, the sangguniang barangay members,
the barangay treasurer, and the barangay secretary, shall, also:

(1) be entitled to Christmas bonus of at least [One
Thousand pesos (P1,000.00)]) TWO THOUSAND PESOS
(P2,000.00) each, the funds for which shall be taken from the
general fund of the barangay or from such other funds
appropriated by the national government for the purpose;

(2) be entitled, during their incumbency to insurance
coverage which shall include, but shall not limit to temporary and
permanent disability, double indemnity, accident insurance, death
and burial benefits, in accordance with Republic Act Numbered
sixty-nine hundred forty-two (Republic Act No. 6942), entitled “An
Act Increasing the Insurance Benefits of Local Government
Officials and Providing Funds Therefor";

(3) be entitled to free medical care including
subsistence, medicines, and medical attendance in any
government hospital or institution: Provided, That such hospital
care shall include surgery or surgical expenses, medicines, x-rays,
laboratory fees and other hospital expenses

In case of extreme urgency where there is no available
government hospital or institution, the barangay official concerned
may submit himself for immediate medical attendance to the
nearest private clinic, hospital or institution and the expense not
exceeding [Five thousand pesos (P5,000.00)] TEN THOUSAND
PESOS (P10,000.00) that may be incurred therein shall be
chargeable against the funds of the barangay concemed;

(4) be exempted during their incumbency from paying
tuition and matriculation fees for their legitimate dependent
children attending state colleges or universities. He may likewise
avail of such educational benefits in a state college or university
located within the province/city to which the barangay belongs;
and

(5) __be entitled to appropriate civil service eligibility on
the basis of the number of years of service to the barangay,
pursuant to the rules and regulations issued by the Civil Service
Commission

(c) Elective barangay officials shall have preference in
appointments to any government position or in any government.
owned or controlled corporations, including their subsidiaries, after
their tenure of office, subject to the requisite qualifications and the
provisions of the immediately preceding paragraph; and

(d) All duly appointed members of the barangay tanod brigades, or
their equivalent, which shall number IN PROPORTION TO THE
POPULATION OF BARANGAY AS APPROVED BY THE
CITY/MUNICIPAL COUNCIL [not more than twenty (20) in each


barangay], shall be granted insurance or other benefits during
their incumbency, chargeable to the barangay or the city or
municipal government to which the barangay belongs

SEC 11. Section 450 of Republic Act 7160 is hereby amended to read as follows:
“Sec. 450. Requisites for Creation, — (a) A municipality or a cluster of
barangays may be converted into a component city if it has an average
annual income, as certified by the Department of Finance, of at least two
(2) consecutive years based on 1991 constant prices, and if it has either
of the following requisites.”
“(i) a contiguous territory of at least one hundred (100)

square kilometers, as certified by the Lands Management Bureau;
or”

“(i) a population of not less than one hundred fifty
thousand (150,000) inhabitants, as certified by the National
Statistics Office.”

“Provided, that the creation thereof shall not reduce the
land area, population, and income of the original unit of units at
the time of said creation to less than he minimum requirement
prescribed herein.”

“PROVIDED, FURTHER, THAT THE CAPITAL TOWN OF
A PROVINCE SHALL BE EXEMPTED FROM THE AVERAGE
ANNUAL INCOME REQUIREMENT OF ONE HUNDRED
MILLION PESOS (P100,000,000.00) AS PROVIDED FOR IN
PAR, (a) HEREOF TO BE QUALIFIED FOR CONVERSION INTO
ACITY;"

“PROVIDED, FINALLY, THAT CAPITAL TOWNS OF
PROVINCES WHERE THERE IS NO EXISTING CITY SHALL
HAVE A PRIORITY FOR CONVERSION INTO A COMPONENT
city.”

"(b) The territorial jurisdiction of a newly-created city shall be properly
identified by metes and bounds. The requirement on land area shall not
apply where the city proposed to be created is composed of one (1) or
more islands, The territory need not be contiguous if it comprises two (2)
or more islands.”

"(¢) The average annual income shall include the income accruing to the
general fund, exclusive of special funds, transfers and non-recurring
income.”

SEC 12. Section 468 of Republic Act 7160 is hereby amended to read as follows:
“SEC. 468. Powers, Duties, Functions and Compensation.-
*(@)¥00%000000000000000X00000;


MUNICIPALITIES FOR THE INTEGRATED SOLID
WASTE COLLECTION AND DISPOSAL, AND WHEN
NECESSARY, FACILITATE OR PROVIDE FOR THE
ESTABLISHMENT OF SAID BASIC SERVICE AND
FACILITY IN A COMPONENT UNIT;

SEC 13. Section 483 of Republic Act 7160 Is hereby amended to read as follows:
"SEC 483, Qualifications, Powers and Duties, (a) No person shall be
appointed social welfare and development officer unless he/SHE Is a
citizen of the Philippines, a resident of the local government unit
concemed, of good moral character [] AND a duly licensed social worker
{or a holder of college degree preferably in sociology or any other related
course from a recognized college or university, and a first grade civil
service eligible or its equivalent]. He/SHE must have acquired
experience in the practice of social work for at least five (5) years in the
case of the provincial or city social welfare and development officer, and
three (3) years in the case of the municipal social welfare and
development officer.

The appointment of a social welfare and development officer is
mandatory for the provincial, [and] city [] and [optional for] municipal
government.”

SEC 14, Section 487 of Republic Act No. 7160 is hereby amended to read as follows:
“Section 487. Qualifications, Powers and Duties.— (a) xxx
The appointment of the cooperatives officer is [optional]
MANDATORY for the provincial, [and] city AND MUNICIPAL
governments.

SEC 15. Separability Clause. - Any portion or provision of this Act that may be declared
unconstitutional or invalid shall not have the effect of nullifying other portions and provisions
hereof as long as such remaining portion or provision can still subsist and be given effect in
their entirety

SEC 16. Repeating Clause. ~ Any law, presidential decree or issuance, executive order,
letter of instruction, administrative order, rule or regulation contrary to or inconsistent with
the provisions of this Actis hereby repealed, modified or amended accordingly

SEC 17. Effectivity. — This Act shall take effect fifteen (15) days after its publication in at
least two (2) newspapers of general circulation,

Approved,


SIXTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES
First Regular Session

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No. 4229

EXPLANATORY NOTE

The Constitution, Article XII, Section 14, provides:

The sustained development of a reservoir of national talents
consisting of Filipino scientists, entrepreneurs, professionals,
managers, high-level technical manpower, and skilled workers
and craftsmen in all fields shall be promoted by the State.

in line with this Constitutional mandate, Republic Act No. 8981 created the
Professional Regulation Commission to administer, implement, and enforce regulatory
policies of the national government with respect to the regulation and licensing of the various
professions and occupations under its jurisdiction, including the enhancement and
maintenance of professional and occupational standards and ethics and the enforcement of
the rules and regulations relative thereto.

Moreover, the Professional Regulatory Boards which are under the administrative
supervision of the PRC are tasked to monitor the conditions affecting the practice or
occupation under their respective jurisdictions and whenever necessary, adopt such
measures as may be deemed proper for the enhancement of the profession or occupation
andlor the maintenance of high professional, ethical and technical standards.

In view of the above premises, Continuing Professional Education is vital and
necessary to enhance and maintain high professional and occupational, ethical and
technical standards in the practice of the profession

Thus, there is an urgent need to institute measure that will strengthen the Continuing
Professional Education Program of the government.

Hence, this proposed legistation.

RUFYS B. RO! EZ

Lj
MAXIM B. RODRIGUEZ, JR.


SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No. 4229

AN ACT
STRENGTHENING THE CONTINUING PROFESSIONAL EDUCATION PROGRAM

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

SECTION 1. Title. This Act shall be known as the “Continuing Professional Education
Act of 2014”.

SECTION 2. Declaration of Policy. It is hereby declared a policy of the State to promote
and upgrade the practice of professions in the country and towards this end shall institute
measures that will continuously improve the competence of Filipino professionals in
accordance with international standards of practice, thereby ensuring their contribution to the
upliftment of the general welfare, economic growth, and development of the nation.

SECTION 3. Definition of Terms, The following terms shall be defined under this Act:
a. “APO" refers to the Accredited Professional Organization

b. “Continuing Professional Education” or “CPE” refers to the inculcation, assimilation and
acquisition of knowledge, skills, proficiency and ethical and moral values, after the inital
registration of a professional, that raise and enhance the professional's. technical skills
and competence;

c. “CPE Provider’ refers to a natural person or a juridical entity which include among
others, accredited or non-accredited professional organization, firm, partnership,
corporation or institution which offers, organizes or arranges CPE programs, activities or
sources for implementation or administration;

d. “CPE Programs, Activities or Sources” refers to the regime of CPE which enhance the
competence of the professional by upgrading or updating knowledge and skills for the
profession as brought about by modemization and scientific and technical advancements
in the profession. The scope shall be beyond the basic preparation for admission to the
practice of the regulated profession. Its content shall be related to the practice of the
profession.

. “Conventions” refers to the gathering of registered and licensed professionals which shall
include, among others, conferences, symposia or assemblies for round table
discussions;

f. “Post Graduate Degree Program” refers to masteral or doctoral degree which the
professional is currently enrolled;


g. “PRC" refers to the Professional Regulation Commission;
h. “PRBs" refers to the Professional Regulatory Boards;

i, “Self-Directed Learning Package” refers to learning which uses course manuals or
accredited learning modules. Accredited learning modules include self-instructional
materials or programs which may be in the form of printed manual, audio and video
cassette tapes, films, computer-assisted leaming, study kits, leamiing aids and modules
or the use of information highway and has defined objectives and adequate content
relative to professional practice.

SECTION 4. Strengthening the CPE Program. The existing Continuing Professional

Education Program of the Professional Regulation Commission is hereby institutionalized

and strengthened, and along with this, there shall be formulated and implemented a CPE

Program in each of the regulated professions with the following objectives:

a) To provide and ensure the continuous education of a registered and licensed
professional with the latest trend in the profession brought about the modernization and
Scientific and technological advancement;

b) To raise and maintain the professionals’ capability in delivering quality professional
servic

c) Toattain and maintain the highest standards and quality in the practice of professions;

d) To comply with the professionals’ continuing ethical requirements;

e) Tomake the professionals globally competitive; and

f) To promote the general welfare of the public.

SECTION 5. Nature of CPE Programs. The CPE programs consist of properly planned
and structured activities, the implementation of which requires the participation of a
determined group of professionals to meet the requirements of maintaining and improving
the occupational, technical and ethical standards of professions. These shall include but not
limited to the following:

1) Trainings and Seminars to enhance the practice of profession;

2) Conduct of conventions of accredited professional organizations;

3) Academic Post Graduate Degree Program;

4) Self-Directed Learning Package such as the preparation and authorship of technical

papers, teaching manuals and books ; and
5) Technical Tours and Workshops;
6) Professional Exchange Program

SECTION 6. Program implementation. The over-all implementation of the CPE Program

shall be undertaken by the Professional Regulation Commission and the Professional

Regulatory Boards which shall:

1) conduct the formulation and review of Continuing Professional Education Program in
each of the regulated professions;

2) formulate, adopt and promulgate guidelines and procedures for the implementation of
the CPE Program;

3) organize CPE Councils for each of the regulated professions and promulgate guidelines
for their operation;

4) Coordinate with concermed goverment agencies and private organizations in the
implementation of CPE Program and other measures provided under this Act.

SECTION 7. CPE Council- There is hereby created a CPE Council in every regulated
profession which shall be under the supervision of the Professional Regulatory Board and
shall be composed of a Chairman and two (2) Members.


The Chairman of each of the CPE Council shall be the Chairman of the Professional
Regulatory Board, the first member is the President or Officer of the Accredited
Professional Organization and the second member is the President or Officer of the
national organization of deans or department chairman of schools, colleges or universities
offering the course of the regulated profession, and in case of the absence of this
organization, the second member shall be appointed by PRC chosen from the
recommendees of the PRB of the professionals from the academic sector.

The term of office of the Chairman and Members of the CPE Council shall be co-
terminus with their respective term of office in the PRB, APO and the national organization of
deans and department chairman of schools, colleges or universities.

The CPE Council shall also determine its budget, including travel expenses,
allowances and per diems when attending official CPE council meetings or attending to
matters assigned to them

SECTION 7. Functions of the CPE Council. The CPE Council for each profession shall
have the following functions:
a) Evaluate and approve applications for accreditation of CPE providers;
b) Evaluate and approve application for accreditation of CPE programs, activities or
sources as to their relevance to the profession and determine the number of
CPE credit units (CUs) to be earned on the basis of the contents of the program,
activity or source submitted by the CPE providers;
c) Evaluate and approve applications from exemption from CPE requirements;
d) Monitor the implementation of the CPE providers on their programs, activities or
‘sources;
) Assess periodically and upgrade criteria for accreditation of CPE providers and
CPE programs, activities or sources; and
f) Perform such other functions that may be incidental to the implementation of CPE
programs or policies

SECTION 9. Secretariat- A CPE Council Secretariat is hereby created under the
Professional Regulation Commission which shall be headed by an Executive Director to be
appointed by the Chairman of PRC. The CPE Council secretariat shall provide technical,
administrative and operational support to the CPE Councils and Professional Regulatory
Boards in the implementation of CPE programs

SECTION 10. CPE as Mandatory Requirements in the Renewal of Professional License
and Accreditation System for the Practice of Professions. The confinuing professional
education for every professional registered under the PRC is hereby made as mandatory
requirements in the renewal of professional license and in the accreditation system on the
practice of profession

The PRG and PRBs shall formulate and promulgate guidelines to implement the



program and allocate the necessary funding requirement for the attendance of their
professionals in CPE programs.

SECTION 14. Funding. 1) The amount necessary to carry out this Act shall be incorporated
under the appropriation of the Professional Regulation Commission in the General
Appropriations Act; 2) The annual funding requirement for the implementation of this Act
shall be sourced from the annual income of the PRC.

SECTION 15. Implementing Rules and Regulations. The PRC together with the
Professional Regulatory Boards within six months upon the enactment of this Act and in
consultation with the Accredited Professional Organizations shall promulgate the necessary
rules and regulations to implement this Act

SECTION 16, Separability Clause. The provisions of this Act are hereby declared
separable, and if any clause, sentence, provision or section hereof, should be declared
invalid, such invalidity shall not affect the other provisions of this Act which can be given
force and effect without the provisions which have been declared invalid.

SECTION 17. Repealing Clause. All laws, decrees, executive orders and other
administrative issuances and parts thereof which are inconsistent with the provisions of this
Act are hereby repealed or modified accordingly.

SECTION 18. Effectivity. This Act shall take effect fifteen (15) days after its publication in
two (2) newspapers of general circulation.

Approved,


SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

RECEIV

HOUSE OF REPRESENTATIVES N es

_ = Ve
Introduced by Representative Rufus B, Rodriguez and Xe
Representative Maximo B. Rodriguez, Jr. _ Sd

House Bill No. 4230

EXPLANATORY NOTE

Article X, Section 6 of the 1987 Constitution provides that "local government units shall have a
just share, as determined by law, in the national taxes which shall be automatically released to
them."

Section 284, Title Ill, Chapter | of the Local Government Code of 1991 declares that the local
government units (LGUs) shall have a share in the "national internal revenue taxes."

This Bill, which | refer to as the "Bigger Pie, Bigger Slice" Bill, expands the source of funds for
LGUs by changing "national internal revenue taxes" to "national taxes", which is still, if not more,
compliant with the above constitutional mandate.

‘As front liners in the delivery of government services, LGUs have been given numerous
mandates but, most of the time, the resources to fulfill these mandates have been overlooked
and have not been coming to the LGUs.

This Bill seeks to give LGUs more resources to make them fulfill their role as front liners to their
respective constituents and it can achieve this by including in the "pie" all the collections of the
Bureau of Customs. Not only does this Bill seek to increase the source of funds given to LGUs
under the above-quoted constitutional mandate, but it also increases the share of the LGUs in
this bigger pie, from the present 40% to the proposed 50% share.

Aside from giving more resources to LGUs, another collateral result of this Bill is that it converts
the fight against smuggling into a national and grassroots concern, because the LGUs will now
be more sensitive on matters concerning smuggling operations for the simple reason that if the
fight against smuggling succeeds, the BOC's collections will increase and which, in turn, will
also increase the LGUs' share in the national taxes.

| foresee faster development and progress in the countryside with the enactment of this Bill. AS
barangays are also beneficiaries of this bill

in view of the foregoing, immediately approval of this Billis eamestly requested.

RUFUS B. RODRIGUEZ

i oy
means ecfrs



‘SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

14230

House Bill No.

AN ACT
PROVIDING FOR THE SHARE IN THE NATIONAL TAXES OF LOCAL GOVERNMENT
UNITS, AMENDING FOR THIS PURPOSE REPUBLIC ACT NO. 7160, OTHERWISE KNOWN
AS THE LOCAL GOVERNMENT CODE OF 1991

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

SECTION 1. Beginning the fiscal year following the effectivity of this Act, local government units
shall have a fifty percent (50%) share in the national taxes ("SNT") based on the collection of
the third fiscal year preceding the current fiscal year; Provided, that in the event that the national
government incurs an unmanageable public sector deficit, the President of the Philippines is
hereby authorized, upon the recommendation of Secretary of Finance, Secretary of Interior and
Local Government, and Secretary of Budget and Management, and subject to consultation with
the presiding officers of both Houses of Congress and the presidents of the various leagues of
the local goverment units, to make the necessary adjustments in the share in the national
taxes of local government units but in no case shall the share be less than forty percent (40%)
of the collection of national taxes of the third fiscal year preceding the current fiscal year.

SECTION 2. As used in this Act:

(1) ‘Local Government Units" shall refer to provinces, cities, municipalities, and
barangays;
(2) "National Taxes" shall refer to and include the national internal revenue taxes

collected by the Bureau of Internal Revenue, and the tariffs, duties, fees, and
charges, as well as the national internal revenue taxes, if any, collected by the
Bureau of Customs;

(3) "National Internal Revenue Taxes” shall include the value-added tax

SECTION 3. The share in the national taxes created under this Act of each local government
unit shall be determined following the formula provided under Section 285 of Republic Act No.
7160.

SECTION 4, Each local government unit shall appropriate in its annual budget no less than
twenty percent (20%) of its share in the national taxes for development projects. Copies of the
development plans of local government units shall be fumished the Department of Interior and
Local Government.

SECTION 5. The Secretary of Finance, in consultation with the Secretary of Budget and
Management, shall promulgate the necessary rules and regulations for a simplified


disbursement scheme designed for the speedy and effective enforcement of the provisions of
this Act.

SECTION 6, Section 284 under Chapter |, Title |Il of Republic Act No. 7160, and all laws,
presidential decrees, executive orders, letters of instruction, rules and regulations which are
inconsistent with any of the provisions of this Act are hereby repealed or modified accordingly.

SECTION 7. If, for any reason or reasons, any part or provision of this Act shall be held to be
unconstitutional or invalid, other parts or provisions hereof which are not affected thereby shall
continue to be in full force and effect.

SECTION 8. This Act shall take effect fifteen (15) days after its complete publication in the
Official Gazette or in any newspaper of general circulation.

Approved,