Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

‘SIXTEENTH CONGRESS
First Regular Session

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

EXPLANATORY NOTE

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

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

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

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

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

epresentative,TUCP


Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

‘SIXTEENTH CONGRESS
FirstRegular Session

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

AN ACT

LIMITING THE POWER TO ASSUME JURISDICTION OVER LABOR DISPUTES
INVOLVING ESSENTIAL SERVICESBY THE PRESIDENT OF THE PHILIPPINES,
AMENDING FOR THIS PURPOSE ARTICLE 263 (G) OF PRESIDENTIAL DECREE NO.
442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES.

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

Congress assembled:

Section 1.Short Title.— This Act shall be known as the “Assumption of Jurisdiction Act

of 2010”.

Section 2.Essential Services. - Article 263 (g) of the Labor Code is hereby amended

to read as follows:

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

*(g) When, in his opinion,] there exists a labor dispute causing or likely to
cause a strike or lockout in an industryfindispensable to the national interest]
PERFORMING ESSENTIAL SERVICES,the [Secretary of Labor and
Employment]PRESIDENT OF THE PHILIPPINESmay assume jurisdiction over
the dispute and decide [it or certify the same to the Commission for
compulsory arbitration]THE SAME WITHIN FIFTEEN (15) DAYS AFTER SUCH
ASSUMPTION. [Such] THE assumption [or certification]ORDERshall have the
effect of automatically enjoining the intended or impending strike or lockout
[as] specified [in the assumption or certification order] THEREIN. If [one]A
STRIKE OR LOCKOUThas already taken place at the time of assumption [or
certification], all striking or locked out employees shall immediately return-to-
work and the employer shall immediately resume operations and readmit all
workers under the same terms and conditions prevailing before the strike or
lockout. PROVIDED, HOWEVER, THAT WHERE THERE IS NO DECISION BY THE
PRESIDENT WITHIN THE SAID FIFTEEN-DAY PERIOD, THE PARTIES MAY
THEN EXERCISE THEIR RESPECTIVE RIGHTS UNDER THIS CODE.

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

“In line with the national concern for and the highest respect accorded to the
right of patients to life and health, strikes and lockouts in hospitals, clinics
and similar medical institutions shall, to every extent possible, be avoided,
and all serious efforts, not only by labor and management but government as
well, be exhausted to substantially minimize, if not prevent, their adverse
effects on such life and health, through the exercise, however legitimate, by
labor of its right to strike and by management to lockout. In labor disputes
adversely affecting the continued operation of such hospitals, clinics or
medical institutions, it shall be the duty of the striking union or locking-out
employer to provide and maintain an effective skeletal workforce of medical
and other health personnel, whose movement and services shall be
unhampered and unrestricted, as are necessary to insure the proper and


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

“The foregoing notwithstanding, the President of the Philippines shall not be
precluded from [determining the industries that, in i hla Nopieson ard
indispensable to the national interest, and from] intervening at any time and
assuming jurisdiction over any such labor dispute INVOLVING ESSENTIAL
SERVICES PROVIDING POWER, TERTIARY-CARE HOSPITAL AND WATER, THE
INTERRUPTION OF SUCH SERVICES COULD ENDANGER THE LIFE, SAFETY OR
HEALTH OF THE GENERAL PUBLIC, in order to settle or terminate the
same. THE DECISION OF THE PRESIDENT SHALL BE FINAL AND EXECUTORY.”

Section 3.Separability Provisions.-- If any part of this Act is held invalid or declared
unconstitutional, the same shall not affect the validity and effectivity of the other

parts thereof.

Section 4.Repealing Clause. -- All laws, decrees, executive orders, rules and

regulations or parts thereof, which are inconsistent with this Act, are hereby

repealed, amended or modified accordingly.

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

in at least two newspapers of general circulation.

‘Approved,