FIFTEENTH 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. _ 3321

EXPLANATORY NOTE

This bill seeks to amend certain provisions of the Labor Code of the
Philippines and make it more consistent with jurisprudence and other
legislations. Also, the 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 fulfilment 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. It
is 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 a

RUFUS B. R UEZ

MAXIMO B. Mf cuce JR.


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES —)
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

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

2
House Bill No__ 3324

AN ACT
PROVIDING FOR OMNIBUS AMENDMENTS TO PRESIDENTIAL DECREE
NO. 442, OTHERWISE KNOWN AS THE LABOR CODE OF THE
PHILIPPINES

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

SECTION 1. Article 217 of PD 442, otherwise known as the Labor Code of the
Philippines, as amended, 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. 2. Article 223 of PD 442, otherwise known as the Labor Code of the
Philippines, as amended, is hereby further amended to read 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. NO 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)_ If made 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 appellant 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.

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. 3. Article 224 of PD 442, otherwise known as the Labor Code of the
Philippines, as amended, 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 Vill OF THE
CONSTITUTION.

[()] (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. 4, Article 234-A of PD 442, otherwise known as the Labor Code of the
Philippines, as amended, 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. 5. Article 248 (g) of PD 442, otherwise known as the Labor Code of the
Philippines, as amended, 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:

x «x x

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. 6. Article 250 of PD 442, otherwise known as the Labor Code of the
Philippines, as amended, 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 EMPLOYERIS,
SHOULD = MULTI-EMPLOYER) = AND/IOR = 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:

1) 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:

1) 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:

41) 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
FEDERATIONINATIONAL 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. 7. Article 253-A of PD 442, otherwise known as the Labor Code of the
Philippines, as amended, is hereby deleted and replaced with the following
provisions:

ARTICLE 253-A. 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. 8. Article 260 of PD 442, otherwise known as the Labor Code of the
Philippines, as amended, 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. 9. Article 261 of PD 442, otherwise known as the Labor Code of the
Philippines, as amended, 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. 10. Article 262 of PD 442, otherwise known as the Labor Code of the
Philippines, as amended, 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. 11. Article 262-A of PD 442, otherwise known as the Labor Code of the
Philippines, as amended, 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.

All 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 adjourned 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 (10) 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. 12. Article 262-B of PD 442, otherwise known as the Labor Code of the
Philippines, as amended, is hereby further amended to read as follows:


Article 262-B. Cost of Voluntary Arbitration and Voluntary
Atbitrator’s 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;

(A) Capacity to pay of the parties; and

(€) Fees provided for in the Revised Rules of Court

SEC. 13. Article 277, paragraph (f) of PD 442, otherwise known as the Labor

Code of the Philippines, as amended, is hereby renumbered as Article 262-C,
to read as:

ARTICLE 262-C. THE SPECIAL VOLUNTARY ARBITRATION
FUND. [(] 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. 14. 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 IS FINAL AND EXECUTORY.

SEC. 15. 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. 16. Article 263 of PD 442, otherwise known as the Labor Code of the
Philippines, as amended, 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

(0) 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 a lockout on grounds involving inter-union
and intra-union disputes.

(0) 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 15-day cooling-
off period shall not apply and the union may take action
immediately”

SEC. 17. Subparagraphs (d) and (e) of Article 263 of PD 442, as amended,
otherwise known as the Labor Code of the Philippines are hereby deleted.

SEC. 18. The succeeding subparagraphs of Article 263 of PD 442, as
amended, otherwise known as the Labor Code of the Philippines are hereby
amended to read as follows:


[(1 (D) A decision to declare a strike must be approved by a
majority of the total union membership in the bargaining unit
concerned, obtained by secret ballot in meetings or referenda
called for that purpose. A decision to declare a lockout must be
approved by A majority of the [board of directors] 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 [or 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 [or 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 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 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 parties. NO MOTION
FOR RECONSIDERATION OF THE DECISION SHALL BE
ENTERTAINED.

(Il) 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. 19. Article 264 of PD 442, otherwise known as the Labor Code of the
Philippines, as amended, 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 VII 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 after 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. 20. Subparagraph (e) of Article 264 of PD 442, otherwise known as the
Labor Code of the Philippines, as amended, is hereby deleted and 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. 21. The Secretary of Labor and Employment shall promulgate the
necessary rules and regulations to implement the provisions of this Act

SEC. 22. 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. 23. 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. 24. Effectivity Clause. - This Act shall take effect fifteen (15) days after
its publication in at least two (2) newspapers of general circulation.

Approved.