THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
*(I4 
8 UL -7 P 1 2 7  
I 
LE 
First Regular Session 
) 
i t  II!:FI?IEC 
i3V : _~______l(_.”l 
, 
S E N A T E  
S. B. No. 
0 
.. . 
, 
Introduced by Senator Pangilinan 
EXPLANATORY NOTE 
The 1987 PhiLippine Constitution recognizes the rights of the workers to 
self- organization ad to collective bargaining (Article XIII, Sec. 3), rights that 
are likewise recognized internationally as basic human rights. However, these 
rights to self- organization and collective bargaining become are rendered 
futile because of the litigious nature of labor organization in the Philippines. 
To ensure that these rights shall be enjoyed by the worker and 
respected by all, Article 239, 256 and 257 of P.D. 442 (the Labor Code of the 
Philippines are amended by this proposal for the purpose of: 
1. Doing way with the provision on cancellation of a union’s 
registration but instead penalizing erring union officers and/or 
members with dismissal on the basis of the same grounds 
enumerated in Art. 239 so as not to unduly penalize the ‘union 
and its entire membership. 
Article 239of the Labor Code provides hat the union registration may be 
cancelled if the union makes misrepresentations and false statements, fails to 
submit-documenfz, -engages -in the “cabo” system. Enters into a collective 
bargaining agreement which provides terms and conditions of employment 
below minimum standards established by laws, asks or accepts attorney’s fees 
or negotiation fees from employers, checks off special assessment or other fees 
without the written authorization of the members, fails to submit the l i s t  of 
individual member of the union, and fails to comply with the requirements 
under article 237 and 238. However, such rule imposes a form of union officers 
and members directly responsible for the infraction. Hence. There i s  a need to 
amend Article 239 of the labor Code in order no to unduly punish the union and 
the entire membership. 
2. Allowing both the rank-and -file collective bargaining unit and the 
separate collective bargaining unit of supervisors to join the: same, 
federation or national union. 
In order to strengthen the whole labor sector and prevent the tendency 
for splitting unions into micro formations, the establishment of industry- wide 
unions should be encouraged. Workers should not confine themselves to the 
problem of their own bargaining unit, but should also be aware of the problems 
of the entire enterprise and of the entire industry. 
In developed countries, unions are members of national federations or 
national unions representing hundreds of thousands, even millions of workers, 


In our country, there are a countless number of federations and national unions 
with very limited membership. Thus, 
the quality of advocacy and 
administration suffers a great deal. Also, fly-by-night unions keep on 
proliferating, and the Department of Labor and Employment (“DOLE”) has not 
enough personnel to monitor all of them. 
Thus, it is%ecessary to amend the law so as to expressly allow the rank- 
and -file union and the supervisory union in a particular firm to join the same 
federation. 
3. Mandating the Med- Arbiter to automatically order a certification 
election where a verified petition questioning the majority status 
of the incumbent bargaining agent is filed by a national union, a 
federation, or a local or chapter which has been issued a charter 
certificate by the national union or federation. 
4. Mandating the conduct of a certification election in an 
unorganized establishment where there i s  no certified bargaining 
agent upon the filling of petition for certification election 
I
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by a 
legitimate labor’ organization including a national union or 
federation, or local or chapter which has been issued a charter 
certificate by the national union or federation. 
A simple petition for certification election for the choice of the 
bargaining agent, which under the law i s  not even a litigation but a proceeding 
of a fact- finding and i s  summary in nature, takes years to resolve and can even 
be reach the Supreme Court. 
Prior to the decision of the Supreme Court in the case of Progressive 
Development Corporation of the Philippines v. Secretary of Labor and 
Employment (205 SCRA 802), the petition for certification election shall 
prosper if the same i s  filed by a national union or federation, or a local of. 
chapter which has been issued a charter certificate by the national union or 
federation. No further requirement i s  needed. 
The present requirement for a local or chapter to submit the 
constitution and by laws, books of accounts, and lists of officers- as enunciated 
in the Progressive case presents an onerous burden on the part of the union. 
While they can be easily complied with, the fact that the same are required 
makes it possible for the employer, and even for an undesirable competing 
union, to interpose trivial, even nonsensical, objections anchored on such 
requirements, against the granting of the petition. Thus, it becomes easy to 
delay a petition for certification election for go up to more than one year. 
Since the-national union or the federation has a legal personality by 
virtue of the certificate of registration issued by the DOLE, the petition for 
certification election should be granted if the same is filed by the national 
union or the federation, or if the same is filed by a chapter or local which has 
been issued a charter by the national union or a federation. 
5. Further hastening the certificate election proceedings. 
Article 245 i s  amended and a new provision i s  added to disallow a 
petition for cancellation as a ground for suspending the proceedings for 
certification election or for the same to become a bar for the filling of a 
petition for certification election. 
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All these proposed amendments to the labor Code represent a great 
step toward realizing the rights due our workers. 
In view of the foregoing, approval of this bill i s  earnestly requested. 


THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
‘04 JUL -7 
F1 2 6  
OF THE PHILIPPINES 
) 
First Regular Session 
1 
G 
iliii:FI\/ED Fi’/ 
:,. ___I__cc 
“Art. 
239. 
GROUNDS 
FOR 
[CANCELLATION 
OF 
Introduced by Senator PangiLinan 
UNION 


employees shall not be eligible for membership in [a labor organization] THE 
COLLECTIVE BARGAINING UNIT of the rank-and-file employees but may join, 
assist or form A separate [labor organization] COLLECTIVE BARGAINING UNIT 
of their own. THE RANK -AND- FILE UNION AND THE SUPERVISORY UNION 
MAY JOIN THE SAME FEDERATION OR NATIONAL UNION.” 
SECTION 4. Article 256 of the Labor Code i s  hereby further amended to 
read as follows: 
“Art 256. REPRESENTATION ISSUE IN ORGANIZED ESTABLISHMENTS. - In 
organized establishments, when a verified petition questioning the majority 
status of the incumbent bargaining agent i s  filed BY A NATIONAL UNION, A 
FEDERATION, OR A LOCAL OR CHAPTER WHICH HAVE BEEN ISSUED A 
CHARTER CERTIFICATE BY THE NATIONAL UNION OR FEDERATION before the 
Department of Labor and Employment within the sixty-day period before the 
expiration of a collective bargaining agreement, the Med Arbiter shall 
automatically order an election consent of at least twenty-five percent (25%) 
of all the emplgees in the bargaining unit to ascertain the will of the 
employees in the appropriate bargaining unit. To have a valid election, at 
least a majority of all eligible voters in the unit must have cast their votes. 
The labor union receiving the majority of the valid votes cast shall be certified 
as the exclusive bargaining agent of all the workers in the unit. When an 
election which provides for three or more choices results in no receiving a 
majority of the valid votes cast, a run- off election shall be conducted between 
the Labor unions receiving the two highest number of votes: Provided, That the 
total number of votes for all contending unions i s  at least fifty per cent (50%) 
of the number of votes cast. 
At the expiration of the freedom period, the employer shall continue to 
recognize the majority status of the incumbent bargaining agent where no 
petition for certification election i s  filed” 
I 
SECTION 5. Article 257 of the Labor Code, as amended, i s  hereby further 
amended to read as follows: 
“Art. 257. PE7ITION IN UNORGANIZED ESTABLISHMEN7S. - In any 
establishment where there is no certified bargaining agent, a certification 
election shall automatically be conducted by the Med - Arbiter upon the filling 
of a petition by a legitimate labor organization[.], INCLUDING A NATIONAL 
UNION, A FEDERATION OR A LOCAL OR CHAPTER WHICH HAS BEEN ISSUED A 
CHARTER CERTIFICATE BY THE NATIONAL UNION OR FEDERATION.” 
SECTION 6. Repealing Clause. -P.D. 442, as amended, otherwise known 
as the Labor Code of the Philippines, and all other acts, laws, rules, 
presidential issuance, rules and regulations are repealed, modified, or 
amended accordingly. 
SECTION 7. Separability Clause. - If any part, section, or provision of 
this Act shall be held invalid or unconstitutional, the other provisions shall not 
be affected thereby. 


SECTION 8. Effectivity. - This Act shall take effect fifteen (15) days 
upon publication in at least two (2) newspapers of national circulation. 
Approved,