Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

1564

House Bill No.

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 with 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
is 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.

REP RAYMOND DEMOCRITO C. MENDOZA
TUCP Party-List


Repubiic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

1564

House Bill No.

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

AN ACT
LIMITING THE POWER TO ASSUME JURISDICTION
OVER LABOR DISPUTES INVOLVING ESSENTIAL SERVICES
BY 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 industry [indispensable to the national
interest] PERFORMING ESSENTIAL SERVICES, the [Secretary of Labor
and Employment] PRESIDENT OF THE PHILIPPINES may assume
Jurisdiction over the disput2 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] ORDER shall 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 LOCKOUT has
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]
PRESIDENT 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 tockouts 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 |e 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 his opinion, are
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,