Republic of the Philippin
HOUSE OF REPRESENTATIVES
Quezon City

le receive
Sw 24

EIGHTEENTH CONGRESS
First Regular Session

2632

House Bill No.

Introduced by TUCP Party-List Representative
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).

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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


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

2632

House Bill No.

Introduced by TUCP Party-List Representative
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”.

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 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] 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
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
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,