Republic ofthe Philippines
HOUSE OF REPRESENTATIVES,
‘Quezon City

“Thirteenth Congress
Fist Reguar Session

House BilNo 1266

Introduced by Representative Imee R. Marcos,

EXPLANATORY NOTE

‘Subsequent to the proposal ofthe Filipino Chinese Chamber of Commerce and
Industry (FECCI) that they shall generate more than three milion jobs i 2005 ta ten
year moratorium on strke is executed, employers and the business sector have been
Vociferously lobbying that a sinke moratorium should be initated. — The Phiippine
Chamber of Commerce, Inc. (PCC) headed by Sergio Ortiz Luis and the Employers
Confederation of the Philippines (ECOP) headed by Donald Dee both urged that there
should be a no stike-no lockout clause ar provision on economic issues in collective
bargaining agreements to induce potential investors to operate In the Philippines and
promote the country as haven for investors. It's contended that a strike moratorium wi
Boost the employers’ confidence to expand the businesses and wil tract more
investors

[Another remarkable occurrence which we should nat fal to address isthe rise of
the country’s unemployment rate which has reached an overwhelming rate of 11.2%,
{tom 10.6% last January due to global uncertaintes spawned by the Midole East cri.
‘The number of jobless Fiipinos last year swelled to 3.8 millon or an increase of 221,000
ftom the total figure of 316 milion in 2001. There is an urgent need to address this
unemployment problem which has reached a cilcal level. Reforms shoud be
Undertaken fo assure investors of business and investment stability to encourage them
to expand its operations, employ more Flipines, and consequently, to reduce
Lunempioyment preblems. There must bo an intensified eff to oreo more jobs and at
the same te, preserve existing jobs and prevent mass layots.

“The rol of the labor sector in economic development and nation buiking cannot
be overemphasized. The State recognizes labor as the primary social workforce and
Lndertakes to protect the rights of workers and promote their general welfares. Ths
‘author completely concurs that the paramount interest of the labor sector should be
Sustained a all ies. The workers should be guaranteed ther Me to selt-organtzaton,
‘collective bargaining and negotiations, as well es peaceful concerted activites, Including
the right to strke undor the law. The right to peaceful concerted activities and to strke
assures compliance of the employers to their oblgations under the CBA. It isa
‘constitutional guarantee that ies to pul laborers and workers on equal foating with
employers. As a general rule, a compromise tothe ight to strike is unconstitutional and
legal, and should not be tolerated.



However, laborers and workers, due tothe need fo keep or find employment, are
usualy compelled to agree to extremely unfavorable conditions, What has aciualy been
‘curing in practice and already sanctioned by jurisprudence’ is thatthe right ostrke i
‘ot absolute and may be stipulated inthe colective bargaining agreement of employees
‘and labor unions. In this regard, this author therefore seeks to regularize such
‘currence and provide conditions under which the workers and laborers may agree to &
“ao strike” clause. This author intends to stop labor unions, and laborers and workers,
‘rom agreeing to extremely unfavorable condtions just to keep ther jobs. It should be
‘arined though that such “no strike" clause would be inapplicable to provent @ sirke
‘whichis grounded on unfair labor practice

In ew fh foreging, nme aproval fh bi i nwa
de ah

‘arcs
Representative
2 Disc, locos Norte

Panay Electric Co. vs. National Labor Relations Commission and Panay Elecrc Co,
Workers and Employees Association, G.R. No. 102672. Octaber 4, 1995,"(T)he right to
tke, however s not absolute. It has heretofore been held that "no etka, no lockout
provision inthe Collective Bargaining Agreement ("CBA’) is a valid stipulation atthough
{he clause may be invoked by an employer only when the strike fs economic in nature or
‘one which is conducted to force wage of ether concessions from the employer that are
‘ot mandated to be granted bythe law tel”


Repub ofthe Phipnines
HOUSE OF REPRESENTATIVES

‘Quezon City

Thirteenth Congress
Firat Regular Session

House Bil No,_1266

Introduced by Representative mee R. Marcos.

AN ACT
AMENDING SECTION 263 OF PRESIDENTIAL DECREE NO. 442, OTHERWISE
KNOWN AS THE LABOR CODE OF THE PHILIPPINES, AND FOR OTHER
PURPOSES THEREOF

Bo it enacted by the Senate and the House of Representatives of the Philppines in
Congress Assombed:
SECTION 1. Strikes, picketing, nd lackouts.~ Section 263 shallbe hereby amended
by appending paragraph (), to read as folows,

“Ast. 268. Stnkes,pickoting, and lockout. —(a) 1%

) A Collective Bargaining Agreement (CBA) may stipulate that no
labor union may strike and no employer may declare a lockout: Provided, That 1.)
the sald agroomont Is negotiated in the collective bargaining agreement executed

by the employer and the legitimate Tabor organization; 2) the "no strike-no
lockout” agreement is limited to matters which are economic in nature or one

(granted by the law itself; 3.) the "no strike-no lockout” agreement shall
for a restricted period of time which shall not be longer than the
Collective Bargaining Agreement under Art. 253-A of this Code; and 4.) the “no
strike clause” shall be operative only in times of national unemployment
‘emergency.

For this purpose, national unemployment emergency shall rofer to increase
cof unemployment rate which has been publicly recognized as having reached a
Crtical level and detrimental to national interest.

SECTION 2. Repeating Clouse. Any law, presidential decree or issuance, executive
‘order, rule or regulation contrary to, oF inconsistent with the provisions of this Act is
hereby repealed, modified, or amended accordingly.

SECTION 3. Eftectivty. This Act shall take effect fiteen (15) days folowing is
‘complete publeation in the Official Gazette or in at least two (2) newspapers of general
keviaton,

Approved,