Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
HouseBniNo.5536
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Introduced by TUCP Party List
REP. RAYMOND DEMOCRIT0 C. MENDOZA
EXPLANATORY NOTE
The  Philippine  Constitution  guarantees  `the  rigbts  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".
The change of the operative phrase from "indispensable to national interest" to "providing essential
services"  is  proposed  to  strictly  limit  the  applicability  of the  authority  discussed  to  the  barest
minimum for two (2) obvious reasons: Firstly, the authority under discussion is very persuasive in
its  effects  and sweeping in  its  operation.  Hence,  the  injunction inherent in,  or issued under,  this
authorityshouldonlyenjointhestrikeorlockoutforthepurposeofaffordingtheSecretaryofLabor
and Employment an opportunity to resolve or settle the labor dispute within fifteen (15) days but not
to prohibit the  Constitutionally guaranteed right to  strike.  Secondly,  it is  in  consonance with  the
Constitutional  mandate  to  reduce  to  the  barest  minimum  State  interfereflce  in  the  form  of
compulsory arbitration by mandating the preferential use of voluntary modes  in settling disputes,
including conciliation.
The proposed amendment will bring Philippine law into compliance with ILO Convention Nos. 87
and 98 on Freedom of Association and the RIgbt 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).
h view of the foregoing, the passage of this bill is earnestly sought.


Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
HouseBiilNo.   5536
J#trodwced try TUCP Party-List
REP. RAYMOND DEMOCRIT0 C. MENDOZA
AN ACT
RATIONALIZING THE EXERCISE 0F THE ASSUMPTION 0F
JURISDICTION AUTHORITY 0F THE SECRETARY OF LABOR AND
EMPLOYMEINT OVER LABOR DISPUTES BY ADOPTING FOR THE
PURPOSE THH HSSHNTIAL SHRVICES CRITERIA, AMENDING FOR THE
PURPOSE ARTICLE 278(G) [263 (G)I OF PRESIDENTIAL DECREH NO. 442,
AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE
PHILIPPINES
Be it enacted by the  Senate and the  House Of Rapresentatives  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 278 (g), formerly 263 (g), of the Labor Code
is hereby amended to read as follows:
"ARTICLE 278. Strikes, picketing and lockouts. -)ck xxx
"(g) When  I, in his opinion,I  there exists a labor dispute causing or likely to
cause a strike or lockout in an industry [indispensable to the national interest]
PROVIDING   HSSENTIAL   SERVICES,   the   Secretary   of  Labor   and
Employment may assume jurisdiction over the dispute and decide [it or certify
the   same   to   the   Commission  for  compulsory  arbitratiofl]   THE   SAME
WITHIN  FIFTHEN  (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 0R 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  resuine  operations  and
readmit all workers under the sane terms and conditions prevailing before the
strike   or   lockout.    [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.I
PROVIDED, HOWEVER, THAT WIRERE  THERE IS NO DECISION
BY  THE  SECRETARY  OF  LABOR  AND  EMPLOYMENT  WITHIN
THE   SAID  FIFTEEN-DAY  PERIOD,  THE  PARTIES  MAY  THEN
EXERCISE THEIR RESPECTIVH RIGHTS UNDER THIS CODE.
ESSENTIAL  SERVICES  REFER  TO  FUNCTIONS  OR  SERVICES
RENDERED BY AN ESTABLISHMENT, WIIICH IF INTEREUPTHD,
WOULD ENDANGER THE LIFE, PERSONAL SAFETY OR HEALTH
OF WII0LE 0R PART 0F THE POPULATION. FOR THIS PURPOSE,
THE     SECRHTARY     0F     LABOR    ANT)     HMPLOYMENT,     BY
APPROPRIATE     REGULATIONS,     SHALL     DETHRMINE     THE
INDUSTRIES    ENGAGED    IN    ESSENTIAL    SERVICES    AFTER
CONSULTATIONS      WITH      THE      NATIONAL      TRIPARTITE
INDusTRIAL PEACE cOuNclL OrTlpc).
[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 work force 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  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  puapose,  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
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immediate  disciplinary  action,  including  dismissal  or  loss  of  employment
status  or payment by the  locking-out employer of back wages,  damages  an
other affirmative  relief,  even criminal prosecution  against  either or both  of
them.I
IN  LABOR  DISPUTES  AFFECTING  INDUSTRIES  ENGAGED  IN
ESSENTIAL SERVICES, IT SIIALL BE THE DUTY 0F THE UNION
AND     EMPLOYER     TO     PROVIDE     AND     MAINTAIN     TIIE
OPERATION    0R   DELIVERY   OF    SERVICES.    IN    CASH    OF
HOSPITALS, CLINICS OR MEDICAL INSTITUTIONS, THE UNION
AND    EMPLOYER    SHALL    PROVIDE    AND    MAINTAIN    AN
EFFECTIVE      AND      FUNCTIONAL     WORKFORCE,      WIIOSE
MOVEMENT  AND  SERVICES  SIIALL  BE  UNIIAMPERED  AND
UNRESTRICTED, AS ARE NECHSSARY T0 ENSURE THE PROPER
AND   ADEQUATE   PROTECTION   OF   THE   LIFE,   PERSONAL
SAFETY     AND     HEALTH     OF     THHIR     PATIENTS,     MOST
ESPHCIALLY  HRERGENCY  CASES,  FOR  THE  DURATION  0F
THH LABOR DISPUTE.
"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], IN CONSULTATION WITH THE
NTIPC, ISSUING A LIST OF INDUSTRIES THAT ARE ESSENTIAL
TO THE NATIONAL INTEREST, and from intervening at any time and
assuming  jurisdiction  over  any  such  labor  dispute  in  order  to  settle  or
terminate the same. "
Section  3.  Separability  Provisions.  --  If any  part  of this  Act  is  held  invalid  or
declared unconstitutional, the salne 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,
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