Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

4446

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, xxx”. However, the Labor
Code restricts this provision by giving too many opportunities to anti-union
employers and their representatives to intervene and frustrate the process.
‘The ‘Employer as Bystander’ is more of the exception than the rule.

‘This proposed amendment, the ‘Employee Free Choice Act’, will addre:

a. Registration of local chapters
b. Majority sign-up

c. Strengthening enforcement
d. First contract arbitration

Removing the requirements for the registration of local chapters will uphold
the principle that the registration of unions is only ministerial on the part of
the Department of Labor and Employment (DOLE). Consistent with the State
Policy to promote and guarantee full respect for freedom of association and
collective bargaining, this proposal is seen as an efficient and expeditious
administrative mechanism to implement the said policy.

Majority sign-up will promote employee free choice and make it easier for
workers to join and or establish unions. The current union certification
Process fails to protect workers from the inherent coercive power that
management holds over workers. The unequal access to worker-voters tips the
balance. Anti-union managers are free to campaign against unionization
during working hours while pro-union workers are banned from talking about
unionization even at break times.

Penalties must be strong enough to prevent anti-union discrimination of
workers exercising their right to self-organization and collective bargaining,

1


Current remedies fail to address the chilling effect of firings. When a union
leader is fired for union activity, the impact of that firing extends not only to
the worker fired, but to other coworkers that would have received the anti-
union message from the employer. The injunctive relief provision levels the
playing field with management by giving employees equal access to such
measure. This, and the proposed fine and criminal liability of employer
charged with unfair labor practice, will strengthen enforcement.

First contract mediation and arbitration is necessary because management
can hinder employee free choice by refusing to bargain. Even when employees
surmount the many obstacles to forming a union, management frequently
denies them the benefits of collective bargaining by refusing to agree on a first
contract.

This bill will bring Philippine law into compliance with ILO Convention Nos.
87 and 98 on Freedom of Association and the Right to Collective Bargaining,

which the Philippines is obliged to observe as a member State of the
International Labor Organization (ILO).

-MOCRITO C. MENDOZA

TUCP Party-List


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

446
House Bill No.

Introduced by TUCP PARTY-LIST
Representative, RAYMOND DEMOCRITO C. MENDOZA

AN ACT
ESTABLISHING AN EFFICIENT SYSTEM TO STRENGTHEN
WORKERS’ RIGHT TO SELF-ORGANIZATION AND COLLECTIVE
BARGAINING, AMENDING FOR THE PURPOSE 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 “Employee Free
Choice Act of 2016”.

Section 2. Injunctive Relief. — Paragraph (f) in Article 218 of the Labor
Code is hereby inserted to read as follows:

“Article 218. Powers of the Commission. -- Xxx xxx
XXx xxx

“(F) NOTWITHSTANDING ANY PROVISION OF THIS ARTICLE, TO
ENJOIN OR RESTRAIN ANY ACTUAL OR TH!
OF ANY UNFAIR LABOR PRACTICE WHICH, STRAINED, MAY
CAUSE GRAVE OR IRREPARABLE DAMAGE TO ANY PARTY,
ASSOCIATION OR ORGANIZATIO! ROVIDED, THAT THE INJUNCTION
RESTORES THE STATUS QUO ANTE PENDING THE FULL REVIEW AND
RESOLUTION OF THE CASE BY THE COMMISSION.”

Section 3. Removing the Documentary Requirements for
Registration of Local Chapters. - Article 234-A of the Labor Code is
hereby amended to read as follows:


“ARTICLE. 234-A. Chartering and Creation of a Local Chapter. - A
duly registered federation or national union may directly create a local chapter
by issuing a charter certificate indicating the establishment of the local
chapter. The chapter shall acquire legal personality [only for purposes of filing
a petition for certification election] from the date it was issued a charter
certificate AND SHALL BE ENTITLED TO THE RIGHTS AND PRIVILEGES.
OF A LEGITIMATE LABOR ORGANIZATION UPON SUBMISSION OF I'S
CHARTER CERTIFICATE TO THE DEPARTMENT OF LABOR AND
EMPLOYMENT.”

Section 4. Remedy for Unfair Labor Practices. - A new provision is
hereby inserted into the Labor Code as Article 247-A to read as follows:

“ARTICLE 247-A. NOTWITHSTANDING THE PROVISION OF THE
IMMEDIATELY PRECEDING PARAGRAPH, ANY EMPLOYER, INCLUDING.
ANY PERSON ACTING IN THE INTEREST OF AN EMPLOYER, WHO
DISMISSES OR THREATENS TO DISMISS OR OTHERWISE
DISCRIMINATE AGAINST A UNION MEMBER OR A DULY ELECTED
UNION OFFICER COMMITS NOT ONLY AN UNFAIR LABOR PRACTICE
BUT ALSO A CRIMINAL OFFENSE WHICH MAY BE THE SUBJECT OF AN
IMMEDIATE CRIMINAL PROSECUTION.

“AN EMPLOYEE DISCRIMINATED AGAINST WHILE SEEKING
REPRESENTATION BY A LABOR ORGANIZATION, OR DURING THE
PERIOD AFTER A LABOR ORGANIZATION WAS RECOGNIZED AS A
REPRESENTATIVE UNTIL THE FIRST COLLECTIVE BARGAINING
AGREEMENT WAS ENTERED INTO BETWEEN THE EMPLOYER AND
THE REPRESENTATIVE, THE NLRC IN SUCH ORDER SHALL AWARD
THE EMPLOYEE BACK PAY AND, IN ADDITION, TWO (2) TIMES THAT
AMOUNT AS LIQUIDATED DAMAGES.

“ANY EMPLOYER WHO WILLFULLY OR REPEATEDLY COMMITS ANY
UNFAIR LABOR PRACTICE WHILE ITS EMPLOYEES ARE SEEKING
REPRESENTATION BY A LABOR ORGANIZATION OR DURING THE
PERIOD AFTER A LABOR ORGANIZATION HAS BEEN RECOGNIZED AS A
REPRESENTATIVE UNTIL THE FIRST COLLECTIVE BARGAINING
CONTRACT IS ENTERED INTO BETWEEN THE EMPLOYER AND THE
REPRESENTATIVE SHALL, IN ADDITION TO ANY MAKE-WHOLE
REMEDY ORDERED, BE SUBJECT TO A CIVIL PENALTY OF NOT TO.
EXCEED FIVE HUNDRED THOUSAND PESOS (P500,000.00) FOR EACH
VIOLATION, IN DETERMINING THE AMOUNT OF ANY PENALTY UNDER
THIS SECTION, THE COMMISSION SHALL CONSIDER THE GRAVITY OF
THE UNFAIR LABOR PRACTICE AND TI IMPACT OF THE UNFAIR
LABOR PRACTICE ON THE CHARGING PARTY, ON OTHER PERSONS.
SEEKING TO EXERCISE RIGHTS GUARANTEED BY THIS CODE, OR ON
THE PUBLIC INTEREST.

“CRIMINAL COMPLAINT IN VIOLATION OF THIS ARTICLE SHALL FALL
UNDER THE CONCURRENT JURISDICTION OF THE MUNICIPAL OR
REGIONAL TRIAL COURT.”


Section 5. Facilitating Initial Collective Bargaining Agreements. —
Article 250 (e) of the Labor Code is hereby amended to read as follows:

“ARTICLE 250. Procedure in collective bargaining. — Xxx xxx
Xxx Xxx

“(€) The Board shall exert all efforts to settle disputes amicably and encourage
the parties to submit their case to a voluntary arbitrator. IN COLLECTIVE
BARGAINING HELD FOR THE PURPOSE OF ESTABLISHING AN INITIAL
AGREEMENT, THE BOARD SHALL REFER THE DISPUTE TO AN
ARBITRATION BOARD ESTABLISHED IN ACCORDANCE WITH SUCH
REGULATIONS AS MAY BE PRESCRIBED BY THE BOARD. THE
ARBITRATION PANEL SHALL RENDER A DECISION WITHIN 15 DAYS
SETTLING THE DISPUTE AND SUCH DECISION SHALL BE BINDING
UPON THE PARTIES FOR A PERIOD OF THREE (3) YEARS, UNLESS
AMENDED DURING SUCH PERIOD BY WRITTEN CONSENT OF THE
PARTIES.”

Section 6. Streamlining Union Certification. - Article 257 of the Labor
Code is hereby amended to read as follows:

“ARTICLE 257. Petitions in Unorganized Establishments. - In any
establishment where there is no certified bargaining agent, THE MED-
ARBITER SHALL AUTOMATICALLY RULE ON A PETITION FOR
CERTIFICATION FILED BY ANY LEGITIMATE LABOR ORGANIZATION. IF
THE LABOR ORGANIZATION SHOWS THAT A MAJORITY OF THE
EMPLOYEES IN THE BARGAINING UNIT HAS SIGNED VALID
AUTHORIZATIONS DESIGNATING THE PETITIONER LABOR
ORGANIZATION AS THEIR BARGAINING REPRESENTATIVE, THE MED-
ARBITER SHALL CERTIFY THE LABOR ORGANIZATION AS THE
EXCLUSIVE BARGAINING AGENT. IF THE LABOR ORGANIZATION FAILS
TO SHOW VALID AUTHORIZATIONS FROM A MAJORITY OF THE
EMPLOYEES, a certification election shall automatically be conducted by the
Med-Arbiter upon the filing of a petition by any legitimate labor organization,
including a national union or federation which has already issued a charter
certificate to its local/chapter participating in the certification election or a
local/chapter which has been issued a charter certificate by the national union
or federation.

“In cases where the petition was filed by a national union or federation, it shall
not be required to disclose the names of the local chapter's officers and
members."

Section 7. Employer Petition. - Article 258 of the Labor Code is hereby
amended to read as follows.

“ARTICLE. 258. When an employer may file petition. - When
requested to bargain collectively, an employer may petition the Bureau for [an
election] A UNION CERTIFICATION. If there is no existing certified collective
bargaining agreement in the unit, the Bureau shall, after hearing, CERTIFY

5


THE LEGITIMATE LABOR ORGANIZATION OR order a certification election
IN ACCORDANCE WITH ARTICLE 257 OF THIS CODE.

“All certification cases shall be decided within twenty (20) working days
FROM FILING OF THE PETITION.

“The Bureau shall conduct a certification election within twenty (20) days in
accordance with the rules and regulations prescribed by the Secretary of
Labor.”

Section 8. 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 9. 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 10. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in at least two newspapers of general circulation.

Approved,