Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

FIFTEENTH CONGRESS
First Regular Session

House siltno, 2514

Introduced by AKBAYAN Representatives Walden F. Bello and Kaka J. Bag-ao

EXPLANATORY NOTE

The rights of workers to self-organization and to engage in peaceful concerted action are two of
the most fundamental principles that underlie the Philippine legal framework governing labor
relations. The importance given to these two concepts springs from the recognition that the only
way to ensure that workers truly enjoy their human rights to just and favorable conditions of work
and to fair and adequate remuneration, is to allow them to assert these rights with the strength of a
united and collective voice.

These rights are enshrined in no less than the Philippine Constitution, the highest law in the land,
where it is declared in Article Xill, Section 3 that "[the State] shall guarantee the rights of all workers to
self-organizations, and peaceful concerted activities, including the right to strike in accordance with
law.”

In this, our Constitution mirrors and applies to the Philippine context Article 23 of the Universal
Declaration of Human Rights, which asserts that “everyone has the right to form and to join trade
unions for the protection of his interests."

These mandates contained in the Constitution and found under international law are given
specific application in the provisions of Presidential Decree No. 442, as amended, otherwise known
as the Labor Code of the Philippines. The Labor Code lays down a system of rules by which the
rights to self-organization and to peaceful concerted activities can be validly exercised as well
as effectively protected,

The passage of years and the actual experience of workers and trade unions in collectively asserting
their interests have, however, revealed certain difficulties and inadequacies in the prevailing
framework of the Labor Code. Oftentimes, these shortcomings in the statute have hindered the
complete fulfillment of the fundamental rights enshrined in the Constitution, recognized under
international human rights law, and which form the firm and essential basis for our system of labor
relations,

It is time that the letter of the law be modified to more adequately reflect the spirit of the rights it
has been crafted to implement.

To this end, the following enactment is proposed, amending in part Presidential Decree No. 442
with the aim of strengthening the implementation and observance of these fundamental rights.

Ch

WALDEN F. BELL AKA. BAG-1


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Congress

2514

HOUSE BILL NO.

Introduced by AKBAYAN Representatives Walden F. Bello and Kaka J. Bag-ao

AN ACT
STRENGTHENING RIGHTS RELATING TO TRADE UNION ACTIVITIES, AMENDING
FOR THE PURPOSE ARTICLES 263 AND 264 OF PRESIDENTIAL DECREE NO. 442,
AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Article 263 of Presidential Decree No. 422, as amended, otherwise known as
the Labor Code of the Philippines is hereby amended to read as follows:

"ARTICLE 263. Strikes, picketing and lockouts — (a) It is the policy of the State to
encourage free trade unionism and free collective bargaining.

(b) Workers shall have the right to engage in concerted activities INCLUDING
THOSE for purposes of collective bargaining or for their mutual benefit and
protection. The right of legitimate labor organizations to strike and picket, and of
employers to lockout, (consistent with the national interest,] shall continue to be
recognized and respected. However, no labor union may strike and no employer
may declare a lockout on grounds involving inter-union and intra-union disputes.

(c) In cases of bargaining deadlocks, the duly certified or recognized bargaining
agent may file a notice of strike or the employer may file a notice of lockout with
the Department. {at least thirty (30) days before the intended date thereof. In
cases of unfair labor practice, the period of notice shall be fifteen (15) days and
in the absence of a duly certified or recognized bargaining agent, the notice of
strike may be filed by any legitimate labor organization in behalf of its members.
However, in case of dismissal from employment of union officers duly elected in
accordance with the union constitution and by-laws, which may constitute union
busting where the existence of the union is threatened, the 15-day cooling-off
period shall not apply and the union may take action immediately.)

(d) DELETED
(e) DELETED
(d) [(f]] A decision to declare a strike must be approved by a majority of the total
union membership in the bargaining unit concerned, obtained by secret ballot in

meetings or referenda called for that purpose. A decision to declare a lockout
must be approved by A majority of the (board of directors] STOCK HOLDERS of


the corporation or MEMBERS OF THE association or of the partners in a
partnership, obtained by secret ballot in 2 meeting called for that purpose. The
decision shall be valid for the duration of the dispute based on substantially the
same grounds considered when the strike or lockout vote was taken. [The
Department may, at its own initiative or upon the request of any affected party,
supervise the conduct of the secret balloting. In every case, the union or the
‘employer shall furnish the Department the results of the voting at least seven
days before the intended strike or lockout, subject to the cooling-off period
herein provided.] :

{e) [(g)] When, in his opinion, there exists a labor dispute causing or likely to
cause a strike or lockout IN HOSPITAL, ELECTRICAL AND WATER SERVICES, [in an
industry indispensable to the national interest,] the Secretary of Labor and
Employment may assume jurisdiction over the dispute and decide it [or certify
the same to the Commission for compulsory arbitration}. Such assumption [or
certification] shall have the effect of automatically enjoining the intended or
impending strike or lockout as specified in the assumption [or certification
order). If one 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. MERE
REINSTATEMENT OF AN EMPLOYEE IN THE PAYROLL SHALL NOT BE
CONSIDERED AS SUFFICIENT COMPLIANCE WITH THIS REQUIREMENT. 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.

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 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, 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 labor dispute in such industries in order to settle or
terminate the same.]

(f) {(h)] [Before or at any stage of the compulsory arbitration process, the] THE
parties may opt to submit their dispute to voluntary arbitration.

(g) IN AN ACTUAL STRIKE OR LOCKOUT IN A SMALL OR MEDIUM ENTERPRISE
(SME), THE SECRETARY SHALL ASSUME JURISDICTION UPON THE REQUEST OF
EITHER PARTY INVOLVED IN THE DISPUTE. SUCH ASSUMPTION OF JURISDICTION
SHALL HAVE THE SAME EFFECTS AS THOSE PROVIDED UNDER PARAGRAPH (e) OF
THIS ARTICLE.

{h) ((i)] The Secretary of Labor and Employment [. the Commission or the
voluntary arbitrator or panel of voluntary arbitrators] shall decide or resolve the
dispute within thirty (30) calendar days from the date of the assumption of
jurisdiction [or the certification or submission of the dispute, as the case may
be]. The decision of (the President,] the Secretary of Labor and Employment |,
the Commission or the voluntary arbitrator or panel of voluntary arbitrators]
shall be final and executory ten (10) calendar days after receipt thereof by the
parties.

(i) WORKERS, THROUGH THEIR UNIONS, HAVE THE RIGHT TO REFUSE TO HANDLE
MERCHANDISE OF/FOR, OR PROVIDE/RECEIVE A SERVICE TO, ANY COMPANY
WITH AN ONGOING LABOR DISPUTE.

{j) ALL WORKERS SHALL BE ENTITLED TO RECEIVE THE FULL AMOUNT OF THEIR
REGULAR WAGES FROM THEIR EMPLOYER FOR THE ENTIRE DURATION OF ANY
STRIKE OR LOCKOUT."

SECTION 2. Article 264 of the Labor Code is hereby amended to read as follows:

"ARTICLE 264. Prohibited activities. — (a) No labor organization or employer
shall declare a strike or lockout without first having bargained collectively in
accordance with Title VII of this Book EXCEPT IN THE CASE OF STRIKES AGAINST
UNFAIR LABOR PRACTICE BY THE EMPLOYER. [or without first having filed the
notice required in the preceding Article or without the necessary strike or
lockout vote first having been obtained and reported to the Department.]

No strike or lockout shall be declared after assumption of jurisdiction by the
{President or the] Secretary [or after certification or submission of the dispute to
compulsory or voluntary arbitration or during the pendency of cases] involving
the same grounds for the strike or lockout.

Any worker whose employment has been terminated as a consequence of an
unlawful lockout shall be entitled to reinstatement with full backwages. ANY
EMPLOYER FOUND GUILTY OF ILLEGAL LOCKOUT SHALL INCUR CRIMINAL
LIABILITY AS PROVIDED FOR UNDER ARTICLE 272 OF THIS CODE. Any union
officer who knowingly participates in an illegal strike and any worker or union
officer who knowingly participates in the commission of illegal acts during a
strike may be declared to have lost his employment right: Provided, That mere
Participation of a worker in a {lawful} strike, WHETHER LAWFUL OR NOT, shall.
not constitute sufficient ground for termination of his employment{, even if a
replacement had been hired by the employer during such lawful strike]. IF AN
EMPLOYER, HIS OR HER AGENTS, REPRESENTATIVES, OR ANY OTHER PERSON


ACTING OR PURPORTING TO ACT ON HIS OR HER BEHALF, SHOULD COMMIT A
CRIME DURING A STRIKE OR ANY OTHER CONCERTED ACTION BY WORKERS,
THE SAME SHALL BE CONSIDERED AN AGGRAVATING CIRCUMSTANCE IN
DETERMINING THE APPROPRIATE PENALTY TO BE IMPOSED ON SUCH PERSON
FOR THE COMMISSION OF SAID CRIME.

(b) No person shall obstruct, impede or interfere with, ESPECIALLY by force,
violence, coercion, threats or intimidation, any peaceful CONCERTED ACTION
INCLUDING picketing by employees during any labor controversy or in the
exercise of the right of self-organization or collective bargaining, or shall aid or
abet such obstruction or interference. NO PICKET OR OTHER PEACEFUL
CONCERTED ACTION CONDUCTED BY WORKERS IN THE COURSE OF A LABOR
CONTROVERSY OR DISPUTE SHALL BE IMPEDED OR INTERFERED WITH IN ANY
MANNER ON THE GROUND THAT IT IS BEING HELD IN A COMMON BUSINESS
AREA SUCH AS A MALL OR AN INDUSTRIAL PARK. WORKERS SHALL HAVE AN
ABSOLUTE RIGHT TO CONDUCT PICKETS OR OTHER CONCERTED ACTIONS IN
AREAS PROXIMATE TO ANY BUILDING, OFFICE, OUTLET, BRANCH, OR SIMILAR
LOCATION USED BY THEIR EMPLOYER IN THE COURSE OF BUSINESS.

(c) No employer shall use or employ any REPLACEMENT WORKERS FOR
STRIKERS OR strike-breakers, nor shall any person ALLOW HIMSELF OR HERSELF
TO be employed as a strike-breaker OR REPLACEMENT FOR STRIKERS.
"REPLACEMENT WORKERS" AS USED IN THIS PROVISION SHALL INCLUDE ANY
PERSON LISTED IN THE ROSTER OF MANPOWER AGENCIES CONTRACTED BY THE
EMPLOYER TO PROVIDE WORKERS ON A TEMPORARY OR "ON CALL" BASIS BUT
WHO OTHERWISE DO NOT HAVE ANY REGULAR EMPLOYMENT WITH THE
EMPLOYER, AS WELL AS STUDENTS UNDERGOING PRACTICAL TRAINING WITH
THE EMPLOYER AS PART THEIR ACADEMIC REQUIREMENTS, IF THE SAME ARE
ASSIGNED ADDITIONAL DUTIES OR REQUIRED TO WORK ADDITIONAL HOURS
FOR THE PURPOSE OF FILLING IN FOR STRIKING WORKERS.

(d) No public official or employee, including officers and personnel of the [New]
Armed Forces of the Philippines or the (Integrated) PHILIPPINE National Police,
or armed persons, shall bring in, introduce or escort in any manner, any
individual who seeks to replace strikers in entering or leaving the premises of a
strike area, or work in place of the strikers. The police force shall keep out of the
picket lines unless actual violence or other criminal acts occur therein: (Provided,
That nothing herein shall be interpreted to prevent any public officers from
taking any measure necessary to maintain peace and order, protect life and
property, and/or enforce the law and legal order.) VIOLATION OF THIS
PROVISION SHALL GIVE RISE TO CRIMINAL LIABILITY UNDER ARTICLE 272 OF THIS
CODE, WITHOUT PREJUDICE TO ANY ADMINISTRATIVE LIABILITY THAT MAY BE
INCURRED UNDER OTHER LAWS OR REGULATIONS.

DELETE.

{e) DELETE

{e) AFTER THE UNION HAS SIGNIFIED ITS INTENTION TO RETURN TO WORK, NO
EMPLOYER SHALL REFUSE REINSTATEMENT OF STRIKERS RETURNING TO WORK.
IT SHALL ALSO BE ILLEGAL FOR AN EMPLOYER TO DISCRIMINATE AGAINST
RETURNING EMPLOYEES.”

SECTION 3. Implementing Rules and Regulations. — Within thirty (30) days from the
effectivity of this Act, the Secretary of Labor and Employment, in consultation with the trade


unions, labor organizations, and other stakeholders, shall issue the issue and publish the
necessary rules and regulations to implement the provisions of this Act.

SECTION 4. Separability Clause. — If any provision of this Act, or any part thereof, is
declared unconstitutional, the same shall not affect the validity and effectivity of the other
portions,

SECTION 5. Repealing Clause. — All laws, executive orders, presidential decrees,
proclamations, rules, regulations, issuances and enactments or parts thereof inconsistent with
this Act are hereby repealed or modified accordingly.

SECTION 6. Effectivity — This Act shall take effect after fifteen (15) days from its
complete publication either in the Official Gazette or in a newspaper of general circulation in

the Philippines, whichever comes earlier.

Adopted,