Historical Overview of Dispute Settlement[1]

7/31/2019 Historical Overview of Dispute Settlement[1]

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nsofar as possible, and when deemed necessary to better carry ot the pro!isions of this"ct, the $ort may classify or grop the laborers according to the kind and importance ofthe work and the amont or degree of skill, training, e=perience and knowledge re8iredand shall fi= for each class or grop a minimm wage or compensation. n like manner, itmay classify or grop the tenants or lessees according to the kind of work they perform,the terms of the contract with the landowners and the prodcti!ity of the lands or thema=imm BcanonC or rental to be paid to the landowners. "fter sch minimm wage orshare or ma=imm BcanonC or rental has been tentati!ely fi=ed by the $ort, the $ortshall order the pblication of sch tentati!e decision in three sccessi!e isses of twonewspapers of general circlation in the locality or localities affected, one pblished in

nglish and another in Spanish. "ll parties not agreeing to sch tentati!e decision may,within forty


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a certified copy of the decision or :dgment. &i!e days after receipt of said certifieddecision or :dgment by the $lerk of the $ort of ndstrial Relations it shall immediatelybecome conclsi!e, final and e=ectory.f e=ceptions to an award, order or decision of the $ort are finally sstained, :dgmentshall be entered setting aside the award, order or decision, in whole or in part, bt insch case the parties may agree pon a :dgment to be entered disposing of the sb:ectmatter of the contro!ersy, which shall ha!e the same force and effect as :dgmententered, an award, order or decision.S$T%# 56. Preference gi!en to labor cases. 9 The Spreme $ort shall hear casesarising ot of, and broght nder, the pro!isions of this "ct in preference to all other

cases, and decide them as soon as practicable.S$T%# 5D. Limit of effecti!eness of award. 9 "n award, order or decision of the $ortshall be !alid and effecti!e dring the time herein specified. n the absence of schspecification, any party or both parties to a contro!ersy may terminate the effecti!enessof an award, order or decision after three years ha!e elapsed from the date of saidaward, order or decision by gi!ing notice to that effect to the $ort7 Pro!ided, howe!er,That at any time dring the effecti!eness of an award, order or decision, the $ort may,on application of an interested party, and after de hearing, alter, modify in whole or inpart, or set aside any sch award, order or decision, or reopen any 8estion in!ol!edtherein.S$T%# 5E. nterpretation of award. 9 /hene!er a dobt shall arise as to the meaningor interpretation of an award, order or decision of the $ort of ndstrial Relations, anyinterested party may petition the $ort to determine sch meaning or interpretation andthe $ort, pon recei!ing sch petition, shall set a date for the hearing of the case and

shall dispose of the same as soon as practicable.$3"PTR 1eneral Pro!isionsS$T%# 5F. mplied condition in e!ery contract of employment. 9 n e!ery contract ofemployment or tenancy, whether !erbal or written, it is an implied condition that whenany dispte between the employer or landlord and the employee, tenant or laborer hasbeen sbmitted to the $ort of ndstrial Relations for settlement or arbitration, prsantto the pro!isions of this "ct, and pending award or decision by it, the employee, tenant orlaborer shall not strike or walk ot of his employment when so en:oined by the $ortafter hearing and when pblic interest so re8ires, and if he has already done so, that heshall forthwith retrn to it, pon order of the $ort, which shall be issed only afterhearing when pblic interest so re8ires or when the dispte cannot, in its opinion, bepromptly decided or settled2 and if the employees, tenants or laborers fail to retrn towork, the $ort may athori4e the employer or landlord to accept other employees,tenants or laborers. " condition shall frther be implied that while sch dispte is pendingin the $ort, the employer or landlord shall refrain from accepting other employees,tenants or laborers, nless with the e=press athority of the $ort, and shall permit thecontination in the ser!ice of his employees, tenants or laborers nder the last termsand conditions e=isting before the dispte arose7 Pro!ided, That within fifteen days afterthe declaration of the strike, employers will not be allowed to engage the ser!ices ofstrike breakers. " !iolation by the employer or landlord or by the employee, tenant orlaborer of sch an order or the implied contractal condition set forth in this section shallconstitte contempt of the $ort, and shall be pnishable as in all other cases ofcontempt of a $ort of &irst nstance.S$T%# >G. Rles of cort. 9 The $ort of ndstrial Relations shall adopt its rles ofprocedre and shall ha!e sch other powers as generally pertain to a cort of :stice7Pro!ided, howe!er, That in the hearing, in!estigation and determination of any 8estionor contro!ersy and in e=ercising any dties and powers nder this "ct, the $ort shall actaccording to :stice and e8ity and sbstantial merits of the case, withot regard to

technicalities or legal forms and shall not be bond by any technical rles of legale!idence bt may inform its mind in sch manner as it may deem :st and e8itable.S$T%# >5. -nlawfl for employer to discharge employee nder

certain conditions. 9 t shall be nlawfl for any employer to discharge or to threaten todischarge, or in any other manner discriminate against, any laborer or employeebecase sch person has testified or is abot to testify, or becase sch employerbelie!esthat he may testify in any in!estigation, proceeding or pblic hearing condcted by the$ort or any board of in8iry.S$T%# >>. -nlawfl agreements. 9 "ny agreement intended to a!oid the pro!isions ofthis "ct shall be !oid.$3"PTR 1'amages and Penalties

S$T%# >?. $i!il liability. 9 #onA. "ppropriation. 9 The sm of forty


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Secretary of Labor, who shall condct an in!estigation of the acti!ities of the applyinglabor organi4ation and if, on sch in!estigation, it shall appear that the applicant isentitled to registration, he shall isse a permit therefor pon payment of the registrationfee of fi!e pesos7 Pro!ided, howe!er, That any permit issed by the Secretary of labor toany legitimate labor organi4ation shall last for a period of two years only from the date ofisse, bt it may be renewed for like periods pon payment of a renewal fee of threepesos for each renewal permit.S$T%# @. !ery legitimate labor organi4ation dly registered and permitted to operatein accordance with the pro!isions of this "ct, shall keep a book and records containing alist of its members in alphabetical order and the mintes of its meetings, and shall sbmit

to the Secretary of Labor a report at least once a year, within thirty days after theanni!ersary of the date when its permission to operate was granted, on its fiscal andother acti!ities dring the preceding year. &ailre to comply with these re8irements shallbe sfficient case for the re!ocation of the permit issed to any defalting legitimatelabor organi4ation. The Secretary of Labor, or his dly athori4ed agent, shall ha!e powerto in8ire from time to time, into the acti!ities of any registered legitimate labororgani4ation, and to e=amine its books and other records to determine compliance ornoncompliance with the laws.S$T%# A. "ny person or persons, landlord or landlords, corporation or corporations ortheir agents, partnership orpartnerships or their agents, who intimidate or coerce any employee or laborer or tenantnder his or their employ, with the intent of pre!enting sch employee or laborer ortenant from :oining any registered legitimate labor organi4ation of his own choosing or,who dismiss or threaten to dismiss sch employee or laborer or tenant from his

employment for ha!ing :oined, or for being a member of, any registered legitimate labororgani4ation, shall be gilty of a felony and shall be pnished by imprisonment of note=ceeding one year or a fine not e=ceeding one thosand pesos, or both, at the discretionof the cort.S$T%# 6. This "ct shall take effect pon its appro!al.

. irt/ of Collective ar0ainin01. )A 2! t/e IA

# "$T T% PR%%T #'-STR"L P"$ "#' &%R %T3R P-RP%SS (RP"L' *+PRS'#T"L '$R #%. @@>)

S$T%# 5. 'eclaration of Policy. < t is the policy this "ct7

(a) To eliminate the cases of indstrial nrest by encoraging and protecting thee=ercise by employees of their right to self


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(l) IStrikeI means any temporary stoppage of work by the concerted action ofemployees as a reslt of an indstrial dispte.

(m) ILockotI means the temporary refsal of any employer to frnish work as areslt of an indstrial dispte.

Section ?. mployeesJ Right to Self


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(d) The $ort shall decide all incidental motions raised in any nfair labor practicecases within fifteen days from sbmission of the same. "ll other matters relati!e to schdisptes inclding the main case shall be decided within thirty days after the sbmissionof the case. This pro!ision shall be considered as mandatory in character.

(e) The $ort or any :dge thereof shall ha!e all the inherent power of a $ort ofstice pro!ided in Rle %ne hndred and twenty


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(?) That as to each item of relief granted greater in:ry will be inflicted poncomplainant by the denial of relief that will be inflicted pon defendants by the grantingof relief2

(@) That complaint has no ade8ate remedy at law2 and

(A) That the pblic officers charged with the dty to protect complainantJs propertyare nable or nwilling to frnish ade8ate protection.

Sch hearing shall be held after de and personal notice thereof has been gi!en, in schmanner as the $ort shall direct, to all known persons against whom relief is soght, andalso to the chief of those pblic officials of the pro!ince or city within which the nlawflacts ha!e been threatened or committed charged with the dty to protect complainantJsproperty7 Pro!ided, howe!er, That if a complainant shall also allege that, nless atemporary restraining order shall be issed withot notice, a sbstantial and irreparablein:ry to complainantJs property will be na!oidable, sch a temporary restraining ordermay be issed pon testimony nder oath, sfficient, if sstained, to :stify the cort inissing a temporary in:nction pon hearing after notice. Sch a temporary restrainingorder shall be effecti!e for no longer than fifty days and shall become !oid at thee=piration of said fi!e days. #o temporary restraining order or temporary in:nction shallbe issed e=cept on condition that complainant shall first file an ndertaking withade8ate secrity in an amont to be fi=ed by the $ort sfficient to recompense thoseen:oined for any loss, e=pense, or damage cased by the impro!ident or erroneos

issance of sch order or in:nction, inclding all reasonable costs, (together with areasonable attorneyJs fee) and e=pense of defense against the order or against thegranting of any in:ncti!e relief soght in the same proceeding and sbse8ently deniedby the $ort.

The ndertaking herein mentioned shall be nderstood to signify an agreement enteredinto by the complainant and the srety pon which a decree may be rendered in thesame sit or proceeding against said complainant and srety, pon a hearing to assessdamages of which hearing complainant and srety shall ha!e reasonable notice, the saidcomplainant and srety sbmitting themsel!es to the :risdiction of the cort for thatprpose. *t nothing herein contained shall depri!e any party ha!ing a claim or case ofaction nder or pon sch ndertaking from electing to prse his ordinary remedy bysit at law or in e8ity.

(e) #o restraining order or in:ncti!e relief shall be granted to any complainant whohas failed to comply with any obligation imposed by law which is in!ol!ed in the labordispte in 8estion, or who has failed to make e!ery reasonable effort to settle schdispte by negotiation or with the aid of any a!ailable go!ernmental machinery ofmediation or by !olntary arbitration.

(f) #o restraining order or temporary or permanent in:nction shall be granted in acase in!ol!ing or growing ot of a labor dispte, e=cept on the basis of findings of factmade and filed by the cort in the record of the case prior to the issance of schrestraining order or in:nction2 and e!ery restraining order or in:nction granted in a casein!ol!ing or growing ot of a labor dispte shall inclde only a prohibition of sch specificact or acts as may be e=pressly complained of in the bill of complaint or petition filed insch case and as shall be e=pressly inclded in said findings of fact made and filed by thecort as pro!ided herein7

(5) " case shall be held to in!ol!e or to grow ot of a labor dispte when the casein!ol!es persons who are engaged in the same indstry, t rade, craft, or occpation2 orha!e direct or indirect interests therein2 or who are employees of the same employer2 or

who are members of the same or an affiliated organi4ation of employers or employees2whether sch dispte is (i) between one or more employees or association of employersand one or more employees or association of employees2 (ii) between one or moreemployers or association of employers and one or more employees or association ofemployers2 or (iii) between one or more employees or association of employees and oneor more employees or association of employees2 or when the case in!ol!es anyconflicting or competing interests in Ilabor dispteI (as hereinbefore defined) of Ipersonsparticipating or interestedI therein (as hereinafter defined).

(>) " person or association shall be held to be a person participating or interested in

a labor dispte if relief is soght against him or it, and if he or it is engaged in the sameindstry, trade, craft, or occpation in which sch dispte occrs, or has a direct orindirect interest therein, or is a member, officer, or agent of any association composed inwhole or in part of employers engaged in sch indstry, trade, craft, or occpation.

Section 5G. Labor 'isptes in ndstries ndispensable to the #ational nterest. . =clsi!e $ollecti!e *argaining Representation of Labor %rgani4ations. A. Penalties. < "ny person who !iolates the pro!isions of section three ofthis "ct shall be pnished by a fine of not less that one hndred pesos nor more than onethosand pesos, or by imprisonment of not less than one month nor more than one year,or by both sch fine and imprisonment, in the discretion of the $ort.

"ny other !iolation of this "ct which is declared nlawfl shall be pnished by a fine of

not less than fifty pesos nor more than fi!e hndred pesos for each offense.

Section >6. "ppropriations. < The sm of two hndred thosand pesos is herebyappropriated for the fiscal year nineteen hndred and fifty. Reorgani4ation. The inistry of Labor and mployment, hereinafter referred to asinistry, is hereby reorgani4ed, strctrally and fnctionally in accordance with thepro!isions of this =ecti!e %rder.

Sec. ?. 'eclaration of Policy. t is the declared policy of the State to afford protection tolabor, promote fll employment, ensre e8al work opportnities regardless of se=, race,or creed, and reglate the relations between workers and employers. The State shallassre the rights of the workers to self


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(b) The ad!ancement of workersJ welfare by pro!iding for :st and hmane workingconditions and terms of employment2

(c) The maintenance of indstrial peace by promoting harmonios, e8itable, and stableemployment relations that assre e8al protection for the rights of all concerned parties.

Sec. A. Powers and &nctions. n prsit of its mandate, the inistry shall ha!e thefollowing powers and fnctions7

(a) &ormlate and recommend policies, plans and programs for manpower de!elopment,training, allocation, and tili4ation2

(b) Protect and promote the interest of e!ery citi4en desiring to work locally or o!erseasby secring for him the most e8itable terms and conditions of employment, and bypro!iding social and welfare ser!ices2

(c) Reglate the employment of aliens, inclding the establishment of a registrationand;or work permit system for sch aliens2

(d) &ormlate general gidelines concerning wage and income policy2

(e) Recommend necessary ad:stments in wage strctres with a !iew to de!eloping awage system that is consistent with national economic and social de!elopment plans2

(f) Pro!ide for safe, decent, hmane and impro!ed working conditions and en!ironmentfor all workers, particlarly women and yong workers2

(g) aintain harmonios, e8itable and stable labor relations system that is spporti!e ofthe national economic policies and programs2

(h) -phold the right of workers and employers to organi4e and to promote free collecti!ebargaining as the fondation of the labor relations system2

(i) Pro!ide and ensre the fair and e=peditios settlement and disposition of labor and

indstrial disptes throgh collecti!e bargaining, grie!ance machinery, conciliation,mediation, !olntary arbitration, complsory arbitration as may be pro!ided by law, andother modes that may be !olntarily agreed pon by the parties concerned.

Sec. 6. inister of Labor and mployment. The athority and responsibility for thee=ercise of the mandate of the inistry and for the discharge of its powers and fnctionsshall be !ested in the inister of Labor and mployment, hereinafter referred by thePresident, and who shall ha!e sper!ision and control o!er the inistry. &or schprposes, the inister shall ha!e the following powers and fnctions7

(a) "d!ise the President on the promlgation of e=ecti!e;administrati!e orders, otherreglati!e issances and legislati!e proposals on matters pertaining to labor andemployment2

(b) &ormlate policies, gidelines, rles and reglations and other issances necessary tocarry ot inistry policies, plans, programs and pro:ects2

(c) sse orders, directi!es, rles and reglations and other issances to carry ot laborand employment policies, plans, programs and pro:ects2

(d) Pro!ide o!erall direction, sper!ision, and control o!er all offices nder the inistry toensre effecti!e and efficient implementation of its policies, plans, programs andpro:ects2

(e) $oordinate with other go!ernment offices, labor, organi4ations, employersassociations, and any other grop to carry ot the mandate of the inistry2

(f) !alate the policy, plans, programs and pro:ect accomplishment of the inistry2

(g) Prepare reports for the President and for the pblic2

(h) 'elegate athority for the performance of any fnction to officers and employees ofthe inistry2

(i) =ercise sch other powers and fnctions as may be pro!ided by law or assigned bythe President.

Sec. D. %ffice of the inister. The %ffice of the inister shall consist of the inister and

his immediate staff.

Sec. E. 'epty inister. The inister shall be assisted by not more than for (@) 'eptyinisters who shall be appointed by the President pon the recommendation of theinister. The inister is hereby athori4ed to delineate and assign the respecti!efnctional areas of responsibility of the 'epty inisters, pro!ided, that schresponsibility shall be with respect to the mandate and ob:ecti!es of the inistry2 andpro!ided, frther, that no 'epty inister shall be assigned primarily administrati!eresponsibilities. /ithin his fnctional area of responsibility, a 'epty inister shall ha!ethe following fnctions7

(a) "d!ise and assist the inister in the formlation and implementation of the inistryJspolicies, plans, programs and pro:ects2

(b) %!ersee the operational acti!ities of the inistry2

(c) $oordinate the programs and pro:ects of the inistry for efficient and effecti!eadministration2

(d) Ser!e as depty for the inister2

(e) Perform, when so designated, the power and fnctions of the inister, dring thelatterJs absence or incapacity2

(f) Perform sch other fnctions as may be pro!ided by law or assigned by the inister topromote the efficiency and effecti!eness in the deli!ery of pblic ser!ices.


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Sec. F. "ssistant inisters. The inister shall likewise be assisted by not more than for(@) "ssistant inisters who shall be appointed by the President pon the recommendationof the inister. The inister is hereby athori4ed to delineate and assign the respecti!eareas of fnctional responsibility of the "ssistant inisters. /ithin his fnctional area ofresponsibility, an "ssistant inister shall assist the inister and 'epty inisters in theformlation, determination and implementation of laws, policies, plans, programs andpro:ects on labor and shall o!ersee the day


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Sec. >G. $enter for Labor Stdies. There is hereby created a $enter for Labor Stdies,hereinafter referred to as the $enter, which shall be nder the administrati!e sper!isionof the inister. The $enter shall absorb the research and pblication fnctions of thenstitte of Labor and anpower Stdies which is hereby abolished in accordance withSection >F (b). The $enter, to be headed by an =ecti!e 'irector, assisted by a 'epty=ecti!e 'irector, shall ha!e the following fnctions7

(a) -ndertake research and stdies in all areas of labor and manpower policy andadministration2

(b) Re!iew the rationale of e=isting legislation and reglations and analy4e the costsin!ol!ed in the implementation of sch legislation against the benefits e=pected to bederi!ed2

(c) Stdy and de!elop inno!ati!e and indigenos approaches towards the promotion ofharmonios and prodcti!e labor>. #ational $onciliation and ediation *oard. " #ational $onciliation and ediation*oard, herein referred to as the I*oardI, is hereby created and which shall absorb theconciliation, mediation and !olntary arbitration fnctions of the *rea of LaborRelations in accordance with Section >F (c) hereof. The *oard shall be composed of an"dministrator and two (>) 'epty "dministrators. t shall be an attached agency nderthe administrati!e sper!ision of the inister of Labor and mployment.

The "dministrator and the 'epty "dministrators shall be appointed by the Presidentpon recommendation of the inister of Labor and mployment. There shall be as many$onciliators


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(e) "dminister the !olntary arbitration program2 maintain;pdate a list of !olntaryarbitrations2 compile arbitration awards and decisions2

(f) Pro!ide conselling and pre!enti!e mediation assistance particlarly in theadministration of collecti!e agreements2

(g) onitor and e=ercise technical sper!ision o!er the *oard programs beingimplemented in the regional offices2 and

(h) Perform sch other fnctions as may be pro!ided by law or assigned by the inister.

Sec. >?. Transfer. The #ational Prodcti!ity $ommission is hereby transferred from the#ational conomic 'e!elopment "thority and attached to the inistry in accordancewith Section >F (c) hereof. The $ommission shall primarily deal with prodcti!itypromotion and enhancement, edcation and training, coordination;monitoring, fndingand the condct of special and policy stdies directly related to its acti!ities. t shall ha!ethe inister of Trade and ndstry as $hairman and the inister of Labor andmployment as 1ice@. Regional %ffices. The inistry is hereby athori4ed to establish, operate andmaintain sch ministryA. #ew Strctre and Pattern. -pon appro!al of this =ecti!e %rder, the officersand employees of the inistry shall in a hold o!er capacity, contine to perform theirrespecti!e dties and responsibilities and recei!e the corresponding salaries and benefitsnless in the meantime they are separated from go!ernment ser!ice prsant to=ecti!e %rder #o. 5D (5FE6) or "rticle of the &reedom $onstittion.

The new position strctre and staffing pattern of the inistry shall be appro!ed andprescribed by the inister for the inistry within one hndred twenty (5>G) days from theappro!al of this =ecti!e %rder and the athori4ed positions created therender shall befilled with reglar appointments by him or by the President as the case may be. Thoseincmbents whose positions are not inclded therein or who are not reappointed shall be

deemed separated from the ser!ice. Those separated from the ser!ice shall recei!e theretirement benefits to which they may be entitled nder e=isting laws, rles andreglations. %therwise, they shall be paid the e8i!alent of one months salary.

#o cort or administrati!e body shall isse any writ or preliminary in:nctions orrestraining order to en:oin the separation;replacement of any officer of employee affectednder this =ecti!e %rder.

Sec. >6. Prohibition "gainst Reorgani4ational $hange. #o change in the reorgani4ation

herein prescribed shall be !alid e=cept pon prior appro!al of the President for theprpose of promoting efficiency and effecti!eness in the deli!ery of pblic ser!ices.

Sec. >D. &nding. &nds needed to carry ot the pro!isions of this =ecti!e %rder shallbe taken from fnds a!ailable in the inistry.

Sec. >E. mplementing "thority of inister. The inister shall isse sch rles,reglations and other issances as may be necessary to ensre the effecti!eimplementation of the pro!isions of this =ecti!e %rder.

Sec. >F. Transitory Pro!isions. n the abolition;transfer of entity;fnctions as prescribedin the =ecti!e %rder, the following rles shall be pro!ided7

(a) "ny transfer of entities shall inclde the fnctions, appropriations, fnds, records,e8ipment, facilities, other properties, assets, and liabilities and of the transferred entityas well as the personnel thereof as may be necessary, who shall, in a hold o!er capacity,contine to perform their respecti!e dties and responsibilities and recei!e thecorresponding salaries and benefits nless in the meantime they are separated fromgo!ernment ser!ice prsant to =ecti!e %rder #o. 5D (5FE6) or "rticle of the&reedom $onstittion. Those personnel from the transferred entity whose positions arenot inclded in the new position strctre and staffing pattern appro!ed by the inisteror who are not reappointed shall be entitled to the benefits pro!ided in the secondparagraph of Section >A hereof.

(b) "ny transfer of fnctions which reslts in the abolition of the entity that has e=ercisedsch transferred fnctions shall inclde as may be necessary, to the proper discharge ofthe transferred fnctions, the appropriations, fnds, records, e8ipment, facilities, other

assets, and personnel of the entity from which sch fnctions ha!e been transferred. Theremaining appropriations and fnds shall re!ert to the eneral &nd and the remainingrecords, e8ipment, facilities and other assets shall be allocated to sch appropriate nitsas the inister shall determine or otherwise shall be disposed of, in accordance with the"diting $ode and other pertinent laws, rles and reglations. The liabilities, if any, of theabolished entity shall be treated likewise in accordance with the "diting $ode and otherpertinent laws, rles and reglations. ncmbents of the abolished entity shall, in a holdo!er capacity contine to perform their respecti!e dties and responsibilities and recei!ethe corresponding salaries and benefits nless in the meantime they are separated fromgo!ernment ser!ice prsant to =ecti!e %rder #o. 5D (5FE6) or "rticle of the&reedom $onstittion. "ny sch personnel whose position is not inclded in the newposition strctre and staffing pattern appro!ed by the inister or who is not reappointedshall be entitled to the benefits pro!ided in the second paragraph of Section >A hereof.

(c) "ny transfer of fnctions which does not reslt in the abolition of the entity that hase=ercised sch transferred fnctions shall inclde the appropriations, fnds, records,


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e8ipment, facilities, other assets as well as the personnel of the entity from which schfnctions ha!e been transferred that are necessary to the proper discharge of schtransferred fnctions. The liabilities, if any, which ha!e been incrred in connection withthe discharge of the transferred fnctions shall be allocated in accordance with the"diting $ode and the pertinent laws, rles and reglations. Sch personnel shall, in ahold o!er capacity, contine to perform their respecti!e dties and responsibilities andrecei!e the corresponding salaries and benefits nless in the meantime they areseparated from go!ernment ser!ice prsant to =ecti!e %rder #o. 5D (5FE6) or "rticle of the &reedom $onstittion. "ny sch personnel whose position is not inclded in thenew position strctre and staffing pattern appro!ed by the inister or who is not

reappointed shall be entitled to the benefits pro!ided in the second paragraph of Section>A hereof.

(d) n case of the abolition of an entity which does not reslt in the transfer of itsfnctions to another entity, the appropriations and fnds of the abolished entity shallre!ert to the eneral &nd, while the records, e8ipment, facilities and other assetsthereof shall be allocated to sch appropriate nits as the inister shall determine orotherwise shall be disposed of in accordance with the "diting $ode and other pertinentlaws, rles and reglations. The liabilities, if any, of the abolished entity shall be treatedin accordance with the "diting $ode and other pertinent laws, while the personnelthereof shall be entitled to the benefits pro!ided in the second paragraph of Section >Ahereof.

Sec. ?G. $hange of #omenclatres. n the e!ent of the adoption of a new $onstittionwhich pro!ides for a presidential form of go!ernment, the inistry shall be called'epartment of Labor and mployment and the titles of inister, 'epty inister, and"ssistant inister shall be changed to Secretary, -nder Secretary, and "ssistantSecretary, respecti!ely.

Sec. ?5. #otice or $onsent Re8irement. f any reorgani4ational change herein athori4edis of sch sbstance or materiality as to pre:dice third persons with rights recogni4ed bylaw or contract sch that notice to or consent of creditors is re8ired to be made orobtained prsant to any agreement entered into with any of sch creditors, sch noticeor consent re8irement shall be complied with prior to the implementation of schreorgani4ational change.

Sec. ?>. Separability $lase. "ny portion or pro!ision of this =ecti!e %rder that may

declared nconstittional shall not ha!e the effect of nllifying other portions orpro!isions hereof as long as sch remaining portions can still sbsist and be gi!en effectin their entirety.

Sec. ??. Repealing $lase. "ll laws, ordinances, rles, reglations, other issances orparts thereof, which are inconsistent with this =ecti!e %rder, are hereby repealed ormodified accordingly.

Sec. ?@. ffecti!ity. This =ecti!e %rder shall take effect immediately pon its appro!al.

"PPR%1' in the $ity of anila, Philippines, this ?5th day of anary, in the year of %rLord, nineteen hndred and eighty6 is hereby amended to read as follows7

ISec. D. %ffice of the Secretary. The %ffice of the Secretary shall consist of theSecretary and his immediate staff. n addition, there is hereby created in the%ffice of the Secretary a oint RP


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hereby abolished in accordance with Section >F(b) of this =ecti!e %rder. Thenstitte, to be headed by an =ecti!e 'irector, assisted by a 'epty =ecti!e'irector, shall ha!e the following fnctions7

(a) -ndertake research and stdies in all areas of labor and manpowerpolicy and administration.

(b) Re!iew the rationale of e=isting legislation and reglations andanaly4e the cost in!ol!ed in the implementation of sch legislation

against the benefits e=pected to be deri!ed2

(c) Stdy and de!elop inno!ati!e and indigenos approaches towardsthe promotion harmonios and prodcti!e labor> of =ecti!e %rder #o. 5>6 is hereby amended to read as follows7

ISec. >>. #ational $onciliation and ediation *oard. " #ational $onciliation and

ediation *oard, herein referred to as the I*oardI, is hereby created and whichshall absorb the conciliation mediation and !olntary arbitration fnctions of the*rea of Labor of Relations in accordance with Section >F (c) hereof. The *oardshall be composed of an "dministrator and two (>) 'epty "dministrators. tshall be an attached agency nder the administrati!e sper!ision of theSecretary of Labor and mployment.

The "dministrators and the 'epty "dministrators shall be appointed by thePresident pon recommendation of the Secretary of Labor and mployment.There shall be as many $onciliators@ of =ecti!e %rder #o. 5>6 is hereby amended to read as follows7

ISec. >@. Regional %ffices, 'istrict %ffices and Pro!incial =tention -nits. The'epartment is hereby athori4ed to establish, operate and maintain sch'epartment


18/27

in each of the administrati!e regions of the contry, insofar as necessary topromote economy and efficiency in the deli!ery of its ser!ices. ach Regional%ffice shall be headed by a Regional 'irector who shall ha!e sper!ision andcontrol thereof. The Regional 'irector, whene!er necessary, shall be assisted byan "ssistant Regional 'irector. " Regional %ffice shall ha!e, within its regionalareas, the following fnctions7

(a) mplement laws, policies, plans, programs, pro:ects, rles andreglations of the 'epartment2

(b) Pro!ide economical, efficient and effecti!e ser!ice to the people2

(c) $oordinate with regional offices of other departments and agencies2

(d) $oordinate with local go!ernment nits2

(e) Perform sch other fnctions as may be pro!ided by law or assignedby the Secretary.I

Sec. 6. "ll laws, orders, issances, rles and reglations or parts thereof inconsistent withthis =ecti!e %rder are hereby repealed or modified accordingly.

Sec. D. This =ecti!e %rder shall take effect immediately.

'%# in the $ity of anila, this >Ath day of ly, in the year of %r Lord, nineteenhndred and eighty, amended, otherwise known as theLabor $ode of the Philippines, is hereby frther amended to read as follows7

I"rticle 55G. /orker preference in case of bankrptcy. < n the e!ent of bankrptcy orli8idation of an employerJs bsiness, his workers shall en:oy first preference as regardstheir npaid wages and other monetary claims, any pro!ision of law to the contrarynotwithstanding. Sch npaid wages and monetary claims shall be paid in fll before theclaims of the o!ernment and other creditors may be paid.I

Section >. "rticle 5>F of the Labor $ode of the Philippines, as amended, is hereby frtheramended to read as follows7

I"rticle 5>F. Reco!ery of wages, simple money claims and other benefits. < -poncomplaint of any interested party, the Regional 'irector of the 'epartment of Labor andmployment or any of the dly athori4ed hearing officers of the 'epartment isempowered, throgh smmary proceeding and after de notice, to hear and decide anymatter in!ol!ing the reco!ery of wages and other monetary claims and benefits, incldinglegal interest, owing to an employee or person employed in domestic or hoseholdser!ice or hosehelper nder this $ode, arising from employer


19/27

I*. To encorage a trly democratic method of reglating the relations between theemployers and employees by means of agreements freely entered into throgh collecti!ebargaining, no cort or administrati!e agency or official shall ha!e the power to set or fi=wages, rates of pay, hors of work or other terms and conditions of employment, e=ceptas otherwise pro!ided nder this $ode.I

Section @. "rticle >5> of the Labor $ode of the Philippines, as amended, is frtheramended to read as follows7

I"rticle >5>. 'efinitions. < (a) I$ommissionI means the #ational Labor Relations

$ommission or any of its di!isions, as the case may be, as pro!ided nder this $ode.

I(b) I*reaI means the *rea of Labor Relations and;or the Labor Relations 'i!isionsin the regional offices established nder Presidential 'ecree #o. 5, in the 'epartmentLabor.

I(c) I*oardI means the #ational $onciliation and ediation *oard established nder=ecti!e %rder #o. 5>6.

I(d) I$oncilI means the Tripartite 1olntary "rbitration "d!isory $oncil establishednder =ecti!e %rder #o. 5>6, as amended.

I(e) ImployerI incldes any person acting in the interest of an employer, directly orindirectly. The term shall not inclde any labor organi4ation or any of its officers oragents e=cept when acting as employer.

I(f) ImployeeI incldes any person in the employ of an employer. The term shall not belimited to the employees of a particlar employer, nless this $ode so e=plicitly states. tshall inclde any indi!idal whose work has ceased as a reslt of or in connection withany crrent labor dispte or becase of any nfair labor practice if he has not obtainedany other sbstantially e8i!alent and reglar employment.

I(g) ILabor organi4ationI means any nion or association of employees which e=ists inwhole or in part for the prpose of collecti!e bargaining or of dealing with employersconcerning terms and conditions of employment.

I(h) ILegitimate labor organi4ationI means any labor organi4ation dly registered withthe 'epartment of Labor and mployment, and incldes any branch or local thereof.

I(i) I$ompany nionI means any labor organi4ation whose information, fnction oradministration has been assisted by any act defined as nfair labor practice by this $ode.

I(:) I*argaining representati!eI means a legitimate labor organi4ation or any officer oragent of sch organi4ation whether or not employed by the employer.

I(k) I-nfair labor practiceI means any nfair labor practice as e=pressly defined by this$ode.

I(l) ILabor dispteI incldes any contro!ersy or matter concerning terms or conditions ofemployment or the association or representation of persons in negotiating, fi=ing,maintaining, changing or arranging the terms and conditions of employment, regardlessof whether, the disptants stand in the pro=imate relation of employer and employee.

I(m) Ianagerial employeeI is one who is !ested with powers or prerogati!es to lay downand e=ecte management policies and;or to hire, transfer, sspend, lay5?. #ational Labor Relations $ommission. < There shall be a #ational LaborRelations $ommission which shall be attached to the 'epartment of Labor and

mployment for program and policy coordination only, composed of a $hairman andforteen (5@) members.

I&i!e (A) members each shall be chosen from among the nominees of the workers andemployers organi4ations, respecti!ely. The $hairman and the for (@) remainingmembers shall come from the pblic sector, with the latter to be chosen from among therecommendees of the Secretary of Labor and mployment.

I-pon assmption into office, the members nominated by the workers and employersorgani4ations shall di!est themsel!es of any affiliation with or interest in the federation orassociation to which they belong.

IThe $ommission may sit en banc or in fi!e (A) di!isions, each composed of three (?)members. The $ommission shall sit en banc only for prposes of promlgating rles and

reglations go!erning the hearing and disposition of cases before any of its di!isions andregional branches and formlating policies affecting its administration and operations.The $ommission shall e=ercise its ad:dicatory and all other powers, fnctions, and dties


20/27

throgh its di!isions. %f the fi!e (A) di!isions, the first and second di!isions shall handlecases coming from the #ational $apital Region and the third, forth and fifth di!isions,cases from other parts of L4on, from the 1isayas and indanao, respecti!ely. Thedi!isions of the $ommission shall ha!e e=clsi!e appellate :risdiction o!er cases withintheir respecti!e territorial :risdiction.

IThe concrrence of two (>) $ommissioners of a di!ision shall be necessary for theprononcement of a :dgment or resoltion. /hene!er the re8ired membership in adi!ision is not complete and the concrrence of two (>) $ommissioners to arri!e at a:dgment or resoltion cannot be obtained, the $hairman shall designate sch nmber of

additional $ommissioners from the other di!isions as may be necessary.

IThe conclsions of a di!ision on any case sbmitted to it for decision shall be reached inconsltation before the case is assigned to a member for the writing of the opinion. tshall be mandatory for the di!ision to meet for the prposes of the consltation ordainedherein. " certification to this effect signed by the Presiding $ommissioner of the di!isionshall be issed, and a copy thereof attached to the record of the case and ser!ed ponthe parties.

IThe $hairman shall be the Presiding $ommissioner of the first di!ision, and the for (@)other members from the pblic sector shall be the Presiding $ommissioners of thesecond, third, forth and fifth di!isions, respecti!ely. n case of the effecti!e absence orincapacity of the $hairman, the Presiding $ommissioner of the second di!ision shall bethe "cting $hairman.

IThe $hairman, aided by the =ecti!e $lerk of the $ommission, shall ha!e theadministrati!e sper!ision o!er the $ommission and its regional branches and all itspersonnel, inclding the =ecti!e Labor "rbiters and Labor "rbiters.

IThe $ommission, when sitting en banc, shall be assisted by the same =ecti!e $lerk,and, when acting thr its di!isions, by said =ecti!e $lerk for its first di!ision and for(@) other 'epty =ecti!e $lerks for the second, third, forth and fifth di!isions,respecti!ely, in the performance of sch similar or e8i!alent fnctions and dties as aredischarged by the $lerk of $ort and 'epty $lerks of $ort of the $ort of "ppeals.I

Section 6. "rticle >5@ of the same $ode, as amended, is frther amended to read asfollows7

I"rticle >5@. 3ead8arters, branches and pro!incial e=tension nits. < The $ommission

and its first, second and third di!isions shall ha!e their main offices in etropolitananila, and the forth and fifth di!isions in the cities of $eb and $agayan de %ro,respecti!ely. The $ommission shall establish as many regional branches as there areregional offices of the 'epartment of Labor and mployment, sb5A of the same $ode is amended to read as follows7

I"rticle >5A. "ppointment and 8alification. < The $hairman and other $ommissionersshall be members of the Philippine *ar and mst ha!e been engaged in the practice oflaw in the Philippines for at least fifteen (5A) years, with at least fi!e (A) years e=perienceor e=posre in the field of labor56 of the same $ode is amended to read as follows7

I"rticle >56. Salaries, benefits and other emolments. < The $hairman and members ofthe $ommission shall recei!e an annal salary at least e8i!alent to, and be entitled tothe same allowances and benefits as, those of the Presiding stice and "ssociate sticesof the $ort of "ppeals, respecti!ely. The =ecti!e Labor "rbiters shall recei!e an annalsalary at least e8i!alent to that of an "ssistant Regional 'irector of the 'epartment ofLabor and mployment and shall be entitled to the same allowances and benefits as thatof a Regional 'irector of said department. The Labor "rbiters shall recei!e an annalsalary at least e8i!alent to, and be entitled to the same allowances and benefits as, thatof an "ssistant Regional 'irector of the 'epartment of Labor and mployment. n nocase, howe!er, shall the pro!ision of this "rticle reslt in the dimintion of e=istingsalaries, allowances and benefits of the aforementioned officials.I

Section F. "rticle >5D of the same code, as amended, is hereby frther amended to readas follows7

I"rticle >5D. risdiction of Labor "rbiters and the $ommission. < (a) =cept as otherwisepro!ided nder this $ode, the Labor "rbiters shall ha!e the original and e=clsi!e:risdiction to hear and decide, within thirty (?G) calendar days after the sbmission ofthe case by the parties for decision withot e=tension, e!en in the absence ofstenographic notes, the following cases in!ol!ing all workers, whether agricltral or non) Termination disptes2

I(?) f accompanied with a claim for reinstatement, those cases that workers may filein!ol!ing wages, rates of pay, hors of work and other terms and conditions of

employment2


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I(@) $laims for actal, moral, e=emplary and other forms of damages arising from theemployer5E, paragraphs (a), (d) and (e) thereof are hereby amended to readas follows7

I(a) To promlgate rles and reglations go!erning the hearing and disposition of casesbefore it and its regional branches, as well as those pertaining to its internal fnctionsand sch rles and reglations as may be necessary to carry ot the prposes of this$ode2

I(d) To hold any person in contempt directly or indirectly and impose appropriatepenalties therefor in accordance with law.

" person gilty of misbeha!ior in the presence of or so near the $hairman or anymember of the $ommission or any Labor "rbiter as to obstrct or interrpt theproceedings before the same, inclding disrespect toward said officials, offensi!epersonalities toward others, or refsal to be sworn or to answer as a witness, or tosbscribe an affida!it or deposition when lawflly re8ired to do so, may be smmarilyad:dged in direct contempt by said officials and pnished by fine not e=ceeding fi!ehndred pesos (PAGG) or imprisonment not e=ceeding fi!e (A) days, or both if it be the$ommission or a member thereof, or by a fine not e=ceeding one hndred pesos (P5GG)or imprisonment not e=ceeding one (5) day, or both if it be a Labor "rbiter.

The person ad:dged in direct contempt by a Labor "rbiter may appeal to the$ommission and the e=ection of the :dgment shall be sspended pending the resoltionof the appeal pon the filing of sch person of a bond on a condition that he will abide byand perform the :dgment of the $ommission shold the appeal be decided against him.dgment of the $ommission on direct contempt is immediately e=ectory andnappealable. ndirect contempt shall be dealth with by the $ommission or Labor "rbiterin the manner prescribed nder Rle D5 of the Re!ised Rles of $ort2 and

(e) To en:oin or restrain any actal or threatened commission of any or all prohibited ornlawfl acts or to re8ire the performance of a particlar act in any labor dispte which,if not restrained or performed forthwith, may case gra!e or irreparable damage to anyparty or render ineffectal any decision in fa!or of sch party7 Pro!ided, That notemporary or permanent in:nction in any case in!ol!ing or growing ot of a labor

dispte as defined in this $ode shall be issed e=cept after hearing the testimony ofwitnesses, with opportnity for cross) That sbstantial and irreparable in:ry to complainantJs property will follow2

(?) That, as to each item of relief to be granted, greater in:ry will be inflicted pondefendants by the granting of relief2

(@) That complainant has no ade8ate remedy at law2 and

(A) That the pblic officers charged with the dty to protect complainantJs property arenable or nwilling to frnish ade8ate protection.

Sch hearing shall be held after de and personal notice thereof has been ser!ed, in schmanner as the $ommission shall direct, to all known persons against whom relief issoght, and also to the $hief =ecti!e and other pblic officials of the pro!ince or citywithin which the nlawfl acts ha!e been threatened or committed charged with the dtyto protect complainantJs property7 Pro!ided, howe!er, That if a complainant shall alsoallege that, nless a temporary restraining order shall be issed withot notices, asbstantial and irreparable in:ry to complainantJs property will be na!oidable, sch atemporary restraining order may be issed pon testimony nder oath, sfficient, ifsstained, to :stify the $ommission in issing a temporary in:nction pon hearing afternotice. Sch a temporary restraining order shall be effecti!e for no longer than twenty(>G) days and shall become !oid at the e=piration of said twenty (>G) days. #o schtemporary restraining order or temporary in:nction shall be issed e=cept on conditionthat complainant shall first file an ndertaking with ade8ate secrity in an amont to befi=ed by the $ommission sfficient to recompense those en:oined for any loss, e=pense ordamage cased by the impro!ident or erroneos issance of sch order or in:nction,inclding all reasonable costs, together with a reasonable attorneyJs fee, and e=pense ofdefense against the order or against the granting of any in:ncti!e relief soght in thesame proceeding and sbse8ently denied by the $ommission.

The ndertaking herein mentioned shall be nderstood to constitte an agreemententered into by the complainant and the srety pon which an order may be rendered inthe same sit or proceeding against said complainant and srety, pon a hearing toassess damages, of which hearing complainant and srety shall ha!e reasonable notice,the said complainant and srety sbmitting themsel!es to the :risdiction of the$ommission for that prpose. *t nothing herein contained shall depri!e any party ha!inga claim or case of action nder or pon sch ndertaking from electing to prse hisordinary remedy by sit at law or in e8ity7 Pro!ided, frther, That the reception ofe!idence for the application of a writ of in:nction may be delegated by the $ommissionto any of its Labor "rbiters who shall condct sch hearing in sch places as he maydetermine to be accessible to the parties and their witnesses and shall sbmit thereafterhis recommendation to the $ommission.I

Section 55. "rticle >>5 of the same $ode is hereby amended to read as follows7

"rticle >>5. Technical rles not binding and prior resort to amicable settlement. < n anyproceeding before the $ommission or any of the Labor "rbiters, the rles of e!idence


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pre!ailing in corts of law and e8ity shall not be controlling, and it is the spirit andintention of this $ode that the $ommission and its members and the Labor "rbiters shallse e!ery and all reasonable means to ascertain the facts in each case speedily andob:ecti!ely, withot regard to technicalities of law or procedre, all in the interest of deprocess. n any proceeding before the $ommission or any Labor "rbiter, the parties maybe represented by legal consel bt it shall be the dty of the $hairman, any Presiding$ommissioner or $ommissioner or any Labor "rbiter to e=ercise complete control of theproceedings at all stages.

"ny pro!ision of law to the contrary notwithstanding, the Labor "rbiter shall e=ert all

efforts towards the amicable settlement of a labor dispte within his :risdiction on orbefore the first hearing. The same rle shall apply to the $ommission in the e=ercise ofits original :risdiction.

Section 5>. "rticle >>? of the same $ode is amended to read as follows7

I"rticle >>?. "ppeal. < 'ecisions, awards, or orders of the Labor "rbiter are final ande=ectory nless appealed to the $ommission by any or both parties within ten (5G)calendar days from receipt of sch decisions, awards, or orders. Sch appeal may beentertained only on any of the following gronds7

I(a) f there is prima facie e!idence of abse of discretion on the part of the Labor"rbiter2

I(b) f the decision, order or award was secred throgh frad or coercion, inclding graftand corrption2

I(c) f made prely on 8estions of law2 and

I(d) f serios errors in the findings of facts are raised which wold case gra!e orirreparable damage or in:ry to the appellant.

n case of a :dgment in!ol!ing a monetary award, an appeal by the employer may beperfected only pon the posting of a cash or srety bond issed by a reptable bondingcompany dly accredited by the $ommission in the amont e8i!alent to the monetaryaward in the :dgment appealed from.

n any e!ent, the decision of the Labor "rbiter reinstating a dismissed or separatedemployee, insofar as the reinstatement aspect is concerned, shall immediately be

e=ectory, e!en pending appeal. The employee shall either be admitted back to worknder the same terms and conditions pre!ailing prior to his dismissal or separation or, atthe option of the employer, merely reinstated in the payroll. The posting of a bond by theemployer shall not stay the e=ection for reinstatement pro!ided herein.

To discorage fri!olos or dilatory appeals, the $ommission or the Labor "rbiter shallimpose reasonable penalty, inclding fines or censres, pon the erring parties.

n all cases, the appellant shall frnish a copy of the memorandm of appeal to the otherparty who shall file an answer not later than ten (5G) calendar days from receipt thereof.

The $ommission shall decide all cases within twenty (>G) calendar days from receipt ofthe answer of the appellee.

IThe decision of the $ommission shall be final and e=ectory after ten (5G) calendar daysfrom receipt thereof by the parties.

"ny law enforcement agency may be depti4ed by the Secretary of Labor andmployment or the $ommission in the enforcement of decisions, awards, or orders.I

Section 5?. "rticle >>@ of the same $ode is amended to read as follows7

"rticle >>@. =ection of decisions, orders, or awards. < (a) The Secretary of Labor andmployment or any Regional 'irector, the $ommission or any Labor "rbiter or ed?5 and >?> of the same $ode are amended to read as follows7

"rticle >?G. "ppointment of brea personnel. < The Secretary of Labor and mploymentmay appoint, in addition to the present personnel of the *rea and the ndstrialRelations 'i!isions, sch nmber of e=aminers and other assistants as may be necessaryto carry ot the prpose of this $ode.I

I"rticle >?5. Registry of nions and file of collecti!e agreements. < The *rea shall keep

a registry of legitimate labor organi4ations.

IThe *rea shall also maintain a file of all collecti!e bargaining agreements and otherrelated agreements and records of settlement of labor disptes, and copies of orders anddecisions of !olntary arbitrators or panel of !olntary arbitrators. The file shall be openand accessible to interested parties nder conditions prescribed by the Secretary of Laborand mployment, pro!ided that no specific information sbmitted in confidence shall bedisclosed nless athori4ed by the Secretary, or when it is at isse in any :diciallitigation or when pblic interest or national secrity so re8ires.

/ithin thirty (?G) days from the e=ection of a collecti!e bargaining agreement, theparties shall sbmit copies of the same directly to the *rea or the Regional %ffices ofthe 'epartment of Labor and mployment for registration accompanied with !erifiedproofs of its posting in two conspicos places in the place of work and ratification by the

ma:ority of all the workers in the bargaining nit. The *rea or Regional %ffices shall actpon the application for registration of sch collecti!e bargaining agreement within fi!e


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(A) calendar days from receipt thereof. The Regional %ffices shall frnish the *rea witha copy of the collecti!e bargaining agreement within fi!e (A) days from its sbmission.

The *rea or Regional %ffice shall assess the employer for e!ery collecti!e bargainingagreement a registration fee of not less than one thosand pesos (P5,GGG.GG) or in anyother amont as may be deemed appropriate and necessary by the Secretary of Laborand mployment for the effecti!e and efficient administration of the !olntary arbitrationprogram. "ny amont collected nder this pro!ision shall accre to the Special 1olntary"rbitration &nd.

The *rea shall also maintain a file, and shall ndertake or assist in the pblication, ofall final decisions, orders and awards of the Secretary of Labor and mployment, Regional'irectors and the $ommission.I

"rticle >?>. Prohibition on certification. < The *rea shall not entertain any petition forcertification election or any other action which may distrb the administration of dlyregistered e=isting collecti!e bargaining agreements affecting the parties e=cept nder"rticles >A?, >A?@5 of the same $ode are amended to readas follows7

(c) The members shall directly elect their officers in the local nion, as well as theirnational officers in the national nion or federation to which they or their local nion isaffiliated, by secret ballot at inter!als of fi!e (A) years. #o 8alification re8irement forcandidacy to any position shall be imposed other than membership in good standing insb:ect labor organi4ation. The secretary or any other responsible nion officer shallfrnish the Secretary of Labor and mployment with a list of the newly@>. Rights of legitimate labor organi4ations. < " legitimate labor organi4ationshall ha!e the right7

I(a) To act as the representati!e of its members for the prpose of collecti!e bargaining2

I(b) To be certified as the e=clsi!e representati!e of all the employees in an appropriatecollecti!e bargaining nit for prposes of collecti!e bargaining2

I(c) To be frnished by the employer, pon written re8est, with his annal aditedfinancial statements, inclding the balance sheet and the profit and loss statement, withinthirty (?G) calendar days from the date of receipt of the re8est, after the nion has beendly recogni4ed by the employer or certified as the sole and e=clsi!e bargainingrepresentati!e of the employees in the bargaining nit, or within si=ty (6G) calendar daysbefore, or dring the collecti!e bargaining negotiation.

I(d) To own property, real or personal, for the se and benefit of the labor organi4ationand its members2

I(e) To se and be sed in its registered name2 and

I(f) To ndertake all other acti!ities designed to benefit the organi4ation and itsmembers, inclding cooperati!e, hosing welfare and other pro:ects not contrary to law.

I#otwithstanding any pro!ision of a general or special law to the contrary, the income,and the properties of legitimate labor organi4ations, inclding grants, endowments, gifts,donations and contribtions they may recei!e from fraternal and similar organi4ations,local or foreign, which are actally, directly and e=clsi!ely sed for their lawfl prposes,shall be free from ta=es, dties and other assessments. The e=emptions pro!ided hereinmay be withdrawn only by a special law e=pressly repealing this pro!ision.I

Section 5E. "rticle >@A of the same $ode, as amended, is hereby frther amended toread as follows7

I"rticle >@A. neligibility of managerial employees to :oin any labor organi4ation2 right ofsper!isory employees. < anagerial employees are not eligible to :oin, assist or form anylabor organi4ation. Sper!isory employees shall not be eligible for membership in a labororgani4ation of the rank6? and >6@ of this $ode, the ci!il aspects of all

cases in!ol!ing nfair labor practices, which may inclde claims for actal, moral,e=emplary and other forms of damages, attorneyJs fees and other affirmati!e relief, shallbe nder the :risdiction of the Labor "rbiters. The Labor "rbiters shall gi!e tmostpriority to the hearing and resoltion of all cases in!ol!ing nfair labor practices. Theyshall resol!e sch cases within thirty (?G) calendar days from the time they aresbmitted for decision.I

Section >G. "rticle >AG of the same $ode is amended to read as follows7

I"rticle >AG. Procedre in collecti!e bargaining. < The following procedres shall beobser!ed in collecti!e bargaining7

I(a) /hen a party desires to negotiate an agreement it shall ser!e a written notice ponthe other party with a statement of its proposals. The other party shall make a reply

thereto not later than ten (5G) calendar days from receipt of sch notice2


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I(b) Shold differences arise on the basis of sch notice and reply, either party mayre8est for a conference which shall begin not later than ten (5G) calendar days from thedate of re8est2

I(c) f the dispte is not settled, the *oard shall inter!ene pon re8est of either or bothparties or at its own initiati!e and immediately call the parties to conciliation meetings.The *oard shall ha!e the power to isse sbpoenas re8iring the attendance of theparties to sch meetings. t shall be the dty of the parties to participate flly andpromptly in the conciliation meetings the *oard may call2

I(d) 'ring the conciliation proceedings in the *oard, the parties are prohibited fromdoing any act which may disrpt or impede the early settlement of the disptes2 and

I(e) The *oard shall e=ert all efforts to settle disptes amicably and encorage theparties to sbmit their case to a !olntary arbitrator.I

Section >5. There shall be incorporated after "rticle >A? of the same $ode a new articlewhich shall read as follows7

I"rticle >A?@. "rticle >AD of the same $ode is amended to read as follows7

"rticle >AD. Petitions in norgani4ed establishment. < n any establishment where there isno certified bargaining agent, a certification election shall atomatically be condcted bythe edAF of the same $ode is also hereby amended to read as follows7

"rticle >AF. "ppeal from certification election orders. < "ny party to an election mayappeal the order or reslts of the election as determined by the edAF of the same $ode a new chapterto read as follows7

TTL 1


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the *oard. n case the parties fail to select a !olntary arbitrator or panel of !olntaryarbitrators, the *oard shall designate the !olntary arbitrator or panel of !olntaryarbitrators, as may be necessary, prsant to the selection procedre agreed pon in thecollecti!e bargaining agreement, which shall act with the same force and effect as if the!olntary arbitrator or panel of !olntary arbitrators ha!e been selected by the parties asdescribed abo!e.I

I"rticle >65. risdiction of !olntary arbitrator and panel of !olntary arbitrators. < The!olntary arbitrator or panel of arbitrators shall ha!e original and e=clsi!e :risdiction tohear and decide all nresol!ed grie!ances arising from the interpretation or

implementation of the collecti!e bargaining agreement and those arising from theinterpretation or enforcement of company personnel policies referred to in theimmediately preceding "rticle. "ccordingly, !iolations of a collecti!e bargainingagreement, e=cept those which are gross in character, shall no longer be treated asnfair labor practice and shall be resol!ed as grie!ances nder the collecti!e bargainingagreement. &or prposes of this "rticle, gross !iolations of a collecti!e bargainingagreement shall mean flagrant and;or malicios refsal to comply with the economicpro!isions of sch agreement.

IThe $ommission, its Regional %ffices and the Regional 'irectors of the 'epartment ofLabor and mployment shall not entertain disptes, grie!ances or matters nder thee=clsi!e and original :risdiction of the !olntary arbitrator or panel of !olntaryarbitrators and shall immediately dispose and refer the same to the grie!ance machineryor !olntary arbitration pro!ided in the collecti!e bargaining agreement.I

I"rticle >6>. risdiction o!er other labor disptes. < The !olntary arbitrator or panel of!olntary arbitrators, pon agreement of the parties, shall also hear and decide all otherlabor disptes inclding nfair labor practices and bargaining deadlocks.

I"rticle >6>G) calendardays from the date of sbmission of the dispte to !olntary arbitration. IThe award ordecision of the !olntary arbitrator or panel of !olntary arbitrators shall contain the factsand the law on which it is based. t shall be final and e=ectory after ten (5G) calendardays from receipt of the copy of the award or decision by the parties.

I-pon motion of any interested party, the !olntary arbitrator or panel of !olntaryarbitrators or the Labor "rbiter in the region where the mo!ant resides, in case of theabsence or incapacity of the !olntary arbitrator or panel of !olntary arbitrators for anyreason, may isse a writ of e=ection re8iring either the sheriff of the $ommission orreglar corts or any pblic official whom the parties may designate in the sbmissionagreement to e=ecte the final decision, order or award.

I"rticle >6>6? of the same code, as amended, arehereby frther amended to read as follows7

I(g) /hen, in his opinion, there e=ists a labor dispte casing or likely to case a strikeor lockot in an indstry, indispensable to the national interest, the Secretary of Laborand mployment may assme :risdiction o!er the dispte and decide it or certify thesame to the $ommission for complsory arbitration. Sch assmption or certification shallha!e the effect of atomatically en:oining the intended or impending strike or lockot asspecified in the assmption or certification order. f one has already taken place at thetime of assmption or certification, all striking or locked ot employees shall immediatelyretrn to work and the employer shall immediately resme operations and readmit all

workers nder the same terms and conditions pre!ailing before the strike or lockot. TheSecretary of Labor and mployment or the $ommission may seek the assistance of lawenforcement agencies to ensre compliance with this pro!ision as well as with schorders as he may isse to enforce the same.

In line with the national concern for and the highest aspect accorded to the right ofpatients to life and health, strikes and lockots in hospitals, clinics and similar medicalinstittions shall, to e!ery e=tent possible, be a!oided, and all serios efforts, not only bylabor and management bt go!ernment as well, be e=hasted to sbstantially minimi4e,if not pre!ent their ad!erse effects on sch life and health, throgh the e=ercise, howe!erlegitimate, by labor of its right to strike and by management to lockot. n labor disptesad!ersely affecting the contined operation of sch hospitals, clinics, or medicalinstittions, it shall be the dty of the striking nion or locking@) hors from knowledge of the occrrence of sch a strike or lockot,:risdiction o!er the same or certify it to the $ommission for complsory arbitration. &orthis prpose, the contending parties are strictly en:oined to comply with sch orders,prohibitions and;or in:nctions as are issed by the Secretary of Labor and mploymentor the $ommission, nder pain of immediate disciplinary action, inclding dismissal orloss of employment stats or payment by the locking


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I(i) The Secretary of Labor and mployment, the $ommission or the !olntary arbitratoror panel of !olntary arbitrators shall decide or resol!e the dispte within thirty (?G)calendar days from the date of the assmption of :risdiction or the certification orsbmission of the dispte, as the case may be. The decision of the President, theSecretary of Labor and mployment, the $ommission or the !olntary arbitrator or panelof !olntary arbitrators shall be final and e=ectory ten (5G) calendar days after receiptthereof by the parties.I

Section >E. There is hereby incorporated in lie of "rticle >6A of the same $ode, which

was repealed by *atas Pambansa *lg. 5?G, a new pro!ision to read as follows7

I"rticle >6A. mpro!ed offer balloting. < n an effort to settle a strike, the 'epartment ofLabor and anagement shall condct a referendm by secret balloting on the impro!edoffer of the employer on or before the ?Gth day of the strike. /hen at least a ma:ority ofthe nion members !ote to accept the impro!ed offer, the striking workers shallimmediately retrn to work and the employer shall therepon readmit them pon thesigning of the agreement.

In case of a lockot, the 'epartment of Labor and mployment shall also condct areferendm by secret balloting on the redced offer of the nion on or before the ?Gthday of the lockot. /hen at least a ma:ority of the board of directors or trstees or thepartners holding the controlling interest in the case of a partnership !ote to accept theredced offer, the workers shall immediately retrn to work and the employer shalltherepon readmit them pon the signing of the agreement.I

Section >F. "rticle >6F of the same $ode is amended to read as follows7

I"rticle >6F. Prohibition against aliens2 =ceptions. < "ll aliens, natral or :ridical, aswell as all foreign organi4ations are strictly prohibited from engaging directly or indirectlyin all forms of trade nion acti!ities withot pre:dice to normal contacts betweenPhilippine labor nions and recogni4ed international labor centers7 Pro!ided, howe!er,That aliens working in the contry with !alid permits issed by the 'epartment of Laborand mployment, may e=ercise the right to selfD>. Penalties. < (a) "ny person !iolating any of the pro!isions of "rticle >6@ ofthis $ode shall be pnished by a fine of not less than one thosand pesos (P5,GGG.GG)nor more than ten thosand pesos (P5G,GGG.GG) and;or imprisonment for not less thanthree (?) months nor more than three (?) years, or both sch fine and imprisonment, atthe discretion of the cort. Prosection nder this pro!ision shall preclde prosection forthe same act nder the Re!ised Penal $ode, and !ice

Section ?5. "rticle >D@ of the same $ode is amended to read as follows7

I"rticle >D@. 1isitorial power. < The Secretary of Labor and mployment or his dlyathori4ed representati!e is hereby empowered to in8ire into financial acti!ities oflegitimate labor organi4ations pon the filing of a complaint nder oath and dly

spported by the written consent of at least twenty percent (>GM) of the totalmembership of the labor organi4ation concerned and to e=amine their books of accontsand other records to determine compliance or nonDA. Tripartism and tripartite conferences. < (a) Tripartism in labor relations ishereby declared a State policy. Towards this end, workers and employers shall, as far aspracticable, be represented in decision and policy


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prpose in the initial yearly amont of fifteen million pesos (P5A,GGG,GGG.GG) shall bepro!ided in the 5FEF and sbse8ent annal eneral "ppropriations "cts.

IThe amont of sbsidy in appropriate cases shall be determined by the *oard inaccordance with established gidelines issed by it pon the recommendation of the$oncil.

IThe fnd shall also be tili4ed for the operation of the $oncil, the training andedcation of !olntary arbitrators, and the promotion and the de!elopment of acomprehensi!e !olntary arbitration program.

I(h) n establishments where no legitimate labor organi4ation e=ists, labor

Historical Overview of Dispute Settlement[1]

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Transcript of Historical Overview of Dispute Settlement[1]