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Republic of the PhilippinesHOUSE OF REPRESTNTAQuezonCityFIFTEENTH CONGRESS

First RegularSessionHousFiEr&L-No.977

INTRODUCED BY ANAKPAWIS PARTY-LIST REPRESENTATIVERAFAEL V. MARIANO

H'(PLANATORY NOTEThe assumption of jurisdiction (AJ) order being issued by theDepartment of Labor and EmploSrment (DOLE) Secretar5r runs counter toinstituted conventions and mandates protecting workers'rights for freedomof association, freedom of assembly and right to collective bargainingagreement.In our observance, labor disputes between workers and employersthat resulted to the intervention of various government agencies and theimposition of the assumption of jurisdiction (AJ) order are disputes that arerelated to 'the non-recognition of freedom to associate, assemble, and enterinto collective bargaining negotiations. The imposition of the assumption of

jurisdiction (AJ) order, therefore, gravely violates International LaborStandards set by International Labour Organization (ILO) and the I7BTPhilippine Constitution.According to International Labour Organization (ILO), all memberStates must respect, realize and implement Freedom of Association andRight to Collective Bargaining, other Core Conventions as defined by theInternational Labour Organizatton (ILO) Declaration of 1998, and otherratified Conventions.International Labour Organization (ILO) Convention No. 87 declaredthat "workers, without any distinction, have the right to form or join anorganization of their own choosing, without previous authorization, tocollectively protect and promote their economic and socia-l interests; allworkers, regardless of their occupations, economic sectors and types ofcontracts - should be able to enjoy the right to self-organization and tradeunions and their employers collectively bargain on wages and conditions ofwork with an aim to conclude collective bargaining agreement.ILO Convention No. 98 enshrines the protection of workers againstacts of anti-union discrimination from employer, protection of workers' andemployers' organizattons against acts of interference by each other, andpromotion of collective bargaining.out of the one hundred eighty (180) conventions adopted. by theInternational Labour Organization (ILO), the Government of the Repubtic of

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the Philippines has ratified, so far, only thirty-seven (37) Conventions, givingmore authority to employers and even the government to Violate'labor rightsin the pretext of implementing administrative and executive guidelines fromthe Department of Labor and Employment (DOLE) which included theissuance of assumption of jurisdiction (AJ) orders.Paragraph g, Article 263 of the Labor Code of the Philippines providesthat, "When, in his opinion, there exists a labor dispute causing or likely tocause a strike or lockout in an industry indispensable to the nationalinterest, the Secretary of Labor and Employment may assume jurisdictionover the dispute and decide it or certify the same to the Commission forcompulsory arbitration. Such assumption or certification shall have theeffect of automatically enjoining the intended or impending strike or lockoutas specified in the assumption or certification order, When a strike hasalready taken place at the time of assumption or certification, all striking orIocked out employees shall immediateiy return to work and the employershall immediately resume operations and readmit all workers under thesa-rne erms and conditions prevailing before the strike or lockout.It is clear from the aforesaid provision that the opinion of theDepartment of Labor and Employment (DOLE) Secretary is the decidingfactor in the matter and this is what labor advocates and legal counsels oiworker's organizations and associations are protesting.According to Atty. Remigio Saladero, Executive Director. of theProlabor Legal Assistance Center (PLACE), he opinion of the Department ofLabor and Employment (DOLE) Secretar5rs diffrcult to contest in court whenthe same refers to the imposition of an assumption of jurisd.iction (AJ) order

over a strike or an impending strike. This is because the main basis for theassumption of jurisdiction (AJ) is the opinion of the labor secretar5r- tocontest this, one must present evidence that there was bad faith on the partof the secretar5zwhen he/she made the decision.Apart from this, the Department of Labor and Employment (DOLE)Secretar5r's decision to assume jurisdiction over a 1abor dispute isimmediately executory. This means that even if there is a pending Motion forReconsideration on his/her order, the order must be immediatelyimplemented. If the order is defied, there is a ground to penalize tineworkers.Because of t,l.e foregoing and other powers possessed by theDepartment of Labor and Employment (DOLE) Secretar5r hat he/she uses toartifrcially settle and put an end to labor disputes, the right to strike hasbecome more illusory.Moreover, after assuming jurisdiction, the Department of Labor andEmployment (DOLE) secretary can place the dispute and the partiesinvolved under compulsory arbitration (CA) whenever he or she deems it tobe of "national interest" to do so.The International Labour Organization (ILO) High Level Missionconducted last September 2OO9 revealed that mounting complaints of

violation of the rights of workers to freedom of association can be rootedfrom the imposition of assumption of jurisdiction (AJ). The following areamong these cases:

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. Dismissal of utorkers belonging to Uniuersity of San AgustinEmplogees Union for not complging uith the assumption ofjuris diction (AJ Order.o Militanzation of Nestle Cabugao Workers' Picketline fotlouing anassumption of jurisdiction (AJ) Order and deputization Order ofthe Secretary of the Department of Labor and Emplogment.. Violation of freedom of association, gouerrlment's failure toimplement Conuentions No.87 and 89, following an assumptionof jurisdiction (AJ) Order issued on 10 April 2009 bg tlrcDepartment of Labor and Employment (DOLE) Secretary againstToyota Motors Philippines Corporation Worker's Association(TMPCWA)euen before the union launched its strike on 23 and29 Apil 2009.

The report of the International Labour Organization (ILO) GoverningBody's Committee on Freedom of Association also cited that the High LeveiMission "heard numerous stories of impediments and obstacles to the fullexercise of freedom of association" and that unions "had been effectivelyblocked from exercising trade union rights for decades and any advances inthis respect were few and far between."The report further noted the complaints that "trade unions are rarelyrespected by the employer who is reported to prefer a non-union workplaceor one where unions are generally submissive" and "when independentunions exist, collective bargaining was said to be diffrcult and strike action

routinely end in the Department of Labor and Employment (DOLE)Secretar5/'sexercise of the assumption of jurisdiction power.The recommendations of the International Labour Organization's(ILO's) Committee on Freedom of Association following the InternationalLabour Organization High Level Mission (ILO-HLM) further affirm thecontradiction between the assumption of jurisdiction (AJ) and the workers'freedoms and rights. The report of the Committee released last March 2010cited tJle Philippine Government's malign imposition of assumption ofjurisdiction (AJ) on the workers'peaceful strikes. The Committee Report onthe complaint of Toyota Workers' Union filed before the International Labour

Organizatton (ILO) reads as follows:"The Committee expressed its regret that the Supreme Court appears toconsider that the staging of peaceful pickets should be sanctioned as auiolation of an assumption of jurisdiction order, itself contrary tofreedom of association principles, and as liabte to lead to a utorseningof an alreadg deteriorated situation..." (p.346)The report reiterated that freedom of association and peaceful andlawful mass actions or strikes of workers "should not be subject tointerference by the authorities."If an assumption of jurisdiction (AJ) order is not issued, othercapitalists obtain restraining order from the regular courts. Employers can

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also obtain injunction order from the National Labor Relations Commission(NLRC) to prevent acts in reiation to a strike. The National Labor ReiationsCommission (NLRC) has jurisdiction over labor relation disputes includingthose placed under compulsory arbitration (CA) by the Secretary ofDepartment of Labor and Employment (DOLE). A Labor Arbiter's decisioncan be appealed to the Commissioners of the National Labor RelationsCommission (NLRC).The decision f the latter, in turn, can be appealed to theCourt of Appeals, all the way to the Supreme Court.

What this legal rrraze demonstrates is that despite the forma-lrecognition of the right to strike, de facto state policy exists to subvert thisright.The assumption of jurisdiction (AJ) Order issued by then Departmentof Labor and Emplo5rment (DOLE) Secretary Patricia Sto. Tomas and itsaccompanying return-to-work Order, as well as her Order deputizing thePhilippine National Police (PNP) and the Armed Forces of the Philippines

(AFP)to enforce the assumption of jurisdiction (AJ) Order are at the core ofthe Hacienda Luisita Massacre that took place last November 16, 2004.According to labor organizations and labor rights advocates, the way thenDepartment of Labor and Employment (DOLE) Secretary handled the labordispute in Hacienda Luisita underscores the Secretar5r'sabuse of power andpro-employer bias.Department of Labor and Empioyment (DOLE) Secretary Arturo Brionpersisted in issuing assumption of jurisdiction (AJ) orders against workersand labor unions that exercise their right to strike when he assumed officein July 2006. The numerous assumption of jurisdiction (AJ) orders issued bythe Department of Labor and Emplo5rment (DOLE) resulted to hundreds ofcases of human rights violations of workers exercising their legitimate rightto strike and to protest against union busting and other unfair laborpractices. During ttre turnover ceremonies at the Department of Labor andEmployment (DOLE) in 2008, former Department of Labor and Emplo5rment(DOLE) Secretary Marianito Roque did not make any position or statementon the issue and vowed to "carry on Department of Labor and Emplo5rment'sprogrErmsand policies initiated by Brion and other labor officials under hisstewardship".Based on the 2OO9 annual report released by the Center for TradeUnion and Human Rights (CTUHR), 1,889 cases of rights violations occurred

from 2001 to 2009 under the administration of President Gloria Macapagal-Arroyo. These violations var5r from assaults on picket lines, harassments,sunreillance, union busting, prohibition of the right to strike, violation ofright to organize, manipulation and right to bargain.Department of Labor and Employment (DOLE) Secretary RosalindaBaldoz assumed jurisdiction over the high-profile labor dispute at thePhilippine Airlines (PAL) in October 2O1O, over issues raised by flight crewrepresented by the Flight Attendants and Stewardess' Association of thePhilippines (FASAP) concerning the retirement age at the Philippine Airlines(PAL)and other Collective Bargaining Agreement (CBA) proposals.The Department of Labor and Employment (DOLE) issued theassumption of jurisdiction (AJ) Order to avert a possible strike by the

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including the Regionar peciarActionForcesand the special weaponsarrdactics (swAT) .r*, tit" ar-"i p,or""- oiii"'pr,iuppines (AFE, and;: ffiil;TT$"Tffiffa:T:i:.Tfl t li "Il",.."a.' *pi,.,,,r,.In view of the foregoing, the passage of this bilr is earnestly requested.

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Republic of the philippinesHOUSE OF REPRESENTATTVESQuezon City

FIF'IEENTH CONGRESSFirst Regular SessionHousEdilrro. 467L

INTRODUCED BY ANAKPAWIS PARTY-LIST REPRESENTATTVERAFAEL V. MARIANO

AN ACTREPEALING THT PROVISION ON ASSI'MPTION OF JURISDICTIONUNDER PARAGRAPH G, ARTI$LE 26g oF PRESIDENTIAL DECREEE No.442, As AMENDED' orHERwrsE KNowN As rHE ..LABOR coDt oFTHE PHILIPPINESBe tt enacted bg the senate and. House of Representattues of thePhtltpptnes dn Congress a,ssembled,:

sEcTIoN 1. Paragraph (g),Article 263 ofPresidential Decree No.442,as amended, otherwise known a" th. ,,Labor code of the philippines,, ishereby repealed.S'CTION 2. -Repealtng Ctause _All laws, decrees, executiveissuances, rules and regulatiois inconsistent witir this Act are herebyrepealed or modified accordingly.sEcTroN 3' Effecttttttg Clause - This Act shall take effect fifteen (15)days after its publication in th-eofficial Gazette or in at reast two (2)newspapers of general circulation.Approved.