}

CONGRESS OF THE PHILIPPINES

NINETEENTH CONGRESS
Second Regular Session

HOUSE OF REPRESENTATIVES

H. No. 9430

BY REPRESENTATIVES MENDOZA, VILLANUEVA, NOGRALES (J.F.F.), YAP (C.), FLORES, LUISTRO, MANUEL,
SALIMBANGON, HERNANDEZ, SANTOS, ORDANES, GARDIOLA, ARBISON, TARRIELA, PADUANO, CHUA,
GO (M.), ALBA, COLLANTES, CAJAYON-UY, TAMBUNTING, AGARAO, ROBES, CARI, ESPINA, ALONTE,
MAGSINO, FERNANDEZ, HERRERA, VILLAFUERTE (L.R.), RIVERA AND DALIPE

AN ACT
FURTHER STRENGTHENING UNION ORGANIZATION AND DISALLOWING
CANCELLATION OF UNION REGISTRATION, AMENDING FOR THE PURPOSE
PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR
CODE OF THE PHILIPPINES

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

Congress assembled:

1 SECTION 1. This Act shall be known as the “Union Formation Act.”

2
3 SEC. 2. The title of Chapter I, Title IV of Book V of Presidential Decree (PD) No. 442, as
4 amended, is hereby amended to read as follows:
5
6 “Chapter I
7
8 [Registration and Cancellation] UNION FORMATION AND DISSOLUTION”
9
10 SEC. 3. It is the primary responsibility of the State to protect and uphold the rights of all
11 workers and promote their welfare, and to afford full protection to labor, local and overseas,
12 organized and unorganized.
13
14 The State shall protect the constitutionally-guaranteed and universally recognized rights
15 of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted
16 activities, including the right to strike in accordance with law.
17
18 As stated in International Labour Organization (ILO) Convention No. 87, workers, without
19 distinction whatsoever, shall have the right to establish and, subject only to the rules of the
20 organization concerned, to join organizations of their own choosing without previous
 1 authorization. Workers’ organizations shall have the right to draw up their constitutions and rules,
2 to elect their representatives in full freedom, to organize their administration and activities and to
3 formulate their programs.
4
5 SEC. 4. Article 240 of PD No. 442, as amended, is hereby amended to read as follows:
6
7 “ART. 240. Requirements of [Registration] NOTIFICATION. –
8 A federation, national union or industry or trade union center or an independent
9 union shall acquire legal personality and shall be entitled to the rights and
10 privileges granted by law to legitimate labor organizations upon [issuance
11 of the certificate of registration based on] NOTIFICATION OF ITS
12 FORMATION WITH the following requirements:
13
14 (a) Fifty pesos (P50.00) [registration] NOTIFICATION fee;

15 (b) The names of its officers, their addresses, the principal address of
16 the labor organization, the minutes of the organizational meetings and the list
17 of the workers who participated in such meetings;
18
19 (c) In case the applicant is an independent union, the names of all its
20 members comprising at least [twenty percent (20%)] TEN PERCENT (10%)
21 of all the employees in the bargaining unit where it seeks to operate;
22
23 (d) If the [applicant] NOTIFYING union has been in existence for
24 one (1) or more years, copies of its annual financial reports; and
25
26 (e) [Four] ELECTRONIC copies IN RELATION TO [of] the constitution
27 and by-laws of the [applicant] NOTIFYING union, minutes of its adoption or
28 ratification, and the list of the members who participated in it.”
29
30 SEC. 5. Article 241 of PD No. 442, as amended, is hereby amended to read as follows:
31
32 “ART. 241. Chartering and Creation of a Local Chapter. – A duly
33 registered federation or national union may directly create a local chapter by
34 issuing a charter certificate indicating the establishment of the local chapter.
35 The chapter shall acquire legal personality [only for purposes of filing a petition
36 for certification election] from the date it was issued a charter certificate AND
37 SHALL BE ENTITLED TO THE RIGHTS AND PRIVILEGES OF A
38 LEGITIMATE LABOR ORGANIZATION UPON SUBMISSION OF ITS
39 CHARTER CERTIFICATE TO THE DEPARTMENT OF LABOR AND
40 EMPLOYMENT.
41
42 x x x.”

2
 1 SEC. 6. Article 242 of PD No. 442, as amended, is hereby amended to read as follows:
2
3 “ART. 242. Action on [Application] NOTIFICATION. – [The Bureau shall
4 act on all applications for registration within thirty (30) days from filing.] THE
5 LABOR RELATIONS DIVISION IN THE REGIONAL OFFICE OR THE
6 BUREAU, AS THE CASE MAY BE, SHALL ACT ON ALL NOTICES OF
7 UNION FORMATION AND INCLUDE THE NOTIFYING UNIONS IN THE
8 ROSTER OF LEGITIMATE LABOR ORGANIZATIONS WITHIN TEN (10)
9 DAYS FROM RECEIPT OF NOTICE THEREOF.
10
11 All requisite documents and papers shall be certified under oath by the
12 secretary or the treasurer of the organization, as the case may be, and attested
13 to by its president.”
14
15 SEC. 7. Article 244 of PD No. 442, as amended, is hereby amended to read as follows:
16
17 “ART. 244. Additional Requirements for Federations or National Unions.
18 – [Subject to Article 238, if the applicant for registration is a] A federation or a
19 national union[, it] shall, in addition to the requirements of the preceding
20 Articles HEREOF, submit the following:

21 (a) Proof of the affiliation of at least [ten (10)] FIVE (5) locals or
22 chapters, each of which must be a duly recognized collective bargaining agent
23 in the establishment or industry in which it operates, supporting the registration
24 of such applicant federation or national union; and
25
26 (b) The names and addresses of the companies where the locals or
27 chapters operate [and the list of all the members in each company involved].”
28
29 SEC. 8. Article 245 of PD No. 442, as amended, is hereby amended to read as follows:
30
31 “ART. 245. [Cancellation of Registration] DISSOLUTION OF A
32 LEGITIMATE LABOR ORGANIZATION. – [The certificate of registration of
33 any] A legitimate labor organization, whether national or local, may be
34 [cancelled] DISSOLVED AND MAY BE DELISTED by the Bureau, after due
35 hearing, [only on the grounds specified] in ACCORDANCE WITH Article [239]
36 247 hereof.”
37
38 SEC. 9. Article 246 of PD No. 442, as amended, is hereby amended to read as follows:
39
40 “ART. 246. Effect of a Petition [for Cancellation of Registration] TO
41 DELIST A LABOR ORGANIZATION. – A petition [for cancellation of] TO
42 DELIST A union [registration] FROM THE ROSTER OF LEGITIMATE
43 LABOR ORGANIZATIONS shall not suspend the proceedings for
44 certification election nor shall it prevent the filing of a petition for
45 certification election.

3
 1 In case of [cancellation] DELISTING, nothing herein shall restrict
2 the right of the union to seek just and equitable remedies in the
3 appropriate courts.”
4
5 SEC. 10. Article 248 of PD No. 442, as amended, is hereby amended to read as follows:
6
7 “ART. 248. Voluntary [Cancellation of Registration] DISSOLUTION. –
8 [The registration of a] A legitimate labor organization may be [cancelled]
9 DISSOLVED by the organization itself: Provided, That at least two-thirds of its
10 general membership votes, in a meeting duly called for that purpose to
11 dissolve the organization: Provided, further, That an application to [cancel
12 registration] DELIST THE ORGANIZATION FROM THE ROSTER OF
13 LEGITIMATE LABOR ORGANIZATIONS is thereafter submitted by the board
14 of the organization, attested to by the president thereof.”
15
16 SEC. 11. Article 250 of PD No. 442, as amended, is hereby amended to read as follows:
17
18 “ART. 250. Rights and Conditions of Membership in a Labor
19 Organization. – The following are the rights and conditions of membership in
20 a labor organization:
21
22 xxx
23
24 (c) The members shall [directly] DULY elect their officers, [in the local
25 union, as well as their national officers in] INCLUDING THOSE OF the national
26 union or federation, to which they or their [local] union is affiliated, [by secret
27 ballot] IN ACCORDANCE WITH THE UNION CONSTITUTION AND
28 BY-LAWS at intervals of five (5) years. No qualification requirement for
29 candidacy to any position shall be imposed other than membership in good
30 standing in subject labor organization. The secretary or any other responsible
31 union officer shall furnish the Secretary of Labor and Employment with a list of
32 the newly-elected officers, together with the appointive officers or agents who
33 are entrusted with the handling of funds, within thirty (30) calendar days after
34 the election of officers or from the occurrence of any change in the list of
35 officers of the labor organization;
36
37 x x x.”
38
39 SEC. 12. Article 253, Title V of the Labor Code is hereby amended to read as follows:

40 “ART. 253. Coverage and Employees’ Right to Self-Organization. – All

41 persons employed in [commercial] SERVICE, industrial and agricultural
42 enterprises and in religious, charitable, medical, or educational institutions,
43 whether operating for profit or not, REGARDLESS OF EMPLOYMENT
44 STATUS, INCLUDING THOSE EMPLOYED IN SPECIAL ECONOMIC
45 ZONES, shall have the right to self-organization and to form, join, or assist
46 labor organizations of their own choosing for purposes of collective bargaining
47 WITHOUT PREVIOUS AUTHORIZATION. Ambulant, intermittent and

4
 1 itinerant workers, self-employed people, rural workers [and those without any
2 definite employers] may form labor organizations for their mutual aid and
3 protection.
4
5 EMPLOYEES HIRED UNDER CONTRACTORS,
6 SUBCONTRACTORS, MANPOWER AGENCIES, LABOR COOPERATIVES
7 AND OTHER THIRD PARTY ENTITIES SHALL HAVE THE RIGHT TO
8 FORM OR JOIN UNIONS AND THE RIGHT TO COLLECTIVELY BARGAIN
9 IN THE PRINCIPAL TRADE OR BUSINESS.
10
11 ANY EMPLOYEE, WHETHER EMPLOYED FOR A DEFINITE
12 PERIOD OR NOT, SHALL, BEGINNING ON HIS OR HER FIRST DAY OF
13 SERVICE, HAVE THE RIGHT TO FORM, JOIN OR ASSIST LABOR
14 ORGANIZATIONS.”
15
16 SEC. 13. Chapter II, Article 259 of the Labor Code is hereby amended to read as follows:
17
18 “ART. 259. Unfair Labor Practices of Employers. – It shall be unlawful
19 for an employer to commit any of the following unfair labor practices:
20
21 (a) To interfere with, restrain or coerce employees in the exercise of
22 their right to self-organization, TO COLLECTIVE BARGAINING AND
23 NEGOTIATIONS, AND TO ENGAGE IN PEACEFUL CONCERTED
24 ACTIVITIES, INCLUDING THE RIGHT TO STRIKE IN ACCORDANCE WITH
25 THIS CODE;
26
27 (b) To require as a condition of employment that a person or an
28 employee shall not join a labor organization or shall withdraw from one to
29 which [he belongs] THEY BELONG;
30
31 (c) To contract out services or functions being performed by union
32 members AND EMPLOYEES WHO ARE ORGANIZING A UNION when such
33 will interfere with, restrain or coerce employees in the exercise of their right to
34 self-organization;
35
36 (D) TO CONDUCT A PERFORMANCE REVIEW OR ASSESSMENT
37 OF EMPLOYEES DURING THE FORMATION OF A UNION UP TO ONE (1)
38 YEAR AFTER THE FILING OF UNION NOTIFICATION THAT MAY
39 UNDERMINE THE SECURITY OF TENURE AND UNION MEMBERSHIP OF
40 AN EMPLOYEE;
41
42 (E) TO TERMINATE OR CAUSE THE TERMINATION OF AN
43 EMPLOYEE DURING THE FORMATION OF A UNION UP TO ONE (1)
44 YEAR AFTER THE FILING OF UNION NOTIFICATION DUE TO
45 INSTALLATION OF LABOR-SAVING DEVICES, REDUNDANCY, CLIENT
46 PULLOUT, RETRENCHMENT TO PREVENT LOSSES OR THE
47 CLOSING OR CESSATION OF OPERATION OF THE ESTABLISHMENT
48 OR UNDERTAKING;

5
 1 [(d)] (F) To initiate, dominate, assist or otherwise interfere with the
2 formation or administration of any labor organization, including the giving of
3 financial or other support to it or its organizers or supporters;
4
5 [(e)] (G) To discriminate in regard to wages, hours of work and other
6 terms and conditions of employment in order to encourage or discourage
7 membership in any labor organization. Nothing in this Code or in any other law
8 shall stop the parties from requiring membership in a recognized collective
9 bargaining agent as a condition for employment, except those employees who
10 are already members of another union at the time of the signing of the
11 collective bargaining agreement. Employees of an appropriate bargaining unit
12 who are not members of the recognized collective bargaining agent may be
13 assessed a reasonable fee equivalent to the dues and other fees paid by
14 members of the recognized collective bargaining agent, if such non-union
15 members accept the benefits under the collective bargaining agreement:
16 Provided, That the individual authorization required under Article 242,
17 paragraph (o) of this Code shall not apply to the non-members of the
18 recognized collective bargaining agent;
19
20 [(f)] (H) To dismiss, discharge or otherwise prejudice or discriminate
21 against an employee for having given or being about to give testimony under
22 this Code;
23
24 [(g)] (I) To violate the duty, OR REFUSE, to bargain collectively [as
25 prescribed by this Code] WITH THE EMPLOYEES;
26
27 [(h)] (J) To pay negotiation or attorney’s fees to the union or its officers
28 or agents as part of the settlement of any issue in collective bargaining or any
29 other dispute; or
30
31 [(i)] (K) To violate a collective bargaining agreement.
32
33 The provisions of the preceding paragraph notwithstanding, only the
34 officers and agents of corporations, associations or partnerships who have
35 actually participated in, authorized or ratified unfair labor practices shall be
36 held criminally liable.”
37
38 SEC. 14. A new section denominated as ART. 272-A is inserted after ART. 272 of
39 PD No. 442, to read as follows:
40
41 “ART. 272-A. ANY LEGITIMATE LABOR ORGANIZATION MAY
42 FILE A REQUEST FOR SOLE AND EXCLUSIVE BARGAINING
43 AGENT/REPRESENTATIVE (SEBA) CERTIFICATION IN THE REGIONAL
44 OFFICE WHICH ISSUED ITS CERTIFICATE OF REGISTRATION OR
45 CERTIFICATE OF CREATION OF CHARTERED LOCAL.”
46
47 SEC. 15. A new section denominated as ART. 272-B is inserted after ART. 272-A of
48 PD No. 442, to read as follows:

6
 1 “ART. 272-B. THE REQUEST FOR CERTIFICATION SHALL INDICATE:
2
3 (A) THE NAME AND ADDRESS OF THE REQUESTING LEGITIMATE
4 LABOR ORGANIZATION;
5
6 (B) THE NAME AND ADDRESS OF THE COMPANY WHERE IT
7 OPERATES;
8
9 (C) THE BARGAINING UNIT SOUGHT TO BE REPRESENTED;
10
11 (D) THE APPROXIMATE NUMBER OF EMPLOYEES IN THE
12 BARGAINING UNIT; AND
13
14 (E) THE STATEMENT OF THE EXISTENCE OR NON-EXISTENCE OF
15 OTHER LABOR ORGANIZATIONS OR COLLECTIVE BARGAINING
16 AGREEMENT.”
17
18 SEC. 16. A new section denominated as ART. 272-C is inserted after ART. 272-B of
19 PD No. 442, to read as follows:
20
21 “ART. 272-C. WITHIN ONE (1) DAY FROM THE SUBMISSION OF THE
22 REQUEST, THE REGIONAL DIRECTOR SHALL:
23
24 (A) DETERMINE WHETHER THE REQUEST IS COMPLIANT WITH
25 THE PRECEDING ARTICLE AND WHETHER THE BARGAINING UNIT
26 SOUGHT TO BE REPRESENTED IS ORGANIZED OR NOT; AND
27
28 (B) REQUEST A COPY OF THE PAYROLL FOR PURPOSES OF
29 SEBA CERTIFICATION PURSUANT TO THE NEXT PRECEDING ARTICLE.
30
31 IF THE REGIONAL DIRECTOR FINDS THE SUBMISSION
32 DEFICIENT, THE REQUESTING UNION OR LOCAL SHALL BE ADVISED
33 TO COMPLY WITHIN TEN (10) DAYS FROM NOTICE. FAILURE TO
34 COMPLY WITHIN THE PRESCRIBED PERIOD SHALL BE DEEMED AS A
35 WITHDRAWAL OF THE REQUEST FOR SEBA CERTIFICATION.”
36
37 SEC. 17. A new section denominated as ART. 272-D is inserted after ART. 272-C of
38 PD No. 442, to read as follows:
39
40 “ART. 272-D. IF THE REGIONAL DIRECTOR FINDS THE
41 ESTABLISHMENT UNORGANIZED WITH ONLY ONE (1) LEGITIMATE
42 LABOR ORGANIZATION, THEY SHALL CALL A CONFERENCE WITHIN
43 FIVE (5) WORKDAYS FOR THE SUBMISSION OF THE FOLLOWING:
44
45 (A) THE NAMES OF EMPLOYEES IN THE COVERED BARGAINING
46 UNIT WHO SIGNIFY THEIR SUPPORT FOR THE CERTIFICATION,
47 PROVIDED, THAT SAID EMPLOYEES COMPRISE AT LEAST MAJORITY
48 OF THE NUMBER OF EMPLOYEES IN THE COVERED BARGAINING
49 UNIT; AND

7
 1 (B) CERTIFICATION UNDER OATH BY THE PRESIDENT OF THE
2 REQUESTING UNION OR LOCAL THAT ALL DOCUMENTS SUBMITTED
3 ARE TRUE AND CORRECT BASED ON THEIR PERSONAL KNOWLEDGE.
4
5 THE SUBMISSION SHALL BE PRESUMED TO BE TRUE AND
6 CORRECT UNLESS CONTESTED UNDER OATH BY ANY MEMBER OF
7 THE BARGAINING UNIT DURING THE VALIDATION CONFERENCE. FOR
8 THIS PURPOSE, THE EMPLOYER OR ANY REPRESENTATIVE OF THE
9 EMPLOYER SHALL NOT BE DEEMED A PARTY-IN-INTEREST BUT ONLY
10 AS A BY-STANDER TO THE PROCESS OF CERTIFICATION.
11
12 IF THE REQUESTING UNION OR LOCAL FAILS TO COMPLETE THE
13 REQUIREMENTS FOR SEBA CERTIFICATION DURING THE
14 CONFERENCE, THE REQUEST FOR SEBA CERTIFICATION SHALL BE
15 REFERRED TO THE APPROPRIATE MEDIATOR-ARBITER FOR THE
16 CONDUCT OF CERTIFICATION ELECTIONS.
17
18 IN NO CASE SHALL “NO UNION” BE INCLUDED IN THE BALLOT
19 FOR THE CERTIFICATION ELECTIONS.”
20
21 SEC. 18. A new section denominated as ART. 272-E is inserted after ART. 272-D of
22 PD No. 442, to read as follows:
23
24 “ART. 272-E. IF THE REGIONAL DIRECTOR FINDS THE
25 REQUIREMENTS COMPLETE, THEY SHALL ISSUE DURING THE
26 CONFERENCE A CERTIFICATION AS SOLE AND EXCLUSIVE
27 BARGAINING AGENT ENJOYING THE RIGHTS AND PRIVILEGES OF AN
28 EXCLUSIVE BARGAINING AGENT OF ALL THE EMPLOYEES IN THE
29 COVERED BARGAINING UNIT.
30
31 THE REGIONAL DIRECTOR SHALL CAUSE THE POSTING OF THE
32 SEBA CERTIFICATION FOR FIFTEEN (15) DAYS IN AT LEAST TWO (2)
33 CONSPICUOUS PLACES IN THE ESTABLISHMENT OR COVERED
34 BARGAINING UNIT.”
35
36 SEC. 19. A new section denominated as ART. 272-F is inserted after ART. 272-E of
37 PD No. 442, to read as follows:
38
39 “ART. 272-F. UPON THE ISSUANCE OF THE CERTIFICATION AS
40 SOLE AND EXCLUSIVE BARGAINING AGENT, THE CERTIFIED UNION
41 OR LOCAL SHALL ENJOY ALL THE RIGHTS AND PRIVILEGES OF AN
42 EXCLUSIVE BARGAINING AGENT OF ALL THE EMPLOYEES IN THE
43 COVERED BARGAINING UNIT.
44
45 THE CERTIFICATION SHALL BAR THE FILING OF A PETITION FOR
46 CERTIFICATION ELECTION BY ANY LABOR ORGANIZATION FOR A
47 PERIOD OF ONE (1) YEAR FROM THE DATE OF ITS ISSUANCE. UPON
48 EXPIRATION OF THIS ONE (1)-YEAR PERIOD, ANY LEGITIMATE LABOR
49 ORGANIZATION MAY FILE A PETITION FOR CERTIFICATION ELECTION
50 IN THE SAME BARGAINING UNIT REPRESENTED BY THE CERTIFIED

8
 1 LABOR ORGANIZATION, UNLESS A COLLECTIVE BARGAINING
2 AGREEMENT BETWEEN THE EMPLOYER AND THE CERTIFIED LABOR
3 ORGANIZATION WAS EXECUTED AND VALIDLY REGISTERED WITH
4 THE REGIONAL OFFICE.”
5
6 SEC. 20. A new section denominated as ART. 272-G is inserted after ART. 272-F of
7 PD No. 442, to read as follows:
8
9 “ART. 272-G. IF THE REGIONAL DIRECTOR FINDS THE
10 ESTABLISHMENT UNORGANIZED WITH MORE THAN ONE LEGITIMATE
11 LABOR ORGANIZATION, THEY SHALL REFER THE SAME TO THE
12 APPROPRIATE MEDIATOR-ARBITER FOR THE CONDUCT OF
13 CERTIFICATION ELECTION.
14
15 THE CERTIFICATION ELECTION SHALL BE CONDUCTED IN
16 ACCORDANCE WITH ARTICLE 269.”
17
18 SEC. 21. A new section denominated as ART. 272-H is inserted after ART. 272-G of
19 PD No. 442, to read as follows:
20
21 “ART. 272-H. IF THE REGIONAL DIRECTOR FINDS THE
22 ESTABLISHMENT ORGANIZED, THEY SHALL REFER THE SAME TO THE
23 MEDIATOR-ARBITER FOR THE DETERMINATION OF THE PROPRIETY
24 OF CONDUCTING A CERTIFICATION ELECTION IN ACCORDANCE WITH
25 ARTICLE 268.”
26
27 SEC. 22. If any portion or provision of this Act is declared unconstitutional or invalid, the
28 other provisions hereof shall remain in full force and effect.
29
30 SEC. 23. All laws, presidential decrees, proclamations, executive orders, issuances, rules
31 and regulations, or parts thereof, inconsistent with this Act are hereby modified accordingly.
32
33 SEC. 24. This Act shall take effect fifteen (15) days after its publication in the Official
34 Gazette or in a newspaper of general circulation.

Approved,