MALACAŅANG
M a n i l a
PRESIDENTIAL DECREE No. 823 November 3, 1975
STRENGTHENING FREE COLLECTIVE BARGAINING AND TRADE UNIONISM WITHIN THE FRAMEWORK OF VOLUNTARY AND COMPULSORY ARBITRATION, PROHIBITING STRIKES AND LOCKOUTS DURING THE PERIOD OF NATIONAL EMERGENCY AND REGULATING FOREIGN ACTIVITIES IN THE LABOR FIELD
WHEREAS, Proclamation No. 1081 dated September 21, 1972 was issued by me to establish the conditions under which the security of the Republic can be insured and far reaching economic and social reforms achieved;
WHEREAS, it is the policy of the State to encourage trade unionism and free collective bargaining within the framework of arbitration, voluntary or mandatory;
WHEREAS, the stability of labor-management relations and of industrial peace is essential to national security and to the purposeful pursuit of economic development and social justice for all our people;
WHEREAS, to insure the stability of labor-management relations and protect the gains of the New Society, it is necessary to prohibit strikes and lockouts during the period of national emergency and to regulate the activities of certain persons, organizations and entities, whether foreign or national;
WHEREAS, the interest of national security and the strengthening of national sovereignty over the inviolable territory of the Republic of the Philippines during a period of national emergency warrants the imposition of sufficient administrative controls over the activities of aliens and foreign organizations in the labor field, including the friends of the country whose concern for the welfare of the Filipino worker is deeply appreciated;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the power vested in me by the Constitution do hereby order and decree as follows:
Section 1. It is the policy of the State to encourage trade unionism and free collective bargaining within the framework of compulsory and voluntary arbitration and therefore all forms of strikes, picketing and lockouts are hereby strictly prohibited.
Section 2. For purposes of this decree the term "strike" shall comprise not only concerted work stoppages, but also slowdowns, mass leaves, sitdowns, attempts to damage, destroy or sabotage plant equipment and facilities, and similar activities.
Section 3. The term "lockout" shall comprise shutdowns, mass retrenchment and dismissals without previous written clearance from the Secretary of Labor or his duly authorized representative.
Section 4. Except on grounds of national security and public peace, no union members or union organizers may be arrested or detained for union activities without previous consultations with the Secretary of Labor or the commission of a crime.
Section 5. The Department of Labor, at the initiative of the Secretary of Labor, shall extend special assistance to the organization, for purposes of collective bargaining, of the most underprivileged workers who, for reasons of occupation, organizational structure or insufficient incomes are not normally covered by major labor organizations or federations.
Section 6. The Institute of Labor and Manpower Studies shall render technical and other forms of assistance to labor organizations and employer organizations in the field of labor education, especially pertaining to collective bargaining, arbitration, labor standards and the Labor Code of the Philippines in general.
Section 7. All aliens, natural or juridical, as well as all foreign organizations are strictly prohibited from engaging directly or indirectly in all forms of trade union activities without prejudice to normal contacts between Philippine trade unions and recognized international labor centers.
Section 8. No person, organization or entity, whether foreign or national, may give any donations, grants or other forms of assistance, in cash or in kind, directly or indirectly to any labor organization, group of workers or any auxiliary thereof, such as cooperatives, credit unions and institutes engaged in research, education or communications without prior written permission by the Secretary of Labor. The Secretary of Labor shall promulgate rules and regulations to regulate and control the giving and receiving of such donations, grants or other forms of assistance, including the mandatory reporting of amounts of donations or grants, the specific recipients thereof, the projects or activities proposed to be supported and their duration.
Section 9. Upon the recommendation of the Secretary of Labor and the Secretary of National Defense, foreigners who violate the provisions of this Decree shall be subject to immediate and summary deportation by the Commission on Immigration and Deportation and shall be permanently barred from re-entering the country without the special permission of the President of the Philippines.
Section 10. Where a labor dispute has not been resolved by the Regional Offices, the Bureau of Labor Relations, the National Labor Relations Commission and the voluntary arbitrators within the reglementary period, the Secretary of Labor is hereby authorized to assume jurisdiction over and summarily decide such dispute which poses an emergency or is critical to the national interest as determined by him on advise and recommendation of the Undersecretary of Labor, the Chairman of the National Labor Relations Commission and the Director of the Bureau of Labor Relations. The decision of the Secretary of Labor shall be final and executory unless stayed by the President of the Philippines.
Section 11. Any person violating this Decree shall forthwith be arrested and taken into custody and held for the duration of the national emergency or until he or she is otherwise ordered released by me or by my duly designated representative.
Violations of this Decree by any legitimate labor organizations shall be a ground for disciplinary action including but not limited to the cancellation of their registration permits.
Section 12. The provisions of this Decree pertaining to foreign organizations and activities shall be deemed applicable likewise to all organizations of farm tenants, rural workers, and the like, provided that in appropriate cases the Secretary of Agrarian Reform shall exercise the powers and responsibilities vested by this Decree in the Secretary of Labor.
Section 13. The Secretary of Labor is hereby empowered to issue rules and regulations to implement effectively the provisions of this Decree.
Section 14. This Decree shall form part of the Labor Code of the Philippines.
Section 15. All laws, decrees, general orders and letters of instructions inconsistent with or contrary to this Decree are hereby repealed.
Done in the City of Manila, this 3rd day of November, in the year of Our Lord, nineteen hundred and seventy-five.
RULES AND REGULATIONS IMPLEMENTING
PRESIDENTIAL NO. 823, AS AMENDED
Pursuant to Section 13 of Presidential Decree No. 823, as amended, the following Rules and Regulations are hereby promulgated to implement said Decree:
Section 1. Statement of policy. It is the policy of the State to encourage free trade unionism and free collective bargaining within the framework of compulsory and voluntary arbitration. Strikes, picketing and lockouts may be resorted to only in accordance with these Rules and Regulations.
Section 2. Definition of terms. For purposes of these Rules
(a) "Strike" shall mean any stoppage of work by the concerted action of employees in connection with a labor dispute arising from unresolved economic issues in collective bargaining in non-vital industries, called in accordance with these rules and regulations.
(b) "Lockouts" shall comprise shutdowns, mass retrenchment and dismissals, without previous written clearance from the Secretary of Labor or his duly authorized representative.
(c) "Labor organization" shall mean any labor union or any auxiliary thereof, such as a cooperative, a credit union and an institution engaged in research, education or communications.
(d) "Assistance" shall mean, unless the context clearly indicates otherwise, any donation, grant or any other form of aid, in cash or in kind, directly or indirectly given.
(e) "Vital industries" shall include public utilities, including transportation and communication, companies engaged in the manufacture, processing or distribution of fuel gas, gasoline and fuel or lubricating oil, companies engaged in the production or processing of essential commodities or products for export, and companies engaged in banking of any kind, as well as hospitals, schools and colleges.
Section 3. Protection of right to engage in union activities. No police authority, whether national or local, or military shall arrest or detain any union or related activity, without previous consultations with the Secretary of Labor or his duly authorized representative, except in cases involving national security, public peace or the commission of a crime.
The Secretary of Labor and the Secretary of National Defense shall work out the terms of inter-departmental cooperation for the effective implementation of this section.
Section 4. Assistance to underprivileged workers. The Department of Labor shall extend special assistance in the organization of the most underprivileged workers who, for reasons of occupation, organizational structure or insufficient income, are not normally covered by labor organizations. The Department shall also provide special assistance to such workers in obtaining benefits under labor standards laws and other social legislation, including provision for skills development and placement opportunities.
Section 5. Assistance to labor organizations. Any duly registered labor organization may request technical, educational and other forms of assistance from the Institute of Labor and Manpower Studies (ILMAS) directly or through the nearest Regional Office which shall forward the request to the ILMAS immediately. The request shall be in writing and accompanied by a statement indicating the nature of the assistance desired, the number of workers involved, and other pertinent information.
The ILMAS shall, from time to time, publicize the forms of educational assistance available to labor organizations and the requirements for eligibility thereto. Among others, the educational or technical assistance shall cover such matters as collective bargaining, arbitration, labor standards, industry practices, and the Labor Code in general.
Section 6. Assistance to employers. No employer may accept any assistance from any alien, foreign organization or entity in connection with trade union activities without previous written clearance from the Secretary of Labor. The prospective recipient employer may file an application with the Bureau of Labor Relations for permission to accept such assistance. The Bureau shall act within fifteen (15) working days from receipt of the application recommending to the Secretary of Labor granting or denial of such clearance. All recipient employers are required to submit to the BLR a quarterly report on the progress of any activity in connection with trade union activities assisted by any alien or foreign organization or entity, or otherwise submit a report upon the termination of such activity.
The Secretary of Labor or his duly authorized representative may from time to time subject foreign-assisted activities of employers to inspection and auditing.
Section 7. Requirements for strikes and lockouts. Strikes and lockouts may be declared only upon compliance with the following requirements:
(a) Ground for strike A strike may be declared by a legitimate labor organization which is the recognized bargaining agent of the appropriate bargaining unit in connection with unresolved economic issues in collective bargaining in non-vital industries.
(b) Ground for lockout A lockout may be declared only by an employer in connection with unresolved economic issues in collective bargaining in non-vital industries.
(c) Notices of strike or lockout A notice of strike or lockout on the foregoing grounds may be filed with the Bureau of Labor Relations or with the Regional Office having jurisdiction over the place of work. The notice shall be in four (4) copies and shall be sufficient if it substantially complies with the form prescribed by the Bureau of Labor Relations.
(d) Unauthorized strikes or lockouts Notices of strikes or lockouts involving industries, establishments or issues not covered or authorized under paragraphs (a) and (b) shall be dismissed, and the party filing the notice of strike or lockout shall be advised thereof.
(e) Conciliation Upon receipt of the notice of strike or lockout, the Conciliation Division in the Bureau of Labor Relations or the Labor Relations Division in the Regional Offices shall immediately call the parties to a conference. Failure to appear thereat shall subject the defaulting party to the disciplinary powers of the Bureau of Labor Relations, including a citation for contempt.
The Bureau of Labor Relations or the Labor Relations Division shall exert all efforts to effect a voluntary settlement within thirty days considered a cooling-off period. Should the dispute remain unsettled thereafter, the union may go on strike and the employer may lock out unless the President or the Secretary of Labor as his duly authorized representative certifies the dispute to the National Labor Relations Commission for compulsory arbitration in the interest of national security, public safety or public order, the protection of public health or morals or the rights and freedom of others. Such certification shall have the effect of automatically enjoining the strike or lockout.
If certified, the Commission shall decide the dispute within thirty working days after receipt of certification, which decision shall be final and executory unless appealed to the Secretary of Labor within ten days from receipt thereof on the ground of grave abuse of discretion only. The decision of the Secretary of Labor shall be final and executory unless stayed by the President.
If not certified, the union may strike and the employer may lock out. The Bureau shall continue conciliating. At any time during such strike or lock-out, however, the President or the Secretary of Labor as his duly authorized representative may, when public interest so requires, certify the dispute to the National Labor Relations Commission for compulsory arbitration. Upon certification, the striking employees shall return to work and the employer shall resume operations and readmit all employees pending resolution of the dispute.
Section 8. Disposition of emergency cases. The Secretary of Labor may assume jurisdiction over and summarily decide any labor dispute which
1. Has not been resolved by the Regional Offices, the Labor Arbiters, the Bureau of Labor Relations, the National Labor Relations Commission, or the voluntary arbitrators within the reglementary period; and
2. Poses an emergency or is critical to the national interest as recommended by a committee composed of the Undersecretary of Labor, the Chairman of the National Labor Relations Commission, and the Director of Labor Relations.
3. The decision of the Secretary of Labor shall be final and executory unless stayed by the President of the Philippines.
Section 9. Prohibited union activities of aliens. All aliens, foreign organizations, public or private, or their agents or representatives, are strictly prohibited from engaging directly or indirectly in all forms of trade union activity, including but not limited to:
(a) Organization, formation and administration of labor organizations;
(b) Organization or management of, or assistance in, union conventions, meetings, rallies, referenda, teach-ins, seminars, conferences and institutes;
(c) Any form of participation or involvement in representation proceedings, representation elections, consent elections, union elections;
(d) Negotiation and administration of collective bargaining agreements;
(e) All forms of concerted union action; and
(f) Other activities or actions analogous to the foregoing.
However, aliens and foreign organizations, public or private, or their agents or representatives may be authorized by the Secretary of Labor or his duly authorized representative to assist legitimate labor organizations in the implementation of their labor education programs, including seminars, conferences, institutes and workshops. The Secretary of Labor reserves the right to pass upon the contents of any educational courses from the standpoint of national policy.
For this purpose, applications may be filed with the Bureau of Labor Relations, stating, among others, the name and principal addresses here and abroad of the applicant, the names and postal addresses of its or his agents and representatives in the Philippines, a statement of the program of assistance, the amounts of assistance, the names and addresses of the recipients, the criteria for entitlement to such assistance, and other information which the Bureau may require.
Section 10. Continuity of normal contacts with International Labor Centers. Duly registered labor organizations may affiliate or maintain fraternal or other forms of relations, not contrary to law or to the objectives of the Decree, as amended, with recognized international labor centers, including but not limited to the International Confederation of Free Trade Unions (ICFTU), the World Confederation of Labor (WCL), the World Federation of Trade Unions (WFTU), the International Confederation of Free Trade Unions-Asian Regional Office (ICFTU-ARO), the Brotherhood of Asian Trade Unionists (BATU), established international trade secretariats, and other friendly foreign labor organizations.
Such labor organizations shall submit to the Bureau of Labor Relations a quarterly report on their activities in relation to their affiliation or fraternal and other forms of relations with such entities. The Bureau of Labor Relations shall prepare appropriate reporting forms for the purpose.
Section 11. Registration and reporting requirements.
(a) Aliens and Philippine-based foreign organizations or entities regularly giving assistance to any labor organizations shall apply for registration with the Bureau of Labor Relations. The application for registration shall include the following information: names and postal address of the applicant, names and postal addresses of its principal officers and staff, a statement of the nature and program, of assistance to be undertaken including the amounts, purposes and duration thereof, a list of prospective recipients of assistance, and other pertinent information which the Bureau may require.
(b) Duly registered aliens and foreign organizations or entities are required to submit a quarterly report on the progress of their activities in accordance with the approved programs, if any.
Section 12. Coordination of assistance by Bureau of Labor Relations.
(a) The United Nations or its specialized agencies or units as well as foreign governments and their agents and representatives are advised to notify the Bureau of Labor Relations of proposed assistance to any labor organization, any auxiliary thereof or its individual leaders, officers or members. The Bureau shall assist them, if necessary, in selecting appropriate recipients of approved assistance.
(b) All aliens and foreign organizations or entities not engaged regularly in giving assistance are also advised to notify the Bureau of Labor Relations of their proposed assistance. The Bureau shall assist them in selecting appropriate recipients of approved assistance.
Section 13. Clearance for assistance.
(a) No labor organization or its officers and members shall accept any assistance from any alien, foreign organization, entity or international labor center in relation to trade union activities without a previous written permission by the Secretary of Labor. The application for such permission shall be filed with the Bureau of Labor Relations.
(b) Recipient of donations, grants or other forms of assistance shall, whenever appropriate, submit a quarterly written report on such donations, grants or other forms of assistance received, including the benefits received by the workers, or otherwise submit a report upon the termination of such donation, grant or assistance. The Bureau shall prescribe appropriate forms for such report.
(c) Labor-oriented institutions such as employers' organizations research and education institutes, labor-management professional bodies, arbitration associations and similar organizations dealing with labor relations matters fall within the coverage of these Rules.
Section 14. Action on applications. The Secretary of Labor may grant or deny an application for clearance to accept donations, grants or other forms of assistance or an application for registration as a donor organization in accordance with criteria of national policy, including the promotion of social and economic development and the safeguarding of national security.
Section 15. Visitorial and additional powers of the Secretary of Labor.
(a) The Secretary of Labor or his duly authorized representative shall, from time to time, audit the programs of assistance of registered donors and recipient labor organizations or individuals, as the case may be. The audit shall include, among others, the inspection and auditing of the books of accounts, financial statements and activities in the implementation and administration of projects and programs.
(b) The Secretary of Labor or the Bureau of Labor Relations may, from time to time, make public the contents of reports pertaining to foreign donations and other forms of assistance.
Section 16. Transitory provisions.
(a) All labor organizations shall, within thirty days from the date of effectivity of these Rules and Regulations report to the Bureau of Labor Relations all donations, grants or other forms of assistance received during the last three years as well as the nature, purpose, duration thereof, and other pertinent information on existing arrangements, contacts or relations with international labor centers.
(b) All aliens and foreign organizations or entities already engaged regularly in giving assistance to any labor organization prior to the enactment of the Decree, as amended, shall apply for registration with the Bureau of Labor Relations within thirty days from the effectivity of these Rules and Regulations.
The application shall include a report of all assistance extended to labor organizations, groups of workers or any auxiliaries thereof during the last three years within thirty days from the effectivity of these Rules. The report shall specify the names and postal addresses of the recipient organizations and their principal officers, as well as the nature, amounts, purposes, and duration of the assistances extended. Pending approval or disapproval of their applications, they may continue their normal operations not contrary to law or the objectives of the Decree, as amended.
(c) No notice of strike or lockout may be filed with the Bureau of Labor Relations or the Labor Relations Division in the Regional Office in connection with a labor dispute already pending with a med-arbiter, labor arbiter, voluntary arbitrator, the National Labor Relations Commission, the Bureau of Labor Relations, the Secretary of Labor or the President of the Philippines. Parties to such pending dispute may petition the Secretary of Labor to assume jurisdiction and summarily decide such dispute under Section 10 of PD 823 if such dispute has been pending beyond the reglementary period at any level and poses an emergency or is critical to the national interest.
Section 17. Deportation of alien violators. Upon the recommendation of the Secretary of Labor and the Secretary of National Defense, foreigners who violate the provisions of this Decree shall be subject to immediate and summary deportation by the Commission on Immigration and Deportation and shall be permanently barred from re-entering the country without the special permission of the President of the Philippines.
Section 18. Assessment of emergency. The Secretary of Labor shall make a periodic assessment of all relevant factors and conditions in relation to the state of national emergency for the purpose of recommending to the President appropriate adjustments in policy.
Section 19. Penalties. Any person violating Presidential Decree 823 and this Rules and Regulations shall be punished by a fine of P1,000 to P10,000 and/or imprisonment of 1 year to 5 years and shall be dealt with under General Order No. 2-A and General Order No. 49.
Section 20. Effectivity. These rules and regulations shall take effect immediately.
Done in the City of Manila this 6th day of January, 1976.
The Lawphil Project - Arellano Law Foundation
