SUMMARY OF CRITICAL BILLS ENDORSED
AND OPPOSED BY ECOP
2014 – 2015
Atty. Vicente Leogardo, Jr.
ECOP General Membership Meeting
December 10, 2015

Unique Role of ECOP vis-à-vis Pending Labor Bills
1. ECOP in the exercise of its core functions within the scheme of tripartism is vested with the unique role and competency of responding to and articulating the interests of employers vis-à-vis pertinent labor bills filed in both Houses of Congress.
2. ECOP has responded to a total of 108 labor and labor-related bills from 2014 to 2015.
3. A total of 46 bills were endorsed by ECOP, 10 endorsed with qualifications while 64 were opposed.
4. Many of the bills opposed contain criminal sanctions which punish employers with fines or imprisonment or both for violations of or non-compliance with their prescriptions.

5. ECOP considers the legislative policy of prescribing criminal sanctions against employers for noncompliance with legislative measures as a myopic and an inane policy: a) It is not the best way to attract investments; b) If the sanctions are imposed, the employer loses his business while the workers lose their jobs.
6. ECOP has long advocated that in lieu of penal sanctions, violations or non-compliance should be subject only to civil liability

LABOR AND RELATED BILLS FILED IN CONGRESS
2014
Total
Endorsed
With qualifications
Opposed
55
32
5
18
LABOR AND RELATED BILLS FILED IN CONGRESS
2015
Total
Endorsed
With qualifications
Opposed
63
14
5
46

SAMPLES OF IMPORTANT BILLS ENDORSED
BY ECOP

Unnumbered HB, “An Act Granting Incentives to
Individuals and Enterprises for the Creation of Green
Jobs and Appropriating Funds Therefor and for other
Purposes”
1. A critical policy objective of the Bill is to promote the rights of the people to a healthful and balanced ecology in accord with the rhythm and harmony of nature.
2. It mandates the State to identify needed skills, develop training programs and train and certify workers for jobs in industries that produce goods and render services for the benefit of the environment, conserve natural resources and ensure the sustainable development of the country in its transition towards a green economy.

3. The DOLE shall, in coordination with other government agencies formulate a national green jobs human resource development plan on the development, enhancement, and utilization of the labor force both in the private and public sectors; and
4. Creates an incentive scheme to encourage individuals to engage in green jobs and business enterprises to operate and sustain green jobs in accordance with the
National Green Jobs Human Resource Development
Plan to be formulated by the DOLE and implemented in coordination with other government agencies

HB No. 5468, “ An Act Institutionalizing the Nationwide
Implementation of JobStart Philippines Program and
Providing Funds Thereof”
1. The Bill seeks to institutionalize nationwide an existing pilot program, JobStart Philippines .
2. The program is an employment facilitation initiative of the DOLE financed by the Government of Canada and administered by the ADB.
4. The program aims to enhance the employability of young adults in two ways: a) Providing career guidance, access to labor market information and effective strategies for their job searches; and b) Developing their skills and values necessary for success in the workplace.

5. Employers are expected to select beneficiaries that they feel are most suitable to their business requirements, assist in identifying training needs, and undertake to pay the beneficiaries at least 75% of the minimum wage (as determined by the city/ municipality) as a stipend during the period of training .
6. For the duration of training, no employer-employee relationship; but after training trainee shall be given preference in the hiring of workers by the participating establishment
7. The Bill provides for a supplemental budget of
P150,000,000 DOLE’s regular budget for the current fiscal year.
8. Thereafter such sums as may be necessary for I implementation of the nationwide JobStart program shall be included in the General Appropriations Act.

HB No. 2473, “An Act Providing for a Flexible Working
Schedule on the Private Sector, thereby Amending
Articles 83, 85 and 87 of Presidential Decree No. 442, as Amended, otherwise Known as the Labor Code”
1. Amends Art. 83 of the Labor Code which provides that the normal hours of work of any employee shall not exceed 8 hours a day with the proviso that the work week of an employee may be compressed by extending his normal daily working hours not exceeding 10 hours a day subject to regulations of the DOLE secretary to protect the interest of employees.

2. Amends Art. 87 of the Labor Code on overtime pay which provides for additional compensation of at least
25% thereof for work performed beyond 8 hours a day with the proviso: “in case of a valid compressed workweek as provided herein, the overtime pay shall be paid for work in excess of his allowable work
3. Amends Art. 85 of the Labor Code which provides that every employer shall give his employees not less than
60 minutes time-off for their regular meals with following proviso: “in case the meal period is less than sixty (60) minutes, it shall be deemed part of the working hours in a day.”

ECOP Position
1. The amendments break the inflexibility of the 8-hour labor law by providing for a compressed workweek that gives employers and workers flexibility in fixing hours of work compatible with business requirements and the employees’ need for longer rest days.
2. The Supreme Court in the case of ” Bisig Manggagawa sa Tryco et al. vs. NLRC, et al.
(G. R. No.
151309, Oct. 15, 2008) has sanctioned compressed work week as both beneficial to employers and workers.

3. The proposed amendment to Art. 87 on meal periods not only provides flexibility to both employer and employees on the duration of the meal period but it is also fair to the employees who should be paid correspondingly for work done during the meal period.

SAMPLES OF CRITICAL BILLS OPPOSED
BY ECOP

HB No. 4338 - “An Act to Protect Workers in the
Event of Company Closures or Cessation of
Operations by Establishing the Mechanism and
Proper Standards Therefor and for Other Purposes”
1. Prohibits an employer to close, mass lay-off, shut down or cease operations until the end of a 90-day period after the employer serves written notice of such order: a) To each affected employee; b) To each collective bargaining representative; c) To the chief elected official of the local government unit within which such closing or lay-off to occur, and d) To the Labor Protection Board as herein created.

2. During the 90-day period, the employer shall allow the employee to use paid-time work to seek alternative employmen t
3. Creates the Workers Protection Board composed of a
Chairman and 2 members nominated and elected in a Labor Conference attended by delegates representing major labor federations called by the purpose except for the Chairman who shall be appointed by the President from a selection of 3 nominees submitted by the Labor Conference
4. The Labor Conference shall be held within 30 days from the effectivity of this Act and shall be attended by delegates representing major labor federations

5. Powers and functions of the WBP: a) Investigate companies that would undergo closure or cessation of operations, shutdown, rotation or retrenchment of workers/employees due to labor saving devices, to prevent losses, dissolution, insolvency or bankruptcy; b) Compel the disclosure and submission of book of accounts and other financial records of such companies; c) Issue subpoenas to compel attendance of any official of such companies to the investigation; d) Hold custody of the company’s machinery and other production equipment from the commencement of the investigation, or to require the posting of bond or both to secure the interest of the affected workers;

e) Ensure that payment of wages/salaries and other benefits were being made continuously while the company is undergoing investigation; f) Ensure the issuance of notices to workers as required under this Act and the enforcement of the period to seek alternative employment; g) Facilitate the immediate release of monetary claims of workers which may be made through banks or which may be deemed sufficient by the
Board; h) Conduct quarterly inspection on the books of accounts and financial records of the companies registered with the SEC; and i) Initiate legal action against any company found to violate any provision of this Act.

5. Penalties for violation of notification requirements a) Back pay for each day of violation, including benefits and contributions; b) Mandatory severance pay; and c) Civil penalty of P15,000.00 for each day of violation if the employer fails to pay his total liabilities within
3 weeks from order of closure, mass lay-off or cessation of operations.
6. Penalties: violation of right to seek alternative employment: P15,000.00 for each day of violation.

Comments
A.
1. Jurisprudence has reiterated time and again that the exercise of management prerogative which includes hiring and firing is not subject to interference so long as it is done in good faith based on the exigencies of business and not intended to circumvent the legal rights of labor (Royal Plant Workers Union vs. Coca-Cola
Bottlers Philippines, Inc.-Cebu Plant, G.R. No. 198783, April 15,
2013)
2. Accordingly, so long as the dismissal of an employee is in accordance with law and jurisprudence the exercise of such prerogative cannot be subject to interference.

B.
1. The Labor Code has already provided for a 30-day notice, both to the employees affected as well as the
DOLE, prior to the intended date of retrenchment, lay-off, or closure of the establishment.
2. The 30-day notice period under the Labor Code is reasonable enough for both the workers and the employer. Providing for a 90-day period would be confiscatory as it unduly exposes the employer to higher risk of losses.
3. Considering that cessation of operations is most likely due to serious financial losses, mandating employers to pay employees for non-productive time to seek employment elsewhere is a violation of the right to property of the employer.

C.
1. Inasmuch as the law does not prohibit the affected workers to seek employment even prior to the actual date of termination, the provision allowing said workers to seek alternative employment using paid work time is unreasonable and has no basis both on l aw and equity.
2. It merely adds to the burden that the employer carries.
Considering that cessation of operations is most likely due to serious financial losses, mandating employers to pay employees for non-productive time to seek employment elsewhere is a violation of the right to property of the employer.

D. The Workers Protection Board (WPB)
1. The conception of the WCB is inherently egregious and should have no place in our labor statutes.
Composed exclusively of labor representatives as its members, the WPB is an anomalous administrative monstrosity, a kangaroo court that sits as judge, jury and executioner for violations of egregious prescribed proscriptions against the lawful exercise of the management
2. It is not accountable to any Department, office, or agency of the government, and its members sit in perpetuity as there is no provision for their term of office as well as their qualifications and compensation.

3. It usurps the visitorial and enforcement power of the
DOLE Secretary as well as the jurisdiction of the
Labor Arbiters of the NLRC, particularly cases involving termination, as well as the jurisdiction of the
Regional Offices of the DOLE particularly on simple money claims under Art. 128, Labor Code.
4. Its powers and functions cut across the powers of the
Securities and Exchange Commission, considering that the bill authorizes the WCB to examine the books of accounts of establishments registered with the SEC
5. It also has the power to subpoena documents and officers of any establishment, as well as to require the attendance of other parties for the purpose of conducting an investigation, which under our jurisdiction is only vested with those clothed with judicial or quasi-judicial functions.

6. It likewise has the power to hold into custody the company’s machinery, equipment, and require the posting of bond.
7. Yet despite its vast and enormous powers provided for under the Bill, there is no provision for appeal of its decisions or actions by the aggrieved employer.
8. Neither is there a provision to which branch of government it is accountable or subject to supervision

ECOP Position
1.The WBP whose members are exclusively labor representatives and whose appointment, qualifications and term of office are undefined, functions as a kangaroo court and as an administrative monstrosity which has no place in a democratic system of government.
2. The confiscatory impact of the prescriptions and proscriptions of the Bill would virtually transform the
Philippines into an investment pariah at a time when the Philippines is engaged in a vigorous campaign to attract and increase investment and business expansion as the antidote to poverty and unemployment.

HB No. 2543, “ An Act Allowing Aliens to Exercise Their
Right to Self-Organization and Withdrawing Regulation of Foreign Assistance to Trade Unions, Amending for the Purpose Presidential Decree No. 442, as Amended,
Otherwise known as the Labor Code of the Philippines”
1. The Bill seeks to remove the prohibition against aliens, natural or juridical and foreign organizations, from engaging, directly or indirectly in all forms of trade union activities. Such intentiongives rise to the following issues of constitutional dimensions: a) Whether said aliens may be allowed to engage in trade union activities, directly or indirectly, as an exercise of right allegedly derived from the Bill of
Rights in the Constitution;

b) Whether the present prohibitions under Articles 269 and 270 of the Labor Code are violative of such right; and as a corollary c) Whether engagement in trade union activities by aliens are subject to regulation by the State in the exercise of its police ower in the interest of national security.
Comments
1. The rights secured in the Bills of Rights in the
Constitution include social and economic rights as well as political and civil rights. What is relevant for purposes of resolving the issues under consideration is whether trade union activities involve the exercise of a civil right or political right.

2. Political rights are rights of citizens which give them the power to participate, directly or indirectly, in the establishment or administration of the government.
3. Civil rights are those rights which the law will enforce at the instance of private individuals for the purpose of securing to them the enjoyment of their means of happiness. Freedom of speech, of expression or of the press, the right of assembly and petition, and the right to form associations are some of the civil rights.
However, they partake the nature of political rights when they are utilized as a means to participate in government. Vera vs. Avelino, 77 Phil. 221)

.
4 . Civil rights include such rights as due process, and equal protection of the laws; the right against involuntary servitude and imprisonment for nonpayment of debt or a poll tax; the constitutional rights of the accused
5. Inasmuch as labor organizations, employers organization and government continuously engage in policy formulation and rule making insofar as their mutual interests are concerned primarily through tripartism as mandated by law, it follows that such involvement which also encompasses trade union activities, constitutes a political right that only citizens, natural or juridical, may exercise.

6. Moreover, allowing aliens, natural and juridical, to engage in an unregulated manner in all forms of union activities, poses serious and imminent danger to peace and security as it offers a gaping window of opportunity for subversives and terrorist to infiltrate t rade unions and similar organizations to carry on their insidious operations and ideology

SB No. 29 – “An Act Prohibiting the Discrimination on the Employment of any Individual on the Basis Merely of
Age”
Salient Features
Declares as unlawful for an employer to:
1. Advertise job opening with age preferences
2. Require declaration of age or birthdate during the application process
3. Decline employment application because of the individual's age
4.Discriminate against an individual on terms and conditions of employment on account of such individual's age
5. Deny any employee's promotions or opportunities for trainings on the basis of his/her age;

6. Forcibly lay-off an employee merely because of old age;
7. Impose early retirement on the basis of such employee's age;
8. Reduce the wage rate of any employee just to be able to comply with this Act.
9. Institution of seniority system and retirement plans must be approved by the DOLE Secretary
Penalties
Any violation of the Act shall be punished with a fine of
P50,000 to P500,000, or imprisonment of 3 months but not more than 2 years or both at the discretion of the
Court

ECOP Position
1. The Bill declares unlawful indispensable aspects integral to the lawful exercise of management prerogative which constitutes not only an unjustifiable interference on business decisions but also a blatant violation of management prerogative.
2. Empowering the DOLE Secretary to approve the institution of a seniority system and retirement plans in effect grants the former discretionary powers over such management decisions.
3. Imposition of penal sanctions for the legitimate exercise of management prerogative is ultra vires

HB No. 1904 “An Act Mandating Industries Engaged in the Exploitation of Natural Resources to Give
Preferential Employment to Local Residents, Amending for the Purpose the Labor Code of the Philippines”
Salient Features
1. The Bill seeks to add a new title to Book I of the Labor
Code:
Title III. Employment of Residents in Industries Engaged in the Development and Exploitation of Natural Resources
(Articles 43 – 45)

2. Under Article 44, industries engaged in the development and exploitation of natural resources shall give preference to the employment of residents in the province or city where the activities of the industries are conducted, while the employment of managerial employees shall only be made upon certification by the Bureau of Employment Services that no residents are qualified for such position.
Penalties
V iolation of the foregoing prescriptions shall be deemed unlawful and shall be prosecuted and punished under
Articles 288 and 289 of the Labor Code.

ECOP Position
1. The foregoing prescriptions whose non-compliance by the employer is punishable with criminal sanctions, transgress the rights of employers protected by law and the Constitution.
2. The compulsion for preferential employment is not qualified by any standard of competence as determined by the employer based upon the operational requirement of his business.

4. Thus, compelling employers under pain of criminal sanctions to give preferential employment to residents without any qualifications standards whatsoever not only encroaches on management prerogative but likewise constitutes violation of the equal protection clause by arbitrarily excluding outsiders whom the employer may determine as more qualified.

HB No. 4545, “An Act Limiting the Power to Assume jurisdiction Over Labor Disputes Involving Essential
Services by the President of the Philippines, Amending for this Purpose Article 263 (g) of Presidential Decree
No. 442, as Amended, Otherwise Known as the Labor
Code of the Philippines.”
S alient Feature
1. Removes the power of the DOLE Secretary and the
President to assume jurisdiction over labor disputes in industries indispensable to the national interest and instead limits its exercise to the President alone but only over labor disputes in An industry performing essential services.
.

ECOP Position
1. Limiting the power of assumption over labor disputes involving only essential services would exclude industries whose interruption over time would cause adverse and destructive effects on economic and social stability
2. Such industries include generation and distribution of power supply, the production and distribution of oil products, communication utilities, banking, transportation, supply and distribution of foodstuff, hospitals, where strikes and their settlement are to be left to attrition and staying power of the parties.

SB No. 165 “An act to Prohibit Employment
Discrimination on the Basis of Sexual Orientation”
SB No. 1489 “An Act to Prohibit Employment
Discrimination on the Basis of Sexual Orientation
SB No. 1641, “An Act Prohibiting Discrimination on the
Basis of Sexual Orientation and Providing Penalties
Therefore”
SB No. 1738, “An Act Prohibiting Discrimination on the
Basis of Sexual Orientation and Gender Identity and
Providing Penalties Therefor”
Salient Features
1. All bills prescribe and proscribe employment discrimination on the basis of sexual orientation.
However there are differing definitions of sexual orientation.

2. SB Nos. 165 & 1489 defines sexual orientation as
“homosexuality, bisexuality or heterosexuality, whether such orientation is real or perceived.”
3. SB No. 1738 defines sexual orientation as “the direction of emotional and/or sexual attraction or conduct. This can be towards people of the same sex
( homosexual orientation ) or towards people of both sexes ( bisexual orientation ) or towards people of the opposite sex ( heterosexual orientation ).”

4. Prohibited practices: a) SBs 165 & 1489 prohibit an employer, employment agency, or labor organization and joint labor management committee from engaging in specified
“unlawful employment practice(s)” b) Exempt religious organizations from coverage and do not apply to the Armed Forces. c) SB Nos. 1641 and 1738 makes it unlawful for “any person, group, institution or establishment” to engage in prescribed discrimination practices.
d) Do not provide for exemption to religious organizations and military service.

Penalties
1. SB 165: criminal liability for commission of any unlawful act or any violation of the rules and regulations shall be penalized under Articles 288 and
289 of the Labor Code
2. SB 1489: Criminal liability for commission of any unlawful act or any violation of the rules and regulations shall be penalized under Articles 288 and
289 of the Labor Code
3. SB 1641: Persons found guilty of any of the enumerated discriminatory practices shall be penalized with a fine of not less than Pl0,000 or imprisonment of not less than 1 month but not more than one year, or both at the discretion of the court.

4.SB 1738: Persons found guilty of any of the enumerated discriminatory practices shall be penalized with a fine of not less than P100,00 but shall not exceed P500,000 or imprisonment of not less than 4years but not more than 6 years, or both, at the discretion of the court
ECOP Position
1. The legislative intent to create “rights” based on purported sexual orientation or gender identity
(SOGI) is bad policy, without basis, and wholly problematic. It will lead to substantial long-term confusion and ironically, discrimination.

2. There is credible opinion that “no scientific consensus exists that homosexuality is genetic. And there is no consensus on the nature and origin of sexual orientation.”
3. The definitions of sexual orientation and gender identity are ambiguous and superficial.
4. The SOGI Bill is penal in nature but it has not delegated to any administrative agency the standards for its implementation and enforcement.
5. The Bill to be effective: a) must be able to identify properly those covered by the protection it offers; and b) capable of being implemented by the police or judicial system in terms of evidence.

47