ECOP has submitted its position paper in regard to Senate Bill 632 filed earlier by Sen. Jinggoy Ejercito Estrada that seeks to limit the power of assumption or certification of labor disputes by the Labor Secretary to activities or undertaking which involve essential services.

The Estrada bill, in effect, envisions to amend Article 263 (g) of the Labor Code of the Philippines.

According to Estrada, the proposed measure seeks to limit the Labor Secretary's power to assume jurisdiction over dispute settlement to essential services only, such as hospital, water supply, electrical, and transportation. "By doing so, the interruption in the delivery of these basic services, due to lockouts and strikes, would not be inimical to, public health and safety," he pointed out.

In reaction, ECOP President Edgardo G. Lacson noted that such definition and enumeration of essential services do not include services whose interruption would undermine economic and social stability such as the following which is not exhaustive:
• banking
• generation of power
• telephone and other communication services
• supply and distribution of foodstuff
• radio and television
• export-oriented sector, particularly semiconductors
• petroleum sector

The limited coverage of essential services as defined would have serious adverse impact on the economy if such vital industries as the generation of power, telephone and other communication services, the production and distribution of oil products, banking, supply and distribution of foodstuff were struck, Lacson argued.

In a country like the Philippines where the incidence of poverty constitutes over 32% of the population, the domino effects of unregulated strikes in many of the industries excluded could bring about widespread suffering and scare away investments, Lacson warned.

"The impact on the economy and the population would be far-reaching if the country is held hostage by a strike in the power generation industry," Lacson pointed out.
The concept of essential services would also forbid government intervention in strikes in the banking industry. Thus, Lacson said the destructive impact on business, depositors and the economy would be "incalculable" if major banks are struck and forced to suspend operations for the duration of the strike.