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WHEREAS, in order to make the on-going reorganization of the Department of Labor and Employment more responsive to the urgent demands of national economic recovery and to promote efficiency and effectiveness in the delivery of public services, it is vital that necessary and appropriate changes be further introduced in its reorganization;

WHEREAS, in line with the tripartite consensus there is a need to create a Tripartite Voluntary Arbitration Advisory Council attached to the National Conciliation and Mediation Board;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, do hereby order:

SECTION 1. Section 7 of Executive Order No. 126 is hereby amended to read as follows:

“SECTION 7. Office of the Secretary. – The Office of the Secretary shall consist of the Secretary and his immediate staff. In addition, there is hereby created in the Office of the Secretary a Joint RP-US Labor Committee Staff Unit which shall provide technical and other necessary services to the Philippine panel in the Joint Labor Committee created under the RP-US Base Labor Agreement and for other special projects. The Unit shall be headed by a Head Executive Assistant who shall be assisted by five (5) Staff Assistants.”

SECTION 2. Section 18 of Executive Order No. 126 is hereby amended to read as follows:

“SECTION 18. Bureaus. – The following staff bureaus of the Department are hereby retained and shall continue to have the same functions, except as otherwise provided herein:

(a)	Bureau of Local Employment;
(b)	Bureau of Women and Minors, which is hereby renamed as the Bureau of Women and Young Workers;
(c)	Bureau of Rural Workers;
(d)	Bureau of Labor Relations, which shall continue to perform its present functions except those to be absorbed by the National Mediation and Conciliation Board as provided under Section 29 (c) hereof; and
(e)	Bureau of Working Conditions

SECTION 3. Section 20 of Executive Order No. 126 is hereby amended to read as follows:

“SECTION 20. Institute For Labor Studies. – There is hereby created an Institute For Labor Studies, hereinafter referred to as the Institute, which shall be attached to the Department of Labor and Employment for policy and program coordination and administrative supervision. The Institute shall absorb the research and publication functions of the Institute of Labor and Manpower Studies which is hereby abolished in accordance with Section 29 (b) of this Executive Order. The Institute, to be headed by an Executive Director, shall have the following functions:

(a)	Undertake research and studies in all areas of labor and manpower policy and administration;
(b)	Review the rationale of existing legislation and regulations and analyze the costs involved in the implementation of such legislation against the benefits expected to be derived;
(c)	Study and develop innovative and indigenous approaches towards the promotion of harmonious and productive labor-management relations, and the improvement of workers’ welfare services;
(d)	Develop and undertake research programs and projects in collaboration with other national agencies to enhance the Department’s capability to participate in national decision and policy making;
(e)	Enter into agreements with international or bilateral agencies for the carrying out of the foregoing functions;
(f)	Expand the scope of its research interests into other countries and regions;
(g)	Publish its research studies for dissemination to government as well as to all concerned parties; and
(h)	Perform such other functions as may be provided by law or assigned by the Secretary.”

SECTION 4. Section 22 of Executive Order No. 126 is hereby amended to read as follows:

“SECTION 22. National Conciliation and Mediation Board. – A National Conciliation and Mediation Board, herein referred to as the “Board”, is hereby created and which shall absorb the conciliation, mediation and voluntary arbitration functions of the Bureau of Labor Relations in accordance with Section 29 (c) hereof. The Board shall be composed of an Administrator and two (2) Deputy Administrators. It shall be an attached agency under the administrative supervision of the Secretary of Labor and Employment.

The Administrator and the Deputy Administrators shall be appointed by the President upon recommendation of the Secretary of Labor and Employment. There shall be as many Conciliators-Mediators as the needs of the public service require, who shall have at least three (3) years of experience in handling labor relations and who shall be appointed by the Secretary.

The Board shall have its main office in Metropolitan Manila and its Administrator shall exercise supervision over Conciliators-Mediators and all its personnel. It shall establish as many branches as there are administrative regions in the country, with as many Conciliators-Mediators as shall be necessary for its effective operation. Each branch of the Board shall be headed by an Executive Conciliator-Mediator.

The Board shall have the following functions:

(a)	Formulate policies, programs, standards, procedures, manuals or operation and guidelines pertaining to effective mediation and conciliation of labor disputes;
(b)	Perform preventive mediation and conciliation functions;
(c)	Coordinate and maintain linkages with other sectors or institutions, and other government authorities concerned with matters relative to the prevention and settlement of labor disputes;
(d)	Formulate policies, plans, programs, standards, procedures, manuals for operation and guidelines pertaining to the promotion of cooperative and non-adversarial schemes, grievance handling, voluntary modes of dispute settlements;
(e)	Administer the voluntary arbitration program; maintain/update a list of voluntary arbitrations; compile arbitration awards and decisions;
(f)	Provide counseling and preventive mediation assistance particularly in the administration of collective agreements;
(g)	Monitor and exercise technical supervision over the Board programs being implemented in the regional offices; and
(h)	Perform such other functions as may be provided by law or assigned by the Secretary

A Tripartite Voluntary Arbitration Advisory Council is hereby created and attached to the National Conciliation and Mediation Board. The Tripartite Voluntary Arbitration Advisory Council shall advise the National Conciliation and Mediation Board on matters pertaining to the promotion of voluntary arbitration as the preferred mode of dispute settlement.

The Tripartite Voluntary Arbitration Advisory Council shall consist of the Administrator of the National Conciliation and Mediation Board as Chairman, one other member from the government, two members representing labor, and two other members representing management. The members shall be appointed by the President to serve for a term of three (3) years. The Chairman and Members thereof shall serve without compensation.”

SECTION 5. Section 24 of Executive Order No. 126 is hereby amended to read as follows:

“SECTION 24. Regional Offices, District Offices and Provincial Extension Units. – The Department is hereby authorized to establish, operate and maintain such Department-wide Regional Offices, District Offices and Provincial Extension Units in each of the administrative regions of the country, insofar as necessary to promote economy and efficiency in the delivery of its services. Each Regional Office shall be headed by a Regional Director who shall have supervision and control thereof. The Regional Director, whenever necessary, shall be assisted by an Assistant Regional Director. A Regional Office shall have, within its regional areas, the following functions:

(a)	Implement laws, policies, plans, programs projects, rules and regulations of the Department;
(b)	Provide economical, efficient and effective service to the people;
(c)	Coordinate with regional offices of other departments and agencies;
(d)	Coordinate with local government units;
(e)	Perform such other functions as may be provided by law or assigned by the Secretary.”

SECTION 6. All laws, orders, issuances, rules and regulations or parts thereof inconsistent with this Executive Order are hereby repealed or modified accordingly.

SECTION 7. This Executive Order shall take effect immediately.

Done in the City of Manila, this 25th day of July, in the year of Our Lord, nineteen hundred and eighty-seven.

By the President:

(Sgd.) JOKER P. ARROYO
Executive Secretary