WHEREAS, there is a need to professionalize the labor dispute settlement machinery;

WHEREAS, there is a further need of cleansing the National Labor Relations Commission of sectoral interests;

WHEREAS, these objectives necessitate changes in the National Labor Relations Commission;

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

SECTION 1. Articles 213, 214 215 and 216 of the Labor Code, as amended are hereby amended to read as follows:

"ART 213. National Labor Relations Commission. - There shall be a National Labor Relations Commission in the Ministry of Labor and Employment, composed of the Minister of Labor and Employment as Chairman and nine (9) Commissioners. In the absence of the Minister of Labor and Employment, his duly authorized Deputy Minister shall act as Chairman.

The Commission may sit en banc or in three divisions, each composed of three Members. It shall determine, by rules approved by the Chairman, the cases it shall decide en banc and those which a division shall decide. The decision of a division shall have the force and effect of a decision of the Commission.

The Minister of Labor and Employment shall exercise administrative supervision over the Commission, its regional branches and their personnel. The Presiding Commissioner of the First Division shall act as the Vice-Chairman of the Commission and shall be its day-to-day administrator."

"ART. 214. Headquarters and branches. - The Commission shall have its main office in Metropolitan Manila and shall establish as many branches as there are regional offices of the Ministry of Labor and Employment, with as many Labor Arbiters as shall be necessary for its effective operation, each branch to be headed by an Executive Labor Arbiter."

"ART. 215. Appointment and qualifications. - The Commissioners shall have at least five (5) years experience in handling labor-management relations and the Executive Labor Arbiters and Labor Arbiters shall have at least two (2) years experience in the same field. In addition, the Commissioners, Executive Labor Arbiters and Labor Arbiters shall be members of the bar.

The Commissioners shall be appointed by the President for a term of six (6) years without prejudice to reappointment. Of the Commissioners first appointed, there shall hold office for six (6) years, three for four (4) years, and three for two (2) years. Appointment to any vacancy shall be only for the unexpired portion of the predecessor's term. The Executive Labor Arbiters and Labor Arbiters shall also be appointed by the President and shall be subject to the Civil Service Law and rules and regulations.

The Minister of Labor and Employment shall appoint the staff and employees of the Commission and the regional branches as the needs of the service may require, subject to the Civil Service Law and rules and regulations.

"ART. 216. Salaries. - The Commissioners shall receive an annual salary of not less than eighty-seven thousand (P87,000.00) pesos and the Labor Arbiters shall receive an annual salary of not less than seventy-two thousand (P72,000.00) pesos."

SECTION 2. All laws, orders, issuances, rules and regulations or any part thereof inconsistent with this Executive Order are hereby repealed or modified accordingly.

SECTION 3. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 10th day of September in the year of Our Lord, nineteen hundred and eighty-six.


By the President:

JOKER P. ARROYO
Executive Secretary