Part ILAWS ON WAGES AND

WORKING HOURSPart II

COLLECTIVE BARGAININGby:

OMAR M. JACALNE

INDIVIDUAL RIGHTS OF WORKERS

Right to due process – (Article III Section 1 of the Philippine Constitution) Freedom of expression - (Article III Section 4 of the Philippine Constitution) Freedom of association - (Article III Section 8 of the Philippine Constitution)

PRESIDENTIAL DECREE 442,AS AMENDED. (Labor Code of the

Philippines)

A decree instituting a laborcode thereby revising andconsolidating labor and social lawsto afford protection to labor,promote employment and humanresources development and insureindustrial peace based on socialjustice.

Book III Conditions of EmploymentTitle I

WORKING CONDITIONS AND REST PERIODSChapter I

HOURS OF WORK ARTICLE 83. Normal hours of work. – The normal

hours of work of any employee shall not exceedeight (8) hours a day.

ARTICLE 84. Hours worked. – Hours worked shallinclude (a) all time during which an employee isrequired to be on duty or to be at a prescribedworkplace; and (b) all time during which anemployee is suffered or permitted to work.

Rest periods of short duration during workinghours shall be counted as hours worked.

ARTICLE 85. Meal periods. – Subject to such regulations as the Secretary of Labor may prescribe, it shall be the duty of every employer to give his employees not less than sixty (60) minutes time-off for their regular meals.

ARTICLE 86. Night shift differential. –Every employee shall be paid a night shift differential of not less than ten percent (10%) of his regular wage for each hour of work performed between ten o’clock in the evening and six o’clock in the morning.

ARTICLE 87. Overtime work. – Workmay be performed beyond eight (8) hoursa day provided that the employee is paidfor the overtime work, an additionalcompensation equivalent to his regularwage plus at least twenty-five percent(25%) thereof. Work performed beyondeight hours on a holiday or rest day shallbe paid an additional compensationequivalent to the rate of the first eighthours on a holiday or rest day plus at leastthirty percent (30%) thereof.

ARTICLE 88. Undertime not offset byovertime. – Undertime work on anyparticular day shall not be offset byovertime work on any other day.Permission given to the employee to goon leave on some other day of the weekshall not exempt the employer frompaying the additional compensationrequired in this Chapter.

ARTICLE 89. Emergency overtime work. – Any employee may be required by the employer to perform overtime work in any of the following cases:(a) When the country is at war or when any other national or local emergency has been declared by the National Assembly or the Chief Executive;(b) When it is necessary to prevent loss of life or property or in case of imminent danger to public safety due to an actual or impending emergency in the locality caused by serious accidents, fire, flood, typhoon, earthquake, epidemic, or other disaster or calamity;

(c) When there is urgent work to be performed onmachines, installations, or equipment, in order toavoid serious loss or damage to the employer or someother cause of similar nature;(d) When the work is necessary to prevent loss ordamage to perishable goods; and(e) Where the completion or continuation of the workstarted before the eighth hour is necessary to preventserious obstruction or prejudice to the business oroperations of the employer.

Any employee required to render overtimework under this Article shall be paid the additionalcompensation required in this Chapter.

ARTICLE 90. Computation of additional compensation. – For purposes of computing overtime and other additional remuneration as required by this Chapter, the “regular wage” of an employee shall include the cash wage only, without deduction on account of facilities provided by the employer.

Chapter IIMINIMUM WAGE RATES

ARTICLE 99. Regional minimum wages. – The minimum wage rates for agricultural and non-agricultural employees and workers in each and every region of the country shall be those prescribed by the Regional Tripartite Wages and Productivity Boards. (As amended by Section 3, Republic Act No. 6727, June 9, 1989).

ARTICLE 100. Prohibition against elimination or diminution of benefits. – Nothing in this Book shall be construed to eliminate or in any way diminish supplements, or other employee benefits being enjoyed at the time of promulgation of this Code.

ARTICLE 101. Payment by results. - (a)The Secretary of Labor and Employmentshall regulate the payment of wages byresults, including pakyao, piecework, andother non-time work, in order to ensurethe payment of fair and reasonable wagerates, preferably through time andmotion studies or in consultation withrepresentatives of workers andemployers organizations.

Chapter IIIPAYMENT OF WAGES

ARTICLE 102. Forms of payment. – No employershall pay the wages of an employee by means ofpromissory notes, vouchers, coupons, tokens,tickets, chits, or any object other than legal tender,even when expressly requested by the employee.Payment of wages by check or money order shall beallowed when such manner of payment iscustomary on the date of effectivity of this Code, oris necessary because of special circumstances asspecified in appropriate regulations to be issued bythe Secretary of Labor and Employment or asstipulated in a collective bargaining agreement.

ARTICLE 103. Time of payment. – Wagesshall be paid at least once every two (2)weeks or twice a month at intervals notexceeding sixteen (16) days. If on accountof force majeure or circumstances beyondthe employers control, payment of wageson or within the time herein providedcannot be made, the employer shall paythe wages immediately after such forcemajeure or circumstances have ceased. Noemployer shall make payment with lessfrequency than once a month.

The payment of wages of employees engagedto perform a task which cannot be completedin two (2) weeks shall be subject to thefollowing conditions, in the absence of acollective bargaining agreement or arbitrationaward:

(1) That payments are made at intervals not exceeding sixteen (16) days, in proportion to the amount of work completed;(2) That final settlement is made upon completion of the work.

ARTICLE 104. Place of payment. –Payment of wages shall be made at ornear the place of undertaking, except asotherwise provided by such regulationsas the Secretary of Labor andEmployment may prescribe underconditions to ensure greater protectionof wages.

ARTICLE 105. Direct payment ofwages. – Wages shall be paid directly tothe workers to whom they are due,except:

a) In cases of force majeure rendering such payment impossible or under other special circumstances to be determined by the Secretary of Labor and Employment in appropriate regulations, in which case, the worker may be paid through another person under written authority given by the worker for the purpose; or

(b) Where the worker has died, in which case, theemployer may pay the wages of the deceased worker tothe heirs of the latter without the necessity of intestateproceedings. The claimants, if they are all of age, shallexecute an affidavit attesting to their relationship to thedeceased and the fact that they are his heirs, to theexclusion of all other persons. If any of the heirs is a minor,the affidavit shall be executed on his behalf by his naturalguardian or next-of-kin. The affidavit shall be presented tothe employer who shall make payment through theSecretary of Labor and Employment or his representative.The representative of the Secretary of Labor andEmployment shall act as referee in dividing the amountpaid among the heirs. The payment of wages under thisArticle shall absolve the employer of any further liabilitywith respect to the amount paid.

ARTICLE 106. Contractor orsubcontractor. – Whenever an employerenters into a contract with another personfor the performance of the formers work,the employees of the contractor and ofthe latter’s subcontractor, if any, shall bepaid in accordance with the provisions ofthis Code.

ARTICLE 107. Indirect employer. – The provisionsof the immediately preceding article shall likewiseapply to any person, partnership, association orcorporation which, not being an employer,contracts with an independent contractor for theperformance of any work, task, job or project.

ARTICLE 108. Posting of bond. – An employer orindirect employer may require the contractor orsubcontractor to furnish a bond equal to the cost oflabor under contract, on condition that the bondwill answer for the wages due the employeesshould the contractor or subcontractor, as the casemay be, fail to pay the same.

ARTICLE 109. Solidary liability. – The provisions of existinglaws to the contrary notwithstanding, every employer orindirect employer shall be held responsible with his contractoror subcontractor for any violation of any provision of thisCode. For purposes of determining the extent of their civilliability under this Chapter, they shall be considered as directemployers.ARTICLE 110. Worker preference in case of bankruptcy. – Inthe event of bankruptcy or liquidation of an employersbusiness, his workers shall enjoy first preference as regardstheir wages and other monetary claims, any provisions of lawto the contrary notwithstanding. Such unpaid wages andmonetary claims shall be paid in full before claims of thegovernment and other creditors may be paid. (As amended bySection 1, Republic Act No. 6715, March 21, 1989).

Presented by : OMAR M. JACALNE

Collective bargaining maybe defined as bargaining bya labor organization, inbehalf of its members, withthe employer regardingterms and conditions ofemployment.

Collective bargaining is a rightguaranteed by the Constitution (Art.XIII, Sec. 3 ) to enable workers tonegotiate with the employer on the samelevel, and with more persuasivenessthan if they were to bargain individuallyand independently for the improvementof their respective conditions. This rightis complementary to the right of self -organization

The law of collective bargaining encompasses four basic points:

1. The employer may not refuseto bargain over certainsubjects with the employees'representative, provided thatthe employees' representativehas majority support in thebargaining unit.

The law of collective bargaining encompasses four basic points:

2. Those certain subjects,called mandatory subjectsof bargaining, includewages, hours, and otherterms and conditions ofemployment.

The law of collective bargaining encompasses four basic points:

3. The employer and the unionare not required to reachagreement but must bargainin Good Faith overmandatory subjects ofbargaining until they reachan impasse.

4. While a valid collective bargaining agreementis in effect, and while the parties arebargaining but have not yet reached animpasse, the employer may not unilaterallychange a term of employment that is amandatory subject of bargaining. But oncethe parties have reached an impasse, theemployer may unilaterally implement itsproposed changes, provided that it hadpreviously offered the changes to the unionfor consideration.

The law of collective bargaining encompasses four basic points:

Exclusive Representation

A majority of the workers in abargaining unit must designate arepresentative with the sole orexclusive right to represent themin negotiations with theemployer's representative.

Although the parties need not bargain over everyconceivable topic, they must bargain in good faith overmandatory subjects of bargaining, which include wages,hours, and other "terms and conditions of employment“. Because these mandatory subjects are very broad,courts over the years have attempted to set standards fordetermining whether a specific bargaining topic ismandatory. Generally, terms and conditions ofemployment encompass only issues that "settle anaspect of the relationship between the employer and theemployees"

Mandatory Subjects of Bargaining

Duty to Bargain in Good Faith

During the bargaining process, theparties are not required by law to reachagreement. They must, however, bargain ingood faith . Although good faith is asomewhat subjective concept, courts willlook to the entire circumstances surroundingbargaining, including behavior away fromthe bargaining table such as pressure andthreats. Most authorities agree that anabsolute refusal to bargain constitutes badfaith (Wooster).

Unilateral Changes

During the time a collective bargaining agreement isin effect, the employer may not change a workingcondition that is a mandatory subject of bargaining,without first bargaining with the union. Even after thecollective bargaining agreement expires, the employermust maintain the status quo and may not unilaterallychange mandatory subjects of bargaining, until the partieshave reached an impasse. Once good faith negotiationsbetween the parties "exhaust the prospect of concludingagreement," the parties have reached an impasse, andimplementing unilateral changes in working conditionsdoes not constitute an unfair labor practice (SouthwestForest Industry v. NLRB, 841 F.2d 270 [9th Cir. 1988]).

The Labor Code prescribes the procedure tobe observed in collective bargaining, asfollows:

Procedure In Collective Bargaining.

(a) When a party desires to negotiate anagreement, it shall serve a written noticeupon the other party with a statement of itsproposals. The other party shall make areply thereto not later than ten calendardays from receipt of such notice;

The Labor Code prescribes the procedure tobe observed in collective bargaining, asfollows:

Procedure In Collective Bargaining.

(b) Should differences arise on the basisof such notice and reply, either partymay request for a conference whichshall begin no later than ten calendardays from date of request;

The Labor Code prescribes the procedure tobe observed in collective bargaining, asfollows:

Procedure In Collective Bargaining.

(c) If the dispute is not, settled, the Board (NCMB)shall intervene upon request of either or bothparties or at its own initiative and immediatelycall the parties to conciliation meetings. The Boardshall have the power to issue subpoenas requiringthe attendance of the parties to such meetings. Itshall be the duty of the parties to participate fullyand promptly "in the conciliation meetings theBoard may call;

The Labor Code prescribes the procedure tobe observed in collective bargaining, asfollows:

Procedure In Collective Bargaining.

(d) During conciliation proceedings in theBoard, the parties are prohibited from doingany act which may disrupt or impede the earlysettlement of the dispute and (e) The Boardshall exert all efforts to settle disputes amicablyand encourage the parties to submit their caseto a voluntary arbitrator (Art.250, LC).

“The worst mistake a boss can make is not to

say 'well done'. “John Ashcroft (1948 - )British business executive.(Sunday Telegraph (London)

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