Labor Relations, Collective Bargaining, Contract Negotiating and Health & Safety - FINAL

8/2/2019 Labor Relations, Collective Bargaining, Contract Negotiating and Health & Safety - FINAL

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Labor Management Relations

Article XIII Sec. 3 of the Philippine Constitution

on Labor-Management Relations, at a Glance:

Full protection to labor, local and overseas,organized and unorganized;

Full employment and equality of employmentopportunities for all;


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Right of all workers to:

self-organization, collective bargaining andnegotiations;

engage in peaceful concerted activities, including

the right to strike in accordance with law;

security of tenure, humane conditions of workand a living wage; and

participate in policy and decision makingprocesses affecting their rights and benefits asmay to provided by law;


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Promotion of the principle of sharedresponsibility between workers and employers;

Preferential use of voluntary modes in setting

disputes, including conciliation; Recognition of the right of labor to its just share

in fruits of production; and

Right of enterprises to reasonable return ofinvestment and to expansion and growth.


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Legal Basis

Sec. 3, Art. XIII, 1987 Constitution &

Art. 3, Declaration of Policy, Labor Code

The State shall assure the RIGHTS OFWORKERS to self-organization, collectivecollective

bargainingbargaining, security of tenure, and just &humane conditions of work.


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What is

COLLECTIVE BARGAINING?

it is a process where representatives of the

employer or management and therepresentatives of the labor union of an

organization agree to fix and administerterms and conditions of employment which

must not be below the minimum standards

fixed by law, and set a mechanism forresolving their grievances.


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According to the

National Labor Relations Act:

For the purpose of this act to bargain collectively is the

performance of the mutual obligation of the employer and

the representative of the employees to meet at reasonabletimes and confer in good faith with respect to wages, hours

and terms and conditions of employment, or the negotiation

of an agreement, or any question arising there under, and the

execution of a written contract incorporating any agreementreached if requested by either party, but such obligation does

not compel either party to agree to a proposal or require the

making of a concession.


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What is Good Faith?

Bargaining in good faith is the cornerstone ofeffective labor management relations.

It means that both parties communicate andnegotiate, that proposals are matched withcounterproposals, and that both parties make everyreasonable effort to arrive at an agreement.

It does not mean that either party is compelled toagree to a proposal. Nor does it require that eitherparty make any specific concessions.


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Purposes of collective bargaining:

1. To protect the workers;

2. To empower the workers;

3. To make the right of self-organization usefuland meaningful;

4. To be the preferred mode of settling labor

disputes before resorting to STRIKES;5. To be the preferred mode over that of

compulsory arbitration.


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COLLECTIVE BARGAININGAGREEMENT

a negotiated contract between the unionrepresentatives and the employersrepresentatives covering the terms and

conditions of employment includingproposals for adjusting any grievances or

questions under such agreement


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What is the advantage of having a CBA?

So that employees can secure better terms and

conditions of employment over that provided by

law.

What is the lifetime of a CBA?

Insofar as the representation aspect, the CBA

lasts for 5 years. However, not later than 3 yearsafter the execution of the CBA, the economicprovisions shall be renegotiated.


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Bargaining Items

Labor law sets out categories of items that are subject to bargaining:

MANDATORY BARGAINING ITEMSThere are about 70 basic items over which bargaining is mandatory under the law.

Wages Rates of pay

Hours of Employment

Overtime Pay

Shift Differentials

Holidays

Company housing, meals and discounts

Employee Security

Insurance Benefits

Vacations

Drug Testing of Employees

Union Security

Job Performance

Management-Union Relationship

Christmas Bonuses

Profit Sharing Plans


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VOLUNTARY OR PERMISSIBLE BARGAINING ITEMS

Are neither mandatory nor illegal; they become a part of negotiationsonly through the joint agreement of both management and union. Neitherparty can be compelled against its wishes to negotiate over voluntary items.You cannot hold up signing your contract because the other party refuses tobargain on a voluntary item.

Settlement of Unfair Labor ChargesIndemnity Bonds

Continuance of Past ContractIncluding Supervisors in the Contract

Additional parties to the contract such as the international union

Use of Union Label

Employment of Strike Breakers

Pension Benefits of Retired EmployeesScope of the Bargaining Unit

Management Right as to Union Affairs

Prices in Cafeteria

Membership of Bargaining Team


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ILLEGAL BARGAINING ITEMS

Examples:

Closed shop

Separation of employees based on race

Disc than teriminatory treatment

are forbidden by law

A clause agreeing to hire union members

exclusively would be illegal in a right-to-work state


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MEDIATION

An intervention in which a neutral third partytries to assist the principals in reaching

agreement.

ARBITRATION

The most definitive type of third partyintervention, in which the arbitrator usually

has the power to determine and dictate thesettlement terms.


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STRIKES

Economic strike - a strike that results from a failureto agree on the terms of a contract that involveswages, benefits and other conditions of

employment. Unfair labor practice strike - a strike aimed at

protesting illegal conduct by the employer

Wildcat strike - an unauthorized strike occurrence

during the term of a contract

Sympathy strike - a strike that takes place when oneunion strikes in support of the strike of another.


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Labor Management Contracts differ in their

bargaining structures but the actual contractagreement may be 20 or 30 pages long orlonger. It may contain just general declarations

of policy or a detailed specification of rules andprocedures.

The tendency today is toward the longer,

more detailed contract. This is largely a result ofthe increased number of items the agreements

have been covering.


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(1) Management rights,

(2) union security and automatic payroll dues deduction,

(3) grievance procedures,

(4) arbitration of grievances,(5) disciplinary procedures,

(6) compensation rates,

(7) hours of work and overtime,

(8) benefits: vacations, holidays, insurance, pensions,(9) health and safety provisions,

(10)employee security seniority provisions, and

(11)contract expiration date.

The main sections of a typical contract cover

subjects such as these:


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Negotiation

Is a process of building a common interest and

reducing differences in order to arrive an

agreement which is at least minimally

acceptable to all parties concerned.

Is the process that occurs when two or more

parties, each of whom is seen as controllingsome resource which the other desires, confer

to reach an agreement on mutual exchange of

the resources.


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The Negotiation Process could be broken

into four subprocesses:1) Distributive Bargaining focuses on dividing a fixed

economic pie between the two sides

2) Integrative Bargaining has a win win focus; it seekssolutions that are beneficial to both sides

3) Attitudinal Structuring refers to the relationship andtrust between labor and management negotiators

4) Intraorganizational Bargaining reminds us that labor

management negotiations involve more than just twoparties


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Managements Preparation for

Negotiations can be divided into seven areas,most of which have counterparts

on the union side:

1. Establishing interdepartmental contractobjectives

2. Reviewing the old contract

3. Preparing and analyzing data


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4. Anticipating union demands

5. Establishing the cost of possible contract

provisions

6. Preparing for a strike

7. Determining strategy and logistics


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Negotiation Stages andTactics

1. Early Stages: more people are present; unionnegotiators often raise an extensive list of

proposals

2. Middle Stage: each side makes a series of decisions

3. Final Stage: pressure for an agreement

increases as the deadline for a strike

approaches; negotiators from each side mayhave oneonone meetings or small groupmeetings where a neutral third party may

become involved; impasse may occur


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ow to Avoid Impasses

1. Separate the people from the problem

2. Focus on Interests, not positions

3. Generate a variety of possibilities before

deciding what to do

4. Insist that the results be based on some

objective standard


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Managements Willingness toT

ake a Strikecomes down to two questions:

1. Can the company remain profitable over thelong run if it agrees to the unions demands?

2. Can the company continue to operate in the

short run despite a strike?


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Factors to consider / that gets affected when

there is a strike:1) Product Demand

2) Product Perishability

3) Technology

4) Availability of replacement workers

5) Multiple production sites and staggered

contracts6) Integrated facilities

7) Lack of substitutes for the product


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Alternatives to Strike:

Bargaining outcomes also depend on the

nature of the bargaining process andrelationships which include the type of tacticsused and the history of labor relations.

1) Mediation

2) Fact Finding3) Arbitration


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ContractAdministration

Hammering out a labor agreement is not the

last step in collective bargaining; in some respects,

it is just the beginning.

The contract negotiation process typicallyoccurs only about every 3 years while contract

administration goes on day after day, year afteryear.

Vague or incomplete contract language

developed in the negotiat ion process can make

administration of the contract difficult.


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Grievance Procedure

Key influence in successful contract

administration

Procedure for resolving labor-management

disputes over the interpretation andexecution of the contract

From the employees perspective, it is the key

to fair treatment in the workplace


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New Labor-Management Strategies

Employee involvement in decision-making,

Self-managing employee teams,

Broadly defined jobs, and

Sharing of financial gains and businessinformation with employees


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Labor Relations, Collective Bargaining, Contract Negotiating and Health & Safety - FINAL

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