Maintaining Labor-Management Relations

Maintaining Labor-Management Relations www.rafaeldavis.com

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MAINTAINING LABOR-

MANAGEMENT RELATIONS

RAFAEL D. DAVIS IIIwww.rafaeldavis.com

Email: [email protected]

Cel # 0933-3679013

http://www.rafaeldavis.com/

mailto:[email protected]


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TOPIC OBJECTIVES: To find out how to maintain labor-

management relations To find out the Status of Philippine

Labor, policies adopted by the government in settling labor dispute, Philippine Labor Code, rights of workers, labor organizations and its kinds, why employees join unions, contributions of unions and effects, CBA/CNA and its effects, deadlocks, types of strikes, labor-management committee and ILO.


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“ There is no such thing as BAD COMPANY…. Only a BAD MANAGER.”


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Prerogatives

From the Notes of USEC Josephus B. Jimenez

EMPLOYER-EMPLOYEE RELATIONS: FRAMEWORK OF RIGHTS AND OBLIGATIONS – USEC JOSEPHUS B. JIMENEZ

Workers

Government

Industrial Peace based on Social

Justice

Power

Labor

Rights

Capital

Livelihood Profit

Law/CBA Employe

rs

Industrial Peace based on Social Justice


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WHAT IS LABOR RELATIONS?


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SIMPLE MEANING!

refers to the relationship between the employees and management


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It can also mean relationship between management and labor unions in a unionized companies


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LEGAL DEFINITION

LABOR RELATIONS – Interactions between employers and employees or their representatives and the mechanisms by which standards and others terms and conditions of employment are negotiated, adjusted and enforced.


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BACKGROUND OF PRESENT LABOR-MANAGEMENT RELATIONS

The growth of industrialization has generated four distinct ideas in social and political thought.


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FIRST CONCEPT:

The government should assume the role of guardian over the interest of labor.

Basis: Police Power Doctrine


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SECOND CONCEPT: Employer has a social and moral responsibility to ameliorate the lot of his employees.

Emphasize: Human Values


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THIRD CONCEPT:

Idea of Social Justice


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FOURTH CONCEPT: The government should actively

intervene in labor disputes because such disputes are costly both to the disputants and the public, and may even cripple the country’s economy.

Significance: To protect the interest of both workers and employers


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Government does not intervene in labor disputes to compel agreement between the employer and employees.


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It leaves the settlement of disputes to the voluntary agreement between the parties through peaceful bargaining, conciliation, and arbitration.


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QUESTIONS?

When does the government intervene in a labor dispute?


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ANSWER!

When public interest or national security is adversely affected and the dispute cannot be settled by direct collective bargaining.


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SOLUTIONS TO THE LABOR DISPUTES:

Conciliation or Mediation through the DOLE

Voluntary Arbitration

Compulsory Arbitration through the NLRC


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LABOR CODE Major breakthrough in the field of labor

administration

Promulgated as Presidential Decree No. 442 on May 1, 1974.

Effective Nov. 1, 1974

Declares tripartism as state policy

Consonant with this policy, workers and employers are represented in decision and policy-making bodies of the government


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RIGHTS OF LABOR UNDER THE CONSTITUTION AND THE LABOR CODE


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Right to protection by the State;

Right to full employment;

Right to equal work opportunities regardless of sex, race, and creed;


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Right to self-organization;

Right to collective bargaining and negotiations;

Right to security of tenure;

Right to just and humane conditions of work;


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Right to peaceful, concerted activities including strikes;

Right to participate in policy and decision-making processes affecting their rights and benefits; and

Right to compulsory arbitration as may be provided by law.


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WHAT IS LABOR

ORGANIZATION?


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LABOR ORGANIZATION Any union or association of employees that exists in whole or in part for the purpose of collective bargaining or for dealing with employers concerning terms and conditions of employment.


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WHAT IS LEGITIMATE

LABOR ORGANIZATION?


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LEGITIMATE LABOR ORGANIZATION Any labor organization duly registered with the Department of Labor and Employment (DOLE) or any of its branches.


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WHAT IS BARGAINING

REPRESENTATIVE?


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BARGAINING REPRESENTATIVE

A legitimate labor organization, whether or not employed by the employer.


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A union is organized primarily to enable workers to bargain collectively with the employer on such issued as employment conditions and status of its members.

Principle: In Unity, there is Strength.


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UNION OBJECTIVES

The aims of labor organizations are both economic and political.


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ECONOMIC OBJECTIVE: It is a means by which workers can satisfy their primary and secondary needs through higher wages, shorter hours of work, and various employee benefits such as vacation leave, sick leave, and hospital, medical, and insurance plans.


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POLITICAL OBJECTIVE: It is a means by which the union

can promote its power and prestige through:

1. lobbying activities designed to secure the passage of favorable legislation and opposing unfavorable proposed laws.


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2. Support and campaign for candidates for political offices who are friendly to labor.


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UNION REGISTRATION When a union is organized, it must be registered with the nearest regional office of the DOLE so that it can acquire legal personality and be entitled to the rights and privileges granted by law to legitimate labor organizations.


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A LABOR UNION MAY BE:• an Independent Union composed

entirely of employees belonging to a single employer

• The Local Chapter of a Federation composed of employees belonging to a single employer but affiliated with a Federation


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Who Who can unionize? ionize?

Managers cannot unionize

• Rank and File• Supervisors


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Before a union can demand collective bargaining:

It has to be registered

It has to be certified as the “bargaining agent” of the employees


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WHAT IS A CBA?

a legally binding agreement between two parties who are compelled by the law to negotiate with each other

concerns wages, hours of work and other terms and conditions of employment

CBACBA


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COMMON STIPULATIONS AND CLAUSES IN A CBA/CNA:

Title Description of the parties Preliminary statement of principles Description of bargaining unit Exclusionary clause Union security clause Check off of union dues Statement of management prerogatives Union commitment Economic and other fringe benefits. Grievance machinery Voluntary arbitration No strike, no lock-out clause. Family planning, health and safety,

cooperative, recreation and sports, etc. Waiver and completeness of agreement.


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PARTIES TO A CBA

the Company as the Employer

the Union as the “certified

bargaining agent” of the employees in

the “bargaining

unit”


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HOW DOES A UNION BECOME A “CERTIFIED BARGAINING AGENT”? The union must be a “legitimate

labor organization” i.e. properly organized and registered with the DOLE

Petition for Certification Election OR by Voluntary Recognition


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8 STAGES IN THE NEGOTIATION FOR A COLLECTIVE BARGAINING AGREEMENT:

1.PRELIMINARY process- written notice for negotiation which must be clear and unequivocal

2.NEGOTIATION Process3.EXECUTION Process

- signing of the agreement4.PUBLICATION for at least 5 days before ratification5.RATIFICATION by the majority of all the workers in the bargaining unit represented in the negotiation (not necessary in case of arbitral award)


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6. REGISTRATION Process Requisites for registration:

a) mandatory provisionsb) payment of P1,000.00c) 5 copies of CBAd) proof of ratification

7. ADMINISTRATION Process- the CBA shall be jointly administered by the management and the bargaining agent for a period of 5 years

8.INTERPRETATION AND APPLICATION Process


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UNION SECURITY A term applied to a provision in a

collective bargaining agreement whereby an employer agrees with the contracting union to maintain in his firm certain conditions of employment designed to protect the union against loss of membership or loss of income derived from membership dues.


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FORMS OF UNION SECURITY


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CLOSED SHOP Is an agreement between a firm and a

labor union where:

- The firm will agree to hire only members of the contracting labor union who are in good standing;

- To be assured of continued employment in the company, the employee must remain a member of good standing in the union during the life of the agreement between the company and the union;


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“CONTINUATION”

- The labor union is the authorized representative of the employees in that firm.


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UNION SHOP Refers to an agreement between

a firm and a labor union whereby the firm agrees that its employees in the bargaining unit should, after a certain period, join the union and remain members in good standing with that union in order to retain their jobs in the company.


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MAINTENANCE OF MEMBERSHIP SHOP Is an agreement between a firm and the

contracting union whereby all present and future members of the union are required to join a contracting union and remain a member in good standing.

Non-members are not required to join the contracting union, but after they voluntarily join, they must remain members of the union in good standing during the life of the contract.


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AGENCY SHOP Employees belonging to the

appropriate collective bargaining unit, but who are not members of the recognized collective bargaining agent, may be assessed a reasonable fee equivalent to the dues and other fees paid by members of the recognized collective bargaining agent, if such non-union members accept the benefits under the CBA.


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WHAT IS STRIKE, PICKETING AND

LOCKOUT?


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STRIKE – means any temporary stoppage of work by the concerted action of the employees as a result of an industrial or labor dispute. (Art. 212 (o), Labor Code, as amended by Sec. 4, R. A. 6715)


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PEACEFUL PICKETING – the right of workers during strikes consisting of the marching to and from the premises of an establishment involved in a labor dispute, generally accompanied by the carrying and displaying of signs, placards or banners with statements relating to the dispute. (Guidelines Governing Labor Relations, October 19, 1987)


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LOCKOUT – means the temporary refusal of an employer to furnish work as a result of an industrial or labor dispute. (Article 212 (p) Labor Code, as amended by Section 4, R.A. 6715).


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WHAT ARE THE DIFFERENT FORMS OF STRIKES?

LEGAL STRIKE – one called for a valid purpose and conducted through means allowed by law.

ILLEGAL STRIKE – one staged for a purpose not

recognized by law, or if for a valid purpose, conducted through means not sanctioned by law.

ECONOMIC STRIKE – one staged by workers to force

wage or other economic concessions from the employer which he is not required by law to grant (Consolidated Labor Association of the Phil. vs. Marsman and Company, 11 SCRA 589)


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ULP STRIKE – one called to protest against the employer’s acts of unfair labor practice enumerated in Article 248 of the Labor Code, as amended, including gross violation of the collective bargaining agreement (CBA) and union busting.

SLOWDOWN STRIKE – one staged without the workers quitting their work but merely slackening or by reducing their normal work output.

WILD-CAT STRIKE – one declared and staged without filing the

required notice of strike and without the majority approval of the recognized bargaining agent.

SIT DOWN STRIKE – one where the workers stop working but do

not leave their place of work.


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WHAT ARE THE VALID GROUNDS FOR DECLARING A STRIKE OR LOCKOUT?

Collective Bargaining Deadlock (CBD)

and/or

Unfair Labor Practice (ULP)


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a) Failure or refusal to meet and convene

b) Evading the mandatory provisions of bargaining

c) Bad faith in bargaining

d) Gross violation of the CBA

FOUR (4) FORMS OF ULP IN BARGAINING


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WHO MAY DECLARE A STRIKE OR LOCKOUT? • Any certified or duly recognized bargaining

representative may declare a strike in cases of bargaining deadlock and unfair labor practice. Likewise, the employer may declare a lockout in the same cases.

• In the absence of a certified or duly recognized bargaining representative, any legitimate labor organization in the establishment may declare a strike but only on the ground of unfair labor practice. (Section 2, Rule XIII, Book V, Omnibus Rules Implementing The Labor Code, as amended).


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LABOR-MANAGEMENT COMMITTEE A break in labor-management relations culminating in strikes and other forms of concerted activities is very COSTLY to the companies, the workers involved, and the nation.


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Thus, Labor-Management Committees are instituted in companies to improve labor-management relations.


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COMPOSITION Representatives of the Labor and Management.

NCMB & DOLE – act as facilitators


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TRIPARTITE INDUSTRIAL PEACE COUNCIL Recently, tripartism is very

active in the country.

It is composed of the representatives of the Labor, Management, and Government.

Effective in promoting industrial peace


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INTERNATIONAL LABOUR ORGANIZATION Founded by the governments of different

nations on the principle of tripartism

It seeks international collaboration for securing permanent world peace and eliminate social injustices through the improvement of labor conditions.

Representatives of management and labor organizations participate with government representatives in it s proceedings & conferences.


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Established in 1919, the ILO became the first specialized agency associated with United Nations in 1946

Philippines became a member of ILO on May 19, 1948, by virtue of Proclamation No. 617 of the President of the Philippines.


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“ In business and in life, you don’t get what you deserve…. You get what you negotiate.”

Tony HiladoFounder, The Business

Incubators

THANK YOU!

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Maintaining Labor-Management Relations

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