LABOR – MANAGEMENT RELATIONS

• "THE STUDY OF LABOR-MANAGEMENT RELATIONS (LMR)

REFERS TO THE RULES AND POLICIES WHICH GOVERN
AND ORGANIZE EMPLOYMENT, HOW THESE ARE
ESTABLISHED AND IMPLEMENTED, AND HOW THEY
AFFECT THE NEEDS AND INTERESTS OF EMPLOYEES AND
EMPLOYERS.”
 MANAGEMENT OPTION IN
LABOR RELATIONS
• THE OBJECTIVE OF THE MANAGEMENT
- IS USUALLY CONCERNED WITH MAKING PROFITS FOR THE
ORGANIZATION; OTHERWISE, THE CONCERN IS MAXIMIZATION OF
INCOME AND/ OR MINIMIZATION OF EXPENSES.
• CONCERN OF THE LABOR
-MAXIMIZATION OF MONETARY AND NON – MONETARY BENEFITS
FROM THE ORGANIZATION
3 OPTIONS IN ADDRESSING CONFLICT

1)SOLVE LABOR RELATED PROBLEMS AS THEY

OCCUR
2)TREAT EMPLOYEES FAIRLY
3)LET EMPLOYEES FIND WAYS TO SOLVE THEIR
LABOR – RELATED PROBLEMS
1) SOLVING PROBLEMS AS THEY OCCUR

•EMPLOYEE MAY BE ASKED TO RESIGN

•SALARY INCREASE
•CONSIDER OTHER MEANS TO PLACATE
THE EMPLOYEE
2) TREATING EMPLOYEES FAIRLY
- PROGRESSIVE MANAGERS
FORMULATE AND IMPLEMENT
SOUND HR POLICIES, WHICH WILL
PROVIDE EMPLOYEE WITH EQUAL
OPPORTUNITY AND TREATMENT.
 3) LETTING EMPLOYEES SOLVE
THEIR OWN PROBLEMS
•AN EMPLOYER MAY CHOOSE TO IGNORE
OTHER ASPECTS OF THE EMPLOYEE’S
ACTIVITY
- THIS OPTION IS RISKY FOR IT MAY CAUSE
DEMORALIZATION, OR DRIVE TO ORGANIZE THEMSELVES
OR A CHANCE TO AFFILIATE WITH OTHER UNIONS.
 WHY EMPLOYEES FORM
AND JOIN UNIONS
1)COLLECTIVE BARGAINING WITH THE EMPLOYEE
2)FOR SELF – PRESERVATION AND PROTECTION
3)TO BELONG TO A GROUP THAT WILL HELP SECURE
ENTITLEMENTS PROVIDED BY LAW
4)TO PROTECT THEMSELVES FROM HUMAN RIGHTS
ABUSES OF EMPLOYERS
 WHAT IS LABOR UNION
•MAY BE DEFINES AS AN ORGANIZATION
FORMED TO REPRESENT THE INTEREST OF
WORKERS IN BARGAINING WITH EMPLOYERS
FOR CONTRACTS CONCERNING WAGES,
FRINGE BENEFITS, AND WORKING
CONDITIONS.
 TYPES OF LABOR UNIONS
1)CRAFT OR TRADE
- MEMBERSHIP CONSISTS OF WORKERS ENGAGED
IN A PARTICULAR TRADE SUCH AS DRIVERS,
SINGERS, MUSICIANS, CARPENTERS. ETC.
EXAMPLES:
PHILIPPINE LAWYERS GUILD, THE FISHERMAN’S UNION, AND THE
SHOEMAKERS’ UNION
 2) AN INDUSTRIAL UNION
•IS ONE WHOSE MEMBERS ARE EMPLOYED IN A
GIVEN INDUSTRY REGARDLESS OF THE TYPE OF
WORK PERFORMED BY EACH MEMBER.
EXAMPLES:
BAYVIEW PARK HOTEL EMPLOYEES UNION,
EMPLOYEES UNION OF BAYER PHILIPPINES
 ORGANIZING A UNION
•THE DESIRE OF EMPLOYEES TO UNIONIZE
MAY BE FOLLOWED BY AN ATTEMPT TO
ORGANIZE. AN ORGANIZING CAMPAIGN
MAY BE UNDERTAKEN BY THE CONCERNED
EMPLOYEES OR BY THE UNION ORGANIZER
OF A NATIONAL UNION.
 ORGANIZING A UNION USUALLY INCLUDE
THE FOLLOWING STEPS:
1. EMPLOYEE/ UNION CONTACT
2. INITIAL ORGANIZATIONAL MEETING
3. FORMATION OF IN – HOUSE ORGANIZING
COMMITTEE
4. ELECTION PETITION AND VOTING PREPARATION
5. CONTACT NEGOTIATIONS.
 1) EMPLOYEE/ UNION CONTACT
• CONTACT, DISCUSS THE POSSIBILITY OF ORGANIZING A
UNION. DISCUSS TOPICS SUCH AS ADVANTAGES,
DISADVANTAGES OF HAVING A UNION, THE NEEDS,
PROBLEMS, AND GRIEVANCES OF THE EMPLOYEES.
INFORMATION ABOUT THE COMPANY’S FINANCIAL
STANDING, MANAGEMENT STYLE, AND COMPANY
POLICIES AND PRACTICES WILL ALSO BE SOUGHT.
2) INITIAL ORGANIZATIONAL MEETING
•ATTRACT SUPPORTERS
•ADDRESSING THE NEEDS, PROBLEMS, AND
GRIEVANCES OF EMPLOYEES ARE PRESENTED
•IDENTIFY EMPLOYEES WITH POTENTIALS FOR
ORGANIZING WORK
3) FORMATION OF IN – HOUSE
ORGANIZING COMMITTEE
• ORGANIZING A COMMITTEE WHOSE MEMBERSHIP
IS COMPOSED OF EMPLOYEES WILLING TO
PROVIDE THE INITIAL LEADERSHIP REQUIRED.
• PRODUCE A DOCUMENT INDICATING THAT A
SUFFICIENT NUMBER OF EMPLOYEES ARE WILLING
TO BE REPRESENTED BY A LABOR UNION
4) ELECTION PETITION AND VOTING
PREPARATION
•FILING A PETITION FOR CERTIFICATION
ELECTION WITH THE REGIONAL OFFICE OF
THE DEPARTMENT OF EMPLOYMENT (DOLE)
- THE petition seeks to determine if the
employees actually desire to unionize
5) CONTRACT NEGOTIATION
•THE FIFTH STEP BEGINS WHEN THE UNION WINS
THE CERTIFICATION OF ELECTION.
•A CERTIFICATE IS GRANTED BY THE ELECTION
OFFICER ASSIGNED BY THE REGIONAL DIRECTOR
TO HANDLE THE ELECTION THAT PAVES THE WAY
FOR CONTRACT NEGOTIATIONS TO BEGIN
 ORGANIZATIONAL LEVELS OF UNIONS
a. LOCAL LABOR UNION
• DRAWS MEMBERSHIP FROM A LOCAL INDUSTRY OR COMPANY
• MANAGED BY OFFICIALS ELECTED BY ITS MEMBERS
• THE ELECTED OFFICIALS ARE FULL TIME EMPLOYEES OF THE LOCAL
INDUSTRY OR COMPANY
• DERIVES ITS LEGAL PERSONALITY THROUGH THE ISSUANCE OF A
CHARTER BY A DULY REGISTERED FEDERATION OR NATIONAL
UNION
 b. INDEPENDENT UNION
•IS ONE OPERATING AT THE ENTERPRISE OR
COMPANY LEVEL AND WHOSE LEGAL
PERSONALITY IS DERIVED THROUGH AN
INDEPENDENT ACTION FOR REGISTRATION.
•HAVE THE OPTION OF AFFILIATING WITH
FEDERATIONS OR NATIONAL UNIONS.
 c. NATIONAL UNION
• IS COMPOSED OF AT LEAST 10 LOCALS/
CHAPTERS OR AFFILIATES EACH OF WHICH
MUST BE A DULY CERTIFIED OR RECOGNIZED
COLLECTIVE BARGAINING AGENTS.
• IT EXERCISES SOME FORM OF CONTROL OVER ITS
CHAPTERS AND AFFILIATES: COLLECTING DUES,
ADMITTING NEW MEMBERS AND USING UNION FUNDS
 Examples Of National Unions
• NATIONAL UNION OF WORKERS IN HOTEL, RESTAURANT, AND
ALLIED INDUSTRIES (NUWHRAIN)
• WORKERS SOLIDARITY NETWORK (WSN)
• SOUTHERN PHILIPPINES FEDERATION OF LABOR (SPFL)

- provides technical and professional services,

support for organizing and administrating contracts
to the affiliated local unions.
Exhibit 31: FORM AND CONTENTS OF PETITION FOR
CERTIFICATION ELECTION
SEC. 4 form and contents of petition – the petition shall be in
writing and under oath and shall contain the following:
a. The name of the petitioner, address, affiliation, the date
of its registration and number of its certificate of registration
if a petitioner is a federation, national or independent union
or the date it was reported to the Department if it is a local/
chapter.
b. The name, address, and nature of employees in
the bargaining unit
c. The description of the bargaining unit.
d. The approximate number of employees in the
bargaining unit.
e. The names and addresses of other legitimate
labor organizations in the bargaining unit
f. A statement indicating any of the following circumstances:
I) That the bargaining unit is unorganized or that there is no registered
collective bargaining agreement covering the employees in the bargaining
unit.
II) If there exists a duly registered collective bargaining agreement, that the
petition is filed within the sixty – day freedom period of such agreement, or
III) If another union had been previously certified in a valid certification, consent
or run – off election or voluntary recognized in accordance with Rule X of
these rules, that the petition is filed outside the one – year period from such
certification or run – off election and no appeal is pending thereon, or from
the time the fact of recognition was entered into the records of such union
g. In an organized establishment, the signatures of at least twenty – five
(25%) percent of all employees in the appropriate bargaining unit which
shall be attached to the petition at the time of the filing and
h. When the petition is filed by an employer, it shall contain, among others:
• The name, address, and general nature of the employer’s business;
• Names and addresses of the legitimate labor organizations involved;
• The approximate number of the employees in the appropriate
bargaining unit;
• The description of the bargaining unit and
• Other relevant facts.
Source: Rules Implementing the Labor Code of the Philippines, 1974
 Exhibit 31: FORM AND CONTENTS OF PETITION FOR
CERTIFICATION ELECTION

• Unions gather strength in numbers so they affiliate

with others. As a result, local unions become the
basic units of national unions such as Alliance of
Progressive Labor (APL). These confederations
may form a coalition such as ALNI/Philippines.
Figure 31 illustrates this relationships.
 PRESIDENT

Vice President Secretary Treasurer Sgt. At Arms

Group Steward Group Steward

Head Office Northeast Luzon Area

Group Steward Group Steward

Northwest Luzon Area Central Luzon Area
Figure 29: Group Steward
ORGANIZATIONIZATIONAL South Luzon
CHART FOR A LOCAL UNION Area
FIGURE 30: ORGANIZATION LEVELS OF UNION
Confederation of
National Union

National Union National Union

Local Union Local Union

FIGURE 31: A TYPICAL Asian Labor Network on
COALITION OF LABOR International Financial COALITION
ORGANIZATION (ALNI/Philippines)

Asian Labor Network on IFI/Phil. Chapter, June 5, 2003

Trade Union Congress of Federation of Free Alliance of
the Philippines Workers (FFW) Progressive
Labor (APL)

Source: APL Website: http.//www.apl.or.ph;

Regular Auxiliary
Affiliates Affiliates
MARINO
Workers Workers’ BPHEU
National Unions HHEU
Community Associations/
and Federations MUDA
Associations Cooperatives
KAMAO SPFL TESEF FEBATODI FURCAFT PASADA
NUWHRAIN WSN PASADOZ STF TRAFECO
PIGLAS NUWDECO SEMDDOC
 LABOR LEGISLATION
Labor management relations in the Philippines is
governed by law. The Labor Code, approved on
May 1, 1974, covers specific concerns which are
as follows:
1. Pre – employment (book one);
2. Human resource development (book two);
Labor Legislation

3. Condition of employment (book three);

4. Health, safety, and social welfare, benefits
(book four);
5. Labor relations (book five);
6. Post employment (book six).
The book on labor relations contains relevant
provisions on the following rules:
1.Policy and definitions
2.National Labor Relations Commission
3.Bureau of Labor Relations
4.Labor Organization
5.Coverage
Book on labor relations…

6. Unfair Labor Practices

7. Collective Bargaining and Administration of
Agreement
8. A Grievance Machinery and Voluntary Arbitration
9. Strikes and Lockouts and Foreign Involvement in
Trade Union Activities
http://bwc.dole.gov.ph/images/Downloads/Labor
10. Special Provisions _Code_of_the_Philippines_2016_fulltext_DOLE-
Edition.pdf
 THE TITLE ON LABOR ORGANIZATION
INCLUDES THE FOLLOWING CHAPTERS:
1.REGISTRATION AND CANCELLATION
2.RIGHTS AND CONDITIONS OF
MEMBERSHIP
3.RIGHTS OF LEGITIMATE LABOR
ORGANIZATIONS
 Exhibit 33: THE UNFAIR PRACTICES OF THE
EMPLOYERS and those of labor organizations are also
covered under the book on labor relations
ART. 248. UNFAIR LABOR PRACTICES OF
EMPLOYERS – It shall be unlawful for an employer
to commit any of the following unfair labor
practices:
a) To interfere with, restrain, or coerce employees
in exercising their right to self – organization
 ART. 248. UNFAIR LABOR PRACTICES OF EMPLOYERS

b. To require as a condition of employment that a

person or an employee shall not join a labor
organization or shall withdraw from one to which he
belongs.
c. To contract out services or functions being
performed by union members when such will interfere
with, restrain, or coerce employees in the exercise of
their right to self – organization.
 ART. 248. UNFAIR LABOR PRACTICES OF EMPLOYERS

d. To initiate, dominate, assist, or otherwise interfere

with the formation or administration of any labor
organization, including the giving of financial or other
support to it or its organizers or supporters.
e. To discriminate in regard to wages, hours of work,
an other terms and conditions of employment in order
to encourage or discourage membership in any labor
organization.
 ART. 248. UNFAIR LABOR PRACTICES OF EMPLOYERS

f. To dismiss, discharge, or otherwise prejudice or

discriminate against an employee for having given or
being about to give testimony under this code.
g. To violate the duty to bargain collectively as
prescribed by this Code;
h. To pay negotiation or attorney’s fee to the union or
its officers as part of the settlement of any issue in
collective bargaining or any dispute; or
 ART. 248. UNFAIR LABOR PRACTICES OF EMPLOYERS

i. To violate a collective bargaining agreement

- The provision of the preceding paragraph

notwithstanding, only the officers and agents of
corporations, associations or partnerships who
have actually participated in, authorized, or
ratified unfair labor practices shall be held
criminally liable.
 Exhibit 33: UNFAIR LABOR PRACTICES OF LABOR
ORGANIZATIONS
ART. 249. UNFAIR LABOR PRACTICES OF LABOR
ORGANIZATIONS – It shall be unfair labor practice for a
labor organization, its officers, agents or representatives:
a. To restrain or coerce employees in the exercise of their
right to self – organization. However, a labor organization
shall have the right to prescribe its own rules with respect
to the acquisition or retention or membership:
 ART. 249. UNFAIR LABOR PRACTICES OF LABOR ORGANIZATION

b. To cause or attempt to cause an employer to

discriminate against an employee, including
discrimination against an employee with respect to
whom membership in such organization has been
denied or to terminate an employee on any ground
other than the usual terms and conditions under which
membership or continuation of membership is made
available to other members;
 ART. 249. UNFAIR LABOR PRACTICES OF LABOR ORGANIZATION

c. To violate the duty, or refuse to bargain collectively

with the employer, provided it is the representative of
the employees;
d. To cause or attempt to cause an employer to pay or
deliver or agree to pay or deliver any money or other
things of value, in the nature of an exaction, for
services which are not performed, including the
demand for fee for union negotiations;
 ART. 249. UNFAIR LABOR PRACTICES OF LABOR ORGANIZATION

e. To ask or accept negotiations or attorney’s fees

from employers as part of the settlement of any issue
in collective bargaining or any other dispute;
f. To violate a collective bargaining agreement.
Only the officers, members of governing boards,
representatives or agents or members of labor associations or
organizations who have actually participated in, authorized
or ratified unfair labor practices shall be held criminally
liable.
 WHAT IS COLLECTIVE BARGAINING
This activity may be defined as the
negotiation, administration, and interpretation of
a written agreement between labor and
management that covers a specific time frame. It is
actually a process whereby representatives of labor
and management perform functions that relate to the
contract between them.
 THE COLLECTIVE BARGAINING PROCESS

•Collective bargaining is a process consisting

of the following activities:
1. Negotiating a collective bargaining
agreement (CBA); and
2. Administering the CBA
NEGOTIATING – is a part of collective bargaining wherein
both sides attempt to make each other agree to certain terms
and conditioning of employment w/c consists of the ff. steps:
1. PREPARING FOR A COLLECTIVE BARGAINING
•a pre – requisite to negotiation is the recognition
by management of the union as the representative
of the employees. After recognition, both union
and employer have to do some preliminary
activities in preparation for CBA.
 It is in this stage where the chief negotiations of
both parties assess each other in terms of their:
1. Collective bargaining experience
2. Temperament
3. Sense of humor
4. Approachability for off - the – record discussions
5. Honesty and the reliability of his or her word.
Negotiating…
2. ESTABLISHING A BARGAINING AGENDA
- For economic reasons, the union and the employer must
prepare a list of issues they want to bargain. Article 251
of the Labor Code limits the issues to any or all of the ff:
1.WAGES
2.HOURS OF WORK
3.ALL OTHER TERMS AND CONDITIONS OF
EMPLOYMENT
3. CHOOSING A BARGAINING STRATEGY
- Both parties recognize the need to adapt a
bargaining strategy that will suit their needs so they
need to determine a right strategy.
TYPES OF BARGAINING STRATEGIES:
1. DISTRIBUTIVE BARGAINING
2. INTEGRATIVE BARGAINING
3. CONCESSION BARGAINING
 DISTRIBUTIVE BARGAINING

- When both parties compete in which the outcome

where one party wins and the other loses
Ex. When a labor wants 20% wage increase,
negotiations continue and when they win, company
profits decrease; otherwise, labor loses the opportunity to
address the rising cost of living if management wins.
 INTEGRATIVE BARGAINING

-When both parties agree to a solution

Ex. Management provides assurance of

“no retrenchment” and labor agrees not
to ask for wage increase.
 CONCESSION BARGAINING
Is one where labor attempts to help the
company ride economic downturns by
agreeing to concessions like wage cuts,
freezing of previously agreed increases,
reduction of benefits, or allowing
management more freedom in changing rules.
PRESSURES USED IN COLLECTIVE BARGAINING

PRESSURES THAT LABOR COMMONLY USE:

1. STRIKES
2. PICKETS
3. BOYCOTTS
 STRIKE
When workers leave their job to pressure the
employer to agree to the union demands. It is a
successful tool if the company is weak in bargaining
position such as:
1. When the company pays heavy penalties for
delays in delivering a service or product; and
2. When it produces a perishable good.
STRIKES MAY BE CLASSIFIED AS FOLLOWS:
1. ECONOMIC STRIKE – WHEN THE UNION DEMANDS
HIGHER WAGES OR BETTER FRINGE BENEFITS FROM
THE EMPLOYER
2. JURISDICTIONAL STRIKE – TWO UNIONS ARGUE
OVER WHO HAS THE RIGHT TO DO THE JOB
3. WILDCAT STRIKE – VIOLATION OF THE LABOR
AGREEMENT AND USUALLY WITHOUT APPROVAL OF
HIGH – LEVEL UNION OFFICIALS.
PICKETING
REFERS TO THE PLACING OF UNION
MEMBERS AT PLANT OR OFFICE ENTRANCES
TO ADVERTISE A DISPUTE BETWEEN LABOR
AND MANAGEMENT, AND TO DISCOURAGE
PEOPLE FROM ENTERING OR LEAVING THE
COMPANY’S PREMISES.
 PICKETING MAY BE CLASSIFIED AS FOLLOWS:
Recognitional picketing – used to gain recognition of
the union as the employees’ bargaining representative.
Informational picketing – used to inform the public
that a labor dispute exists between labor and
management
Product and consumer picketing – used to persuade
customers to refuse to purchase products or services
from the company with whom the union has a labor
dispute.
 BOYCOTT is an attempt of the union to keep
people from purchasing the product or service
of a company
BOYCOTTS ARE OF TWO TYPES:
1) PRIMARY BOYCOTT – WHEN UNION MEMBERS ARE
DIRECTED NOT TO PATRONIZED THE BOYCOTTED FIRM;
AND
2) SECONDARY BOYCOTT – WHEN UNION MEMBERS ARE
DIRECTED TO STOP WORKING TO FORCE AND EMPLOYER
TO STOP DEALING IN THE PRODUCT OR SERVICE OF
ANOTHER FIRM INVOLVED IN A LABOR DISPUTE.
 PRESSURES USED BY THE EMPLOYER
• Depending on management perceives to be useful, they use any
of the ff. Tactics:
1) LOCKOUTS – OPERATIONS ARE SHUT DOWN DURING OR
BEFORE A LABOR DISPUTE for the ff. reasons:
A. To force union to stop harassing the employer;
B. To force the union to accept the conditions set by management;
C. To prevent work slowdowns;
D. To prevent damage to property; or
E. To prevent violence in the premises
2. STRIKEBREAKERS OR SCABS – ARE PEOPLE HIRED BY A
MANAGEMENT TO REPLACE STRIKING EMPLOYEES. THIS IS
DONE BY THE MANAGEMENT SO THAT THE OPERATIONS
CAN CONTINUE AND REDUCE LOSSES ASSOCIATED WITH
THE STRIKE.
3. EMPLOYERS’ ASSOCIATIONS – ARE FORMED TO HELP
EMPLOYERS MEET THE POWER OF LABOR UNIONS. THIS IS
IMPORTANT ESPECIALLY TO SMALL COMPANIES WHOSE
EMPLOYEES ARE MEMBERS OF BIG AND POWERFUL
UNIONS.
 ALTERNATIVES TO PRESSURE TACTICS
• These are used to settle both labor and management’s
differences as follows:
1) MEDIATION: A NEUTRAL THIRD PARTY CALLED MEDIATOR
HELPS LABOR AND MANAGEMENT REACT AGREEMENTS.
2) FACT – FINDING: A NEUTRAL THIRD PARTY STUDIES THE
ISSUE IN A DISPUTE AND RECOMMENDS A REASONABLE
SETTLEMENT.
3) ARBITRATION: A NEUTRAL THIRD PARTY CALLED
ARBITRATOR DECIDES HOW TO SETTLE THE DISPUTE.
CONTENTS OF THE COLLECTIVE BARGAINING AGREEMENT
1. AN ENUMERATION OF MANAGEMENT RIGHTS
2. UNION RECOGNITION AND SECURITY
3. GRIEVANCE AND ARBITRATIONS PROCEDURES
4. COMPENSATION RATES AND BENEFITS
5. HOURS OF WORK AND OVERTIME
6. HEALTH AND SAFETY PROVISIONS
7. SELECTED PERSONNEL MANAGEMENT AND PLANT OPERATION
PRACTICE
8. CONTRACT EXPIRATION DATE
 ADMINISTERING THE COLLECTIVE BARGAINING AGREEMENT
1) INFORMATION DISSEMINATION – CONFLICT MAY BE RESOLVED IF
AGREEMENT ARE CLEARLY UNDERSTOOD WITHIN BOTH PARTIES.
2) CONTRACT IMPLEMENTATION – WHAT IS AGREED MUST BE
IMPLEMENTED
3) CONTRACT INTERPRETATION AND GRIEVANCES RESOLUTION –
COMPLAINTS OF EMPLOYEES MAY BE DISPATCHED IF BOTH PARTIES
FOLLOW THE GRIEVANCE PROCEDUGRE IN CBA
4) MONITORING – GATHERING OF DATA CAN HELP BOTH SIDES IN
IMPLEMENTATION OR DESIGNING CHANGES IN CBA
 UNIONISM IN THE GOVERNMENT

•EXECUTIVE ORDER NUMBER 180, SIGNED BY PRES.

AQUINO ON JUNE 1, 1987, AUTHORIZED
EMPLOYEES TO FORM, JOIN, OR ASSIST
EMPLOYEES’ ORGANIZATIONS. HOWEVER,
MEMBERS OF THE ARMED FORCES OF THE
PHILIPPINES, THE POLICE, AND JAIL GUARDS ARE
EXCLUDED FROM THE AUTHORIZATION.