Understanding the Filipino Workers

1
 Enterprise Development Consulting
Labor Relations for
Foreign Employers
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enterprise development consulting
Labor Relations
For Foreign Employers
The Philippine
Labor Relations
System
Module Two 2
 Enterprise Development Consulting
Labor Relations for
Foreign Employers
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I. Program Objectives
At the end of Day 2 of the participants will be able to conduct the PhilippineLabor Relations
System Module (day 2) of the “Labor Relations for Foreign Employers Program”, specifically;
• Present the Philippine Labor Code as a springboard for good employer-employee relations in a
foreign enterprise
• Provide information on the 6 books of the Labor Code and introduce provisions on employeremployee relations
II. Process Design: The Philippine Labor Relations System
Module 1: Overview: The Philippine Labor Relations System
Objectives Methodology Deliverable Materials Time
 To present the
Philippine Labor
Code as a
springboard for
good employeremployee
relations in a
foreign
enterprise
 To Provide
information on
the 6 books of
the Labor Code
and introduce
provisions on
employeremployee
relations
 Promotional
Lecture
 Participants
understand the
Philippine Labor
Relations
System in broad
strokes
 Power point
slides
15 mins 3
 Enterprise Development Consulting
Labor Relations for
Foreign Employers
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Module 2: Collective Bargaining notes
Objectives Methodology Deliverable Materials Time
 To acquaint the
participants on
the legal bases,
concepts and
definition of
collective
bargaining and
the negotiation
process
 Lecture and
discussion
 Participants are
better informed
foreign
employers and
managers on
labor relations
policies, laws
and rules
pertaining to
collective
bargaining and
collective
bargaining
process
 Power
point
slides
1 hour
and 30
min
Module 3: Dispute Settlement
Objectives Methodology Deliverable Materials Time
 To introduce the
mechanism to
resolve disputes
 Lecture and
discussion
 Participants
have a
knowledge on
how a resolve
controversies
between labor
and
management
 Power
point
slides
1 hour
30 min
II. Process Design: The Philippine Labor Relations System continued…4
 Enterprise Development Consulting
Labor Relations for
Foreign Employers
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Module 4: Trade Unionism; Collective Bargaining and Employee Representation
Objectives Methodology Deliverable Materials Time
 To enhance the
participant’s functional
understanding of the
legal framework of
trade unionism and
collective bargaining in
the Philippines;
 To enable participants
to gain insights on
participatory
mechanisms and
cooperative
arrangements in the
workplace, and how
these can be
harnessed to promote
harmonious labormanagement relations
in furtherance of
corporate objectives;
and
 To enable participants
to developed better
understanding and
greater appreciation of
the Philippine labor
relations system and
its strategic
importance in
developing and
sustaining world class
workforce with the
right skills and attitude
to man globallycompetitive
enterprises.
 Lecture /
Discussion
 Question and
Answer
 Participants are
well-informed
foreign
employers and
managers with
functional
understanding
of the Philippine
labor relations
system and
workplace
participatory
mechanisms,
which can help
bring about
harmonious
labormanagement
relations and
globally
competitive
enterprises.
 Power
point
slides
 Handouts
 1 hour
and
30 min
II. Process Design: The Philippine Labor Relations System continued…5
 Enterprise Development Consulting
Labor Relations for
Foreign Employers
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Module 5: 10 Point Guiding Principles on Effective Governance in Labor and
 Employment Relations
Objectives Methodology Deliverable Materials Time
 To convey the
principles, which
facilitate synergy in
the relationship of
DOLE and Chief
Executive Officers and
management
representatives of
private companies
 To communicate
guiding standards with
the end in view of
protecting the
legitimate interests of
both labor and
management,
ensuring the
maintenance and
promotion of industrial
peace, and promoting
a healthy and stable
labor-management
relationship at the
plant level
 Application of
lectures and
personal
experiences in
the
discussion/ela
boration of
subject
principles
 Participant
understand the
principles
involve in the
relationship of
DOLE and Chief
Executive
Officers and
management
representatives
of private
companies
 Participants
understand the
standards to
protect the
legitimate
interests of
Labor and
Management
 Power
Point
slides s
 15
minlec
ture
 10 min
Q&A
II. Process Design: The Philippine Labor Relations System continued…6
 Enterprise Development Consulting
Labor Relations for
Foreign Employers
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enterprise development consulting
Labor Relations
For Foreign Employers
The Philippine
Labor Relations
System
Module Two
Workbook 7
 Enterprise Development Consulting
Labor Relations for
Foreign Employers
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 Present the the Philippine Labor Code as a springboard for
good employer-employee relations in a foreign enterprise
 Provide information on the 6 books of the Labor Code and
introduce provisions on employer-employee relations
 Enhance their functional understanding of the legal
framework of trade unionism and collective bargaining in the
Philippines
 Gain insights on participatory mechanisms and cooperative
arrangement in the workplace
 Develop better understanding and greater appreciation of the
Philippine Labor Relations System
At the end of the 8-hour session, participants will be able to:
Program Objectives8
 Enterprise Development Consulting
Labor Relations for
Foreign Employers
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Time Topic/Activity/ Methodology
DAY 2 AM
8:00 Opening Address
8:15 Overview: The Philippine Labor Relations
System
8: 30 Collective Bargaining
Open Forum
10:00 Break
10: 15 Dispute Settlement
Open Forum
12:00 Lunch
Day 2 PM
1:30 Trade Unionism and Employee Representation
Open Forum
3:00 Break
3:15 10 Point Guiding Principles on Effective
Governance in Labor and Employment Relations
Open Forum
4:00 Summary and Recap
Process Agenda9
 Enterprise Development Consulting
Labor Relations for
Foreign Employers
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OVERVIEW: The Philippine Labor Relations
System
You have invested in the Philippines.
You have created jobs for Filipinos.
You have learned about Philippine culture.
How could you establish good
employer-employee relations in your
company?
Employer-Employee Relations
Master Plan
• (Josephus Jimenez Model)
MANAGEMENT
OF THE
E.R.
ENVIRONMENT
RELATING WITH
OUR PEOPLE
MANAGEMENT OF
INTERNAL E.R.
SYSTEMS10
 Enterprise Development Consulting
Labor Relations for
Foreign Employers
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notes Management of Employee Relations Environment notes
∆ Coping with trends in labor front
∆ Keeping pace with government policy and regulation
∆ Reconciling employee relations with business goals
Understanding the Philippine
Labor Code helps investment.
Main Objectives of the Labor Code
∆ Industrial peace
∆ Industrial development based on trisectoral cooperation
∆ Promotion of interests and welfare of labor11
 Enterprise Development Consulting
Labor Relations for
Foreign Employers
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notes Labor Code notes
∆ Pre-employment: Protect citizens desiring to work locally or
overseas by securing the best possible terms and conditions
of employment
∆ Provisions: Local and Overseas Recruitment
Book One
Book Two
∆ Human Resources Development: Establish training
institutions, formulate plans and programs for allocation,
development, and utilization of labor force.
∆ Provisions: Training of apprentices and learners, creation of
the Technical Education and Skills Development Authority
(TESDA)
Book Three
∆ Conditions of employment: Provide minimum standards for
working conditions.
∆ Provisions: Hours of work, premium pay for holidays, rest
day and night work differential, minimum wage, special
provisions for women and children12
 Enterprise Development Consulting
Labor Relations for
Foreign Employers
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notes Labor Code notes
∆ Health, Safety and Social Welfare Benefits: Protect health
and safety of Filipino worker.
∆ Provisions: Medical and dental services, State insurance fund
to provide income benefit for work-connected death or
disability
Book Four
Book Five
∆ Labor Relations: Stabilize relations between employees and
management.
∆ Provisions: Adjust differences through collective bargaining
and conciliation, mediation, and arbitration.
Book Six
∆ Termination of Employment: Balance management
prerogative and security of tenure.
∆ Provisions: Grounds for dismissal13
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Labor Relations for
Foreign Employers
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notes For Better Employer-Employee Relations
∆ Manage employee relations
∆ To manage employee relations, keep pace with Labor Code
∆ Labor Code makes investors balance business goals with
employee relations.
Book on Labor Relations
∆ Stabilize employer-employee relations
∆ Promote industrial peace
∆ Collective bargaining
Interfacial necessity: HRD and IR Workplace
Democracy Model
COLLECTIVE
BARGAINING
EMPLOYEE
PARTICIPATION AND
REPRESENTATION
EMPLOYEE INVOLVEMENT:
“Hard and Soft”
Dealing with employee “voice”
Prosocial, defensive, acquiescent14
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notes Employer-employee relations notes
∆ Deal with employees who express opinions
∆ Promote employee involvement in operations
∆ Consultation or decision worker committees
∆ If workers exercise free choice, collective bargaining
Workers choice of collective
bargaining
∆ Labor Code provisions on union registration, unfair labor
practices, selection of a bargaining agent, negotiations and
collective agreements, industrial actions (strikes and
lockouts)15
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notes Collective Bargaining
COLLECTIVE
BARGAINING
EMPLOYEE
PARTICIPATION AND
REPRESENTATION
EMPLOYEE INVOLVEMENT:
“Hard and Soft”
Dealing with employee “voice”
Prosocial, defensive, acquiescent
Interfacial necessity: HRD and IR Workplace
Democracy Model
EMPLOYEES EMPLOYER
Collective Bargaining
By:
Bureau of Labor Relations Department of
Labor and Employment 16
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Collective Bargaining
∆ A method of determining terms and conditions of
employment negotiation between representatives of the
employer and representatives of the employees
∆ A process of interest accommodation through discussion
Definition of Terms and Concepts
Collective Bargaining Agreement
∆ A written contract covering a fixed period resulting from
negotiations between an employer and a union which sets
the terms and conditions of employment and the procedure
to be used in settling disputes that may arise during the
term of the contract
CONTENTS of a CBA:
∆ Negotiating parties (Labor, Management)
∆ Preamble
∆ Non-economic provisions (scope of BU; union rights,
responsibilities, mgt. rights & prerogatives; union security
clause)
∆ Economic provisions (wage increase, premium pay rates,
leave credits, incentives, bonuses)
∆ Grievance Machinery
∆ No strike, no lockout provision
∆ Effectivity and expiration of the CBA17
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Definition of Terms and Concepts
Interest Dispute
∆ a dispute over final terms and conditions of a CBA
Rights Dispute
∆ a dispute over the interpretation or application of the terms
of a CBA
Concepts
∆ CB adopts the process of union organizing as a precondition
before a collective negotiation could take place.
∆ Representatives of group of workers and the management
meet for purposes of negotiating the terms and condition of
employment.
∆ Collective bargaining is a medium of self-regulation.
Basic Principles
∆ CB is enterprise-based
∆ It may cover one enterprise unit or separate bargaining units
within the same enterprise
∆ There maybe two or more unions in an employer or
bargaining unit, but one union may represent the entire unit
for collective bargaining. The union representative is called
the EXCLUSIVE BARGAIING AGENT
∆ The norm of bargaining behavior is GOOD FAITH18
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Definition of Terms and Concepts
Theories/Model
∆ ZEUTHEN MODEL – involves calculation of utility by the
negotiators
∆ WALTON AND MACKERZIE – an exercise involving four
different and distinct processes
∆ CHAMBERLAIN THEORY – concessions are based on
perceptions and calculations
∆ MURPHY’S LAW – concessions occur just before the
negotiations are due to end
Legal Framework
1987 PHILIPPINE
CONSTITUTION
LABOR CODE OF THE
PHILIPPINES
ILO CONVENTIONS19
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PRECONDITIONS FOR COLLECTIVE BARGAINING:
∆ Union must be legitimate
∆ Union must be the exclusive bargaining agent, either
through certification election or voluntary recognition
∆ Union must make a demand to bargain
∆ There must be no registered collective bargaining agent
covering the same bargaining unit; if there is, bargaining
must be done during the freedom period
CB Process
How a CBA may be concluded?
∆ Voluntary by the parties (workers and management)
∆ Intervention of a third party through arbitration
Steps:
∆ Serve a written notice to negotiate an agreement with a
statement of its proposals. Reply shall be made not later
than 10 calendar days from receipt
∆ Should differences arise, either party may request for a
conference
∆ If the dispute is not settled, the NCMB shall intervene and
immediately call the parties to a conciliation meeting
∆ During conciliation, the parties are prohibited from doing any
act which may disrupt the early settlement of the dispute
∆ The NCMB shall exert all efforts to settle disputes amicably20
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Term Limits
∆ An exclusive collective bargaining agent has five years to
represent the members of the bargaining unit
∆ A collective bargaining agreement has a term of five years,
but maybe renegotiated prior to the end of third year.
Effects of CBA
∆ Contract bar rule; freedom period
∆ Union security provisions
∆ Doctrine of conclusiveness or completeness of the
agreement
∆ No strike, no lockout provisions21
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notes Dispute Settlement
Objective
To introduce the
mechanisms to
resolve disputes
Purpose of Dispute Settlement
To resolve controversies between
labor and management
By:
Bureau of Labor Relations Department of
Labor and Employment 22
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notes Government assistance – “win-win” solutions
• GRIEVANCE MACHINERY
• LABOR-MANAGEMENT COMMITTEES
• VOLUNTARY ARBITRATION
• CONCILIATION AND MEDIATION (NCMB)
• TRIPARTISM
Interpret collective
agreements and personnel
policies
Government agencies that provide solutions
1. National Labor Relations Commission (NLRC) – illegal
termination, money claims (P5000+), unfair labor
practices, illegal strikes, injunctions to prevent grave
injury)
– Regional Arbitration branches; Labor
Arbiters
– Appeal: Commission Proper
2. DOLE Regional Office – money claims (P5000 -),
inspections to enforce labor standards
– Regional Arbitration branches; Labor
Arbiters
– Appeal: Commission Proper23
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notes Government agencies that provide solutions
3. Bureau of Labor Relations – union and CBA
registration, intra-union disputes
– Regional Med-Arbiter
– Appeal: BLR
4. National Conciliation and Mediation Board (NCMB) –
conciliation strikes and lockouts
5. Secretary of Labor and Employment
– Assumption of jurisdiction in
strikes/lockouts affecting “industries
indispensable to the national interest”
– Sec Lab options: decide dispute or
certify dispute to NLRC
Government agencies subject to “Judicial Review”
 Intermediate appeal to Court of Appeals
 Final appeal to Supreme Court24
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Four-tiered labor dispute settlement
SUPREME COURT
COURT OF APPEALS
DOLE CENTRAL APPEAL
DOLE REGIONAL25
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notes The Philippine Labor Relations System
Trade Unionism, Collective Bargaining, and
Employee Representative
Constitutional and Legal Framework
1. self-organization
2. collective bargaining and negotiations
3. workers’ participation in policy and decision-making processes
4. shared responsibility between workers and employers
5. trade unionism as an instrument for the enhancement of
democracy and the promotion of social justice and
development
Employee Representation
Participation
• any process whereby workers . . . have a share in the
reaching of managerial decisions in the enterprise.
• influence in decision making exerted through a process of
interaction between workers and managers based upon
information sharing.
• is mental and emotional involvement of persons in group
situations that encourage them to contribute to group goals
and share responsibility for them. 26
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Employee Involvement notes
Why Employee Involvement is introduced
• information and education
• gaining commitment
• appropriating knowledge
• recruitment and retention
• stability and conformance
• externally-driven
Categories
Upward Problem-Solving
 Quality circles
 Suggestions schemes
 Attitude Surveys
 Total Quality Management
 Customer Care Programs
- aims to support the achievement of management’s goals, either
directly in relation to performance improvements and competitive
advantage, or indirectly through higher levels of employee
commitment, satisfaction and identification with their employer 27
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Categories continued . . . notes
Task-based participation & teamworking
 Horizontal Job Redesign
 Job Enrichment and Vertical Role Integration
 Teamworking
Financial involvement
 cash-based profit sharing
e.g. Profit-Related Pay
 plant- or enterprise-wide bonus schemes
e.g. Scanlon Plan; Rucker Plan; Bentley Plan
 employee share ownership plans (ESOPs)
Downward communications
 briefing group or team briefing
 structured communication techniques
such as emails, employee reports,
house journals, newsletters, videos 28
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Employee Involvement desired results if:
 union support to any change initiatives is ensured
 union should see their involvement in any change program
as beneficial to their members’ and company’s interests
 union support for EI should lead to improvements in
overall working conditions
Employee Involvement and trade unions: Some
Issues
 relationship is complex; variety of outcomes possible
 compatibility or synergy?
 tension and competition?
Final thoughts on Employee Involvement
Joe Griffith on Reward and Recompense:
“The suggestion box idea works at Kodak because employees
receive recognition and rewards for their ideas. If your idea was
used, you are financially rewarded. Kodak has adopted 700,000
ideas to the tune of $20 million. If an idea isn’t accepted, they
also tell you why.” 29
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10- POINT GUIDING PRINCIPLES ON
EFFECTIVE GOVERNANCE IN LABOR AND
EMPLOYMENT RELATIONS
1ST Principle:
Adherence to Decent Work
• Decent work means work, which is carried out in conditions of
freedom, equity, security, and human dignity
2nd Principle:
Protection of Labor and Management Rights
• Labor deserves the right to afford full protection and
promotion of full employment and and equality on work
opportunities for all. It shall be guaranteed the rights to selforganization, collective bargaining and negotiations, and other
concerted peaceful activities.
• Management reserves the right to conduct its own affairs in
the smooth flow of its business transactions, while not risking
the protection and welfare of its personnel.30
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3rd Principle:
Promotion of the Dignity of Labor and Viability of
Business
• Promotion of labor dignity is conferred by ensuring workers’
protection and welfare, promoting employments and
manpower development, and popular participation in labormanagement decision making.
• A greater proportion of business feasibility on the other hand
is based upon the effectiveness of its work force and the
proper consideration of the local and global trade realities.
4th Principle:
Advocacy to Humane, Safe and Healthy Work
Environment
• The provision of a good working environment conducive to
work is an integral concern of governance of labor and
employment relations. It facilitates the recognition of labor
rights pertaining to the protection of work force from labor
hazards Cultivation of Accountability and Responsibility at
Work.31
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5th Principle:
Promotion of Social Dialogues
• Social dialogues include all types of negotiation, consultation
or simply exchange of information between, or among
representative of governments, employers and workers, on
issues of common interest relating to economic and social
policy.
• Social dialogues are aimed at achieving the objectives of
decent work, through the assumption of strengthening social
partnership during conference.
6th Principle:
Encouragement of a Continuously Evolving Sense of
Community thru Partnership and Cooperation
• A communal relationship between labor and management
reflects a oneness of purpose and is a requisite in the
fulfillment of labor-management unitary mission and vision.
7th Principle:
Cascade of Information Towards Partnership and
Upgrading of the Bureaucracy
• Information advocacy towards a more effectual labormanagement partnership is facilitated through the ardent
drive and conduct of labor education programs and seminars
to organized groups.32
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8th Principle:
Assumption of Corporate Governance and
Responsible Unionism
• Corporate governance is the nuts and bolts of how
organizations fulfill their responsibilities to their stakeholders.
It connotes the proper observance of labor management
rights, duties and obligations as stipulated within the
provisions of their CBAs.
9th Principle: Compliance with the Rule of Law
• The Rule of Law is the foundation of good governance
through the impartial enforcement of legal frameworks.
10th Principle:
Strategic Vision and Leadership
• Strategic vision is stewardship over the possession and
practice of a conceptual skill, which enables one to see in
perspective, significant conditions prevailing in organized and
unorganized workplaces.