The study primarily aims to provide information on how selected companies from the tourism-oriented sector handle labor issues.
Literature are provided to determine what are the best practices that are within minimum labor standard laws, and those practices which are over and above the minimum labor standard laws.
By way of recommendation, legislators and government agencies such as the Department of Tourism and Department of Labor and Employment should play an active role in providing assistance for tourism establishments in terms of training,
information dissemination and education on labor laws and standards required for excellent service to customers. There is also a need for tourism-oriented establishments to maintain standards in order to contribute to its growing industry, hence it is preferable for administrators of colleges and universities to look into these best labor practices for reflection, perusal and review in terms of utilizing the information for developing quality educational programs to prepare its future graduates (especially for graduates of BS Hotel and Restaurant Management and BS Tourism and Tourism Management) on their entry level in the tourism industry.
Original Title
A Study of the Best Labor Practices of Selected Tourism Establishments in the Philippines
The study primarily aims to provide information on how selected companies from the tourism-oriented sector handle labor issues.
Literature are provided to determine what are the best practices that are within minimum labor standard laws, and those practices which are over and above the minimum labor standard laws.
By way of recommendation, legislators and government agencies such as the Department of Tourism and Department of Labor and Employment should play an active role in providing assistance for tourism establishments in terms of training,
information dissemination and education on labor laws and standards required for excellent service to customers. There is also a need for tourism-oriented establishments to maintain standards in order to contribute to its growing industry, hence it is preferable for administrators of colleges and universities to look into these best labor practices for reflection, perusal and review in terms of utilizing the information for developing quality educational programs to prepare its future graduates (especially for graduates of BS Hotel and Restaurant Management and BS Tourism and Tourism Management) on their entry level in the tourism industry.
The study primarily aims to provide information on how selected companies from the tourism-oriented sector handle labor issues.
Literature are provided to determine what are the best practices that are within minimum labor standard laws, and those practices which are over and above the minimum labor standard laws.
By way of recommendation, legislators and government agencies such as the Department of Tourism and Department of Labor and Employment should play an active role in providing assistance for tourism establishments in terms of training,
information dissemination and education on labor laws and standards required for excellent service to customers. There is also a need for tourism-oriented establishments to maintain standards in order to contribute to its growing industry, hence it is preferable for administrators of colleges and universities to look into these best labor practices for reflection, perusal and review in terms of utilizing the information for developing quality educational programs to prepare its future graduates (especially for graduates of BS Hotel and Restaurant Management and BS Tourism and Tourism Management) on their entry level in the tourism industry.
International Journal of Research in Management, Economics & Commerce
Website: www.indusedu.org (ISSN 2250-057X, ISO 9001:2008 Certified Journal,
Volume 4, Issue 3, March 2014)
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A STUDY OF THE BEST LABOR PRACTICES OF SELECTED TOURISM ESTABLISHMENTS IN THE PHILIPPINES Christine Carpio-Aldeguer Danny Cabulay Adulfo Arevalo
ABSTRACT The study primarily aims to provide information on how selected companies from the tourism-oriented sector handle labor issues. Literature are provided to determine what are the best practices that are within minimum labor standard laws, and those practices which are over and above the minimum labor standard laws. By way of recommendation, legislators and government agencies such as the Department of Tourism and Department of Labor and Employment should play an active role in providing assistance for tourism establishments in terms of training, information dissemination and education on labor laws and standards required for excellent service to customers.There is also a need for tourism-oriented establishments to maintain standards in order to contribute to its growing industry, hence it is preferable for administrators of colleges and universities to look into these best labor practices for reflection, perusal and review in terms of utilizing the information for developing quality educational programs to prepare its future graduates (especially for graduates of BS Hotel and Restaurant Management and BS Tourism and Tourism Management) on their entry level in the tourism industry. Keywords: tourism, best practices, labor, hotel, hospitality industry
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INTRODUCTION The philosophy that human resources are a companys most valuable asset holds true in a service-oriented industry like tourism. This industry that is both labor intensive and capital intensive creates an interdependent relationship between management and labor. It is interesting to find out what kind of labor issues arise from these sectors and how management resolves them. The study primarily aims to provide information on how selected companies from the tourism-oriented sector handle labor issues This study also aims to provide information on the different remedies and preventive measures which are being undertaken by the selected establishments from the tourism- oriented sector to minimize labor-related deterrents to good work performance. Specifically, it seeks to answer the following questions: 1. What are the different causes of labor disputes in the various establishments in the tourism-oriented sectors? 1.1 hotel 1.2 restaurant 1.3 transport service 1.4 travel trade 1.5 tourist site 2. What are the critical factors that give rise to such labor disputes? 3.1. hotel 3.2. restaurant 3.3. transport service 3.4. travel trade 3.5. tourist site 3. What are the methods/measures employed by management to resolve labor disputes in their respective companies? 4. What are the schemes of the various tourism-oriented establishments in handling labor cases? 5. What are the best practices in managing labor disputes in their respective companies?
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6. What is the impact of applying the practices in managing labor disputes in their respective companies as perceived by the respondents in terms of: 6.1 Productivity 6.2 Cost 6.3 Employee morale The study will cover human resource managers and other human resources personnel handling managerial or supervisory positions. Only companies/agencies in the five sectors namely: hotel, restaurant, transport service, travel trade and tourist sites are considered in the study. THEORETICAL/CONCEPTUAL FRAMEWORK A. Review of Related Laws A) The 1987 Constitution of the Philippines The Philippine Constitution (1987) provides an explicit provision for labor. Labor, whether local or overseas, organized or not organized, shall be given constitutional protection. The State shall promote shared responsibility between workers and employers. Thus, the workers shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law. The recognition by the State of the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns on investments as well as to expansion and growth may be considered a sequel to the rule that the principle of shared responsibility between workers and employers must be promoted by the State. The words just share in the fruits of production should not cover only basic salaries and other employment benefits but may also cover profit-sharing. (Nolledo, 1990). The State also protects the rights of the working women by assuring them safe and healthful conditions of work and opportunities to maximize their full potential in the service of the nation. B) Benefits, Privileges, Policies Affecting Employees Minimum Wage By virtue of the Wage Rationalization Act of 1989 (Phil.) , the determination of minimum wage rates are now within the function of the Regional Tripartite and Productivity Board. Minimum wages underlies the effort of the State to promote
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productivity-improvement and gain-sharing measures to ensure a decent standard of living for the workers and their families; to affirm labor as a primary social economic force. [Employers Confederation of the Philippines vs. National Wages and Productivity Commission et al., (1991)] Collective Bargaining This means conferring promptly and in good faith for negotiating agreements with respect to wages, hours of work, etc. and entering into written contracts, (called Collective Bargaining Agreement or CBA) adjustment of grievances, etc. The provisions commonly found in collective bargaining agreements are: 1) Enumeration or reservation of management rights; 2) Union recognition and security; 3) Wage and fringe benefits and their administration; 4) Physical working conditions; 5) Selected personnel management and plant operation practices; 6) Grievance and arbitration; 7) Duration of contract. (Azucena, 2001) Labor Management Council Under Article 255 of the Labor Code of the Philippines (1974), it reserves the right of an individual employee or group of employees (unionized or non-unionized) to present grievances to their employer at any time, with or without collective bargaining, with or without exclusive bargaining representatives. The Department of Labor and Employment promotes the formation of Labor Management Councils (LMC) in organized and unorganized establishments. (Omnibus Rules to Implement the Labor Code of the Philippines, 1989). An LMC, either as council or committee, can serve as a forum where management and employees may air their concerns, short of collective bargaining. It is largely a communication mechanism which includes prevention or resolution of disputes. Harnessed to the fullest and given the sincerity, confidence and maturity of both sides, LMC can effectively secure industrial peace, provided it maintains its integrity. In fact, an LMC can be so effective it can make a labor union unnecessary. Labor Management Councils require that employee representatives should be elected by the employees, not hand-picked by management. Maternity and Paternity Leaves Maternity leave benefits are covered under the Social Security Act of 1997 (Phil.). Under said law, a female member (need not be married) who has paid at least three (3) monthly contributions in the 12-month period immediately preceding the semester of her
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childbirth or miscarriage shall be paid a daily maternity benefit equivalent to 100% of her average daily salary credit for 60 days or 78 days in case of caesarian delivery. On the other hand, the Paternity Leave Act of 1996 (Phil.) governs the granting of paternity leave benefits to every married male employee. Under the said law, every married male employee in the private and public sector shall be entitled to a paternity leave of seven (7) days with full pay for the first four (4) deliveries of the legitimate spouses with whom he is cohabiting. The Solo Parents Welfare Act of 2000 (Phil.) governs the granting of leave privileges to solo parents. In addition to leave privileges under existing laws, parental leave of not more than seven (7) days every year shall be granted to any solo parent employee who has rendered service for at least one (1) year. Service Charges The rule of service charges applies only to establishments collecting service charges such as hotels, restaurants, lodging houses, night clubs, cocktail lounge, massage clinics, bars, casinos, gambling houses and similar enterprises, including those entities operating primarily as private subsidiaries of the Government. [Omnibus Rules Implementing the Labor Code of the Philippines (1989)]. All service charges collected by hotels, restaurants, and similar establishments shall be distributed at the rate of 85% percent for all covered employees and 15% percent for management. (Labor Code of the Philippines, 1974). The 15% shall be for the disposition by management to answer for losses and breakages and distribution to managerial employees at the discretion of management in the latter case [Omnibus Rules Implementing the Labor Code of the Philippines (1989)]. Employment Contracts An employment contract is that by virtue of which one person (employee) binds himself with respect to another (employer) to place at the service of the latter his own efforts in work, and the latter in turn agrees to pay him a compensation proportional to the time or to the quantity of work done. The concept of employment contract is regulated under the provisions of the Labor Code of the Philippines, Civil Code of the Philippines and other special laws. Execution of employment contracts are in line with the characteristics of autonomy of contracts wherein parties are free to stipulate terms and provisions in a contract, as long as these
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terms and provisions are not contrary to law, morals, good customs, public order and public policy. Hence other considerations of moral and social character have to be reckoned with to promote industrial peace and in keeping with social justice. Whenever there is doubt in the interpretation of any labor or employment contracts, the same shall be construed in favor of the safety and decent living for the laborer (Civil Code of the Philippines, 1949).
Legally speaking, a contract of employment is consensual in nature which does not require additional formalities for its validity. However, the current practice in labor intensive industries like the tourism industry is to utilize express written employment contracts, clearly understood and voluntarily agreed by the parties to protect the interest of both capital and labor. This is true especially for employees under a probationary, project, casual and fixed-term employment wherein the standards, scope and duration of the employment must be express, clearly understood and voluntarily agreed by the parties. Death Benefits Under the Social Security Act of 1997 (Phil.), upon the death of a member who has paid at least 36 monthly contributions prior to the semester of death, his primary beneficiaries shall be entitled to the monthly pension: Provided, that if he has no primary beneficiaries, his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to 36 times the monthly pension. A funeral grant equivalent to P12,000 shall be paid, in cash, or in kind, to help defray the cost of funeral expenses upon the death of a member, including permanently totally disabled member or retiree. In case of work-related deaths, beneficiaries will receive death benefits under the Employees Compensation and State Insurance Fund, in addition to the benefits under the Social Security Act of 1997 (Phil.). Accordingly, the amount under the Employees Compensation Fund shall be the amount equivalent to his monthly benefit, plus ten percent thereof for each dependent child, but not exceeding five. The Employees Compensation Commission has increased the funeral benefits to P10,000. (Labor Code of the Philippines, 1974) Health Benefits This includes sickness, medical and hospitalization benefits. Under the Social Security Act of 1997 (Phil.), a member who has paid at least 3 monthly contributions in the 12-
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month period immediately preceding the semester of sickness or injury and is confined more than three (3) days in a hospital or elsewhere with the approval of the SSS, shall be paid a daily sickness benefit equivalent to 90% of his average daily salary credit. In case of work-related sickness, the covered employee will be entitled to medical services, appliances and supplies, (Labor Code of the Philippines, 1974) in addition to the benefits under the Social Security Act of 1997 (Phil.). Retirement Under Article 287 of the Labor Code of the Philippines (1974), as amended by The New Retirement Pay Law of 1992 (Phil.), any employee may be retired upon reaching the retirement age established in the collective bargaining agreement or other applicable employment contract. In the absence of a retirement plan or agreement providing for retirement benefits of employees in establishments, an employee upon reaching the age of 60 years or more, but not beyond 65 years which is hereby declared the compulsory retirement age, who has served at least 5 years in the said establishment, may retire and shall be entitled to a retirement pay equivalent to at least month salary for every year of service, a fraction of at least 6 months being considered as one whole year. SSS, PhilHealth, Employees Compensation Commission, and Pag-Ibig Employees in the private sector are covered under the Social Security Act of 1997 (Phil.) wherein the mission is to promote and perfect a sound and viable tax exempt social security system suitable to the needs of the people which shall provide meaningful protection to members and their beneficiaries against hazards of disability, sickness, maternity, old age, death and other contingencies resulting in loss of income or financial burden. PhilHealth assumed the responsibility of administering the former Medicare program for private sector employees, with its landmark transfer from the Social Security System (SSS). With this transfer came the turnover of the health insurance funds, initially totaling P14 billion from the SSS. The amount covers employee and employers' shares in the medical care program. The benefit package includes the following categories of personal health services: Inpatient hospital care and Outpatient care. [Republic Act 9241 (2004), Phil.] An employee may also recover from the Employees Compensation and State Insurance Fund in case of work-related disabilities.
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Membership to the Pag-IBIG Fund shall be mandatory for all employees covered by the Social Security System (SSS). This mandatory coverage extends to expatriates whose age is up to 60 years old and who are compulsorily covered by the SSS. In the absence of an explicit exemption from SSS coverage, the said expatriate, upon assumption of office, shall be compulsorily covered by the Fund. Some of the benefits under the Pag-IBIG program are the housing loan, calamity loan, and a provident savings program. [Implementing Rules and Regulations of Republic Act No. 7742, 1995 (Phil.)] Termination of Employment It is the constitutional right of workers to security of tenure and their right to be protected against dismissal except for just and authorized cause and without prejudice to the requirement of notice under the Labor Code of the Philippines (1974). Due process in termination disputes is the heart of security of tenure and is personal to the employee. The following are the standards of due process for termination of employment: (a) A written notice served on the employee specifying the ground and grounds for termination, and giving to said employee reasonable opportunity within which to explain his side; (b) A hearing or conference during which the employee concerned, with the assistance of counsel if the employee so desires, is given the opportunity to respond to the charges, present his evidence, or rebut the evidence presented against him; and (c) A written notice of termination served on the employee indicating that upon due consideration of all the circumstances, grounds have been established to justify the termination. In case of termination, the foregoing notices shall be served on the employees last known address. For termination of employment based on authorized causes, the requirements of due process shall be deemed complied with upon service of a written notice to the employee and the appropriate Regional Office of the Department of Labor at least 30 days before the effectivity of the termination specifying the grounds for termination. If the termination is brought about by the completion of the contract or phase thereof, no prior notice is required. If the termination is brought about by the failure of an employee to meet the standards of the employer in the case of probationary employment, it shall be sufficient that a written notice is served the employee within a reasonable time from the effective date of termination. [DOLE Department Order No. 9, 1997 (Phil.)]
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Under the Labor Code of the Philippines (1974), the following are considered just causes for termination: (a) Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work; (b) Gross or habitual neglect by the employee of his duties; ( c) Fraud or willful breach by the employee of the trust reposed by him by his employer or duly authorized representative; (d) Commission of a crime or offense by the employee against the person of his employer or any immediate member of his family or his duly authorized representative; and (e) Other causes analogous to the foregoing. B. Synthesis The laws have a significant relationship with the present study in the sense that the researcher needs to find a foundation for seeking the best labor practices in the tourism- oriented sector. These laws are provided to determine what are the best practices that are within minimum labor standard laws, and those practices which are over and above the minimum labor standard laws. C. Conceptual framework The research paradigm of this study shall be illustrated in the following figure: Figure 1: Paradigm on how companies manage labor problems
Figure 1 above shows a paradigm on how companies in the tourism-oriented sector manage different labor problems: A labor problem starts from the relationship existing between management and employees/workers. It is given that there always exist gaps between management and labor. These identified gaps give rise to a lot of labor-related problems. Hence, there is a need for management to provide creative, proactive and effective intervention measures to minimize gaps, increase productivity and eventually promote industrial Relationship between management and labor (employees/workers)
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peace. These intervention measures may be considered as the best labor practices being utilized by selected companies within the tourism-oriented sector. Possible outcomes by reason of these intervention measures may yield to higher productivity, employee morale, and high savings. RESEARCH METHODOLOGY The researcher used descriptive and exploratory research as research design. Consider the following methods utilized: a) expert interview -- the researcher conducted expert interviews from the human resource managers, human resource supervisors and personnel in order to come up with the best labor practices in managing selected establishments in the tourism-oriented sector. The major instrument used in gathering the data is the questionnaire. The questionnaire was supplemented with unstructured interview with some of the respondents. c) secondary data sources. Articles from recent newspapers, journals and the internet was considered in order to be updated on the study. The researcher concentrated on the selected tourism-oriented establishments located in Metro Manila. The respondents shall be composed of human resource managers, and human resource personnel performing managerial and supervisory functions from selected tourism- oriented establishments within Metro Manila. The researcher used purposive sampling as a sampling scheme wherein a desired number of sample units are selected on purpose. The selection of the sample shall depend on the personal convenience of the researcher or investigator. The researcher used Frequency and Percentage (Measures of Central Tendency). This statistical tool was utilized for determining the impact of the practices being utilized by the selected establishments in the tourism-oriented sectors as perceived by the respondents in terms of cost, morale and productivity. This was also utilized in ascertaining the top corporate attributes being considered by the selected tourism- oriented establishments in relation to the impact of the practices being utilized by the selected establishments in the tourism-oriented sectors. ANALYSIS AND FINDINGS
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Interviews with a total number 46 respondent managers were conducted on the basis of the following representation: Table 1: Respondent Representation Nature of Establishment No. of respondents Hotel 20 Restaurant 15 Transport service 4 Travel Trade 5 Tourist Site 2
Based on the findings of this study, 90% of the selected respondents agree that it is imperative to have a proactive and supportive Human Resource Department which will be instrumental in enhancing the welfare of the employees and helping the company towards its growth in investments. An open-door policy with the President or General Manager of the company is most welcome as it has proven to be the most effective means of removing the barriers of communication and enhancing a shared responsibility of nationhood between capital and labor. A) Common problems encountered by various establishments in the tourism-oriented sector: The top problems encountered by the selected tourism-oriented establishments are as follows: 1) Absenteeism / tardiness 2) Illegal dismissal / illegal suspension 3) Pilferage / Theft 4) Dishonesty B) Critical Factors that give rise to the identified labor problems The top critical factors that give rise to the labor problems are as follows: 1) Personal / Family / Health problems 2) Poverty / Economic reasons 3) Lack of discipline
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4) Weak Human Resources Department / Lack of support of management with the Human Resources Department. C) Schemes employed in handling the above labor problems The following are the schemes employed by the selected tourism-oriented establishments in handling labor problems: a) Labor Management Council b) Unions c) Written reports / Incident Report / Committee Investigation d) Grievance Machinery e) Counseling / Coaching d) Dialogues with the Human Resources Department e) General Assemblies / Departmental Meetings / Meetings with the President or General Manager. f) Employee councils to handle cases. D) Methods and Measures employed in resolving the identified labor problems:
The following are the methods employed by the respondents in handling their respective labor problems: a) A labor management council (LMC) is being employed every month to discuss concerns between management and labor; b) Regular monthly departmental meetings are conducted to discuss the different problems encountered by employees. By way of resolution, suggestions are being discussed to be applied. c) Extensive counseling programs are undertaken to help erring employees reflect on mistakes committed. d) Extensive information dissemination and education to employees are being conducted to immerse employees of the culture, mission/vision statement and philosophy of the company. Government agencies like the Department of Labor and Employment are sometimes invited to provide information to managers and employees on some of the applicable laws related to management and labor. e) Emphasis is given for training regarding results-oriented programs.
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f) An open door policy with the General Manager and/or Human Resources Department is highly undertaken to know directly concerns of the employees down from the rank and file. g) An appraisal of performance of employees are undertake every month or quarter. Employees are given copies of their appraisal and is being counseled on how these employees will be evaluated. h) A copy of the code of conduct and job description is given to every employee before he starts working. E) Flow of Procedure in investigating employees, supervisors and managerial employees for violation of company rules and regulations: It is important that companies have guidelines in investigating employees, supervisors and managerial employees for violation of company rules and regulations. The following are the guidelines according to the respondents of the selected tourism- oriented establishments: 1) A show cause memo is given to the erring employee concerned based on the incident report given either by the complainant or by the concerned supervisor. If the erring employee is a manager or supervisor, it is the Director for Human Resources who furnishes the show cause memo. A show cause memo is a notice given to the employee showing the unlawful act or crime committed, giving the erring employee an opportunity to answer or rebut the same within a period from receipt of the memo. 2) A hearing shall be conducted through an investigating committee which represents the management and labor. In this venue, evidence shall be received and evaluated objectively by the committee. 3) A report shall be prepared by the investigating committee specifying in detail its findings and shall provide the corresponding recommendation. 4) A notice of the finding shall be given to the employee under investigation. F) Labor Cost Saving Devices employed by the selected tourism-oriented establishments Data reveals the following labor cost saving devices employed by the selected tourism- oriented establishments: Hotels Replacement of contractual employees every five (5) months Training centers within the company
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Agency employment (for proper monitoring, to maximize productivity) Hiring of external trainer Flexible staffing / cross training / multiskilling / job combination Hiring of concessionaires (for laundry, baking, cafeteria) Early retirement programs Proactive training of employees Paperless requisitions No overtime (OT) policy Restaurants Hiring of student apprentices Limited or no overtime (OT) policy Multiskilling / Multitasking / Cross training Broken time scheduling Franchising Implementing a double day-off policy Replacement of contractual employees every 5 months Transport Service Replacement of contractual employees every 5 months Flexible staffing / Multitasking Extensive training for proper care for bus equipment Travel Trade Job rotation / Cross training / Flexible staffing Tourist sites Multiskilling / Flexible staffing Seeking external linkage for sponsorships of training of employees and managers G) Best Labor Practices being implemented in various tourism establishments. In summary, the following are the best labor practices that are now implemented in various tourism establishments: (1) In the selection process of employees, a comprehensive medical/physical examination and/or a psychological/IQ examination is undertaken. (2) A comprehensive background check is usually undertaken by an employer before admitting newly hired employees.
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(3) A two-week orientation training is given to the newly hired employees before they start the actual duty. An immersion of the operations will be observed plus a thorough study of the companys background by the new employee will be undertaken. A written examination on what was learned during the orientation training will have to taken by the newly hired employees before he starts to work. For the training of drivers, a two-week driving training plus an actual examination is undertaken before they start working. (4) Some respondents report that they do not have unions in their workplace. Instead, a weekly or monthly dialogue with the General Manager or President, or weekly meetings with Labor Management Councils are being established to thresh out every problem being encountered by employees. (5) A performance evaluation on a monthly or quarterly basis is being undertaken among employees. In this regard, proactive counseling is being done to improve performance and productivity level of employees. By way of practice, a written performance evaluation is furnished to the employee concerned. (6) Meritocracy is observed in such as way that increase in pay and other incentives are always based on performance. Other benefits being given over and above the benefits prescribed under labor standard laws are: meal allowance, vacation leave, sick leave, emergency leave, bereavement leave, hospitalization and medical benefits, group disability insurance, rice subsidy, birthday leaves, profit-sharing, performance based awards, productivity bonus, education benefits, 14 th up to 16 th month pay, quarterly bonuses, meal allowance, loyalty awards, Christmas groceries and a competitive retirement program. Sports and recreational activities, Christmas parties and weekly bible-reading activities are being undertaken to develop the employees physical, social and spiritual well-being. (7) Adherence to due-process in termination disputes are strictly followed by the employer (i.e. 2-notice rule, hearing or opportunity to be heard, etc.) (8) Newly hired employees are oriented on and being furnished copies of the companys Code of Ethics before they start working. All other day-to-day activities of the company policies are published in memos, copy furnished the employees and posted in strategic bulletin boards.
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(9) Employees are furnished copies of their job description, company policies, house rules and the instruments on how they will be evaluated. (10) Companies invest highly on training and development of employees and managers. For hotels, the average training budget annually would range from P1.8M to P5M. For restaurants, the average annual training budget ranges from P500,000.00 to P2,000,000.00 . For airline companies, the annual training budget ranges from P6M to P7M. For travel trade, the tour operators are given free training by companies from the airline industry. (11) To minimize labor cost, some of the tourism establishments apply the franchising as a business model. Contractual employment on emergency cases is also being undertaken. (12) For tourist sites which are being administered by the government, strict adherence to civil service laws, rules and regulations is imperative. As perceived by the respondents, the best labor practices by the selected establishments in the tourism-oriented sector yield to: a) moderate savings; b) average morale among employees; and c) high productivity. It is worthy to note that the following are the top corporate attributes that are considered by the selected establishments in the tourism-oriented sector as perceived by the respondents: 1) Customer Satisfaction; 2) Business growth; 3) Employee Morale and Financial Stability It can be deduced that the primary objective of the selected establishments in the tourism-oriented sector is to make sure that customers are fully satisfied. That is why the respondents perceive the current labor practices being applied by the selected establishments yield to high productivity because their primary consideration is customer satisfaction. Employee morale and financial stability are also being considered by the selected establishments in the tourism-oriented sector as one of their corporate attributes, though not its top priority. Hence, respondents perceive the current practices only yield to moderate savings and average morale. RECOMMENDATION / CONCLUSION The following are the recommendations as a result of this study:
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1. Legislators and government agencies such as the Department of Tourism and Department of Labor and Employment should play an active role in providing assistance for tourism establishments in terms of training, information dissemination and education on labor laws and standards required for excellent service to customers. This information dissemination and training seminars will provide a strong background to employers in order for them not to commit the mistakes in handling labor disputes. 2. There is a need for tourism-oriented establishments to maintain standards in order to contribute to its growing industry, hence it is preferable for administrators of colleges and universities to look into these best labor practices for reflection, perusal and review in terms of utilizing the information for developing quality educational programs to prepare its future graduates (especially for graduates of BS Hotel and Restaurant Management and BS Tourism and Tourism Management) on their entry level in the tourism industry. To conclude, the tourism industry, with its labor intensive nature, is prone to many labor issues. Hence, labor law plays a vital role in the efficient operation the various business enterprises related to tourism. The Philippine Constitution has given emphasis to labor as an important aspect of our socio-economic development. That is why, strict adherence to labor laws, rules and regulations should be properly observed for the overall development of our economy. SCOPE OF FUTURE RESEARCH As this study is limited to tourism-oriented establishments in Metro Manila, it is highly recommended that this be replicated for further exploratory research study to cover also establishments representative of the whole country. REFERENCES 1. Azucena, C.A. (2001), Everyones Labor Code, Rex Book Store, Inc.
2. Clemente, M. (2005), Handbook on Pleading, Practice and Procedure Before Labor Arbiters, 3. Nolledo, J. (1990), The New Constitution of the Philippines, Annotated, National Bookstore. Central Book Supply. 4. Foz, V. (1983), The Labor Code of the Philippines, Philippine Law Gazette, Quezon City.
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5. Employers Confederation of the Philippines vs. National Wages and Productivity Commission and Regional Tripartite Wages and Productivity Board-NCR et al., (1991), Supreme Court of the Philippines, G.R. No. 96169. Retrieved from: http://www.chanrobles.com/cralaw/1991septemberdecisions.php?id=711 6. Wage Rationalization Act of 1989 (Phil.). Retrieved from: http://www.ilo.org/dyn/travail/docs/1155/Wage%20Rationalization%20Act%201 989%20-%20NWPC%20publication.pdf. 7. Labor Code of the Philippines (1974). Retrieved from: http://www.chanrobles.com/legal4labor7.htm 8. Omnibus Rules to Implement the Labor Code of the Philippines (1989). Retrieved from: http://www.chanrobles.com/implementingrulesofthelaborcode.htm#.UyuvVM6v Zps 9. Social Security Act of 1997 (Phil.). Retrieved from: http://www.chanrobles.com/legal4sss.htm#.UyuwCc6vZps 10. Civil Code of the Philippines (1949). Retrieved from: http://www.chanrobles.com/civilcodeofthephilippines.htm 11. Paternity Leave Act of 1996 (Phil.). Retrieved from: http://www.bwsc.dole.gov.ph/files/RA%208187%20paternity%20leave%20act.p df 12. Solo Parents Welfare Act of 2000 (Phil.). Retrieved from: http://www.lawphil.net/statutes/repacts/ra2000/ra_8972_2000.html 13. The New Retirement Pay Law of 1992 (Phil.). Retrieved from: http://www.chanrobles.com/republicactno7641.htm#.Uyu0rM6vZps 14. Republic Act 9241 (2004), Phil. Retrieved from: http://www.lawphil.net/statutes/repacts/ra2004/ra_9241_2004.html 15. Implementing Rules and Regulations of Republic Act No. 7742 Amending Presidential Decree 1752 and Executive Orders 35 and 90, 1995 (Phil.) Retrieved from: 16. http://www.chanrobles.com/PDF.LAWS/IMPLEMENTING%20RULES%20AN D%20REGULATIONS%20OF%20REPUBLIC%20ACT%20NO.%207742.pdf
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17. DOLE Department Order No. 9, 1997 (Phil.). Retrieved from: http://www.chanrobles.com/doledepartmentorderno9-1997.html#.Uyu56c6vZps
DAO 90-34 - Revised Water Usage and Classification Water Quality Criteria Amending Section Nos 68 and 69, Chapter III of The 1978 NPCC Rules and Regulations