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Chapter 3 The Legal Environment - Labor Management Relations
Chapter 3 The Legal Environment - Labor Management Relations
While it is contended that trade unions in the Philippines may be traced back to
the years when this country was still exerting efforts to extricate herself from the grip of
Spain, Philippine trade unionism did not begin to take healthy roots and development
unti11901. In that year, Isabelo delos Reyes formed the Union de Litografos e
Impressores de Filipinas upon his return to the country from his exile in Spain. He is
thus acknowledged as the Father of Philippine trade unionism. 71
During this time, the workers were not protected by any labor law or accorded
protection by the government as there were hardly any labor law regulating labor and
employment in the Philippines. As a result, Filipino workers suffered a lot of injustices
from the hands of the Spaniard employers. Without state legislation to protect their
rights, laborers and farmers often worked under extremely difficult conditions. Filipino
workers were often forced to give free labor to their Spanish masters.
Definition of Terms
a. Labor relations-refer to that part of labor law which regulates the relations between
employers and workers. Example Book V of the Labor Code which deals with labor
organizations, collective bargaining, grievance machinery, voluntary arbitration,
conciliation and mediation, unfair labor practices, strikes, picketing, and lockout
b. Labor standards-refer to that part of labor law which prescribes the minimum terms
and conditions of employment which the employer is required to grant to its employees.
3. Grievance Machinery
a. Internal rules of procedures intended to resolve all issues arising from the
implementation and interpretation of the collective bargaining agreement
b. Part of the continuous process of the collective bargaining. Intended to promote
friendly dialogue between labor and management as a means of maintaining
industrial peace
c.
4. Mediation
a. Similar to conciliation although the mediator is expected to put forward settlement
proposals
b. Parties fully participate in deciding issues and in creating, evaluating, and solving
the conflict to come up with a win-win solution.
Benefits of Mediation
a. It is time saving.
b. It costs a fraction of 10% of litigation.
c. It is private and confidential
d. It restores relationships.
e. It improves understanding of underlying issues.
f. It does not close doors to other options if the parties are not satisfied.
g. It is proven to be more successful in the Philippines.
5. Conciliation
a. Occurs when a conciliator-mediator intervenes in a negotiation
b. Conciliator cannot decide upon the dispute.
c. Can only reconcile the dispute by facilitating the meeting of the minds
d. In the meeting with the conciliator, the disputing parties are given the chance of
state their demands and position with the aim of reaching a variable agreement.
Role of Conciliator-Mediator
An officer of the NCMB has the principal function to assist in the settlement of
labor disputes through conciliation and preventive mediation, including the promotion
and encouragement of voluntary approaches to labor disputes prevention and
settlement.
6. Arbitration
a. Process where a third party, the arbitrator, decides upon the agreement or award
in a labor dispute
b. A quasi-judicial process in which the parties agree to submit an unresolved
dispute to a third neutral party for binding settlement
c. Represents the final stage in the dispute resolution process. The grievance does
not always result in an acceptable solution because when a deadlock occurs,.
Iabor contracts call for arbitration.
Authority of an Arbitrator
a. Investigate and hear the ease upon notice of the parties
b. Render an award (decision) based on the contract and record of the case
c. Set and conduct hearing, attendance of witnesses and proof documents
d. Conduct fact-Ending and other modes of discovery
e. Conduct reopening of hearing
f. Modify any provision of existing agreement upon which a proposed change is
submitted for arbitration
Unionization and labor action have dwindled. According to the Bureau of Labor
and Employment Statistics, one of the department bureaus of DOLE if one will look at
the percentage of labor union members to total wage and salary workers, there is a
notable decline from 30. 7% in 1982 to 29. 5 in 1993 down to 10. 6% in 2009.
But for labor leaders and those who are active in the labor movement, they
claim that the prevalent practice of contractualization has been the main culprit in the
reduction of union membership on a national scale. Remollino cited the case of I1aw at
Buklod ng Manggagawa (IBM), the union of workers of the San
Miguel Corporation (SMC) conglomerate, the country’s largest food and beverage
corporation. According to Remollino, it used to be a showcase of what being a strong
union was all about. During the early 1990s, majority of San Miguel’s then 39,000 strong
workforce were members of IBM. Remollino mentined that our of 26,000 employees,
only 1,100 remained as regular employees and members of the union at the same time.
This was based, on the interview with Ka Neri, a full-time KMU organizer working with
the IBM union who is also a former contractual employee at SMC. This, according to
him, was brought about by contractualization in the workplace. There were several
employees who were laid-off, got dismissed, or had availed early retirement and then
they were replaced with contractual employees with lower wages.
Added to this, certain processes are already contracted out by big companies.
This paved the way for the growth of business process outsourcing here in the
Philippines. For example, in the case of PLDT, installations of new telephone lines are
now being done by contractuals who are hired by agencies. These contractual are paid
by piecemeal where their pay depends on the number of telephone lines they installed ;
no installation, no pay.
Based on the data from the Bureau of Labor Relations (BLR), there was a
sharp slide in union membership from 2001 during the presidency of Gloria Macapagal-
Arroyo. Union membership decreased from 3. 85 million in 2001 to only 1. 47 million in
2002. The number of union members decreased by almost half.
The sorry state of unionism in the Philippines is further emphasized when one
looks' at the total number of the labor force. As of January 2012, only 64. 3% of the 40.
316-million labor force is employed. The total union membership as of January 2012 is
only 5. 7 percent of the country's employed labor force.
1. The Trade Union Congress of the Philippines (TUCP), with 1. 2 million members,
is the biggest confederation of labor federations in the Philippines. It was founded
on December 14, 1975 by 23 labor federations which saw the necessity and
importance of, uniting themselves into a strong and dynamic labor center. Today,
the TUCP, as the most representative labor center in the country is composed of
almost 30 federations with members in all sectors and industries (from agriculture
to manufacturing to services) including government employees. It also has
members coming from associations/organizations of groups from the OFWs,
informal sector, drivers, urban poor, youth groups, cooperatives, alliances,
coalitions, and other civil society groups.
2. The Partido ng Manggagawa (PM) was born on the very day the late labor leader
Filemon "Ka popoy" Lagman was laid to rest (February 2001) in the very place
where the working class champion was treacherously slain. The triumphant
formation of the Partido ng Manggagawa amidst the trying times marks the
assumption of the working class to the center stage of the country's
3. The Alliance · of progressive Labor (APL) is a "national labor center." APL was
formally organized on November 1996 through a National Founding Congress. It
is committed to the advancement of social movement unionism-a strategy
directed at recognizing, organizing, and mobilizing all types of workers and
unions for engagements in different arenas of struggle. It recognizes the
broadness of workers' interests and the diversity and complexity of work
arrangements. As such, it is geared toward the struggle for 'workers' rights in all
aspects-economic, political, and socio-cultural-and at all levels local, national,
and global. In short, the strategic objective of social movement unionism is
nothing less than social transformation.
4. The Bukluran ng Manggagawang Pilipino (BMP) is a labor organization
comprised of militant, socialist, and democratic workers and unions. More than
200 local unions nationwide with mass membership of over t00, 000 make up
BMP. It also influences 800 independent unions with mass membership of over
200, 000 through the Kapatiran ng mga PanguIo ng Unyon sa Pilipinas (KPUP),
a fraternal organization of local union presidents in the Philippines. BMP unions
are organized in manufacturing and service industries, chemicals and mines,
agriculture, construction, and transport sectors.
1. Security guards and other personnel employed for the protection and security of
the person, properties, and premises of the employer
2. Managerial employees
3. Employees of religious, charitable, medical, and educational institutions not
operating for profit provided the latter do not have existing collective agreements
or recognized unions at the time of the effectivity of the Code nor have
voluntarily waived their exemption