Chapter 14

Labor Union and Collective

Bargaining Agreement (CBA)

Human Resource Management

Gaining A Competitive Advantage
THIRTEEN EDITION
Raymond Noe, John Hollenbeck,
Barry Gerhart, Patrick Wright

© 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom.
No reproduction or further distribution permitted without the prior written consent of McGraw Hill.
 Scenario 7
Understanding Unions and Their
Impact on HRM
Employer-Employee Relationship 4-Fold Test
Hire & Work Engagement Payment of Wage

Power to Dismiss Power to Control & Discipline

 Right to Self-Organization
Workers have the right to -
• engage in peaceful concerted activities
• participate in policy and decision-making processes affecting
their rights and benefits.
• Also, have a right not to join or participate in unions
 Philippines
Structure of Unions

DOLE
Bureau of Labor Relations

DOLE
National Labor Relation
Commission (NLRC)

National Trade Unions

There is no tradition of industry bargaining

in the Philippines – Company union may Employees’ Union
cover one enterprise unit
 Stages in a Union Organizing Campaign

Organization of NLRC Certification

Employees Election Officer DOLE-Bureau of
Rank & File Representative Labor Relations
 Negotiating a Collective Bargaining
DOLE Representative
EMPLOYEES BLR - NLRC
Elected Labor Union Officers
EMPLOYER
TRADE UNION Distributive bargaining Management Representatives
Representatives
Integrative Bargaining
Attitudinal Structuring
 Cooperative Bargaining

vs.

Collective Bargaining

Bargaining does not have to be adversarial.

 Republic Act No. 6715 of 1989
• Labor-Management Council (LMC)
Employee-Management Cooperation Collective Bargaining
Approach Problem-solving approach rather than Takes a confrontational approach to
confrontation negotiation
Objective Concern with increasing the corporate economic pie Concern with distribution of the
economic pie
Process Proactive – involvement and participation Reactive – Contract administration

• Factors that prompted the decline in union membership

• Structural change in the economy
• Increased in employer resistance
• Substitution of HM systems and programs
• Substitution of government regulations
• Workers views
• Unions actions
 Line Managers and HRM in a Unionized Setting

✓ Comply with provisions of the

collective bargaining agreements.
✓ Understand the agreement provisions
and grievance system.
✓ Resolve conflicts early.

Manage people with industrial peace and

accountability in mind
 The HRM Department in a Union Setting

• Negotiate and consult with union officials.

• Ensure compliance with the labor contract.
The HRM Department in a Nonunion Setting
• Provide workers with a greater voice in determining work conditions.
• Install a formal grievance system –due process for claims
• Efficient and effective HRM systems and programs
• Hire a labor relations consultant
 Best Practice
• Nestle Philippines since 1895
Questions
 The Wings Hotel Labor Management Principles
Principle No. 1
Labor and management both recognize their mutual goal is to ensure the wellbeing and
safety of The Wings Hotel and Restaurant personnel and providing high-quality service to
its customers.
Principle No. 2
To work together to improve communications, facilitate information sharing, conduct of
regular discussions and consultations, increase-participative decision-making and promote
a labor-management relationship through systematic training to labor and management
leaders on collaborative methods of dispute resolution.
Principle No. 3
Foster a corporate culture that enhances both individual creativity and the value of
teamwork, while honoring mutual trust and respect between labor and management.
Management Role in Union Formation
 Labor Union Representatives’ Roles
• Negotiate bargaining agreements with employers on various
conditions
• Discuss major changes to the workplace such as large-scale
redundancy
• Discuss members' concerns with employers
• Accompany members in disciplinary and grievance meetings
• Provide members with legal and financial advice
• Provide orientations for employees
 Factors for the success of labor-management cooperation

• Continuous process of enhancing mutual trust and respect through information sharing,
discussion, consultation, negotiations
• Attitudes
• sincerity – mutual support
• mutual trust – openness
• commitment – teamwork
• mutual respect – objectivity
• Appropriate skills
• leadership – facilitation
• communication – team building
• problem-solving – planning
• Suitable structure
• addresses identified needs and concerns
• can be formal, informal or both
• assures adequate representation of labor and management
• ensures attainment of decisions through consensus
• provides feedback mechanism at all levels of the organization
 BENEFITS CAN WORKERS DERIVE FROM LABOR-
MANAGEMENT COOPERATION PROGRAMS

• Opportunity to participate in policy and decision-making process

• A channel of communication to top management
• Means to make inputs in solving operational problems and management plans
affecting workers in the workplace
• Avenues for employees to air complaints that cannot be appropriately addressed
in the grievance procedure
• Opportunity to demonstrate that the union is a responsible organization with a
constructive role to play beyond the traditional contract negotiations and
grievance settlement
• Opportunity for self-improvement and on-the- job leadership training
 BENEFITS CAN MANAGEMENT DERIVE FROM LABOR-
MANAGEMENT COOPERATION PROGRAMS

• A forum to share information about business conditions, quality problems, product

development and other matters that demonstrate the role of employees in the
success of the enterprise.
• An opportunity for advanced discussions of operational problems and plans,
particularly those affecting employee work schedules, overtime, lay-offs, transfers
etc.
• A means to relate with the union without being bogged down in labor relations
issues.
• Opportunity to demonstrate responsiveness to constructive suggestions and valid
complaints of employees in improving the workplace.
• Means to tap the large reservoir of know-how and creativeness of employees.
• A channel of communication with employees.
• Enhancement of human factor in organizational effectiveness.