LABOR RELATION
workplace)
CHAPTER 1: CONSTITUTIONAL FRAMEWORK
OF LABOR
1987 Constitution of the Philippines- first step in
the discussion of labor-management topics.
The Right to self-organization
• Is a process where some type of overall
order or coordinate occurs from the local
relations among the components of an
originally chaotic system
• Is the entitlement of workers and
employees to form join or assist unions,
organizations or associations for reasons
of collective bargaining and negotiations
as well as for common assistance and
protection.
• In the Philippines everyone working in
profit type of organizations like
commercial, industrial and agricultural
enterprise can self-organize.
The Collective Bargaining
• Is a process of negotiation between
employer and a group of employees (the
union) with the primary goal of achieving a
collective bargaining agreement to
regulate working conditions.
The agreement governs employment
relationship including but not limited to
➢ Wages
➢ Hours
➢ Promotions
➢ Benefits
➢ And other employment terms as well
as procedures for handling grievances
arising under it.
Security of Tenure of an Employee
• Is a political science term which
describes a constitutional or legal
guarantee that an employees cannot be
removed from work apart from
exceptional and specified circumstances.
• Is treated as a constitutional right and
civil right in the Philippines
• Provides protection, by guaranteeing that
an employee cannot be wronged for
exercising his powers, functions and
duties.
The standard form of security of tenure offered to
employees is typically that they can only be
removed from work by either of two methods:
1. Dismissal from work subsequent to
impeachment (a formal charge equivalent
to a criminal law incident) by parliament,
using weighted majorities (usually a two-
thirds majority)
2. Dismissal by courts for incapacity
(mental, physical or psychological
problems make them no longer for the
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predictable future be able to perform in
• The Philippine Constitution provides
guarantee of security of tenure which
means that employee can be removed
from service for just cause provided by
lawful provisions are:
A. The legality of steps taken for dismissal;
B. The legality in the approach of dismissal
Humane Working Conditions
• Are the focused of salaried work and
employment relationships.
• In the Philippines Humane working
conditions envelop an extensive sort of
topics and issues like hours of work, rest
periods, work schedules, compensation,
social security system, employment
status
• For most big organizations define
humane working conditions means:
✓ A harmless, healthy and dirt-free work
environment
Companies may cause, contribute or be
openly associated for the following
human rights impacts:
❖ Employment of workers with no
protection of a labor contracts
❖ Payment of wages under living
wage standard
❖ Unpaid or too much use of
overtime
❖ Prohibiting contracted or
temporary laborers for benefit or
grievance mechanism
❖ Failure to contribute to register
workers is social security payment
Participative Management
• Means including employees in the process
of decision making.
The following are the importance of participative
management in an organization:
➢ Employee see themselves with the work,
which directs to better performance
➢ Employees experience motivation
because they are involved in the
management
➢ This leads to self-worth, job satisfaction
and collaboration of employees with
management
➢ It reduces conflicts and stress, resulting
in more commitment to goals and better
acceptance to change
➢ It results in improved communication as
people jointly talks about work problems
➢ It results in improved communication as
people jointly talks about work problems
Here are some of the fundamentals for
successful participation by the employees:
➢ Strong trade unions
➢ Positive attitude of managements
➢ Comprehensible understanding of
objectives
 ➢ Education and training of workers
➢ Voluntary participation advantageous
The Right to Strike
• Is a potential weapon of employee against
possible abuse of employers
Here are five reasons why there is a need for the
right to strike:
1. Striking is the last resort but sometimes
the only tool for workers to protect
themselves
2. to avoid being the complete mercy of
employees
3. to give more balance between worker and
employer power
4. without it, more and more governments
will ban industrial action and punish
people who dare to strike
5. More strikes are over pay and better
working conditions.
Just Share and Reasonable Return
• Is a connotation that the country has
commitment to promote free enterprise
Comprehensive Agrarian Program (CARP)
• Is the existing law under which land
reform is carried out.
• Land owner can only retain 5 hectares
• The legal basis for CARP is the Republic
Act No. 6657 known also as
Comprehensive Agrarian Reform Law
(CARL) signed by President Corazon C.
Aquino on June 10, 1988
CHAPTER 2: Start of Employer- Employee
Relationship
The history of employer-employee relationships
is witness of the surpluses and weaknesses to
which human institutions and organizations are
prone. Industrialization of societies pioneers key
changes in how work was organized,
administered, and accomplished. Guilds or
associations of persons in the same trade gave
way to labor unions that turned into collective
bargaining agents on behalf of employees.
Relationships involving trade unions and
employers have ranged from adversarial to
collaborative.
THE GUILD SYSTEM AND THE DOMESTIC
SYSTEM
• During the 14th and 15th centuries, guilds
were started which were associations of
craftsmen within a craft. Guilds are
defined as associations of craftsmen and
merchants formed to promote the
economic interests of their members as
well as to provide protection and mutual
aid
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• The Guild System’s Function
1. Economic
a. set quality standards
b. prices to be paid for materials and labor
and to be asked for finished products
c. set production quotas
d. stood surety for loans to fellow members
e. pooled capital
2. Educational
a. maintained educational standards,
b. inspected working conditions,
c. examined candidates for journey-man and
master
3. Fraternal
a. maintained burial fund
b. cared for widows and orphans of
members
c. honored the patron saint
d. provided representation on the town
council
e. bailed fellow-guildsmen from jail
4. Civic
a. served in town militia
b. provided local fire defense
c. maintained a section of the town wall
d. took turns at guard duty
e. supported local magistrates served in
local courts & contributed to the town
treasury
h. participated in local festivals i.maintained
charitable institutions
j. hospitals
k. infirmaries
l. leper hospitals
m. charity cemeteries
n. poor relief
o. care for the aged
p. orphanages
• The guild system became less
competitive and tailored to a growing
economy. After 1250, economic
expansion was sluggish and the guilds
had to confront new conditions. The
responses of the masters of many
guilds were to:
1.restrict admission to master's status
2.reduce labor costs by cutting salaries of
journeymen and extend the years of
apprenticeship
3.lower working conditions
4.reduce civil contributions and charity
5.lower purchase price for raw materials
6.takeover work of smaller guilds
7.switch to lower quality, lower cost products
8.establish monopoly areas
The Domestic System
• In a domestic system, work is
contracted to people who carry it out
in their own homes. One of the most
common cottage industries was textile
manufacturing, including the
production of wool
The Industrial Revolution
• The Industrial Revolution was a period
of scientific and technological
development in the 18th century that
transformed largely rural, agrarian
societies—especially in Europe and
North America—into industrialized,
urban ones.
The Factory System
• Is a method of manufacturing first
adopted in England at the beginning of
the first industrial revolution in the
1750s and later spread abroad.
• Replaced the putting-out-system
• The main characteristic of the factory
system is the use of machinery,
originally powered by water or stream
and later by electricity.
• Other characteristics of the system
mostly derive from the use of
machinery or economies of scale
• The merchants would concentrate
equipment in a warehouse or a
factory, acquire raw materials from
their own farm or through agents, hire
workers for wages only, ignore any
production quotas, and compete
rather than cooperate.
• The manufacturing guilds fought the
development of these proto-capitalist
systems, but were defeated by an
alliance of merchants and the other
great guilds.
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Defining the characteristics of the factory system
are:
➢ Used of unskilled labor
✓ Practice division of labor, in which
most workers were either low-skilled
laborers or unskilled laborer
➢ Economies of scale
✓ Factories produced product on much
large scale than putting out system
➢ Location
✓ Before located in water power sites
and near water transportation
✓ Railroads become widespread
➢ Centralization
✓ The cost and complexity of
machinery
➢ Standardization and uniformity
✓ Made to standard specifications
✓ Uniformity was mainly due to
precisions
Societal Effects of the Factory System
• Much manufacturing in the 18th century
was carried out in homes under the
domestic and or putting-out system,
especially the weaving of cloth and
spinning of thread and yarn, often with
just a single loom or spinning wheel.
• Factory workers typically lived within
walking distance to work until the
introduction of bicycles and electric
streets in railways in the 1890s.
• In the early 19th century, education was
not compulsory
• Robert Owen, known for his pioneering
efforts in improving conditions for
workers at the New Lanark mills, and
often regarded as one of the key thinkers
of the early socialist movement.
• Karl Marx worried that the capitalist
system would eventually lead to wages
only sufficient for subsistence due to the
tendency of the rate of profit to fall.
Employer-Employee Relationship
• Employer/Employee Relations refer to
the communication that takes place
between representatives of workers
and employers. In this process,
information is exchanged between the
two to assist in correcting poor
performance, on and off-duty
misconduct, and any other issues that
affect them in the workplace
Two types of rules:
1.Procedural rules – This specifies the status of
parties and industrial relation process. Examples
include the grievance handling procedure,
collective bargaining process, conduct at
meetings, representations, etc.
2.Substantive rules – This regulates the rights,
privileges and obligations of the employees and
employers. Examples include pay and other
working conditions, participation of employees in
decision-making etc.
Five major characteristics of employer-employee
relationship:
1.Mutual respect – As a leader, you need to be
ready to give your team honest and frank
feedback, whether this is about projects,
employee appraisals, or constructive criticism.
Romantic relationships in the workplace are
always a bad idea.
2.Mutual reliance – The employer relies on the
employee to do his/her job well for the benefit of
the business; the employee relies on the
employer to treat them fairly and pay them
equitably.
3.Openness and communication – Openness and
communication is even more important for
situations sensitive to the company, or that
require an otherwise serious approach.
Employers should keep their employees in the
loop about business matters and seek their input
in important company decisions.
4.Support (and nurturing) – Employers have the
option to help employees or to stifle them - but
only the former will lead trust, higher skills levels,
more productivity, and more motivation. On the
other hand, employees should will to show
support for the company’s welfare and progress,
which may mean making sacrifices from time to
time.
5.Gratitude – Gratitude should exist on both sides
of the relationship, but it is probably a larger
responsibility of the employer to recognize and
appreciate the exceptional effort from their
employees. When employees consistently deliver
and receive little or no appreciation, it can
become very easy for them to become
disheartened, frustrated, and apathetic about
their job, which destroys productivity.
EMPLOYER-EMPLOYEE RELATIONSHIPS
COMPLEXITIES
1.Difference in Approach to Projects – This type
of conflict may actually provide a positive
outcome for any given project since both parties
express a strong and committed desire to
achieve the project. Ensuring the positive
outcome may prove challenging if the employer
and the employee stand strong in their position.
2.Employee Absenteeism and Tardiness – When
an employee regularly arrives late or calls in
sick, the employer will eventually become
frustrated with the employee and question the
apparent lack of commitment to his position.
3.Change in Leadership – When an office
experiences a shift in leadership, employees may
experience confusion and even feel the sudden
change in policies and managerial approach are
unreasonable or unfair.
4.Discrimination – When either an employer or
employee makes judgements or behaves in an
appropriate manner based on the other person’s
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race, religion, gender, ethnicity or education,
discomfort ensues, at the very least.
5.Personality Conflicts – Employers and
employees vary as much as fellow coworkers and
the difference in personalities may seem more
pronounced with an imbalance of power.
CHAPTER 3: THE LABOR ORGANIZATION
Labor Organization- is a defined group of
employees formed for those employees with the
employer as to the terms of a collective contract
of employment.
THE NEED FOR ORGANIZATION
• The working relationship during the
early days of production was that of
master and servant. The master or
employer provided work for the
servant or employee under his
direction and upon his terms.
• Labor relations are peaceful and
cordial. Under the spirit of
cooperation through recognizing both
the rights and problems in labor and
employer groups, this present
situation was attained.
• Union has become a helpful ally of
management with the useful
information concerning the status of
employee morale. Major issues can be
prevented through cooperation in the
grievance procedure. (*grievance
procedure is a formal way for an
employee to raise a problem or
complaint to their employer.)
"The union, a labor organization portrayed as an
association of employees, exists for the prime
function of collective bargaining on terms and
conditions of employment. "
Unionism
➢ The essence of unionism is the
representation of workers.
Collective bargaining
➢ A process where the interests are
negotiated by the management group and
the trade union, as the representative of
the workers.
UNIONISM
In the World
➢ 1800s - The origins of unions' existence
can be traced from this period, where the
rapid expansion of industrial society drew
women, children, rural workers, and
immigrants to the workforce in numbers
and in new roles.
➢ 1900s - The Catholic Church endorsed
trade unions in the end of the 19th century
as Pope Leo XIII spoke on his' Magna
Carta: Rerum Novarum.
 ➢ Trade unions have sometimes been seen
as successors to the guilds of medieval
Europe, though the relationship between
the two is disputed.
➢ Trade unions and/or collective bargaining
were outlawed from no later than the
middle of the fourteenth century when the
Ordinance of Laborers was enacted in the
Kingdom of England.
➢ In the early 1800s many men from large
cities put together the organization which
we now call the Trade Union Movement.
➢ The Mechanics' Union Trade Association
was the next approach to bring workers
together. In 1827, this union was the first
U.S. labor organization which brought
together workers of divergent
occupations.
In the Philippines
➢ The development of workers
organizations in the country may be
traced back to as early as 1899 during the
end of Spanish rule and the beginning of
the American era.
➢ The creation of the Bureau of Labor by the
Philippine Assembly in 1901 made
possible the formation of loosely
organized trade unions.
➢ The union movement thrived and
flourished to some extent under the
influence of the first American settlers
and the First World War up to 1924.
➢ The following years up to 1935, was
characterized as a time of social unrest
and the period witnessed the buildup and
strengthening also of other off-center
movements.
➢ Having benefited from the passage of the
Industrial Peace Act (RA 875), otherwise
known as the Magna Carta of Labor,
registered trade unions grew rapidly. One
of these was the Associated Workers
Union (AWU), which was organized by the
late Roberto S. Oca, Sc. in 1951.
CONTRIBUTIONS AND EFFECTS
Over the last three hundred years, many
trade unions have developed into a number of
forms, influenced by differing political
objectives. Activities of trade unions vary, but
may include:
1. Provision of benefits to members
2. Collective bargaining
3. Industrial action
4. Political Activity
THE LABOR ORGANIZATION IN THE
PHILIPPINES
Labor Organizations
➢ Any union/association of employees which
exists in whole/in pair.
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➢ Purpose: Collective bargaining/dealing
with employees concerning terms &
conditions of employment.
Trade/Labor Unions
➢ Organizations sanctioned by the Labor
Code of the Philippines.
➢ Purpose: Promote enlightenment to the
Filipino workers about wages, hours of
work, & other legal rights.
➢ Legal entities.
CBA/Collective Bargaining Agreement
➢ Process where the negotiation formally
takes place.
➢ Written legal contract between an
employer and a union representing the
employees.
Strike
➢ Temporary stoppage of work by
employees when there are labor disputes
Labor Disputes
➢ Situation when there are controversies
surrounding negotiations & arranging of
the terms & conditions of employment
TUCP/Trade Union Congress of the Philippines
➢ The largest union & confederation of 30
Labor Federations in the country.
5 TYPES OF LABOR ORGANIZATION
1.Independent Labor Union
➢ Active, functioning labor union without
any direct/indirect affiliation with any
federation/national union.
➢ The basic unit of organized labor.
2.Legitimate Labor Organization
➢ Registered with the Bureau of Labor
Relations which includes any branch/local
thereof.
3.Company Union
➢ Whose formation/administration are
initiated, dominated, assisted/otherwise
interfered with by the employer.
4.Federation & National Unions
➢ An affiance of a group of unions in one
industry in any area, region/country.
➢ Service units/agents whose service can
be dispensed with at will by local unions.
5.Trade Associations
➢ Formed by ambulant, intermittent &
itinerant workers, self-employed people,
rural workers, and those without definite
employers for their mutual aid &
protection.
RIGHTS OF A LEGITIMATE LABOR
ORGANIZATIONS
➢ To act as a Collective Bargaining
Representative
➢ To request for audited financial
statements
➢ To sue and be sued
➢ To tax exemptions
➢ To engage in concerted activities.
Application for Registration of a Local Union
✓ Signed by at least 20% of the employees in
the appropriate bargaining unit.
✓ Shall be accompanied by the following
requirements:
1. Payment of Registration Fee: PHP 50.00
2. Minutes of the Meeting
3. The names of all the members it seeks to
represent
4. A copy of the annual financial reports
5. Four (4) copies of the Constitution & By-
laws of the applicant union, minutes of its
adoption/ratification & the list of members
who participated in.
6. A sworn statement
ADDITIONAL REQUIREMENTS FOR
‘FEDERATIONS/NATIONAL UNIONS’
APPLICANTS
1. Proof of Affiliation of at least 10 Local
Chapters
2. The names & addresses of the companies.
The list of all the members in each company
involved
WHO MAY JOIN THE UNION
✓ Everyone working in profit-type
organizations
✓ People categorized as ambulant,
intermittent & itinerant workers, self-
employed, rural workers, and those without
any particular employers
✓ Alien employees with valid working
permits
GROUPS OF PEOPLE WHO CANNOT JOIN
LABOR UNIONS
1. Security guards
2. Employees of Cooperative who are also
members of themselves
3. Employees of the government owned &
controlled corporations with original charter
4. Managerial employees
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5. Religious, medical, educational
institutions operating NOT for profit which DO
NOT have existing Collective Agreements at
the time of the labor code/ have waived their
exemption voluntarily
CIRCUMSTANCES OF NOT JOINING A UNION
1. Fear of being dubbed as Persona Non
Grata by management
2. Fear of harassment
3. Fear of losing job
4. Gratitude owed to a certain top official of
the corporation
5. Not in favor of union dues
RIGHTS & CONDITIONS OF MEMBERSHIP
1. No illogical or excessive initiation fees,
fine and penalty
2. Entitlement to full and detailed reports
from officers of all financial transactions
3. Elect officers by secret ballots at interval
of not more than 3 years
4. Members by secret ballot any question of
major policy affecting membership, unless
force majeure renders it impractical, the BOD
makes the decision in behalf of the members
5. Union must not admit member or continue
membership whose indirectly or directly in
subversive activity
6. Conviction of a crime in moral turpitude
shall make non-eligible a member to be an
officer whether by election or appointment
7. Money collection shall be authorized
pursuant to its constitution and by-laws
8. Collections must be evidenced by a
receipt and entered in the financial record
9. Funds shall be applied for purpose/s
expressly provided by its constitution and by-
laws or by written resolution of the majority of
the members at a general meeting called for
this purpose
10. Officers shall not be given compensation
except for salaries and expenses due to their
position as expressly provided by its
constitution and by-laws or by written
resolution of the majority of the members at a
general meeting called for this purpose
11. Treasurer and officers responsible for the
accounts of the organization must report a
true and correct accounts of money received
and paid; audited and verified by affidavit and
copy must be submitted to DOLE:
a. once a year within 30 days after the close
of the fiscal year
b. as required by a resolution of the majority
of the members
 c. upon vacating his office
12. Financial books and records must be
opened for inspection by officer or member
during office hour
13. Minutes of the meeting must be done by
the secretary and attested by the president
14. No extra fees must check off from any
amount due to an employee without individual
written authority duly signed by the employee
15. Union and its officers must inform all
members of its constitution and by-laws,
prevailing labor relations, rights and
obligations under existing labor laws; union
may assess reasonable dues to finance labor
relations seminars and other labor education
under this purpose
UNFAIR LABOR PRACTICES
➢ Unfair labor practices (ULP) are
offenses committed by the employer
or labor. organization which violates
the constitutional right of workers and
employees to self-organization. ULP
acts are unfavorable to the legitimate
interests of both labor and
management, disrupt industrial peace
and hinder the promotion of healthy
and stable labor-management
relations. (Art. 248 of the Labor Code,
as amended)
CHAPTER 4: Human Element
❖ Every employee must be treated as a
human being. Every insult to his personal
importance, unintentional or not, purely
accidental or due to carelessness shall
affect the employee. Therefore, he will
seek to make himself heard. Employee
wants his pride and dignity to be
respected.
Employees are Human
✓ Employees are a company's greatest
assets Personal needs are more important
than professional aspirations
✓ Connection to the interpersonal sphere is
a good thing for employees and employers
Employees perform better when they feel
appreciated and supported
✓ Personal experiences lend perspective
and encourage extraordinary contribution
Pride in Work
✓ Pride is intangible
✓ Is psychological feeling and an
excessively high opinion employees
having about their job and organization.
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✓ Management must cultivate and develop
pride in employees for their work
✓ Employees with pride requires lend
supervision and tend to stay longer in the
organization
✓ Pride in work leads to motivated,
productive, and pleasant employees who
inspire their co-workers.
✓ Employees without pride express
discontent and negativity, which can
cause damage to the organization
✓ Condition that prevents employee pride
should identified, assessed, and address
to avoid negative consequences
ACCEPTANCE BY FELLOW EMPLOYEES
There are strategies that can help when there is
the need to talk to higher-ups or to the co-worker
with whom an employee is having problems:
Count to 1-10 - In no way react to co-worker's
most recent offense. Always move forward with a
cool head. Go home, sleep on it, and plan what to
say and to whom.
Point the finger at yourself - Use "I" statements.
Co-workers will be more open to dialogue when
being asked for help rather being attacked or
blamed. Consider "I think I may have gotten off
on the wrong foot. Is there anything I can be
doing differently?" versus "Why are you shooting
down all my ideas?"
Keep it professional, not personal - This cut the
chances of a defensive response. Try "Here's
what I think my job is, and here's how I'm
pursuing it. Is that what you and others expected
of me?" rather than "No one is listening to me."
PROBLEMS OF EMPLOYEES
Employees have three kinds of problems,
which are
✓ Personal - money, financing, income tax,
legal matters, family health, housing,
education of children
✓ Job-related - supervision, advancement,
transfer, relocation, wages, retirement
✓ Jobs, company and the future - feel
inadequate, feel neglected, feel insecure
Counselling
Two Techniques
Directive
- Someone gives advice and guidance;
counselors control the interview and
moves the individual toward a counselor-
chosen goal
Non directive
- Neither gives advice and guidance but
assist the other person in finding solutions
to the problem; counselor stresses mean
by which the individual becomes more
conscious of his own his own attitude and
 feelings with a consequent increase in
insight and understanding
Guidance to follow counseling
- Counseling can form the first step before
commencement of formal disciplinary
procedures. It is important for the
manager or employer to record the fact
that the meeting took place and any
course of action that was decided upon.
SOME SUGGESTIONS TO FOLLOW WHEN
COUNSELING EMPLOYEES:
DISCIPLINARY ACTIONS
• Through the years, there are
employees who developed physical,
emotional and psychological ills. Their
previous good records endowed them
with job security though they are
becoming the liability of the company.
• Therefore, discipline as a remedial
measure becomes
THE FOLLOWING ARE CONCEPTS OF
DISCIPLINE
1.As training - efforts of individual in training
himself at self-control for his development.
2. As sine qua non to orderly behavior -
discipline as a condition toward proper
behavior in an organization and among his work
group.
3.As a judicial due process - involves
restrains/punishments.
HERE ARE SOME REASONS OR SITUATION FOR
DISCIPLINARY ACTION
✓ Punching time card for another
✓ Bringing liquor
✓ Smoking in non-designated area.
✓ Habitual tardiness or absenteeism
✓ Refusal to obey reasonable orders by
authority.
✓ Falsifying documents.
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✓ Appropriating company property for
personal use.
✓ Destruction of company or other
employees’ property
DISCIPLINARY PROGRAMS
• The disciplinary system does not exist
primarily to punish employees. Its
purpose should be to control the
work environment so that workers
are protected and accidents are
prevented.
• A disciplinary system helps ensure
workplace safety and health by letting
the company's employees know what
is expected of them. It provides
workers with opportunities to correct
their behavior before an accident
happens.
• It is important that employees
understand the system and have a
reference to turn to if they have any
questions.
MOST COMPANIES USE THE FOLLOWING
ACTIONS IN THEIR DISCIPLINARY PROGRAM:
✓ Reminder
✓ Reprimand
✓ Written Warning
✓ Corrective Action
✓ Suspension Dismissal
CHAPTER 5: Collective Bargaining
➢ Collective Bargaining is the process
by which workers collectively
negotiate agreements with their
employers. It takes place where
workers are collectively organized in a
trade union which negotiates on their
behalf with a management which
recognizes the union's right to
represent their members.
INTERNATIONAL LABOR ORGANIZATION (ILO)
➢ Collective Bargaining are voluntary
negotiations between employers or
employers' organizations and workers'
organization, with a view to the
regulation of terms and conditions of
employment by collective agreements.
VIEWS ON COLLECTIVE BARGAINING
➢ Collective Bargaining constitutes one
of the core tools for trade unions.
➢ The object of collective bargaining is
to include a Collective Agreement.
INDIVIDUAL VS COLLECTIVE BARGAINING
INDIVIDUAL BARGAINING
➢ The process by which an employer and an
employee negotiate an individual contract
of employment, regulating the terms and
conditions of employment.
 ADVANTAGES
✓ It its single voice, thus no conflict in
matters
✓ Expresses the views and opinions of
one person and thus there is no
compromising.
DISADVANTAGES
✓ Will not take a lot of notice of just one
✓ Will not have an influence on company
decisions and policies.
COLLECTIVE BARGAINING
✓ The process of negotiation between
employers and a group of employees or
unions, aimed at reaching agreements to
regulate working conditions.
ADVANTAGES
✓ A great chance of the employees getting
what they demand.
✓ Greater communication between
employers and employees
DISADVANTAGES
✓ Depriving the individual worker of their
individual liberty and voice.
✓ Often long, drawn-out process that can
take weeks or even months.
STRENGTH OF COLLECTIVE BARGAINING
➢ Can lead to high-performance workplace
where labor and management jointly
engage in problem solving, addressing
issues on an equal standing.
➢ Provides legally based bilateral
relationship.
➢ Management's rights are clearly spelled
out.
➢ Employers' and employees' rights are
protected by binding collective bargaining
agreement.
➢ Multi-year contracts may provide
budgetary predictability on salary and
other compensation
➢ Unions may become strong allies in
protecting higher education from the
effects of an economic slowdown
➢ Promotes fairness and consistency in
employment policies and personnel
decisions within and across institutions.
➢ Employees may choose whether they
want union representation.
➢ A strong labor management partnership
may enable the workforce development
needed for engaging the technology
revolution
DUTY TO BARGAIN COLLECTIVELY
• Procedure
• Duty to bargain collectively
Prepared by: Xyrelle Alexee V. Pudol
THE PROCESS OF COLLECTIVE BARGAINING
PROCEDURE
The Labor Code prescribes the procedure to be
observed in collective bargaining, as follows:
✓ When a party desires to negotiate an
agreement, it shall serve a written notice
upon the other with a statement of its
proposals. The other party shall make a
reply thereto not later than ten (10) days
from receipt of such notice.
✓ Should differences arise on the basis of
such notice and reply, either party may
request for a conference which shall
begin no later than ten (10) days from the
date of request.
✓ If the dispute is not settled, the Bureau of
Labor Relations shall intervene upon
request of either or both parties or at its
own initiative and it shall be the duty of the
parties to participate fully and promptly in
the conciliation meeting the Bureau may
call.
✓ During the conciliation proceedings in the
Bureau, the parties are prohibited from
doing any act which may disrupt or
impede the early settlement of the
disputes.
✓ The Bureau shall exert all efforts to settle
disputes amicably and encourage the
parties to submit their case to a voluntary
arbitrator.
DUTY TO BARGAIN COLLECTIVELY
✓ Negotiation Techniques and Issues
✓ Petition for Certification on Election (PCE)
NEGOTIATION
✓ A discussion between two or more
disputants who are trying to work out
a solution to their problem.
✓ An interpersonal or inter-group
process can occur at a personal level,
as well as at a corporate or
international (diplomatic) level.
✓ Mutual adjustment is one of
the key causes of the changes that
occur during a negotiation.
✓ The parties must work toward a
solution that takes into account each
person's requirements and hopefully
optimizes the outcomes for both
Most negotiations go through a number of clearly
identifiable phases following opening position
PETITION FOR CERTIFICATION ON ELECTION
(PCE)
Certification election is a process of determining
through secret ballot, the sole and exclusive
bargaining agent (SEBA) of all the employees in
an appropriate bargaining unit for the purpose of
collective bargaining.
A PCE is filed at the regional office which issued
the certificate of petitioning union's certificate of
registration/certificate of creation of chartered
local. Among the important requirements are the
following:
1. A statement indicating any of the
following:
a. That the bargaining unit is unorganized or that
there is no registered CBA covering the
employees in the bargaining unit;
b. If there exists a duly registered CBA, that
the petition is filed within the sixty (60) day
freedom period of such agreement
c.If another union had been previously
recognized voluntarily or certified in a valid
certification, consent or run-off election, that the
petition is filed outside the one (1) year period
from entry of voluntary recognition or conduct of
certification or run-off election and no appeal is
pending thereon.
2. In an organized establishment, the
signature of at least twenty- five
percent (25%) of all employees in the
appropriate bargaining units shall be
attached to the petition at the time of
its filing.
• The petition will be raffled to the
Med-Arbiter for preliminary
conference to determine , among
others, the bargaining unit to be
represented, the contending
unions, and the possibility of
consent election. Certification
election in organized
establishments requires that:
• a petition questioning the majority
status of the incumbent bargaining
agent is filed before the DOLE
within the 60-day freedom period;
• such petition is verified; and
• the petition is supported by the
written consent of at least twenty-
five percent (25%) of all employees
in the bargaining unit.
It is to note that certification election in
unorganized establishments shall
"automatically" be conducted upon filing
of a petition for certification election by an
independent union or a federation in
behalf of the chartered local or the
local/chapter itself.
Prepared by: Xyrelle Alexee V. Pudol
Chapter 6: Wages
Birth of wage system
Wages is said to be:
• the renumeration of earnings, however
designated, for work done or to be done
or for services rendered or to be
rendered.
• Capable of being expressed in terms of
money
• Payable by an employer to an employee
under a written or unwritten contract.
Wages
• Is the monetary measure corresponding
to the standard units of working time
• Specialization of individual skills and
crafts was the rationale of selling services
for renumeration which is known today as
wage.
• Wage slave by labor may originate from
the labor protests of the Lowell Mill Girls
in 1836
• Wage labor is the socioeconomic
relationship between a worker and
employer
• Wage laborer is a person whose primarily
means of income is from the selling of his
or her labor in this way.
Renumeration of workers
• In ancient time renumeration of worker
were made in the form of bread, beer,
grain, meat and cloth rations, which were
necessities in life.
• In Egypt for instance, these rations were
actually expressed in units of bread and
bee, which were most basic to Egyptians
diet.
• Most important wage earners during the
ancient Rome were those people
employed under the imperial public
service.
• Food, clothing, armor usually deducted
from their wage.
• Today, renumeration for workers are in
the form of pay, salary, or wage including
allowances, benefits, bonuses, cash
incentives, and monetary value of the non-
cash incentives
Workers Income
• Wage is the renumeration given to worker
in exchange for services rendered in
production.
• Salary is fixed amount of money or
compensation paid to an employee by an
employer in return for worked performed
commonly paid in fixed intervals.
• Basic wage rate is the normal amount of
payment for each hour of work
• Overtime rate is the greater amount
received for each hour work above an
established quota
• Earnings refer to the total wage received
by a worker in specific length of time.
 Real Wage and Money Wage
• Real Wage is income of an individual,
organization, or country after taking
into consideration the effects of
inflation on purchasing power.
• Real income refers to the amount of
goods and services a person can buy
today compared to the price of the
same goods and services a person
can purchased in another time period.
• Nominal wage is the rate of pay
employees is compensated
• Inflation is an increase in the general
price level in an economy
Wages and what they represent
• Wage is monetary compensation paid by
an employer to an employee in exchange
for work done
• Payment may be calculated as fixed
amount for each task completed.
• Self-employed do not received wages, but
sell directly their labor in the market.
Wage Inequalities
• Wage inequality has multiple roots, and
this could be due to the following reasons:
1. Education and training- People who
are merely elementary and secondary
graduates. More training means
higher wages.
2. Natural ability- if a certain occupation
is highly demanded, people with this
type of skill would receive much higher
payment.
3. Supply of labor- the exceptional nature
of skill that an individual possesses
commands higher wage.
authorizing the payment of wages by bank
checks.
Terms of Payment
➢ Payments shall be made at least once
every two weeks or twice a month at
intervals exceeding sixteen (16) days.
The employer shall pay immediately following the
for majeure:
1. The payments are made at interval not
exceeding 16 days.
2. The final settlement is made upon
completion of the work
3. In case of force majeure rendering such
payments impossible or any other
appropriate circumstance to be
determined by the Sec. of Labor
Direct Payment Wages
Payments shall be made directly to the workers,
to whom they are due, except
1. Where the worker had died in which case
the employer may pay the wages of the
deceased worker to the heirs of the latter
without necessity or proceedings.
2. In case of force majeure rendering such
payments impossible or any other
appropriate circumstance to be
determined by the Sec. of Labor and
employment in appropriate regulations, in
which case the workers may be paid
through another person under written
authority given by the worker for the
purpose.
Place of Payment

Wages system in the Philippines

➢ Wage system in the Philippines
superseded the Magna Carta of Labor of
the Philippine
Forms of Payment

➢ Payment of wages by bank, check, postal

checks or money orders is allowed where
such manner of wage payment is
customary on the date of effectivity of
where the labor code
1. There is a bank or other facility for
encashment within radius of one kilometer
from the workplace
2. The employer, or any of his agents or
representatives, does not receive any
peculiarly benefit directly or indirectly
from the arrangement
3. The employees are given reasonable time
during banking hours to withdraw their
wages from the bank which should be
considered as compensable hours work if
done during working hours. Regulation of Wages
4. Payments by check is with the written
consent of the employees concerned if ➢ The following are regulations to protect
there is a collective bargaining agreement employees from credible abuse

Prepared by: Xyrelle Alexee V. Pudol

Non-interference in disposal wage
➢ No employer shall limit or otherwise
interfere with the freedom of any
employee to dispose of his wages. He
shall not in any manner force, compel, or
oblige his employees to purchase
merchandise, commodities, or other
property from the employer or from any
other person or otherwise make use of
any store or services of such employee or
any person.
Wage Reduction
• It shall be unlawful for any person to make
any deductions or withhold any amount
from the wages of an employee or induce
any employee to give up any part of the
wages to which he is entitled by force,
intimidation, threat or procuring dismissal
or in any other manner whatsoever.
• No employer, in his own behalf or in behalf
of any person, shall make any deduction
from the wage of his employees except:
1. In case where the worker is insured
with his consent the employer, and the
deduction is to recompense the
employer for the amount paid by him as
a premium on the insurance.
2. In cases where the right of the worker
or his union to check off has been
recognized by the employer or
authorized in writing by the individual
worker concerned;
3. In cases where the employer is
authorized by law or regulations by the
Secretary of Labor and Employment.
Deposit for Loss or Damage
• The employer should first ensure that
any or all of the following attendant
conditions have been observed:
1. The employee concerned is clearly
shown to be responsible for the loss or
damage;
2. The employee is given reasonable
opportunity to show cause why
deductions should not be made;
3. The amount of such deduction is fair
and reasonable and shall not exceed
the actual loss of damage; and
4. The deduction from the wages of the
employee does not exceed 20 percent
of the employee’s wages in a week.
Withholding of Wages
➢ it is unlawful for any person, directly or
indirectly, to withhold any amount from
the wages of a worker or induce him to
give up any part of his wages by force,
stealth, intimidation, threat or dismissal or
Prepared by: Xyrelle Alexee V. Pudol
any other means whatsoever without the
worker’s consent.
Civil Liability of Employer and Contractor
➢ Every employer shall be jointly and
severally liable with his contractor or
subcontractor for the unpaid wages of the
employees of the latter.
Wages Studies
➢ The National Wage and Productivity
Commission is tasked to conduct
continues studies and develop policy that
centers on wages, incomes and
productivity
Minimum Wage System
World
➢ In 1896, Victoria, Australia created a
wage board. First enacted as a four-year
experiment, then renewed in 1900. Later
become permanent by 1904 and covered
150 industries.
➢ New Zealand enacted first national
minimum wage laws and was enforced by
compulsory arbitration.
➢ In 1902, New South Wales and Western
Australia had also formed wage board.
➢ January 1910, Great Britain introduced
the trades board act
➢ They investigated the results of such
wages board in Australia and New
Zealand.
➢ By 1938, US nationally introduce their
statutory minimum wage
Philippines
➢ This almost 20-year period, the daily
allowance increased almost 12 times.
➢ Cost of Living Allowance (COLA) was
provided to give additional monetary
benefits to workers.
➢ In 1983 four wage orders were issued as a
response to the appreciation of US Dollar
and subsequent increases in petroleum
prices, transport fares, et.al
➢ In 1989, the Wage Rationalization Act was
signed. The Act established a new
mechanism for minimum wage
determination
➢ The relentless upward adjustment in the
country's minimum wage has made us
among the highest minimum wage in
ASEAN countries and caused great harm
to the country's domestic and export
manufacturing sectors.
Criteria for minimum wage fixing
➢ If there is a need to issue a wage order.
➢ Wage order will take effect 15 days after
its complete publication in the region.
➢ Private employees only, government
employees are not covered.
➢ Wage order can only be issued once a
year, however if there is significant
changes in the international market,
 exceptions can be made. Wage order
must be "nearly adequate as is
economically feasible to maintain the
minimum standards of living necessary for
the health, efficacy, and general well-
being of the employees within the
framework of the national economic and
social development program.: (Art. 124,
Labor Code)
➢ Relevant factors to be considered in fixing
the regional minimum wages:
1. The demand for living wages;
2. Wage index vis-a-vis the consumer
price index;
3. The cost of living and changes or
increases therein;
4. The needs of workers and their
families;
5. The need to induce industries to invest
in the countryside;
6. Improvements in standards of living;
7. The prevailing wage levels;
8. Fair return of the capital invested and
capacity to pay of employers;
9. Effects on employment generation and
family income; and
10. The equitable distribution of income
and wealth along the imperatives of
economic and social development.
Theory Underlying minimum wage
➢ Economic Theory allows individuals to
study the monetary effects of social and
government policies.
✓ Minimum wage is a common
economic principle affecting the
income of a nation's citizens.
✓ Minimum wage is a basic
government-imposed price control.
✓ Governments use minimum age
laws to ensure a basic quality
among all citizens within its
borders.
Minimum wage law in the Philippines
• 602 of 1951 also known as the Minimum
Wage Law which establishes the minimum
wage of the workers in the country.
1. Every employer shall pay to each of his
employees who is employed by an
enterprise other than in agriculture wages
at the rate of not less than-
a. Four pesos a day on the effective date
of this Act and thereafter, for
employees of an establishment
located in Manila or its environs;
b. Three pesos a day on the effective
date of this Act and for one year after
the effective date, and therefore P4 a
day. for employees of establishments
located outside of Manila or its
environs; Provided that this Act shall
not apply to any retail or service
enterprise that regularly employs not
more than five employees,
2. Every employer who operates a farm
enterprise comprising more than 12
Prepared by: Xyrelle Alexee V. Pudol
hectares shall pay to each of his
employees, who is engaged in agriculture,
wages at the rate of not less than-
A. On the effective date of this Act and
for one year thereafter, P1.75 a day,
and no allowances for board and
lodging should reduce this wage
below P1.75 in cash during that year.
B. One year after the effective date of
this Act, P2 a day, and no allowances
for board and lodging shall reduce this
wage below P1.75 in cash; and
C. One year thereafter, P2.50 a day and
no allowances for board and lodging
shall reduce this wage below P2.25 in
cash.
3. Effective on the first of July, nineteen
hundred and fifty-two, the minimum wage
rates are also set for employees in the
Government service based on #1 and #2.
4. This act shall not apply to farm tenancy or
to domestic servants.
5. The crew of vessels of Philippine Registry
calling regularly at Manila shall be subject
to the minimum wage for non-agricultural
workers in Manila as provided for in this
act.
6. Until and unless investigations by the
Secretary of Labor on his initiative or on
petition of any interested party result in a
different determination of the fair and
reasonable value, the furnishing of meals
shall be valued at not more than thirty
centavos per meal for agricultural
employees, and not more than forty
centavos for any other employees
covered by this Act, and the furnishing of
housing shall be valued at not more than
twenty centavos daily for agricultural
workers and not more than forty centavos
daily for other employees covered by this
Act.
7. If in a particular industry a Wage Board
appointed by the Secretary of Labor
within one year after the effective date of
this Act recommends that a further
extension of time before the application of
the full statutory minimum is justified in
such industry to avoid undue hardship to
the industry, the board may recommend
and the Secretary may approve an
extension not to exceed six months and at
a minimum wage not less than the rate
provided to take effect on the effective
date of this act.
 8. With respect to piece-work or contract
work, on petition of an interested party,
the Secretary of Labor shall use all
available devices of investigation to
determine whether the work is being
compensated in compliance with this Act,
and shall issue findings and orders in
connection therewith.
Wages and Good Labor Relations

• Wage affects the quality of labor

relationship of an organization.
• Strong labor relations can make a
business more successful in the long run.

“Successful people are not gifted. They just work

hard, then succeed on purpose.”

― Unknown

Prepared by: Xyrelle Alexee V. Pudol