Process of Collective Bargaining

The five stages involved in bargaining process are as follows:

1. Pre-negotiation
2. Negotiators
3. Negotiation
4. Agreement or Contract
5. Implementation of Agreement.

1. Pre-negotiation:

Preparation for negotiation is the first stage involved in a bargaining process. The pre-
negotiation stage of the bargaining process is vital as is confirmed by the fact that up to 83 per
cent of the results of the negotiations are much influenced by pre-negotiation stage. The workers
and the management need to prepare themselves for bargaining.
Preparation by Management: The management has to study and analyze carefully the labor
organization with which they are to negotiate or bargain. This may include studying the strength
of the union, the background and personal traits of the negotiators, etc. The management should
also understand what similar organizations are doing in the particular matter. The management
should understand the bargaining power of the union and accordingly formulate its bargaining
strategy. For example, if the demand for the company’s product or service has been rising,
management will not prepared to absorb a strike, even of short duration. On the other hand, if the
business is passing through slowdown, manage- ment will be least willing to concede to union
demands and may be prepared to face a strike.

Finally, the management should also chalk out the probable decisions. The impact of the
decisions to be taken has to be analyzed. The drafts for the likely decisions also are prepared in
advance to facilitate the instant preparation of final agreement draft as soon as the negotiation
concludes.

Preparation by the Labor Union: The labor union also needs to collect data on relevant aspects
of organization so that they are in a position to negotiation with power and tactics. It should
understand its contracts with other enterprises, the practices other companies follow in the same
region, and so on. It should also assess employees’ expectations over various issues to avoid
their resistance to the agreement arrived. Negotiator representatives of the Union should also be
selected with due care.

2. Negotiators:

On the company side, the particular negotiator may be any one of a number of persons such as
the industrial relations officer, the head of the specific area such as production, an office bearer,
or even the company lawyer. In order to broaden the base of participation, permitting all major
divisional heads for participation and a few supervisors to observe has great advantages in
bargaining process.
On the union side, the team approach is often applied. The team may comprise of business
agents, shop stewards, the president of the plant union, and when the negotiation is vital, the
president of the national union.

3. Negotiation:

After completing the first two stages of the process, the workers’ representatives and
management arrive to the negotiating table at a time and place for this purpose. Traditionally,
negotiation process begins by the union representatives submitting an exaggerated and long
charter of demands. The initial response from the management is usually as extreme as that of
the union. The management counters the demands of the union by proposing to give little more
than agreed in the previous contract.

This conflict goes on from both the sides. In the process, each party assesses the relative
priorities of the demands of other party. This puts them in a circumstance when attempt is made
to get highest offer of the management to approximate the lowest demands that the union is
willing to accept. Thus, each group gives up some of its demands and comprises so that an
agreement can be reached when they actually arrive at an agreement; this is converted into a
written contract. In case, no agreement is reached, then it is called breakdown of the bargaining.

4. Agreement or Contract:

After both parties have arrived at an informal agreement either in the normal/initial process or
through overcoming bargaining impasse, it is written. The collective bargaining agreement
usually consists of the terms and conditions of agreement, the date from which it comes into
effect, the duration for which it will remain in operation and the names of the signatories to the
agreement.

The agreement is then sent to the workers and management for ratification and approval. The
representatives of workers and the management may not have final authority to decide some
issues referred to collective bargaining and included in the agreement. These need to be ratified
by both. The agreement needs to be duly ratified because of legal provisions. Section 18 (1) of
the Industrial Disputes Act, 1947 provides that an agreement shall be binding only on the parties
to the agreement. This implication is that the application of any collective bargaining agreement
is not automatic to all workers of an organization. The agreement becomes official once
approved, ratified, and signed by both the parties to the agreement.

The union members and management both receive copies of the agreement. The agreement
stipulates the nature of the relationship between labor and management for the ensuing period of
time as agreed in negotiation.

5. Implementation of Agreement:

Once an agreement is ratified and approved, what next remains left is its implementation. The
way of implementation of the agreement is written in the agreement itself .The implementation
of the agreement must take place with full generosity in terms of letter and spirit by both the
parties from the date of its operation mentioned in the agreement. Human Resource Department
has the responsibility to ensure the proper implementation of all provisions of the agreement.
In the Philippines under the RA 875, Section 14. Procedure of Collective Bargaining are as
follows:

(a) Whenever a party desires to negotiate an agreement, it shall serve a written notice upon the
other party, with a statement of its proposals. The other party shall make a reply thereto not later
than ten days from receipt of such proposals.

(b) In case differences shall arise on the basis of such proposals and reply, either party may
request a conference which shall begin not later than ten days from the making of such request.
Both parties shall endeavor in such conference to settle the dispute amicably and expeditiously.

(c) If the dispute is not settled by conference and the Conciliation Service of the Department of
Labor intervenes in the dispute, it shall be the duty of each party to participate fully and promptly
in such meetings and conferences as the Service may undertake.

(d) Before an employer may lockout his employees or the employees may strike, either party as
the case may be, must file with the Conciliation Service thirty days prior thereto a notice of their
intention to strike or lockout the employees. Such notice shall be in a form to be prescribed by
the Chief of the Conciliation Service.

Bargaining Issues
There are certain topics that are usually included in all agreements including recognition,
compensation and benefits, a grievance procedure, employee security, and job related factors.
Recognition
The recognition of the union participating in the collective bargaining process appears at the
beginning of the labor agreement. The objective is to identify the union recognized for whom the
union speaks

Management rights
This section is not always written into the labor agreement but spell out the rights of
management. However, the management retains control of all topics not described as worth of
bargain in the contract. The precise content of the management rights will vary by industry,
company and union. When included, management rights generally involve freedom to select the
business objectives of the company, freedom to determine the uses to which the material assets
of the enterprise will be devoted and power to discipline for cause.

Union security
Union security is typically one of the first items negotiated in a collective bargaining agreement.
The objective of union security is to ensure that the union continues to exist and perform its
function. A strong union security provision makes it easier for the union to enroll and retain
members. Basic forms of union security clauses include the closed shop, union shop,
maintenance of membership, agency shop, open shop and due check-off.
Compensation and benefits
The compensation and benefits constitutes a large portion of most labor agreements. Virtually
any items that can affect compensation and benefits may be included in labor agreements. Some
of the items frequently covered include the wage rate schedule, overtime and premium pay, jury
pay, layoff or severance pay, holidays, vacation and family care.

A grievance procedure
Grievance procedure includes most labor agreements containing the means whereby employees
can voice discontent with and appeal particular management actions. Also included in this
section are procedures for disciplinary action by management and the termination procedure that
must be followed.

Employee security
This section of the labor agreement determines the procedures that cover job security for
individual employees. Seniority is a key topic related to employee security. Seniority may be
determined company-wide by division, by department, or by job. Agreement on security is
important because the person with the highest seniority, as provided in the labor agreement, is
usually the last to be laid off and the first to be recalled. For promotion decision also the
seniority system provides a firm basis. When qualifications are fulfilled, senior employees will
likely be considered first for promotion to higher-level jobs.

Job related factors

Many of the rules governing employee actions on the job are also included. Some of the
important factors are company work rules, work standards, and rules related to safety. Work
rules are vitally important to both employers and employees, with companies tending to favor
less restrictive work rules.

Administration of the Agreement

Negotiating is a small part of the collecting bargaining process. The larger and perhaps more
important part of collective bargaining is administration of the agreement, which the public
seldom sees. The agreement establishes the union-management relationship for the duration of
the contract. Usually, the language of the contact cannot be changed by either of the parties until
the date of expiration, except by mutual consent. However, the main problem encountered in
contract administration is uniform interpretation and application of the contract’s terms.
Administering the contract is a day-to-day activity. Ideally, the aim of both management and the
union is to make the agreement work to the benefit of all concerned.

Management is primarily responsible for explaining and implementing the agreement. This
process begins with meeting or training session not only to point out significant features but also
to provide a clause-by-clause analysis of the contract. First-line supervisors, in particular, need o
know their responsibilities and what to do when disagreements arise.

The key role in the day-to-day administration of the contract is played by the human resource
manager or the industrial relations management. He or she gives advice on matters of discipline,
works to resolve grievance and helps first-line supervisors establish good working relationships
within the terms of the agreement. When a firm becomes unionized, the human resource
manager’s function tends to change rather significantly, and may even be divided into separate
human resource and industrial relations department. In such situations, the vice president of
human resources may perform all human resource management tasks with the exception of
industrial relations. The vice president of industrial relations would likely deal with all union-
related matters.

Advantages and Disadvantages of Collective Bargaining

Advantages

As the name implies, workers have a larger voice through collective bargaining. Being in a group
with the same goal(s) gives employees more power to negotiate demands with their employers.
Companies may be able to shut out the voices of one or two employees but can’t necessarily do
the same with a larger group of unified individuals. Workplace conditions under collective
bargaining can see significant improvements and guarantee all workers the same protections.
This includes the implementation of health and safety checks as well as suitable salaries,
overtime pay, and vacation time.

Employers and employees are fully aware of their rights and responsibilities under a collective
bargaining agreement. Once employment terms are negotiated, a contract is drawn up. Both
parties agree to the terms, which are clearly defined.

Disadvantages

As mentioned above, collective bargaining is often a long, drawn-out process that can take weeks
or even months. Employers and labor union leaders may have to go back and forth with
employment terms. Union leaders are required to update employees and must put the terms to a
vote. If employees vote to reject a contract, the negotiating process begins again.

Collective bargaining often comes at a high cost. Employees and employers may have to take
time off from work to negotiate. This means less time on the job and, therefore, a drop in
productivity. Lengthy negotiations can affect a company’s bottom line. The process is often
considered biased. Because employees are able to band together under a single union, employers
may be forced to negotiate and accept unfavorable terms in order to keep their businesses
running without much disruption.

Collective Bargaining Agreements: What’s In a Union Contract

A collective bargaining agreement (CBA) is a legally binding document that outlines the terms
of employment for the covered union members. It’s just what it sounds like - an agreement that is
bargained collectively. More commonly known as a union contract, winning and enforcing
CBAs is a core function of today’s unions.

What’s in a typical contract?

Contract language can vary significantly across industries and workforces but we can still expect
to see some common issues addressed in collective bargaining. Both the employer and the union
have to bargain over mandatory subjects that directly impact terms and conditions of
employment (like) wages, hours, and working conditions. Permissive subjects include unit
scope/recognition clauses and questions related to internal union operations; it is not an unfair
labor practice for either to refuse. Parties can't bargain over illegal subjects, even if both sides
were to agree a contract can't supercede existing law (like giving the employer the right to
terminate an employee for discrimination).

That’s the legal framework for contract language...but none of it is guaranteed. Members within
the unit have to come to consensus about their priorities and use leverage and organizing to win
that language in the contract. And even when management and union bargain in good faith it
may require significant convincing (through pressure and mobilization) to win what people want
from the employer.

Who does the contract cover?

Union contracts cover the members of the bargaining unit - aptly named, it’s the group of
employees who bargain as one unit. Management is largely responsible for enforcing the contract
but the terms cover only unit members. The recognition clause (usually the first section of a
union contract) establishes who is in the bargaining unit. Many union contracts, like the one
below, establish guidelines to ensure that new hires are able to meet with a union representative.

Compensation and pay minimums

Workers decide their priorities and in a workplace where people have been chronically
underpaid, a first contract might include significant economic gains. In other workplaces, pay is
not the number one issue.
More money stuff: bonuses, tips, and merit pay
Bonuses or other one-time payments are typically determined by metrics defined by the
employer (revenue, performance, etc). Though some union contracts avoid merit pay in order to
limit management discretion. Job duties have to be somewhat rational for pay scales to be
meaningful.

Benefits: healthcare, retirement, and more

Employer-provided benefits (sometimes called “corporate perks,” sometimes called “basic
rights”) can include everything from health insurance to paid time off to gym reimbursements.
Contracts may lock in existing benefits (which means they can’t just get taken away tomorrow!)
and can also be an opportunity to significantly expand and improve benefits. Some union
contracts guarantee that the employer will continue providing health insurance and may even
stipulate that the company has to absorb rising costs.

Protecting worker time: paid time off and fair scheduling

Paid time off (called “earned time off” in this contract) provisions ensure fair minimums for all
employees. It’s important to get language and protected benefits in a contract, not only materially
benefit people’s lives, but as part of a larger cultural change. When a group of people demands
fair treatment (like paid parental leave), it becomes more possible for other workers to do the
same.

Workplace safety and culture

Contract language around safety sets the expectation that it’s a priority and the ongoing
responsibility of both union and management. It is becoming increasingly common for contracts
to explicitly address issues like equity and discrimination.

Job security and due process

Just cause ends “at-will employment” and puts the burden of proof on the employer to meet a
“reasonable standard” for all employee discipline, including if someone has been fired. Just
cause contract language is intentionally vague.

How are contracts enforced?

Union stewards play a crucial role in contract enforcement, as this contract memorializes. In
addition to the work of stewards, most contracts establish at least one committee, a Labor
Management Committee.
Contracts are also enforced through the grievance and arbitration clause. The grievance and
arbitration language lays out a process to raise and resolve disagreements in contract
interpretation, including violations of the contract. An employee is encouraged to try to address
the matter directly with their supervisor and then involve a show steward or paid union staffer. A
union representative may also recommend bringing issues to the Labor Management Committee
to try to resolve before escalating to a mediator or arbitrator . The process tends to look pretty
similar across union contracts and industries, though there are specific timeframes to be mindful
of in each contract.

1. WHAT IS STRIKE, PICKETING AND LOCKOUT?

1. STRIKE — means any temporary stoppage of

work by the concerted action of the employees as a result of an industrial orlabor dispu
te. (Art. 212 (0), Labor Code, as amended by Sec. 4, R.A. 6715.)

2. PEACEFUL PICKETING — the right of workers

during strikes consisting of the marching to and from before the premises ofan establish
ment involved in a labor dispute, generally accompanied by the carrying and display of
signs, placards or bannerswith statements relating to the dispute. (GUIDELINES
GOVERNING LABOR RELATIONS, October 19, 1987)

3. LOCKOUT — means the temporary refusal of an employer to furnish work as a

result of and industrial or labor dispute.
(Article 212 (p) Labor Code, as amended by Section 4, R.A 6715).

2. WHAT ARE THE DIFFERENT FORMS OF STRIKES?

1. LEGAL STRIKE — one called for a valid purpose and conducted through mea
ns allowed by law.

2. ILLEGAL STRIKE — one staged for a purpose not recognized by law, or if for a
valid purpose, conducted through meansnot sanctioned by law.

3. ECONOMIC STRIKE — one staged by workers to force wage or other economic

concessions from the employer
which he isnot required by law to grant (Consolidated Labor Association of the Phil.
vs. Marsman and Company, 11 SCRA 589)
 4. ULP STRIKE — one called to protest against the employer’s acts of unfair practice
enumerated in Article 248 of the Labor Code, as amended, including gross violation of
the collective bargaining agreement (CBA) and union busting.

5. SLOW DOWN STRIKE — one staged without the

workers quitting their work but by merely slackening or by reducingtheir normal
work output.

6. WILD-CAT STRIKE — on declared and staged without filing the required notice
of strike and without the majority approvalof the recognized bargaining agent.

7. SIT DOWN STRIKE — one where the workers stop working but do not leave their
place of work.

3. WHAT IS AN INDUSTRIAL DISPUTE?

An industrial or labor dispute includes any controversy or matter concerning terms or

conditions of employment or theassociation or representation of persons in negotiating,
fixing, maintaining, changing or arranging the terms and conditions of employment
regardless of whatever the disputants stand in the proximate relation of employer and
employee. (Article 212 (1) Labor Code, as amended by Section 4, R.A. 6715)

4. WHAT IS THE NATURE OF THE RIGHT TO STRIKE AND LOCKOU

T?

The right to strike is a constitutional and legal right of the workers as the employees
have the inherent and statutory right to lockout, all within the context of labor relations
and collective bargaining. It is means of last resort and presupposes that
theduty to bargain in good faith has been fulfilled and other voluntary modes of dispu
te settlement have been tried andexhausted. (Guidelines Governing Labor Relations).

5. WHO MAY DECLARE A STRIKE OR LOCKOUT?

Any certified or duly recognized bargaining representative may declare a strike in

cases of bargaining deadlock and unfairlabor practice. Likewise, the employer may
declare a lockout in the same cases.

In the absence of a certified or duly recognized bargaining representative, any legitimat

e labor organization in theestablishment may declare a strike but only on the ground
 of unfair labor practice (Section 2, Rule XIII Book V,
OmnibusRules Implementing The Labor Code, as amended).

6. WHAT ARE THE REQUISITES OF A LAWFUL STRIKE/LOCKOUT?

The requirements for a valid strike or lockout are as follows:

1. It must be based on a valid and factual ground;

2. A strike or lockout NOTICE shall be filed with

the National Conciliation and Mediation Board (NCMB) at least 15 daysbefore
the intended date of the strike or lockout if the issues raised are unfair labor
practices, or at least 30 days before the intended date thereof if the
issue involves bargaining deadlock.

In cases of dismissal from employment of union

officers duly elected in accordance with the union constitution andby-laws,
which may constitute UNION BUSTING where the existence of the union is
threatened, the 15-day cooling-off period shall not apply and the union may
take action immediately after vote is conducted and the
result thereofsubmitted to the Department of Labor and Employment.

3. A strike must be approved by a majority vote of the members of the Union

and a lockout must be approved by a majority vote of the members of the
Board of Directors of the Corporation or Association or of the partners in
apartnership, obtained by secret ballot in a meeting called for that purpose.

4. A strike or lockout VOTE shall be reported to the NCMB-DOLE Regional

Branch at least 7 days before
the intendedstrike or lockout subject to the cooling-off period.

In the event the result of the strike/lockout ballot is filed within the cooling-off
period, the 7-day requirement shall be counted from the day following the
expiration of the cooling-off period. (NSFW vs. Ovejera, G.R. No.
549743, May 31,1982)

In case of dismissal from employment of union officers which may constitute

union busting, the time requirement for the filing of the Notice of Strike shall
 be dispensed with but the strike vote requirement, being mandatory
incharacter, shall “in every case” be complied with.

5. The dispute must not be the subject of an assumption of jurisdiction by the

President or the Secretary of Labor and Employment, a certification for
compulsory arbitration, or submission to compulsory or voluntary arbitration
nora subject of a pending case involving the same grounds
for the strike or lockout.

7. WHAT ARE THE VALID GROUNDS FOR DECLARING A STRIKE OR L

OCKOUT?

The law recognizes 2 grounds for the valid exercise of the right to strike or lockout, n
amely:

1. Collective Bargaining Deadlock (CBD) and/or

2. Unfair Labor Practice (ULP).

8. MAY A UNION FILE A NOTICE OF STRIKE OR THE EMPLOYER FILE A

NOTICE OF LOCKOUT IF THE LABOR DISPUTE ISBASED ON A GROUND OTHER TH
AN ULP AND CBD?

No. The union/employer may not file a notice based

on grounds other than ULP and CBD. Violations of Collective BargainingAgreements,
except flagrant and/or malicious refusal to comply with its economic provisions, shall
not be considered unfair labor practice and shall not be strikeable
and no strike or lockout may be declared on grounds involving inter-union and internal
union disputes or on issues brought to voluntary or compulsory arbitration including
legislated wage orders and laborstandard cases.

However, if improvidently filed and it appears on the face of the notice that the issues
raised are non-strikeable or the real
issues discovered during conciliation proceedings are not proper subjects of a Notice of
Strike or Lockout, the NCMB Regional Branch shall dismiss motu propio the notice
without prejudice to further conciliation, or upon the request of either or both parties,
in which case, the Notice of Strike or Lockout is treated as a Preventive Mediation
Case. (See Definition of
Preventive Mediation Case under Appendix 3, Definition of Terms).
9. WHAT ARE THE CONTENTS OF A NOTICE OF STRIKE OR LOCKOUT?

The notice shall state, among others, the names and addresses of the employer and the
union involved, the nature
of theindustry, to which the employer belongs, the number of union members and of
the workers in the bargaining unit, and such other relevant data as may facilitate the
settlement of the dispute, such as a brief statement or enumeration of all
pendinglabor disputes involving the same parties.

In cases of bargaining deadlocks, the notice shall, as far as practicable, further state the
unresolved issues in thebargaining negotiations and be accompanied by the written pr
oposals of the union, the counter-proposals of the
employerand the proof of a request for conference to settle the differences. In cases of
unfair labor practices, the notice shall, as faras practicable, state the acts complained of
and the efforts taken to resolve the dispute amicably.

10. WHAT ARE THE PROHIBITED ACTS AND PRACTICES?

1. Declaring a strike or lockout on grounds involving inter-union and intra-union

disputes or on issues brought to voluntary orcompulsory arbitration.

2. Declaring a strike or lockout without first having bargained collectively or without

first having filed the
required notice orwithout the necessary strike or lockout vote first having been
obtained and reported to the Regional Branch of the NCMB.

3. Declaring a strike or lockout in defiance of a cease-and- desist order, or an order for

the striking employees to return
towork and for the employer to accept the workers after assumption of jurisdiction by th
e President or Secretary of Labor and Employment, or after certification or submission
of the dispute to compulsory or voluntary arbitration, or during the pendency of a
case involving the authorized grounds for the strike or lockout.

4. Obstructing, impending or with by force, violence, coercion, threats or intimidation

any peaceful picketing by employees during any labor controversy or in the exercise
of their right to self-organization or collective bargaining, or aiding orabetting such
obstruction or interference.

5. Employing any strike breaker or being employed as a strike-breaker.

 6. No public official or employee, including officers and personnel of the Armed Force
s of the Philippines, of the PhilippineNational Police, or any armed person shall —

a. bring in, introduce or escort, in any manner,

any individual who seeks to replace strikers in entering or leaving thepremises
of a strike area; or
b. work in place of strikers.

Nothing herein shall be interpreted to prevent the aforementioned officials, employees

or peace officers from taking anymeasure necessary to maintain peace and order and/or
to protect life and property.

7. Stationary picket and the use of means like placing of objects to constitute
permanent blockade or to effectively closepoints of entry or exit in company premises.

8. Any act of violence, coercion or intimidation by any picketer.

9. The obstruction of the free ingress to or egress from

the employer’s premises for lawful purposes.

10. Obstruction of public thoroughfares while engaged in picketing.

Administration of the Collective Bargaining Agreement

A grievance procedure or process is normally created within the collective bargaining agreement.
The grievance procedure outlines the process by which grievances over contract violations will
be handled.

Procedures for Grievances

A violation of the contract terms or perception of violation normally results in a grievance. The
process is specific to each contract, so we will discuss the process in generalities. A grievance is
normally initiated by an employee and then handled by union representatives. Most contracts
specify how the grievance is to be initiated, the steps to complete the procedure, and
identification of representatives from both sides who will hear the grievance. Normally, the HR
department is involved in most steps of this process. Since HRM has intimate knowledge of the
contract, it makes sense for them to be involved.
The first step is normally an informal conversation with the manager, employee, and possibly a
union representative. Many grievances never go further than this step, because often the
complaint is a result of a misunderstanding.

If the complaint is unresolved at this point, the union will normally initiate the grievance process
by formally expressing it in writing. At this time, HR and management may discuss the
grievance with a union representative. If the result is unsatisfactory to both parties, the complaint
may be brought to the company’s union grievance committee. This can be in the form of an
informal meeting or a more formal hearing.

After discussion, management will then submit a formalized response to the grievance. It may
decide to remedy the grievance or may outline why the complaint does not violate the contract.
At this point, the process is escalated.

Further discussion will likely occur, and if management and the union cannot come to an
agreement, the dispute will normally be brought to a national union officer, who will work with
management to try and resolve the issue. A mediator may be called in, who acts as an impartial
third party and tries to resolve the issue. Any recommendation made by the mediator is not
binding for either of the parties involved. Mediators can work both on grievance processes and
collective bargaining issues. The goal of such an organization is to avoid disruptions to public
services and to facilitate the dispute resolution process.

If no resolution develops, an arbitrator might be asked to review the evidence and make a
decision. An arbitrator is an impartial third party who is selected by both parties and who
ultimately makes a binding decision in the situation. Thus arbitration is the final aspect of a
grievance.

Some examples of grievances might include the following:

1. One employee was promoted over another, even though he had seniority.
2. An employee doesn’t have the tools needed to perform his or her job, as outlined in the
contract.
3. An employee was terminated, although the termination violated the rules of the contract.
4. An employee was improperly trained on chemical handling in a department.

Most grievances fall within one of four categories. There are individual/personal grievances, in
which one member of the union feels he or she has been mistreated. A group grievance occurs if
several union members have been mistreated in the same way. A principle grievance deals with
basic contract issues surrounding seniority or pay, for example. If an employee or group is not
willing to formally file a grievance, the union may file a union or policy grievance on behalf of
that individual or group.

The important things to remember about a grievance are that it should not be taken personally
and, if used correctly can be a fair, clear process to solving problems within the organization.

Union Grievances

Unions were created to help workers negotiate their rights with employers. As a collective group,
unions have more bargaining power than individual workers and they use this to seek higher
wages and benefits as well as better working conditions for their members. Employees can then
enforce these rights under collective bargaining agreements with the support of the union.
However, employees with workplace disputes should still consult an experienced employment
attorney to ensure they understand all their legal options, including those that may not fall under
a union contract. Employers also should have skilled legal counsel in dealing with any matter
potentially involving unions.

What Is a Grievance?

A grievance is an employee complaint that the employer violated the worker’s rights under the
law, pursuant to a contract, or as set forth in the employer’s workplace policies and procedures.
In a union workplace, a grievance generally involves the employer’s breach of the terms of the
collective bargaining agreement. Both individuals and groups of employees can file a grievance.
Common examples of grievances include disputes involving the payment of wages, unsafe
working conditions, changing job duties, improper disciplinary actions, and other issues.
However, not every conflict in the workplace is “grievable.”

Typically, unions have their own procedures regarding when and how employees can file
grievances and how they will be resolved. Most employers also have a grievance procedure
stating how employees can make a complaint and what steps the employer will take in response.
The union and employer policies must be followed, as discussed in the next section.

What Should Employees Do If Their Employer is Violating a Union Contract?

The first step for employees is to review their collective bargaining agreement to determine
whether their issue is grievable and understand the applicable grievance procedures. These
include such actions employees must take prior to filing a grievance and the steps and deadlines
for filing. Employees who believe they have a valid grievance should gather relevant evidence
and contact their direct supervisor, union representative and/or other designated official.
Generally, the grievance must be done in writing within a specific timeframe after the alleged
acts occurred.

Union Procedures for Filing a Grievance

Generally, labor unions have strict procedures for filing grievances. The specifics may vary by
company and union, but there are basic similarities. Employees must file a complaint with their
union representative or other designated official who, in turn, will complete and submit a form to
the union. Typically, company management and the union will review the matter to determine
whether a valid grievance exists, and if so, whether it has been resolved. If the grievance has not
been resolved, the complaint is escalated to the next stage. Unresolved grievances may go to
higher levels of company management and higher-level union representatives to settle the matter.
If it still cannot be resolved, the matter usually goes to mediation or arbitration. Complaints
which are not resolved may require a hearing with the state Office of Labor Relations prior to
arbitration.

How Should Employees Handle Non-Contractual Grievances?

All employers should have written grievance procedures to inform employees of the complaint
process. Regardless of whether a complaint relates to a contract violation, employees should
review and follow these rules to ensure they protect their rights. Both sides should clearly
document the details of the complaint, relevant evidence, and what actions were taken. An
attorney should also be consulted if the matter cannot be quickly resolved.
While notifying a union representative may not be required in non-contractual grievances, there
are benefits to speaking to the representative. The union may provide various benefits and
support to workers including programs to assist workers with mediation, discounted legal
services or helpful referrals.

What are the steps typically found in a grievance procedure?

A grievance is generally defined as a claim by an employee that he or she is adversely affected
by the misinterpretation or misapplication of a written company policy or collectively bargained
agreement. To address grievances, employers typically implement a grievance procedure. The
grievance procedure may also be part of a collective bargaining agreement.

A grievance procedure is a means of internal dispute resolution by which an employee may have
his or her grievances addressed. Most collective bargaining agreements include procedures for
filing and resolving grievances. Within a union environment, the processes will typically involve
the employee, union representatives and members of the employer’s management team.
Grievance processes may differ somewhat from employer to employer and under various
collective bargaining agreements. However, most will have certain general processes in
common.

Grievances are brought to the employee’s immediate supervisor. This may be either an informal
process or the beginning of the formal process. Generally, there will be a requirement that the
grievance be submitted in writing using a grievance form. Usually, the supervisor and the union
representative will review the grievance to determine whether it is valid. Also, most grievance
procedures will require that the submission occur within a specified timeframe following the
event or incident.

Three possible outcomes may occur at this stage of the process:

1. The supervisor and the union representative may determine that no valid grievance exists.
2. The grievance may be resolved.
3. The grievance may not be resolved to the employee’s satisfaction, and it will move
forward to the next step in the process.

The next step typically involves the next level of supervisor in the company hierarchy. In most
union environments, the employee will be represented by the union and is not present in the
review process. A failure to resolve the grievance will lead to the next step in the grievance
process.
The third step in the process will lead to a review by a higher level of company management and
potentially a higher-level union representative. Ultimately, the grievance may reach the highest
levels as set forth by the contract.

If the grievance remains unresolved through the highest levels of management within the
company, many procedures include a provision by which an outside arbitrator may be called in
to resolve the issue. Senior leaders from both sides are typically involved in the arbitration
process.

An effective grievance procedure provides employees with a mechanism to resolve issues of

concern. The grievance procedure may also help employers correct issues before they become
serious issues or result in litigation.

Memorandum Order No. 118-D, s. 1993 - Grievance Machinery

How to file a grievance

VIOLATION OF WORKER’S RIGHTS

If a worker or employer, feels that their labor rights are being violated in any way, they can opt
to file a grievance.

WHAT IS A GRIEVANCE?

In a technical sense, a grievance is defined as any question by the employer or the worker
regarding the interpretation or application of the collective bargaining agreement (CBA) or
company personnel policies.

The term grievance also refers to any dispute or controversy arising from the terms and
conditions of an employment. Even without a union or CBA, Article 255 of the Labor Code of
the Philippines states that an employee or group of employees may present their grievances to
their employer at any time.

[Read: Rights of employees]

WHAT IS THE PROCESS FOR FILING A GRIEVANCE?

The procedure for filing a grievance is at the discretion of the employer and employee and
subject to the policies of their respective workplaces.

If the grievance arises from the interpretation or application of the CBA, i.e., grievance in the
technical sense, it is then subject to the grievance procedure: a formal series of steps agreed upon
by the parties to a CBA. From a legal standpoint, the grievance procedure is a mandatory part of
every CBA.

Within the grievance procedure is the grievance machinery: A provision within the CBA that is
established by the employees and their employer regarding the adjustment and resolution of
grievances. If this grievance is not settled within seven days, it shall be referred to voluntary
arbitration. A voluntary arbitrator or panel of voluntary arbitrators, specified in the CBA, has the
authority to hear and deliberate over all labor disputes.