COLLEGE OF EDUCATION

SED SS 322
MACROECONOMICS

Text of Report
Macroeconomic Instability :Industrial and Labor Relations

Submitted by :
Rhea Morante Enriquez

Submitted to:
Ariel Dumlao
Course Instructor

April 19, 2023

 Text of Report Content
Topic : Macroeconomic Instability
Subtopic: Industrial and Labor Relations
Industrial relations is also called organizational relations, the behaviour of workers in
organizations in which they earn their living.

 The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’.
“Industry” refers to “any productive activity in which an individual (or a group of
individuals) is (are) engaged”. By “relations” we mean “the relationships that exist
within the industry between the employer and his workmen.”.

 The term industrial relations explains the relationship between employees and
management which stem directly or indirectly from union-employer relationship.
Labor-management relationships are defined by a collective bargaining agreement.
Negotiators can use several different bargaining approaches in resolving conflicts
during contract negotiations or grievance proceedings.
Industrial Dispute
This is an issue of conflict between workers, along with their trade unions and
management. This can be manifested in a number of ways which are referred to as
industrial action. In an industrial dispute, both employer and employee use a number of
strategies to gain upper hand.
Strategies used by employers:
1. Negotiation. The organization and the union enter into discussion and bargain on
the issue at hand with the hope of arriving at an amicable agreement.
2. Suspension of workers. All workers may be suspended in such a if the
organization arbitrates (seek to resolve the dispute) and cannot reach an amicable
solution.
3. Lock-out. The organization closes its doors; the workers are not allowed on the
premises until the dispute is settled.
4. Dismissal or sacking. This means that the workers are summarily dismissed or
fired by the company. This could be legal or illegal. Where it is legal the labour law is
used as a guide in the process of settling the dispute. The courts may even be bought
into the picture.
5. Strike. The employees actually stop working until a settlement can be arrived at
between management and themselves.
Conflict and Industrial Relations

 The effective management of workplace conflict requires an understanding of the

nature and sources of conflict in the workplace. Conflict occurs when there is a
perception or feeling of opposing interests between workplace participants, e.g.
management and staff.

 Conflict can exist without disputes, but disputes do not exist without conflict. The
first step in uncovering workplace conflict is to consider the typical sources of
conflict. There are a variety of sources of workplace conflict including
interpersonal, organizational and external factors.
Some sources of conflict
· Job security issues
· Pension scheme issues
· Working conditions
· Management or leadership issues
· Unfair practices of management
· Fringe benefit issues
· Health and safety issues
· Worker recognition
· Communication between management and workers

 When disputes arise, appropriate action must be taken to solve them. In a large
organization and industrial relations officer may be employed to handle such
disputes. Or the Human Resources Department and relevant members of
management may be called upon to hear the dispute and provide solutions.

 When workers and management find it difficult to bring the dispute to an end, the
trade unions which represent the workers provide mediatory services (process of
resolving disputes).
Trade Unions
Trade unions are organizations that assist workers in conflicts which arise in workplaces
between management and themselves. It is a mediatory body which helps to settle
disputes between workers and management.
Purpose of Trade Unions
1. Negotiate on behalf of workers for better wages and salaries, fringe benefits and
improved working conditions.
2. Help to settle disputes between management and workers.
3. Take collective action in an effort to implement the terms of their collective
bargaining, where collective bargaining brought about certain agreements which
management failed to honour.
4. Make new demands on management on behalf of workers.
5. Educate its members about their rights and responsibilities.
6. Obligated to play their advocacy role fairly so that workers’ interests are not
unduly jeopardized.
Union Delegate (employee who represents union members in the workplace)
1. Receives and reviews report
2. Establishes whether there is dispute
3. Consults labour laws and/or union agreement
4. If problem exists, consults worker’s supervisor and discusses problem.
5. If problem is unresolved, meets with management and discusses.
What Is a Labor Union?

 A labor union is an organization formed by workers in a particular trade, industry,

or company for the purpose of improving pay, benefits, and working conditions.
Officially known as a “labor organization,” and also called a “trade union” or a
“workers union,”

 A labor union selects representatives to negotiate with employers in a process

known as collective bargaining. When successful, the bargaining results in an
agreement that stipulates working conditions for a period of time.
How a Labor Union Works

 Labor unions have a democratic structure, holding elections to choose officers

who are charged with making decisions that are beneficial to the members.
Employees pay dues to the union and, in return, the labor union acts as an
advocate on the employees’ behalf.

 Labor unions are often industry-specific and tend to be most common today
among public sector (government) employees and those in transportation and
utilities.
Example of a Labor Union

 The National Education Association (NEA) represents teachers and other

education professionals and is the largest labor union in the United States, with
nearly 3 million members.

 It represents public school teachers, substitute teachers, higher education faculty

members, education support workers, administrators, retired teachers, and
students working to become teachers.

 The NEA works with local and state educational systems to set adequate wages
and working conditions for its members, among other activities
Collective Bargaining:

 The term ‘collective bargaining’ has different meanings for different people. The
whole concept revolves round the meaning of the term ‘collective bargaining’.

 The word ‘collective’ means group and ‘bargaining’ means negotiation and
therefore, it may be considered as a negotiation of a dispute between the labour
union and the management.
In the words of R.F. Hoxie “Collective bargaining is a mode of fixing the terms of
employment by means of bargaining between an organized body of employees and an
employer or an association of employers usually acting through organized agents. The
essence of collective bargaining is a bargain between interested parties and not a
decree from outside parties.”
The relationship between workers and the company, which is an airline, is based upon
a collective bargaining agreement. A collective bargaining agreement is an agreement
between the union and the company. It addresses things such as wages, working hours,
overtime and benefits.
Characteristics of Collective Bargaining:
(i) It is a bargain between management and work force.
(ii) Both parties have flexible attitude so that there should be mutual give and .
(iii) It is a two party process or method.
(iv) It is a continuous process and goes on for whole of the year.
SOURCES :
https://sites.google.com/site/portmorebusinessportfolio/industrial-relations
https://study.com/academy/lesson/tactics-for-resolving-labor-management-conflicts.html
https://www.yourarticlelibrary.com/hrm/collective-bargaining/collective-bargaining-
meaning-prerequisites-and-levels/90547
https://www.investopedia.com/terms/l/labor-union.asp
Quizes: .
Multiple Choice
Directions : Read and analyze the questions carefully. Choose (Halla buti pa ito
pinipili ,ikaw kaya?) and write the best answer in the space provided before the
number. (Kaya piliin ang tamang sagot ,baka sakaling piliin kana din , ay halla)
1. It is also called organizational relations, the behaviour of workers in organizations in
which they earn their living.
a) Industrial Relations
b) Industrial Labor
c) Labor Union
d) Labor Relations
2. These are organizations that assist workers in conflicts which arise in workplaces
between management and themselves.
a) Labor Union
b) Trade Union
c) Industrial Union
d) Union Trade
3. This is an issue of conflict between workers, along with their trade unions and
management.
a) Labor Dispute
b) Trade Dispute
c) Industrial Dispute
d) Union Dispute
4. What do we call in an organization formed by workers in a particular trade, industry,
or company for the purpose of improving pay, benefits, and working conditions?
a) Trade Union
b) Labor Union
c) Industrial Relations
d) Labor Relations
5. The term ‘collective bargaining’ has different meanings for different people. The
whole concept revolves round the meaning of the term ‘collective bargaining’. The word
‘collective’ means ______ and ‘bargaining’ means _______?
a) Group, discussion
b) Group , negotiation
c) Group, Trade
d) Group, labor
Matching Type
Directions: Look and match the best definition from the word provided in the first
column. Put the corresponding letter of the item in a separate sheet of paper.

1. Conflict a) defined by a collective bargaining

agreement. Negotiators can use several
different bargaining approaches in
resolving conflicts during contract
negotiations or grievance proceedings.

2. Labor Union b) The relationship between workers and

the company, which is an airline, is based
upon a collective bargaining agreement

3. Labor-management relationships c) They represents teachers and other

education professionals and is the largest
labor union in the United States, with
nearly 3 million members.

4. Collective Bargaining d) It occurs when there is a perception or

feeling of opposing interests between
workplace participants, e.g. management
and staff.

5. The National Education Association e) selects representatives to negotiate with

(NEA) employers in a process known as
collective bargaining

True or False
Identify if the indicated definition is true or false. Write "TAMA KA DIYAN!" if the
statement is correct and "LIGWAK KA DIYAN!" if the statement is incorrect.
1. Industrial Dispute concerns trade unions as well as Individual workman employed in
any Industry within the territory.
2. The term ‘collective bargaining’ has different meanings for different people. Collective
means "to collect" and bargaining means "to bargain".
3. The term industrial agreement explains the relationship between employees and
management which stem directly or indirectly from union-employer relationship.
4. The relationship between workers and the company, which is an airline, is based
upon a collective bargaining agreement.
5. In a large organization and industrial relations officer may not be employed to handle
such disputes.
Essay
Directions: Make an article of the following. Give your stand, opinion, thoughts,
ideas and reactions from the statements below.
Imagine that you are the person designated by the union to represent it with
negotiations with the company, what strategies would you use in this kind of
situation?
If you were to ask which do you prefer, a good relations but a very low rate
company ? Or a chaotic relations but a high rate company? Why or why not?
What do you think is the importance of settling dispute in Industrial and Labor
Relarions?
ANSWER KEYS:
MULTIPLE CHOICE
1. A
2. B
3. C
4. B
5. B
MATCHING TYPE
1. D
2. E
3. A
4. B
5. C
TRUE OR FALSE
1. TAMA KA DIYAN!
2. LIGWAK KA DIYAN!
3. LIGWAK KA DIYAN!
4. TAMA KA DIYAN!
5. LIGWAK KA DIYAN!

ESSAY (No answers provided ,students should be the one to give answers in this
particular acticity)
1.Imagine that you are the person designated by the union to represent it with
negotiations with the company, what strategies would you use in this kind of situation?
2.If you were to ask which do you prefer, a good relations but a very low rate company ?
Or a chaotic relations but a high rate company? Why or why not?
3. What do you think is the importance of settling dispute in Industrial and Labor
Relarions?
Rubrics :

Excellent (20) Good(10) Poor (0)

Clearly stated the Some statements are No statement is indicated,

point, very good use understandable, some no examples given.
of citations and examples are cited.
examples.

No error in grammar , Some error in use of An error use of grammar ,

briefly explains the grammar, some precise no definite explanation.
idea. explanation.

Indicate specific Some indications of specific No specific situations are

situations, relevant situations, also some given , not relevant idea
and connected to the relevant and almost provided.
topic. connected to the topic.