LECTURE 1

LABOR RELATIONS AND NEGOTIATIONS

Collective Bargaining

 What is Collective Bargaining?

It is a process where the parties agree to fix and administer terms and conditions of employment which must
not be below the minimum standards fixed by law, and set a mechanism for resolving their grievances.

What is Collective Bargaining Agreement (CBA)?

It is a contract executed upon request of either the employer or the exclusive bargaining representative of the
employees incorporating the agreement reached after negotiations with respect to wages, hours of work and
all other terms and conditions of employment, including proposals for adjusting any grievances or questions
under such agreement.
"Collective Bargaining Agreement" or "CBA" refers to the contract between a
legitimate labor union and the employer concerning wages, hours of work, and all
other terms and conditions of employment in a bargaining unit.

https://www.ilo.org/dyn/natlex/docs/ELECTRONIC/64990/117859/F-1331837401/PHL64990.pdf
The registration of Collective Bargaining Agreements (CBAs) is closely monitored as an indicator of
harmonious labor-management relations and industrial peace in the country.  A collective bargaining is a
process where both parties, labor and management, agree to fix and administer terms and conditions of
employment which must not be below the minimum standards fixed by law. This also sets a mechanism
for resolving the parties’ grievances. 

    Specifically, a CBA is a contract executed upon incorporating the agreements reached after
negotiations with the employer and the exclusive bargaining representative of the employees with respect
to wages, hours or work and all other terms and conditions of employment. As such, a CBA includes
economic provisions and non-economic provisions. Economic provisions include monetary value of wage
increases, loan benefits, bonuses, allowances, retirement plan, and other fringe benefits. On the other
hand, non-economic clauses include union security clauses, grievance procedures, labor-management
cooperation schemes, and other provisions without monetary value.  

https://psa.gov.ph/content/economic-provisions-collective-bargaining-agreements-2017-second-three-part-series-0
A collective bargaining agreement (CBA) is a written legal contract between an employer and a union representing
the employees. The CBA is the result of an extensive negotiation process between the parties regarding topics such
as wages, hours, and terms and conditions of employment.

There are three different categories of subjects that are part of a CBA:
1. mandatory,
2. voluntary or permissive and
3. illegal subjects.
1. Mandatory subjects are those topics required by law and the National Labor Relations Board
(NLRB). Those subjects include items like wages, overtime, bonuses, grievance procedures, safety
and work practices, and seniority, as well as procedures for discharge, layoff, recall, or discipline.

2. Voluntary or Permissive subjects may be negotiated but are not required and include topics such
as internal union matters and the make-up of the employer's board of directors.

3. Illegal subjects that would violate a law are prohibited, such as closed shops (when an employer
will hire only members from a union) or illegal discrimination.

It is important to note that once a CBA is reached, both the employer and the union are required to
abide by that agreement. Therefore, an employer should retain legal counsel before participating in
the collective bargaining process.

https://www.shrm.org/resourcesandtools/tools-and-samples/hr-qa/pages/collectivebargainingagreement.aspx
Collective bargaining is a key means through which employers and their organizations
and trade unions can establish fair wages and working conditions. It also provides the
basis for sound labor relations. Typical issues on the bargaining agenda include wages,
working time, training, occupational health and safety and equal treatment. The objective
of these negotiations is to arrive at a collective agreement that regulates terms and
conditions of employment. Collective agreements may also address the rights and
responsibilities of the parties thus ensuring harmonious and productive industries and
workplaces. Enhancing the inclusiveness of collective bargaining and collective
agreements is a key means for reducing inequality and extending labor protection.
Collective bargaining is the process in which working people, through their unions,
negotiate contracts with their employers to determine their terms of employment,
including pay, benefits, hours, leave, job health and safety policies, ways to balance work
and family, and more. 

Collective bargaining is a way to solve workplace problems

Collective bargaining is the process of negotiations between employers and a group of employees aimed at
reaching agreements that regulate working conditions. The interests of the employees are commonly
presented by representatives of a trade union.

The Collective Bargaining Agreement (CBA) is the contract resulting from the negotiations. In the Philippines,
collective bargaining can be done through single enterprise level negotiations or through the creation of a
mechanism by which different employers and recognized or certified labor unions in their establishments
bargain collectively (multi-employer bargaining).

https://blr.dole.gov.ph/wp-content/uploads/2019/07/LR-Overview-2018.pdf
The Labor policy in the Philippines is specified mainly by the country's Labor Code of the Philippines and
through other labor laws. They cover 38 million Filipinos who belong to the labor force and to some extent,
as well as overseas workers. They aim to address Filipino workers’ legal rights and their limitations with
regard to the hiring process, working conditions, benefits, policymaking on labor within the company,
activities, and relations with employees.

The Labor Code and other legislated labor laws are implemented primarily by government agencies,
namely, Department of Labor and Employment and Philippine Overseas Employment Agency. Non-
government entities, such as the trade unions and employers, also play a role in the country's labor.

https://en.wikipedia.org/wiki/Labor_policy_in_the_Philippines
Case Assignment
1. Identify the Problem of the Case

2. Seek the court decision

3. Assess the court decision

4. Give your dissenting opinion on the case

CEBU PORTLAND CEMENT COMPANY, petitioner,
vs.
CEMENT WORKERS UNION, LOCAL 7-ALU and COURT OF INDUSTRIAL
RELATIONS, respondents.
The Government Corporate Counsel for petitioner.
Seno, Mendoza, Ruiz & Associates for respondents.

https://lawphil.net/judjuris/juri1968/oct1968/gr_l-25032_1968.html