LABOR

MANAGEMENT
RELATIONS

CHRISTINE H. LEAL
LABOR and CAPITAL

LABOR – the hired CAPITAL – the

workers of an owner of the
industry. investors of the
industry
 LABOR RELATIONS
• Labor relations can refer broadly to any
dealings between management and workers
about employment conditions. Most
commonly, however, labor relations refer to
dealings between management and a
workforce that is already unionized, or has the
potential to become unionized. Labor relations
is thus crucial to industries like autos and
airlines with heavily unionized workforces.
 THE This question is often bone of
QUESTION contention between labor and
OF JUST capital.
WAGE

It is usually claimed that

wages are fixed by mutual
agreement between employee
and employer.
MINIMUM WAGE

The rate of pay fixed either a

collective bargaining
agreement or by government
enactment as the lowest
wage payable to specified
categories of employees.
 The setting of minimum wage does not preclude
the right of employees to demand wages above
the established minimum. The method of
establishing a minimum wage by collective
bargaining suffers from a serious limitation.
In General…..
However, because the collective bargaining agreement
cover only the workers in a specific plant, craft, industry
or local area and hence are inadequate in situation in
which wage rated prevailing throughout an entire nation
have fallen to excessively low levels. The realization of
this shortcoming has led labor unions to demand
government minimum wage programs as early as the
1980’s and resulted in the enactment of the legislation
setting minimum wage.
 DEPARTMENT OF LABOR &
EMPLOYMENT (DOLE)
GOVERNMEN
T NATIONAL LABOR RELATIONS
REGULATORS COMMISSION (NLRC)

REGIONAL TRIPARTITE WAGES &

PRODUCTIVITY COMMISSION
(RTWPC)
NATIONAL WAGES AND
PRODUCTION COMMISSION
(NWPC)
DEPARTMENT OF LABOR &
EMPLOYMENT
Responsible for overall regulation of
employment in the Philippines.

Three areas of authority:

• Promotion of employment &
apprenticeship
• Worker's protection and welfare;
• Promotion and maintenance of industrial
peace
 NATIONAL LABOR RELATIONS
COMMISSION (NLRC)

This agency coordinates program and policies with

DOLE but it is otherwise a separate agency. The NLRC
oversees unfair labor practices allegations, job
termination disputes, and other labor matters not strictly
to wages. It consists of 14 commissioners in
combination with the National Conciliation and
Meditation Board(NCMB), the NLRC serves as Quasi-
Judicial mechanism for hearing and adjudicating
workers claims and it has exclusive appellate
jurisdiction over all cases decided by labor arbiters.
REGIONAL TRIPARTITE WAGES
& PRODUCTIVITY
COMMISSION (RTWPC)
There are 15 regional boards each
representing a section of country. The boards
assist the NPWC. Specially they are charged
with developing plans, programs, and projects
related to wages, income, and productivity
movements for their respective regions, as
well as determining and fixing minimum
wages rate. They also act on applications of
exemptions from prescribe wage rates.
NATIONAL WAGES AND PRODUCTION COMMISSION
(NWPC)
The NWPC consults and advises the national government on wages and
worker productivity. It formulates policies and guidelines on the issues
prescribes rules and guidelines for determining minimum wage and
productivity standard; and prescribed guidelines and national
development plans. It also studies and disseminates information on
wages and productivity and other related information on employment,
cost of living and labor costs.
 WHAT IS A
JUST WAGE?
The renumeration which is enough to
support wage earner in reasonable and
frugal confront.

The Just Wage: A Family Wage: A family wage will

enable man to provide a sufficiency of decent food
and clothing for himself and his family, a decent
home, security for sickness and old age, and means of
leisure for moderate and wholesome recreation.
The minimum wage prescribe by the law may
not necessarily be a just wage.
 UNIONSM: A NATURAL
RIGHT
• A Union is an organization of workers, acting
collectively, seeking to promote and protect its
mutual interests through collective bargaining
 HRM practices in unionized organization
consist of following policies and procedures
laid out in labor contracts. These contracts
typically stipulate:
 wages
 hours
 terms and conditions of employment
 Higher wages and benefits: the strength of
WHY large numbers and negotiating skills of
professional bargainers give unions an
EMPLOYEES advantage over individuals
JOIN UNIONS?
Greater job security: collective bargaining
contracts limit management’s ability to
arbitrarily hire, promote, or fire

Influence over work rules: unions

represent workers and define channels for
complaints and concerns
 COLLECTIVE
BARGAINING
Collective bargaining is the
negotiation, administration, and
interpretation of a written agreement
between two parties, at least one of
which represents a group that is
acting collectively, that covers a
specific period of time.
 COLLECTIVE BARGAINING
PARTICIPANTS
Collective Bargaining takes into account: two parties-the union and the management”
Organization representatives:
1. Large corporations have HRM departments with industrial relations experts; corporate
executives, and company lawyers also participate
2. In small companies, the president typically represents the company
Union Representative:
3. Union bargaining teams include an officer of the local union, local shop stewards, and
reps from the international/ national union

Watching over these two parties is the government to ensure rules are followed and to
intervene if mutual agreement is not reached
 Preparations for Negotiations
COLLECTIVE
BARGAINING Contract Negotiations
PROCESS
Agreement

Union Ratification

Contract Administration
 PROCESSIDINGS OF
STRIKE
Strike means any temporary
stoppage of work by the
concerted action of the
employees as a result of an
industrial or labor dispute.
INDUSTRIAL DISPUTE
•Refers to any conflict between employers
and employees , between employers and
employers and between employees and
employees.
 Wages and allowances

Personnel and retrenchment

CAUSES Indiscipline and violence

OF Bonus
DISPUTES
Leave and worker hours

Workload
 RESOLUTION OF
COLLECTIVE LABOR
DISPUTES
1. Conciliation:
• In simple sense, conciliation means reconciliation
of differences between persons. Conciliation refers
to the process by which representatives of workers
and employers are brought together before a third
party with a view to persuading them to arrive at
an agreement by mutual discussion between them.
The alternative name which is used for conciliation
is mediation. The third party may be one individual
or a group of people.
 RESOLUTION OF
COLLECTIVE LABOR
DISPUTES
2. Arbitration is a process in which the
conflicting parties agree to refer their
dispute to a neutral third party known as
‘Arbitrator’. Arbitration differs from
conciliation in the sense that in arbitration
the arbitrator gives his judgment on a
dispute while in conciliation, the
conciliator disputing parties to reach at a
decision.
 RESOLUTION OF
COLLECTIVE LABOR
DISPUTES
3.Adjudication: The ultimate legal remedy for the
settlement of an unresolved dispute is its reference to
adjudica­tion by the government. The government can
refer the dispute to adjudication with or without the
consent of the disputing parties. When the dispute is
referred to adjudication with the consent of the
disputing parties, it is called ‘voluntary adjudication.’
When the government herself refers the dis­pute to
adjudication without consulting the concerned
parties, it is known as ‘compulsory adjudication.
 Labor laws are designed for the
protection of workers from the
unlawful conduct of their
employers. It covers all facets of
torts on employment issues.
These laws preserve the
employer-employee relationship
and encourage both parties to
LABOR work together peacefully. Labor
laws also prevent unfair labor
LAW practices.
RESPONSIBILITIES
OF EMPLOYER
AND EMPLOYEE
UNDER LABOR
CODE OF THE
PHILIPPINES
 PROVISIONS
UNDER THE
LABOR CODE OF
THE PHILIPPINES
ART. 83 NORMAL HOURS OF WORK

The normal hours of work of any

employee shall not exceed eight
hours a day.
 ART. 139. MINIMUM EMPLOYABLE
AGE.
No child below fifteen (15) years of age shall be
employed, except when he works directly under the
sole responsibility of his parents or guardian, and his
employment does not in any way interfere with his
schooling.
 ART. 92. WHEN EMPLOYER MAY
REQUIRE WORK ON A REST DAY. 
The employer may require his employees to work on any day:
a.In case of actual or impending emergencies caused by serious accident, fire, flood, typhoon, earthquake, epidemic or other disaster
or calamity to prevent loss of life and property, or imminent danger to public safety;
 
b.In cases of urgent work to be performed on the machinery, equipment, or installation, to avoid serious loss which the employer
would otherwise suffer;
 
c.In the event of abnormal pressure of work due to special circumstances, where the employer cannot ordinarily be expected to resort
to other measures;
 
d.To prevent loss or damage to perishable goods;
 
e.Where the nature of the work requires continuous operations and the stoppage of work may result in irreparable injury or loss to the
employer; and
 
f.Under other circumstances analogous or similar to the foregoing as determined by the Secretary of Labor and Employment.
 ART. 95. RIGHT TO SERVICE
INCENTIVE LEAVE.
Every employee who has rendered at least one
year of service shall be entitled to a yearly
service incentive leave of five days with pay.
RESPONSIBILITIES OF WORKERS
• To personally perform the work in the time, place and conditions
agreed upon
• To follow the instructions of the workers boss
• To avoid any issues or problems at the workplace that will endanger the
worker or/his/her colleagues
• To follow the rules at work
RESPONSIBILITIES OF EMPLOYERS
• To make a work agreement with the employee; agreeing conditions, time and
place.
• To follow up with the employee on the agreed terms
• To supervise and provide suitable conditions of work so workers have security,
health and dignity.
• To safeguard standards and staff environment
• To agree on a performance contract
THE END!