COLLECTIVE

BARGAINING
Course Outline
I. Overview

II.The Legal Basis For Collective Bargaining

A. Constitutional Basis
B. Salient Provisions of the Labor Code of the Philippines
1.Concepts
2. Rights of Legitimate Labor Organizations
(Title IV-Chapter III)
3. Unfair Labor Practices of Employers
4. Unfair Labor Practices of Labor Organizations
5. Collective Bargaining and Administrative of
Agreement

6. Strikes and Lockouts

III. Collective Bargaining Agreement
A. Non-economic issues
B. Economic issues
IV.Techniques In Negotiating CBA
A. Establishing Ground Rules
B. Do’s and Don’ts
V. Preparations for the CBA
A. Comparative Analysis of other CBAs
B. Experience: Financial Analysis
C. Implications of non-economic issues
VI. Mock Negotiations

VII. Preparation for Actual CBA

Must Know
Information
For
Effective
Negotiation
• Business Situation and Trends

•Bargaining Climate
oLabor Relations Climate
oLaws, Trends and Jurisprudence

•Key Bargaining Philosophy

•Inventory and Analysis of

oCBA Provisions
oCompany Practices
oLaws, Jurisprudence
oGrievances

•Demographic and Cost Data

•Position Classification and Pay Scale

•Economic Data and Statistics

oCompany Productivity
oProfitability
oROI
oGrowth and Expansion
oInflation Rate
oSurvey Data
•Analysis of Union

•Analysis of Union Proposals

•Bargaining Objectives and Costs

•Bargaining Plan and Strategies
(Game Plan)

•Bargaining Panel and Members

•CBA Committee and Role

 Notes On
Preparation
For
Collective
Bargaining
I. GENERALLY
1. The best preparation for collective bargaining is how the parties lived
their obligations and relationships with each other before the onset of
collective bargaining relationships or during the lifetime of the
agreement subject of renewal.

2. Collective bargaining positions, vis-à-vis proposals, should be the result

of a thorough preparation, on the basis of relevant data, information and
philosophy.

3. The biggest crime a negotiator can commit against his principal

and to the collective bargaining process, is to come to the bargaining
table unprepared and ignorant of relevant data and information.

4. There is no substitute for thorough preparation before bargaining

negotiations.
II. TECHNICAL PREPARATION
1. Preparation for collective bargaining for an initial
agreement starts from the time it becomes evident that
a union of employees might be organized.

2. Preparation for renewal of the collective

bargaining agreement starts from the effectivity of
the agreement subject to renewal.

3. The experience of the parties in the implementation

of company policies, provisions of law and
provisions of the agreement are important inputs
in preparing for collective bargaining.
4. Monitoring the union’s actions, words and deeds, trends in
collective bargaining may give some indication on the
union’s future proposal come next collective bargaining.

5. Where the union’s proposals are submitted,

all facts, data, information and principles, for each
proposal must be identified, analyzed and reconciled
before a position is decided.

6. Any increase in basic wage increases the

cost of benefits and burdens tied up to wages, in the same
way that increase of benefits and burdens increases the
cost of payroll.
7. The total amount the employee is ready, willing and able to
provide for the duration of the agreement should determine the
size and shape of the total economic package.

8. The positions the party take, vis-à-vis the proposals, for the
employer represent the maximum it is willing to grant, and the
maximum it is willing to accept on its own proposals, and for
the union, the minimum position it is willing to accept on its
proposals, and the maximum on the employer’s.

9. The positions the parties take on the proposals, the attitude and
objectives they take to the bargaining table, will determine the
bargaining strategies.
10. The approved positions on the proposals and counter-proposals
will be the bible for negotiations and the extent of the
negotiators’ authority to negotiate.

11. Structural content of a negotiations manual;

10.Current CBA and/or company policies

11.Experience in the implementation of CBA and/or policies
12.Proposals, positions on basis of experience
13.Anticipated union proposals
14.Tentative positions
15.Actual union proposal
16.Bargaining positions
•Bargaining strategies
III. COST COMPUTATION CONSIDERATIONS
1. To compute cost of contract, consider number of employees in
bargaining unit including probationaries and projected manpower
changes.

2. To compute total cost of the employer, include non-CBA employees

to whom benefits will be extended.

3. Use average wages for reckoning and computing benefit applications.

4. Use numerical average incidence to compute cost implications of

Increased wages and/or benefits tied-up to wages, or use individual
and total percentages.

5. Same as above for other economic benefits and services.

6. To compute total cost of the contract, carry first year cost, and subsequent
years cost up to end of contract.
7. Anticipate mandatory legislation or unusual
work projections.

8. Annualize experience averages.

9. Distinguish between actual cash outlay from

opportunity cost.

10. Total carrying cost is current cost plus Incremental

cost.

11. Computations are at most an intelligent estimate.

12. Impute cost of legal and extra burdens.

IV. DETERMINING THE ECONOMIC PACKAGE

1. The composition and extent of the economic

package is dependent upon the cost that the
operations can absorb.

2. The composition and extent of the economic

package can be determined either by the
adjustment method or the distribution
method.
•Each negotiating panel shall furnish each other with the
complete authority from their principals to propose,
negotiate, agree to, conclude and sign a collective
bargaining agreement.

•Each negotiating panel shall be limited to not more than

seven (7) members each, including counsels and advisers.

•Only the members of the negotiating panels shall attend

the bargaining sessions.

•The collective bargaining sessions shall be held at

______________ on __________ (time)
_______________.
•Members of the negotiating panel who have to leave their work to
attend the bargaining sessions shall be considered at work.

•Each panel shall be headed by a Chairman, and during the negotiations

shall be the official spokesman for and can commit his panel. Other
members of the panel may participate in the discussions with the
permission and upon request of the panel Chairman.

•Provisions of the existing collective bargaining agreement for which

no proposal by either panels have been submitted shall be considered as
accepted by both panels and shall not be subject for negotiations.

•The union proposals contained in its letter to management dated

________ shall be considered the final proposal.
•The proponent of each proposal shall first discuss and
explain the proposal, after which the other panel shall discuss
and/or explain its position or counter proposal. An exchange
of discussions and positions may or shall follow.

•When no agreement is arrived at on any proposal, any party

may ask that the discussions be deferred in which case the
parties shall proceed to discuss the succeeding proposals.

•The deferred proposals shall be discussed only after all the

other proposals have been discussed.

•The parties will discuss the non-economic proposals first and

the economic proposals last.
•If an agreement is arrived at on a proposal, the same
shall be reduced into writing immediately and shall
be signed by each panel.

•An agreed proposal shall be considered settled and

shall not be the subject of any further discussion or
negotiation.

•During the negotiations, any party may ask for a

recess.

•Any proposal agreed upon shall not be effective

until the collective bargaining agreement is signed.
•Except for the proposals or provisions agreed upon, no
publication of any kind concerning the negotiations shall be
made.

•All negotiations shall be conducted in a friendly manner and

proper decorum shall be observed at all times.

•Inspite of any resulting deadlock, the parties shall continue to

negotiate as long as one party so requests.

•All deadlocks shall be submitted for voluntary arbitration to a

panel consisting of ______________. The majority or
unanimous decision of the panel shall be considered final,
unappealable and executor. Expenses of arbitration shall be
shared equally by both parties.
 Notes On
Collective
Bargaining
Negotiations
I. GENERALLY

1. In essence, negotiating a collective bargaining agreement

boils down to one party convincing the other that the
position, proposal or counter proposal taken by the party
on an issue or totality of the issues is the best under the
circumstances.

2. The attitude that a party brings to the bargaining table

will determine that party’s behavior and strategy in the
bargaining process, and the climate thereof.

3. The objectives that a party brings to the bargaining

table will determine the pace and conclusion on the
bargaining process.
4. The ground rules on the negotiations will determine
the order and progress of the bargaining process.

5. The negotiating panels are co-equals on the

bargaining table (bargaining process), each representing a
principal in interest.

6. Adequate preparation for collective bargaining is

more than 50% of negotiations.

7. The duty to bargain collectively starts from the

recognition of the bargaining agent through the modes of
direct recognition; direct certification; certification election
and consent election.
II. PRE-NEGOTIATION PREPARATIONS
1. It is fundamental in negotiations that we
know who we are negotiating with – the agency
status, the person, the influence, and political
composition and persuasion of the
negotiating panel.
2. Assess the negotiations climate.
3. Marshall the rationale and support information
for the bargaining positions, including
alternative proposals.
III. TYPES OF BARGAINING
1. The traditional approach, where the
parties discuss and negotiate each proposal
or counter proposal until all issues are
discussed and resolved, or reach an
impasse.
2. The semi-traditional approach – where
the parties go through no. 1 above but
go into package deal bargaining on
remaining unresolved issues.
3. Boulwarism – where the employer presents a
complete reply and/or counter proposal to the set of
union proposals, on a take it or leave it condition.
4. Lump-sum bargaining where after discussing and/or
resolving all non-economic issues, the employer offers
a total lump-sum to cover the economic proposals,
and leave to the union the decision on how the
lump sum will be applied to the final agreement of
the parties.
5. Guided bargaining, where the parties engage the
services of 3rd party to chair the negotiations, and
privately discuss the important or thorny issues
with the parties.
IV. GROUND RULES, PROCEDURES, STRATEGIES
AND TECHNIQUES IN BARGAINING
1. Negotiating panels must come to the bargaining
table with full written authority to bind their
principals.
2. From the start, before formal bargaining begins,
parties must agree on the venue, time and days of
bargaining, including how union negotiators will be
compensated for bargaining time.
3. Parties must also agree on the size of the negotiating
panels, the recognition of the official panel
spokesmen, their roles, authorities and
commitments.
4. Likewise, the procedure for discussing the
proposals, what to do with resolved and
unresolved issues, must be agreed upon.
5. Also, how the parties will want to resolve a
possible deadlock in bargaining.
6. Sample ground rules.
7. It is more comfortable and logical to discuss
and resolve, as much as possible, non- economic
issues first, independent economic issues second,
economic issues tied up with wages third, and
wages last.
8. Proposals and counter proposals should be
presented in complete contractual provisions.
9. It is more conducive to bargain if positions for or
against any proposal or counter proposal are
factual and straightforward rather than
argumentative.
10. It is much safer to present a position in the least
number of words. The more words said, the more
opportunities there are to find real or imagined
flaws, which may result in a party being placed in a
defensive position.
11. At the bargaining table, address members of
other panel with deference and in their official
capacity.
12. When positions for or against a proposal or
counter-proposal becomes repetitive and
inflexible, the best move is to defer further
discussion on the issue, so the parties can move to
other issues.
13. Raising one’s voice in bargaining will hardly
help improve the bargaining climate.
14. Initially, agreed provisions should be
properly authenticated by the parties.
15. Pay attention to the person talking
and to what is being said.
16. Do not get caught bluffing or making
an untruthful statement.
17. When the position of the parties on
unresolved issues are becoming polarized, it
is time to shift to package deal
bargaining.
18. When it appears that there is very little hope
of resolving the remaining issues, hold on to
the negotiating package and reduce bargaining
package in writing.
19. Do not appear to be too anxious to force a
deadlock, as a matter of fact, it is much better not
to give up on bargaining.
20. Explore all possibilities, other than at the
bargaining table, to pursue and communicate your
position.
21. Preserve the impression at all times that
your panel has complete and full authority to
negotiate and bind your principal.
22. In case of multiple participation in
bargaining, always seek the official position from
the authorized spokesman.
23. Give the union panel the satisfaction of
having bargained for a resolved issue.
24. Monitor the progress and development
of the process and the out-of-the-table
developments.
25. Inform your principal of progress,
development and assessments
of the bargaining.
26. Maintain your cool at all times.
27. Explore opportunities to put the
other panel in the defensive, or to divide
the panel.
28. It is not necessary to reply to everything.
29. Watch out for bargaining stress and fatigue.
30. Agreed provisions as a result of the
bargaining must be reduced into writing
and authenticated by the parties.
31. Agreed provisions must reflect the true
intentions of the parties, and should leave no or
very little doubt as to their meaning and
implementation.
32. Reduced packaged deal offer in writing with
all terms and conditions specified therein.
33. The test of a good management negotiator
is to be able to sell a negotiations package
lower than the maximum negotiating
position and for the union, higher than the
minimum position.
 Points To
Remember At
The Bargaining
Table
•Keep control of the discussion. When not leading it, guide it.
•Realize that the effectiveness and general conduct of
company spokesman at the bargaining table will be described
to plant employees by the union committee members after
each session.
•Make sure you state the company’s position clearly on all
issues. Failure to restate may indicate weakness
•Your firm and clear statements of position in behalf of the
company may help the committee or individual members of
the committee in dealing with their memberships.
•Be sure you keep informed, up-to-the-minute, on the attitudes
of employees. Feel the pulse of the employee group.
•Remember that timing is all-important, and that premature
concession is costly. Many times, small but important are made
needlessly or at least before they become necessary.
•When you say NO, be sure your manner of speaking does not
imply “it’s No” today, but tomorrow may be different.
•Don’t permit loss of respect of your bargaining authority by
passing the buck to higher management.
•Don’t take an unrealistic bargaining position on any issue,
least you appear as ridiculous as many unions in their first
demands. Be sincere in each position, even your first. It may
not be your final offer, but, if you are successful in having It
accepted, you should be able to feel that it is a good offer for
your employees.
•Don’t be in the position of getting a good deal at he
bargaining table, but losing your employees. The next
committee will be elected by the employees who though they
got a bad deal.

•Don’t let meetings drag on. Avoid unnecessary irritability

brought on by fatigue.
•Control the conduct of both parties. Refuse to continue the
meeting in the face of insulting, abusive and insolent conduct.
•Don’t talk about economic items until most other things are
resolved.
•Avoid mutual consent clauses. Remember that ability to
operate effectively is your most important consideration, and
that mutual consent clauses are veto powers over
management actions.
•Do understand that unions are “political” organizations and
take into account their face-saving devices.
•Analyze every proposal to determine what t will cost
now and in the future; avoid hidden cost items.
•Remember that your best position is to get the union
to make a proposal that you can accept. Often, they
will do so when they are confident that you will
accept their offer if it is based on an evaluation of
your final positions – beyond which you will take a
strike.
The Effective Negotiators
CREDIBLE
KNOWLEDGEABLE
COMMUNICATOR
(Speak-Write-Listen)

CAN FUNCTION UNDER PRESSURE

GUT FEEL
RISK TAKER
BALANCED PERSPECTIVE
LEADERSHIP
COMPETITIVE
CHECKLIST OF
INFORMATION
REQUIREMENTS
•Company Organizational Chart Defining Authority
and Relationships
•Profile of management panel
Positions
Education
Training
Experience in CBA negotiations
•Profile of union, its affiliation if any, its officers both local
and affiliate
Political leanings
Position
Education
Length of Service
Age and Sex
Family Background
•Profile of union members
Number Male/Female Civil Status
Average Age
Average Length of Service
Average Salary
Average Family Size
Average Education
•Copy of proposal
•Copy of previous CBA, if applicable
Other CBAs within the company
(if multi-union)
•Bargaining Climate
Problems in the implementation of previous
CBA
Grievances
Morale Indicators
•Copies of other CBA in similar or related
institution
•Economic Data and Statistics
Audited Financial Statements
Expansion and development plans
Position Classifications and Pay Scale
•Cost Analysis of Present Package
(Past three years)
Salaries and Wages
Salary-based benefits OT/NDP
SSS/Medicare/SIF/Pagibig/Others
Leaves (no. of availment and cost)
Thirteenth month pay
Bonuses, if any
•Benefits
•Cost Analysis of Proposal
•Management Proposal
CHECKLIST OF
INFORMATION
REQUIREMENTS
•Company Organizational Chart Defining Authority
and Relationships
•Profile of management panel
positions
Education
Training
Experience in CBA negotiations
•Profile of union, its affiliation if any, its officers both
local and affiliate
Political leanings
Position
Education
Length of Service
Age and Sex
Family Background
•Profile of union members
Number Male/Female Civil Status
Average Age
Average Length of Service
Average Salary
Average Family Size
Average Education
•Copy of proposal
•Copy of previous CBA, if applicable
Other CBAs within the company
(if multi-union)
•Bargaining Climate
Problems in the implementation of previous
CBA
Grievances
Morale Indicators
•Copies of other CBA in similar or related institution
•Economic Data and Statistics
Audited Financial Statements
Expansion and development plans
Position Classification and Pay Scale
•Cost Analysis of Present Package (Past three years)
Salaries and Wages
Salary-based benefits OT/NDP
SSS/Medicare/SIF/Pagibig/Others
Leaves (no. of availment and cost)
Thirteenth month pay
Bonuses, if any
•Benefits
•Cost Analysis of Proposal
•Management Proposal