Part I LAWS ON WAGES AND WORKING HOURS Part IICOLLECTIVE BARGAINING by: OMAR M. JACALNE
INDIVIDUAL RIGHTS OF WORKERS Right to due process – (Article IIISection 1 of the PhilippineConstitution) Freedom of expression - (ArticleIII Section 4 of the PhilippineConstitution) Freedom of association - (ArticleIII Section 8 of the PhilippineConstitution)
PRESIDENTIAL DECREE 442,AS AMENDED. (Labor Code of the Philippines) A decree instituting a laborcode thereby revising andconsolidating labor and social lawsto afford protection to labor,promote employment and humanresources development and insureindustrial peace based on socialjustice.
Book III Conditions of Employment Title I WORKING CONDITIONS AND REST PERIODS Chapter I HOURS OF WORK ARTICLE 83. Normal hours of work. – The normal hours of work of any employee shall not exceed eight (8) hours a day. ARTICLE 84. Hours worked. – Hours worked shall include (a) all time during which an employee is required to be on duty or to be at a prescribed workplace; and (b) all time during which an employee is suffered or permitted to work. Rest periods of short duration during working hours shall be counted as hours worked.
ARTICLE 85. Meal periods. – Subject to such regulations as the Secretary of Labor may prescribe, it shall be the duty of every employer to give his employees not less than sixty (60) minutes time-off for their regular meals. ARTICLE 86. Night shift differential. – Every employee shall be paid a night shift differential of not less than ten percent (10%) of his regular wage for each hour of work performed between ten o’clock in the evening and six o’clock in the morning.
ARTICLE 87. Overtime work. – Work may be performed beyond eight (8) hours a day provided that the employee is paid for the overtime work, an additional compensation equivalent to his regular wage plus at least twenty-five percent (25%) thereof. Work performed beyond eight hours on a holiday or rest day shall be paid an additional compensation equivalent to the rate of the first eight hours on a holiday or rest day plus at least thirty percent (30%) thereof.
ARTICLE 88. Undertime not offset by overtime. – Undertime work on any particular day shall not be offset by overtime work on any other day. Permission given to the employee to go on leave on some other day of the week shall not exempt the employer from paying the additional compensation required in this Chapter.
ARTICLE 89. Emergency overtime work. – Anyemployee may be required by the employer toperform overtime work in any of the followingcases:(a) When the country is at war or when any othernational or local emergency has been declared bythe National Assembly or the Chief Executive;(b) When it is necessary to prevent loss of life orproperty or in case of imminent danger to publicsafety due to an actual or impending emergency inthe locality caused by seriousaccidents, fire, flood, typhoon, earthquake, epidemic, or other disaster or calamity;
(c) When there is urgent work to be performed onmachines, installations, or equipment, in order toavoid serious loss or damage to the employer or someother cause of similar nature;(d) When the work is necessary to prevent loss ordamage to perishable goods; and(e) Where the completion or continuation of the workstarted before the eighth hour is necessary to preventserious obstruction or prejudice to the business oroperations of the employer. Any employee required to render overtimework under this Article shall be paid the additionalcompensation required in this Chapter.
ARTICLE 90. Computation of additionalcompensation. – For purposes of computingovertime and other additional remunerationas required by this Chapter, the “regularwage” of an employee shall include the cashwage only, without deduction on account offacilities provided by the employer.
Chapter II MINIMUM WAGE RATES ARTICLE 99. Regional minimum wages. – The minimum wage rates for agricultural and non- agricultural employees and workers in each and every region of the country shall be those prescribed by the Regional Tripartite Wages and Productivity Boards. (As amended by Section 3, Republic Act No. 6727, June 9, 1989). ARTICLE 100. Prohibition against elimination or diminution of benefits. – Nothing in this Book shall be construed to eliminate or in any way diminish supplements, or other employee benefits being enjoyed at the time of promulgation of this Code.
ARTICLE 101. Payment by results. - (a) The Secretary of Labor and Employment shall regulate the payment of wages by results, including pakyao, piecework, and other non-time work, in order to ensure the payment of fair and reasonable wage rates, preferably through time and motion studies or in consultation with representatives of workers and employers organizations.
Chapter III PAYMENT OF WAGES ARTICLE 102. Forms of payment. – No employer shall pay the wages of an employee by means of promissory notes, vouchers, coupons, tokens, tickets, chits, or any object other than legal tender, even when expressly requested by the employee. Payment of wages by check or money order shall be allowed when such manner of payment is customary on the date of effectivity of this Code, or is necessary because of special circumstances as specified in appropriate regulations to be issued by the Secretary of Labor and Employment or as stipulated in a collective bargaining agreement.
ARTICLE 103. Time of payment. – Wages shall be paid at least once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days. If on account of force majeure or circumstances beyond the employers control, payment of wages on or within the time herein provided cannot be made, the employer shall pay the wages immediately after such force majeure or circumstances have ceased. No employer shall make payment with less frequency than once a month.
The payment of wages of employees engagedto perform a task which cannot be completedin two (2) weeks shall be subject to thefollowing conditions, in the absence of acollective bargaining agreement or arbitrationaward:(1) That payments are made at intervals notexceeding sixteen (16) days, in proportion tothe amount of work completed;(2) That final settlement is made uponcompletion of the work.
ARTICLE 104. Place of payment. – Payment of wages shall be made at or near the place of undertaking, except as otherwise provided by such regulations as the Secretary of Labor and Employment may prescribe under conditions to ensure greater protection of wages. ARTICLE 105. Direct payment of wages. – Wages shall be paid directly to the workers to whom they are due, except:
a) In cases of force majeure rendering suchpayment impossible or under other specialcircumstances to be determined by theSecretary of Labor and Employment inappropriate regulations, in which case, theworker may be paid through another personunder written authority given by the workerfor the purpose; or
(b) Where the worker has died, in which case, theemployer may pay the wages of the deceased worker tothe heirs of the latter without the necessity of intestateproceedings. The claimants, if they are all of age, shallexecute an affidavit attesting to their relationship to thedeceased and the fact that they are his heirs, to theexclusion of all other persons. If any of the heirs is aminor, the affidavit shall be executed on his behalf by hisnatural guardian or next-of-kin. The affidavit shall bepresented to the employer who shall make paymentthrough the Secretary of Labor and Employment or hisrepresentative. The representative of the Secretary ofLabor and Employment shall act as referee in dividing theamount paid among the heirs. The payment of wagesunder this Article shall absolve the employer of anyfurther liability with respect to the amount paid.
ARTICLE 106. Contractor or subcontractor. – Whenever an employer enters into a contract with another person for the performance of the formers work, the employees of the contractor and of the latter’s subcontractor, if any, shall be paid in accordance with the provisions of this Code.
ARTICLE 107. Indirect employer. – The provisions of the immediately preceding article shall likewise apply to any person, partnership, association or corporation which, not being an employer, contracts with an independent contractor for the performance of any work, task, job or project. ARTICLE 108. Posting of bond. – An employer or indirect employer may require the contractor or subcontractor to furnish a bond equal to the cost of labor under contract, on condition that the bond will answer for the wages due the employees should the contractor or subcontractor, as the case may be, fail to pay the same.
ARTICLE 109. Solidary liability. – The provisions of existinglaws to the contrary notwithstanding, every employer orindirect employer shall be held responsible with his contractoror subcontractor for any violation of any provision of thisCode. For purposes of determining the extent of their civilliability under this Chapter, they shall be considered as directemployers.ARTICLE 110. Worker preference in case of bankruptcy. – Inthe event of bankruptcy or liquidation of an employersbusiness, his workers shall enjoy first preference as regardstheir wages and other monetary claims, any provisions of lawto the contrary notwithstanding. Such unpaid wages andmonetary claims shall be paid in full before claims of thegovernment and other creditors may be paid. (As amended bySection 1, Republic Act No. 6715, March 21, 1989).
Collective bargaining maybe defined as bargaining bya labor organization, inbehalf of its members, withthe employer regardingterms and conditions ofemployment.
Collective bargaining is a rightguaranteed by the Constitution (Art.XIII, Sec. 3 ) to enable workers tonegotiate with the employer on the samelevel, and with more persuasivenessthan if they were to bargain individuallyand independently for the improvementof their respective conditions. This rightis complementary to the right of self -organization
The law of collective bargainingencompasses four basic points:1. The employer may not refuse to bargain over certain subjects with the employees representative, provided that the employees representative has majority support in the bargaining unit.
The law of collective bargainingencompasses four basic points:2. Those certain subjects, called mandatory subjects of bargaining, include wages, hours, and other terms and conditions of employment.
The law of collective bargainingencompasses four basic points:3. The employer and the union are not required to reach agreement but must bargain in Good Faith over mandatory subjects of bargaining until they reach an impasse.
The law of collective bargainingencompasses four basic points:4. While a valid collective bargaining agreement is in effect, and while the parties are bargaining but have not yet reached an impasse, the employer may not unilaterally change a term of employment that is a mandatory subject of bargaining. But once the parties have reached an impasse, the employer may unilaterally implement its proposed changes, provided that it had previously offered the changes to the union for consideration.
Exclusive Representation A majority of the workers in abargaining unit must designate arepresentative with the sole orexclusive right to represent themin negotiations with theemployers representative.
Mandatory Subjects of Bargaining Although the parties need not bargain over everyconceivable topic, they must bargain in good faith overmandatory subjects of bargaining, which includewages, hours, and other "terms and conditions ofemployment“ . Because these mandatory subjects arevery broad, courts over the years have attempted to setstandards for determining whether a specific bargainingtopic is mandatory. Generally, terms and conditions ofemployment encompass only issues that "settle anaspect of the relationship between the employer and theemployees"
Duty to Bargain in Good Faith During the bargaining process, theparties are not required by law to reachagreement. They must, however, bargain ingood faith . Although good faith is asomewhat subjective concept, courts willlook to the entire circumstances surroundingbargaining, including behavior away fromthe bargaining table such as pressure andthreats. Most authorities agree that anabsolute refusal to bargain constitutes badfaith (Wooster).
Unilateral Changes During the time a collective bargaining agreement isin effect, the employer may not change a workingcondition that is a mandatory subject ofbargaining, without first bargaining with the union. Evenafter the collective bargaining agreement expires, theemployer must maintain the status quo and may notunilaterally change mandatory subjects of bargaining, untilthe parties have reached an impasse. Once good faithnegotiations between the parties "exhaust the prospect ofconcluding agreement," the parties have reached animpasse, and implementing unilateral changes in workingconditions does not constitute an unfair labor practice(Southwest Forest Industry v. NLRB, 841 F.2d 270 [9th Cir.1988]).
Procedure In Collective Bargaining.The Labor Code prescribes the procedure tobe observed in collective bargaining, asfollows:(a) When a party desires to negotiate anagreement, it shall serve a written noticeupon the other party with a statement of itsproposals. The other party shall make areply thereto not later than ten calendardays from receipt of such notice;
Procedure In Collective Bargaining.The Labor Code prescribes the procedure tobe observed in collective bargaining, asfollows:(b) Should differences arise on the basisof such notice and reply, either partymay request for a conference whichshall begin no later than ten calendardays from date of request;
Procedure In Collective Bargaining. The Labor Code prescribes the procedure to be observed in collective bargaining, as follows:(c) If the dispute is not, settled, the Board (NCMB)shall intervene upon request of either or bothparties or at its own initiative and immediatelycall the parties to conciliation meetings. The Boardshall have the power to issue subpoenas requiringthe attendance of the parties to such meetings. Itshall be the duty of the parties to participate fullyand promptly "in the conciliation meetings theBoard may call;
Procedure In Collective Bargaining. The Labor Code prescribes the procedure to be observed in collective bargaining, as follows:(d) During conciliation proceedings in theBoard, the parties are prohibited from doingany act which may disrupt or impede the earlysettlement of the dispute and (e) The Boardshall exert all efforts to settle disputes amicablyand encourage the parties to submit their caseto a voluntary arbitrator (Art.250, LC).
“The worst mistake aboss can make is not to say well done. “John Ashcroft (1948 - )British business executive.(Sunday Telegraph (London)