A presentation on Employee Relations given by Sheila L. Dingcong to the HR department of GMA-7.

1. EmployerEmployee
Relations
Prepared by
Sheila Lo Dingcong

2. Discussion Outline
• Perspectives of Employer-Employee Relations
• Employee Relations in the Micro and Macro Levels
• Management and Employee Rights
• Labor Unions in Business Organization
• Collective Bargaining

3. What do you want to get
out of working?
What do you expect from
your employees?

4. Perspectives of Employer-Employee Relations
Management
Employees
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5. What is Employer-Employee Relations?
• Originally broadly defined to include the totality of relationships and
interactions between employer and employees. From this
perspective, it covers all aspects of human resources management.
Sometime, however, in the last century, the term has increasingly taken
a narrower, more restricted interpretation that largely equates it with
unionized employment.
• ER-EE relations is the interplay of the necessary processes in
maintaining the relationship between employees and management. In
the Philippine context, this component of human resource
management covers representation, negotiated terms and conditions
of employment, and the mechanism for dispute or conflict resolution.

6. Models of ER-EE Relations
• Total congruence of employer’s and worker’s
interests and goals, hence there is no conflict.
• Unitarian perspective where the organization is
perceived as an integrated and harmonious whole
with the ideal of “one happy family”, where
management and other members of the staff all
share common purpose, emphasizing mutual
cooperation.
Perfect
Polarization
Cooperative
Co-optive
• Paternalistic approach where it demands loyalty to
all employees, being predominantly managerial in
its emphasis and applications.
• Consequently, trade unions are deemed as
unnecessary since the loyalty between employees
and organizations are considered mutually
exclusive, where there cannot be two sides

7. Models of ER-EE Relations
• The interest of labor and management are
diametrically opposed to each other.
• Referred to as the Marxist or Radical
perspective. This view of industrial
relations looks at the nature of the
capitalist society, where there is a
fundamental division of interest between
capital and labor, and sees workplace
relations against this history.
• Conflict is therefore inherent and seen as
inevitable and trade unions are a natural
response of workers to their exploitation
by capital.
Perfect
Cooperative
Polarization
Co-optive

8. Models of ER-EE Relations
• There are conflictual interests but congruence
of interests in common areas like profitability
and survival of the organization.
• Pluralistic perspective where the organization
is perceived as being made up of powerful and
divergent sub-groups, each with its own
legitimate loyalties and with their own set of
objectives and leaders - management and trade
unions.
• Role of management would lean less towards
enforcing and controlling and more toward
persuasion and coordination.
• Trade unions are deemed as legitimate
representatives of employees; conflict is dealt
by collective bargaining and is viewed not
necessarily as bad a thing and, if
managed, could in fact be channeled towards
evolution and positive changes.
Perfect
Cooperative
Polarization
Co-optive

9. Models of ER-EE Relations
• The interests of the workers are
subservient to management interests.
• Similar to the perfect model but in the
Co-optive model, a union may be
allowed to exist but it is more of a
“company union” or “yellow union”
where it signs a “sweetheart” contract
with the management just for show
with no substantial concession
granted.
Perfect
Cooperative
Polarization
Co-optive

10. EmployerEmployee
Relations at the
Micro and Macro
Levels
The Signing of the PAL-PALEA
Settlement Agreement

11. Employer-Employee Relations Framework
NATIONAL LEVEL
ENTERPRISE LEVEL
NATIONAL LEVEL

12. • Social Justice –
• Full protection to labor to
enhance human dignity
• Reduce social, economic, and
political inequalities
• Equitably diffuse wealth and
power for the common good
• Industrial Democracy
• Free bargaining and
negotiation
• Voluntary settlement of
dispute
• Bipartrite
• Rights and Duties
• Civil Code of the Philippines
• Labor Code of the Philippines
• Concept of shared
responsibility
• Equity
• Employee Representation
• Unions
• Associations
• Labor organizations
• Collective Bargaining
• Terms & conditions of
employment
• Grievance Machinery
• Conflict resolution
• Just share in the fruits
of production
• Compensation
• Personal satisfaction
• Productivity
• Efficiency
• Reasonable return of
investment
• Growth
• Industrial Peace
• Harmonious relations
• Social development
and progress

13. Trade Union Stats

15. National Unions

16. Labor Law Compliance and
Labor Case Resolution

17. Management
and Employee
Rights

18. • Conduct business
• Prescribe rules
• Select and hire employees
• Transfer or discharge employees
What are the
rights of
management?
• Discipline of employees
“Management Prerogatives”

19. Labor Unions in
Business
Organizations

20. 1. Security of tenure
2. Living wage and just share in the
3.
4.
5.
6.
7.
fruits of production
Humane working conditions
Self-organization
Collective bargaining
Concerted action including the
right to strike
Participate in policy and decisionmaking processes
What are
the rights of
employee?

21. What are Labor Unions for?
1. A manifestation of industrial democracy
• Equal partners in industry
• Shared responsibility
2. Representation of individual employees
• In unity there is strength
• Organized action
3. Bargaining
• Terms and conditions of employment
• Participation in policy and decision-making

22. “The State shall promote the principle of shared
responsibility between workers and employers
and the preferential use of voluntary modes in
settling disputes, including conciliation, and
shall enforce their mutual compliance therewith
to foster industrial peace.
A
manifestation
of industrial
democracy
The State shall regulate the relations between
workers and employers, recognizing the right of
labor to its just share in the fruits of production
and the right of enterprises to reasonable
returns on investments and to expansion and
growth.” (Art. XIII, Sec.3, Philippine Constitution)

23. “Free collective bargaining is not possible where one of the
parties is in a position to impose its will upon the other. It
is, therefore, of primary importance that workers should be
enabled to possess a bargaining power at least equal to that
of the employers and that they should be fully protected in
the exercise of their right to self-organization.” (Royal
Interocean Lines Inc. v. CIR, G.R. No. L-11745, Oct 31, 1960)
Representation
of individual
employees
It is now universally recognized as the rule that working men
(and women) have the right to organize into
unions, provided it is for a lawful purpose. Labor has as
much a right to organize as has capital….Not only trade
unions today are lawful, but because their aim and purpose
is to better the living conditions of a larger part of the body
politic, they are considered a necessary part of the social
structure, and recognized as a legitimate and useful part of
the industrial system. (63 C.J., Sec.4, p.656 as quoted in
Azucena, LCP with comments and cases, Vol 11, 1993)

24. Bargaining
While it is a mutual obligation of the parties to
bargain, the employer, however, is not under
any legal duty to initiate contract negotiation.
The mechanics of collective bargaining is set
in motion only when the following
jurisdictional preconditions are
present, namely: (1) possession of the status
of majority representation of the employees’
representative in accordance with any of the
means of selection or designation provided by
the Labor Code; (2) proof of majority
representation, and (3) a demand to bargain
under Article 250, par. (a) of the New Labor
Code. (Loy v. NLRC, G.R. 54334, Jan. 22, 1986)

25. Collective
Bargaining
Collective bargaining or
negotiations towards
collective agreement is a
democratic framework under
the New Labor Code to
stabilize the relation between
labor and management to
create a climate of sound and
stable industrial peace. It is a
mutual responsibility of the
employer and the union and
is their legal obligation. (Loy v.
NLRC, G.R.54334, Jan.22, 1986)

26. Art. 252. Meaning of duty to bargain
collectively. The duty to bargain collectively
means the performance of a mutual obligation
to meet and convene promptly and
expeditiously in good faith for the purpose of
negotiating an agreement with respect to
wages, hours of work and all other terms and
conditions of employment including proposals
for adjusting any grievances or questions
arising under such agreement and executing a
contract incorporating such agreements if
requested by either party but such duty does
not compel any party to agree to a proposal or
to make any concession.

27. 1. Highly flexible method of decision-making
compared to legislative, judicial or any public
administrative process.
2. Collective bargaining as an instrument for
applying equity or social justice to the industrial
setting or work environment
Why Collective
Bargaining?
3. It is also a means to ensure the participation of
employees in policy and decision-making.
4. It provides an orderly system to present and
resolve grievances and disputes in the workplace.
5. Majority , if not all, of the employees agree to the
terms and conditions of their employment based
on the agreement.

28. Art. 253-A. Terms of a collective bargaining
agreement.
1. Five (5) years representation issue
2. Freedom Period – 60 days before the
expiration of the contract
3. Renegotiation – not later than 3 years
4. Retroactivity – within 6 months from
expiration
5. Failure or refusal to bargain is tantamount
to unfair labor practice

29. Employee
relations is human
relations.
“Every person
must, in the exercise
of his rights and in
the performance of
his duties, act with
justice, give
everyone his
due, and observe
honesty and good
faith”. (Art. 19, Civil
Code)

30. Thank you!