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1 In partial completion of IR 207.2 LABOR STANDARDS, JUSTICE and EQUITY
Dean Jonathan P. Sale, LlB, DPA
Submitted by Alfre...
2 In partial completion of IR 207.2 LABOR STANDARDS, JUSTICE and EQUITY
Dean Jonathan P. Sale, LlB, DPA
Submitted by Alfre...
3 In partial completion of IR 207.2 LABOR STANDARDS, JUSTICE and EQUITY
Dean Jonathan P. Sale, LlB, DPA
Submitted by Alfre...
4 In partial completion of IR 207.2 LABOR STANDARDS, JUSTICE and EQUITY
Dean Jonathan P. Sale, LlB, DPA
Submitted by Alfre...
5 In partial completion of IR 207.2 LABOR STANDARDS, JUSTICE and EQUITY
Dean Jonathan P. Sale, LlB, DPA
Submitted by Alfre...
6 In partial completion of IR 207.2 LABOR STANDARDS, JUSTICE and EQUITY
Dean Jonathan P. Sale, LlB, DPA
Submitted by Alfre...
7 In partial completion of IR 207.2 LABOR STANDARDS, JUSTICE and EQUITY
Dean Jonathan P. Sale, LlB, DPA
Submitted by Alfre...
8 In partial completion of IR 207.2 LABOR STANDARDS, JUSTICE and EQUITY
Dean Jonathan P. Sale, LlB, DPA
Submitted by Alfre...
9 In partial completion of IR 207.2 LABOR STANDARDS, JUSTICE and EQUITY
Dean Jonathan P. Sale, LlB, DPA
Submitted by Alfre...
10 In partial completion of IR 207.2 LABOR STANDARDS, JUSTICE and EQUITY
Dean Jonathan P. Sale, LlB, DPA
Submitted by Alfr...
11 In partial completion of IR 207.2 LABOR STANDARDS, JUSTICE and EQUITY
Dean Jonathan P. Sale, LlB, DPA
Submitted by Alfr...
12 In partial completion of IR 207.2 LABOR STANDARDS, JUSTICE and EQUITY
Dean Jonathan P. Sale, LlB, DPA
Submitted by Alfr...
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Philippine Unionism

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A brief focus on how PH Unionism has evolved over the years.

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Philippine Unionism

  1. 1. 1 In partial completion of IR 207.2 LABOR STANDARDS, JUSTICE and EQUITY Dean Jonathan P. Sale, LlB, DPA Submitted by Alfredo V. Primicias III avprimicias@up.edu.ph 0925-5259824 1 | P a g e A Study on Unionism AAAAAAAAAAAAAAAAAAAAAAAAAA
  2. 2. 2 In partial completion of IR 207.2 LABOR STANDARDS, JUSTICE and EQUITY Dean Jonathan P. Sale, LlB, DPA Submitted by Alfredo V. Primicias III avprimicias@up.edu.ph 0925-5259824 2 | P a g e TABLE OF CONTENTS TABLE OF CONTENTS .................................................................................................................................. 2 I. INTRODUCTION................................................................................................................................... 3 EARLY WRITINGS..................................................................................................................................... 4 II. REVIEW OF LITERATURE...................................................................................................................... 5 Art. 3. DECLARATION OF BASIC POLICY.................................................................................................. 5 Art. 243. COVERAGE AND EMPLOYEES’ RIGHT TO SELF- ORGANIZATION.............................................. 5 TRADE UNIONISM IN THE PHILIPPINES ................................................................................................... 7 III. POLICY PROPOSAL........................................................................................................................... 9 GLOBALIZATION- INTO PARADIGM SHIFT ............................................................................................. 10 BIBLIOGRAPHY.......................................................................................................................................... 11
  3. 3. 3 In partial completion of IR 207.2 LABOR STANDARDS, JUSTICE and EQUITY Dean Jonathan P. Sale, LlB, DPA Submitted by Alfredo V. Primicias III avprimicias@up.edu.ph 0925-5259824 3 | P a g e I. INTRODUCTION Bingay (2007, 65) illustrated that trade unions should not be like the extinct dinosaurs, he admonished union leaders to listen to two sides: (1) the workers, and (2) the changing economic environment. This very idea that unions are no longer relevant has been resonated for several occasions. Aganon, Serrano et al (2009, 1) stressed that the changing economic environment, which is globalization, has reformed the landscape where unions have previously the dominion in protecting the rights of the workers. More so that Sale (2002, 18) has defined globalization as the unregulated flow of goods, capital, services and technology, and associated this as the fuel that has made rules, regulations, systems and processes in labor relations both simple and flexible. Similarly, Dejillas (1994, 2) expounded on the significance of trade unions’ impact on economic growth and political stability of a nation. He related that many developing countries have trade unions that are bastions of power and are used by government leaders for political victory. As how it was witnessed with Peron of Argentina, to gain independence he used his political power over the labor unions. In Indonesia, trade unions took part in the revolution against the Dutch from 1945 to 1949. It is therefore disappointing to recognize that unions are turning to be weak and on the verge of obsolescence. Below are tables that show how trade unions have performed in the Philippines: Table 1: Number of registered unions, workers, association and members (Source: Bureau of Labor and Employment Statistics) Indicators 2005 2006 2007 2008 2009 2010 Unions Registered 492 371 260 279 384 335 Membership 45,032 31,777 24,079 22,248 34,283 30,078 Ave. membership 92 89 86 80 89 90 Newly registered workers assoc. 1,924 1,603 1,649 2,345 3,689 2,821 Membership of newly reg. assoc. 74,168 68,301 58,076 89,368 159,216 116,708 Ave. membership per newly reg. assoc. 39 43 35 38 43 41 Table 2: Number of CBAs and covered workers (Source: Bureau of Labor and Employment Statistics) Indicators 2005 2006 2007 2008 2009 2010 CBAs registered 459 536 318 307 453 540 Workers covered by new CBAs 89,925 60,790 44,375 55,290 74,924 87,445 Ave. # workers covered per new CBA 181 113 140 180 165 162
  4. 4. 4 In partial completion of IR 207.2 LABOR STANDARDS, JUSTICE and EQUITY Dean Jonathan P. Sale, LlB, DPA Submitted by Alfredo V. Primicias III avprimicias@up.edu.ph 0925-5259824 4 | P a g e As to explain the tables, Aganon (2007) contributed that working conditions by union members were not successfully improved despite of the fact that unions have managed to sign collective bargaining contracts with various employers. Aganon’s review of 214 CBAs covering 14 industry sub sectors showed deterioration in the working conditions of members in the bargaining unit. EARLY WRITINGS In 1754, through Jean Jacques Rousseau (Discourse on the Origin and Foundation of the Inequality of Mankind), the parody of man’s quest for equality has already been manifested as so he writes: “From the moment it appeared an advantage for one man to possess the quantity of provisions requisite for two, all equality vanished; property started up; labor became necessary; and boundless forests became smiling fields, which it was found necessary to water with human sweat, and in which slavery and misery were seen to sprout out and grow with the fruits of the earth.” Another sentiment that evokes lucidity on how Labor, Law and the State should co-exist was declared by Pope Leo XIII (1891): “The richer population has many ways of protecting themselves…those who are badly off have no resources… and must chiefly rely upon the assistance of the State. And it is for this reason that wage-earners… among the weak and necessitous, should especially cared for and protected by the commonwealth…” Finally, Azucena (2007) has described this condition as Two Masters especially when referring to Chief Justice Fernan’s (1989) opus: “Equality of right exists between the employer and the employee. The right of a laborer to sell his labor… is in its essence, the same as the right of an employer to purchase labor… If the employer can compel the employee to work against the latter’s will, this is servitude. If the employee can compel the employer to give him work against the employer’s will, this is oppression.” I sincerely believe that my course in SOLAIR has truly triggered an evolution on how I see, think and feel about my role as a practitioner of human resources management. Whereas, previously, I have just been motivated by personal gain especially on the prestige of a UP diploma, but now I understand boldly and accept whole heartedly that my devoted task is to be one of the stronger voices to address inequality and unfair labor practices in the company I work for. And, my disdain for labor unions must come to an end. Crouch (1982, 45) was instrumental in this enlightenment when he asked his readers whether it is rational for workers to combine together in unions at all. He pointed out that it is purely a “legal fiction” to even believe that there would exist an equal partnership between employer and employee. Crouch even used the term “combination” in reference to the power of workers bonding together and form labor unions. He called this as a rational strategy for workers because it extended the chance of reducing, though never of overcoming, this inequality. If workers
  5. 5. 5 In partial completion of IR 207.2 LABOR STANDARDS, JUSTICE and EQUITY Dean Jonathan P. Sale, LlB, DPA Submitted by Alfredo V. Primicias III avprimicias@up.edu.ph 0925-5259824 5 | P a g e stand together instead of alone they can fulfill to improve working conditions. They would alternatively develop an organization that will look after their interests which will then limit the employer’s propensity to provide lesser than legal. II. REVIEW OF LITERATURE The ultimate foundation of this paper is found on Articles 3 and 243 of the Labor Code: Art. 3. DECLARATION OF BASIC POLICY1 The State shall afford protection to labor, promote full employment, ensure equal work opportunities regardless of sex, race or creed, and regulate the relations between workers and employers. The State shall assure the rights of workers to self- organization, collective bargaining, security of tenure, and just and humane conditions of work. Art. 243. COVERAGE AND EMPLOYEES’ RIGHT TO SELF- ORGANIZATION2 All persons employed in commercial, industrial and agricultural enterprises and in religious, charitable, medical or educational institutions whether operating for profit or not, shall have the right to self- organization and to form, join, or assist labor organizations of their own choosing for purposes of collective bargaining. Ambulant, intermittent and itinerant workers, self- employed people, rural workers and those without any definite employers may form labor organizations for their mutual aid and protection. Both articles have provided the legal ascendancy to make any worker free to self- organize, but why is this so difficult to achieve? Historically, as recounted by Binghay (2007) labor unions demonstrate its organized strength as a response to the effects of industrialization. The balance of power is more to the advantage of the capitalists or owners of businesses. At the end of the 18th century up to the beginning of the 19th century, countries in Western Europe and the United States have started to form trade unions as a reaction to the change that capitalism has brought to the fields. The teachings of Karl Marx, Friedrich Engels, John Dunlop, Sydney and Beatrice Webbs on trade unions, regardless how diverse each school of thought is, have educated early union leaders on the economic, political and social theories that formed part of how we know what industrial relations is today. Flippo (1984) mentioned that trade unions are organized by workers to “promote, protect and improve through collective action the social, economic and political interests of its members.” Moreover, Hoxie (1986) agreed by stressing that labor unions must protect and pursue the economic interests of its members. These economic interests are wages, hours of work, security of employment among others. Other findings would relate that government leaders of many emerging industrializing countries see unions and economic development as antithetical, as 1 Page 25, Azucena (2013). The Labor Code, Vol. 1, 8 th Edition. Philippines: Rex Bookstore. 2 Ibid. Page 241.
  6. 6. 6 In partial completion of IR 207.2 LABOR STANDARDS, JUSTICE and EQUITY Dean Jonathan P. Sale, LlB, DPA Submitted by Alfredo V. Primicias III avprimicias@up.edu.ph 0925-5259824 6 | P a g e unions retard economic development by diverting resources from capital formation, interfering with efficiency and disrupting production (Cartter and Marshall 1972, 24). Finally, as asserted by Binghay (2007) the bottom line is that the interests of any trade union are confined to economic and conditions at work. We now move to identifying what trade unions are, Dejillas (1994) have enumerated five basic forms: 1. Revolutionary movement guided by Marxist theories. This type of trade union behaves according to the prevalent social structure. Main proponents are Karl Marx, Friedrich Engels, Voltaire Lenin, Lozovsky, Hyman and Banks. Their main point is that the means of production and the wage- earner are locked in irreconcilable struggle (Lozovsky 1935). The Communist Manifesto argued that because of this character of collisions between 2 classes, the workers have no other recourse but to begin to form combinations (trade unions) against the bourgeoisie. Because of this, trade unions oppose and dismantle exploitative relations of production so that the workers can obtain contractual conditions that will break the shackles of slavery. (Lozovsky 1935, 16). 2. Economic institutions with business or welfare outlook, according to Webbs (1897, 4) this is the type of trade unionism laid by considering economic forces as the primary concern. Unions focus their action on establishing some degree of order in employment relationships, and on protecting the wage earners from the negative effects of industrial competition. Central role of unions is to determine wage rates, wage structures and unemployment levels. 3. Moral or ethical institutions as pursued by Christian social reformers. In the 19th century Europe’s trail on moral and ethical values (as interpreted by Christian social movements, the Protestant socialists, and the Methodist social reformers) resulted to an aggressive exposition of a paramount belief that there should be brotherhood of men whose moral obligation is to show concern for the less fortunate, hence an adoptive behaviour of trade unions (Perlman 1958, 46- 65). These groups encouraged the formation of producer- cooperative movements and supported unions demanding more equitable distribution of wealth. Webbs (1897) attributed the genesis of their rule- making theory to ethical and moral goals of unions. While, Dunlop (1968) stressed the value of ethics and morals in molding union behaviour. Finally, Flanders (1970) remarked that social justice became part of the accepted norms and cultural values of unions. 4. Democratic and political organizations involved in democratic process and power struggles. Poole (1981, 47) said that democratic and political trade unionism is attributed to the British school of thought based upon a focus on job regulation, a commitment to the voluntary reform of industrial relations and an association with the manifold varieties of pluralism. Adams (1891- 92, 32- 50) wrote that unions were heavily influenced by structural changes brought about by the emergence of capitalism; the primary aspiration
  7. 7. 7 In partial completion of IR 207.2 LABOR STANDARDS, JUSTICE and EQUITY Dean Jonathan P. Sale, LlB, DPA Submitted by Alfredo V. Primicias III avprimicias@up.edu.ph 0925-5259824 7 | P a g e of trade unionists was to establish a set of rights relevant to the new society and emerging social relationships. Ross (1948, 12) argued that a trade union is a political institution operating in an economic environment but the internal decision- making process could only be understood in political terms. The political variables are union leadership, union rivalry and the ability of employers to resist union action. Flanders (1970, 41) directed the objectives and activities of unions to winning and safeguarding workers’ rights in the work place, industry and society through industrial and political struggle. 5. Psychological or defensive reaction to early conditions of industrialism. Perlman (1949) attributed the dominant factors of trade- union characteristics such as resistance power of capitalism, role of the intellectuals and the degree of maturity of trade unions. TRADE UNIONISM IN THE PHILIPPINES Dejillas (1994) narrated that the Philippines, like any other countries, was totally devastated during the World War II. After the war, the government (President Manuel Roxas from 1946- 1948; President Elpidio Quirino from 1948- 1953) tried to restore the economy to at least prewar levels by using the strategy called as import- substitution industrialization. From 1950- 1960 (President Ramon Magsaysay from 1953- 1957; Carlos Garcia from 1957- 1961) the Philippine economy registered the highest per capita GDP growth rate among SEA nations (Oshima, 1983; Wurfel, 1959). Unfortunately, the import- substitution industrialization strategy failed mainly due to three reasons (Sicat, 1972; ILO, 1974; Amjad, 1981): 1. Inability to eliminate the country’s labor surplus since the policy was biased toward capital- intensive undertakings; 2. Failure to expand industrial growth because the strategy relied on domestic market whose income base was very low; and, 3. Failure to reduce the country’s dependence on imports since some industries were highly dependent on imported raw materials. And through all those years, trade unionism has always been the voice of the voiceless particularly fighting for political, economic and social issues like foreign debt, US Bases, insurgency, militarization, imperialism, feudalism and capitalism. Meanwhile, although some unions still espouse traditional forms of collective bargaining, tripartism and arbitration, others have become confrontational and combative in their protest actions and pressure tactics. Trade unionism during the 1940s was governed by Commonwealth Act (CA) 1033 which imposed the system of compulsory arbitration, and CA 2134 which required all labor unions to register with the Department of Labor or be declared illegal. Then in 1953 the Magna Carta of Labor through Republic Act 8755 emphasized the primacy of collective bargaining, grievance 3 http://www.chanrobles.com/Commonwealth%20Act%20No.%20103,%20October%2029,%201936.pdf 4 http://www.lgu.ph/listings/commonwealth-act-no-213-2/ 5 http://www.lawcenter.ph/law-library/laws/republic-acts/republic-act-no-875-june-17-1953-an-act-to-promote-industrial-peace-and-for- other-purposes/
  8. 8. 8 In partial completion of IR 207.2 LABOR STANDARDS, JUSTICE and EQUITY Dean Jonathan P. Sale, LlB, DPA Submitted by Alfredo V. Primicias III avprimicias@up.edu.ph 0925-5259824 8 | P a g e handling and voluntary arbitration in resolving labor- management disputes and promoting workers’ interests. Proclamation 1081, which placed the country under martial law, allowed the armed forces to detain individuals for insurrection and rebellion. Significantly, on May 1, 1974 the Labor Code of the Philippines (Presidential Decree 4426 ) required all labor federations to organize local unions only within a specific industry. The law empowered the Labor Department not to issue registration certificates to new labor federations found engaged in activities outside the industry they intended to represent (Art284). The law specifically prohibited security guards (Art291) and managerial employees (Art292) from joining and forming unions and banned unions from accepting individuals belonging to subversive organizations or engaging in subversive activities (Art288-e). The exclusion of these workers went against the spirit of the Constitutional provision that gave all workers the right to self- organization. 6 http://www.cfo.gov.ph/pdf/PD%20No.%20442.pdf
  9. 9. 9 In partial completion of IR 207.2 LABOR STANDARDS, JUSTICE and EQUITY Dean Jonathan P. Sale, LlB, DPA Submitted by Alfredo V. Primicias III avprimicias@up.edu.ph 0925-5259824 9 | P a g e III. POLICY PROPOSAL Protection of a union member acquired from his membership happens after the successful negotiation and signing of the collective bargaining agreement (CBA). Ballot (1992) described CBA as a long, complex and emotional- rational process where the outcome depends on the balance of power between the union and management and their bargaining stances. Furthermore, Byars and Rue (1991) defined this as a process that involves negotiation, drafting, administration and interpretation of an agreement between an employer and a union. There would be numerous discussions, meetings, drafts and reports and other logistical and administrative tasks performed in order to ensure that the written contract would not meet major disputes in interpretation during implementation. In other words, Baldoz (1995) clearly put CBA as the centerpiece of industrial relations thereby responsibility and accountability of its finer print is a continuous legal duty of all stakeholders. Figure 1 below illustrates a diagram of the Collective Bargaining Process7 : Kast and Rosenweig’s (1974) model on input- output where the entire CBA process is the entry point through which the entire process starts is the framework to be used. Eventually, the results would be the dynamic interaction of the different mechanisms that is essential to arrive at the 7 Page 3, Edralin, D. (1999). Collective Bargaining Process. UNION SITUATION  Federated or not  Number of years in operation  Number of Members  Relationship with Management COMPANY SITUATION  Financial situation  Type of Industry  Type of Owners  Relationship with union ECONOMIC SITUATION POLITICAL SITUATION CONVERSION INPUT CBA Process OUTPUT CBA
  10. 10. 10 In partial completion of IR 207.2 LABOR STANDARDS, JUSTICE and EQUITY Dean Jonathan P. Sale, LlB, DPA Submitted by Alfredo V. Primicias III avprimicias@up.edu.ph 0925-5259824 10 | P a g e final product which is the signing of the CBA that embodies the economic, political and social benefits negotiated. GLOBALIZATION- INTO PARADIGM SHIFT Undeniably, business environment is totally different from what it used to be during the time of our parents. Technology has ushered numerous mechanical innovations that no longer require workers on the production floor. The world has never seen tremendous change as how the world has become today. Unification is one of the concerns of the trade union movement in the Philippines. Primary is the dwindling mass base for organized labor (Bitonio 2000) as shifts in modes of employment become more apparent with globalization. Globalization comes flexibility of labor relations, and legal issues arising from this trend have to be faced since there are contradictions even in the classification of workers (Macaraya, 1999). The emergence of new forms of labor organizations aside from trade unions such as the increasing role of NGOs and cooperatives is also a trend to consider among these changes. Lastly, globalization has brought about heavy pressure on local industries to become more competitive. Competition has disposed enterprises to adopt greater flexibility—functional or numerical—in terms of labor utilization. There are, on the functional side, broadening of job designs, mobility across tasks, enlarging the scope of individual skills and extensive training and retraining programs (Binghay, 2001). Numerical flexibility entails practices such as labor subcontracting, changing working hours and hiring of casual, part- time, temporary and contract workers.
  11. 11. 11 In partial completion of IR 207.2 LABOR STANDARDS, JUSTICE and EQUITY Dean Jonathan P. Sale, LlB, DPA Submitted by Alfredo V. Primicias III avprimicias@up.edu.ph 0925-5259824 11 | P a g e BIBLIOGRAPHY Aganon, M., Serrano, M., Certeza, R. (2009). Union Revitalization and Social Movement Unionism in the Philippines (A Handbook). Philippines: Friedrich- Ebert Stiftung. Anonuevo, C. (2005). Collective Bargaining in the Philippine Public Sector. Philippines: Friedrich- Ebert Stiftung. Binghay, V. (2007). Trade Unions Today. Philippines: VCB Research & Publications. Ballot, M. (1996). Labor Management Relations in a Changing Environment. New York: John Wiley & Sons, Inc. Byars, L and Rue, L. (1994). Human Resource Management. (4th ed.) Illinois: Irwin. Crouch, C. (1982). Trade Unions: The Logic of Collective Action. Great Britain: William Collins Sons & Co. Ltd., Glasgow. Dejillas, L. (1994). Trade Union Behaviour in the Philippines 1946- 1990. Philippines: Ateneo de Manila University Press. Edralin, D. (1999). Collective Bargaining Process. Philippines: CHED Center of Development in Business and Management Education Estey, M. (1981). The Unions—Structure, Development and Management, 3rd Edition. USA: The Wharton School, University of Pennsylvania. Flippo, E. (1984). Personnel Management, 6th Ed. New York: McGraw- Hill Book Co. Hoxie, R. (1986). The Economic Programs of Trade Unions. WEJ McMarthy. Pp 35-46. Kast, F. and Rosenweig, J. (1974). Organization and Management. (2nd ed.) New York: McGraw Hill Book company. Lipset, S. Meltz, N. (2004). The Paradox of American Unionism. USA: Cornell University. Herman, E., Kuhn A., Seeber, R. (1987). Collective Bargaining & Labor Relations, 2nd Edition. New Jersey, USA: Prentice- Hall, Inc. Torres- Yu, R. (2003). Welgang Bayan- Empowering Labor Unions Against Poverty and Repression. Philippines: University of the Philippines Press. Sale, J. (2012). Labor Market Governance in the Philippines: Wages, Unions, CBAs, Small Enterprises, and Employment. Philippine Journal of Labor and Industrial Relations.
  12. 12. 12 In partial completion of IR 207.2 LABOR STANDARDS, JUSTICE and EQUITY Dean Jonathan P. Sale, LlB, DPA Submitted by Alfredo V. Primicias III avprimicias@up.edu.ph 0925-5259824 12 | P a g e Sibal, J. (2004). A Century of the Philippine Labor Movement. Australian Society for the Study of Labour History MERALCO’s True Source of Power http://pmap.org.ph/content/pmap-awards/meralcos-true-source-of-power/ http://eatworkandblog.blogspot.com/2012/09/pmap-meralco-wins-employer-of-year-award.html MERALCO Named Top Employer http://www.philstar.com/business/2012/11/26/873659/meralco-named-top-employer MERALCO Signs New CBA with Supervisory Employees http://www.meralco.com.ph/pdf/newsandupdates/2013/NW00513.pdf

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