Employee Relation in a Non Unionized Environment

1. EMPLOYEE RELATION IN A
NON-UNIONIZED
ENVIRONMENT

2. Fromthepreviouschapter,theconstitutionandthelaborcodepromoteandencourage
therightofemployeesbothinthepublicandprivatesectorstoorganize.Underour
democraticregime,itisincumbentuponallemployers andrepresentatives ofemployers to
respect“therightsofworkerstoself-organization,collectivebargainingandnegotiations,
andpeacefulconcertedactivities,includingtherighttostrikeinaccordancewithlaw.

3. Concomitantwiththisrightistherightofworkersnottoorganizeorjoinunions. Outof32millionworkersin
thecountry,only3.5 millionor11percentareunionmembers.
Whyisthisso?
Because99percentofbusinessesintheprivatesectorbelongtosmallandmedium-sizedindustriesand
union organizersareattractedonlytotheonepercentofbusinessesthathavetheresourcestomeetthe
economicdemandsof unions.
However,therearelargecompaniesbelongingtothetop1,000 intermsof revenuesandnetincome,foreign
orfilipino-ownedwhoseemployeesremainunorganizedintounion.
PMAP, doesnotencouragenoradvocateanti-unionactivities.Thereisnothingmoreabhorrentthanthe
employertramplingtherightsofworkerstoorganize.

4. UNIONMEMBERSHIPDECLINE
Statistic ofthe International LaborOrganizationindicateaworldwidedeclineinunion
membership.InUnited State, unionmembershiphaditspeakat35percent ofemployment in
the1950s.
• Declineof manufacturingandmigrationof workers frommanufacturing(wherethere isa
bulkofunionmembership)to theservicesector.
• Stiffer competition dueto globalizedeconomy. Product marketpressures compel
companiestobemoreproductive, aswell ascostandquality concious.

5. • Militancyandleftishideology0fsomeunionthatpromotecontinuousclassstragglebetweenthe
capitalistandworkers.
WhydoWorkersUnionized?
Unionsariseasareactiontonon- competitivewagesandbenefits,poorworkingconditions,ineffective
supervision,poorlydefinejobcontent,poorcommunicationchannels,lackof jobsecurity,a ndfailureof
managementtoprovideequitablemechanismsresolvinggrievance.
however,thatnomatterhowproductivetheemployersisinmeetingemployeeneeds,employeesstill
choosetoorganizethemselvesintounionsbecauseof strongpakikisama(feeling ofwaitingtobelong)
cultureoffilipinos.

6. Ontheotherhand,adynamiccompanythat hasawell-pronouncedpolicyonunionavoidance,offeringmost
ofthethingthataunioncanoffer, canserveasthecountervailingforceto pakikisamacultureoffilipino
workers.
UnionIssues
• Higherwagesandbetterbenefits
• Jobsecurityandseniorityin
promotionsandotherpersonnel
movements
• Firtreatmentbysupervisorsand/or
Managers
• Improveworkingcondition
• Voiceandparticipationibdecision-

7. DifferencebetweenUnionAvoidanceandAnti-UnionPolicy
Manycompanies(wetherbig,medium-sizeorsmall)adoptanactivewrittenorunwrittenpolicyon
unionavoidance.
Companiesadoptingthis“proactiveorpreventivelaborrelations”policy(whichisaeuphemismfor
union avoidance)emphasizethatthereisawhaleofadifferencebetweenunionavoidanceandhavingan
anti-unionpolicy.Unionavoidanceispositive,moral,andlegal.
HerearesomeExampleof Anti-UnionStatementsorpostures:
 Therewillbenopayincreasesbecausetheunionisaround
 Don’tsignthemembershipcardunionA.ItwouldbebetterforeveryoneifyouhadunionBasyour

8. Representative
 Wewillclosethisplantorbusinessifaunionisorganized.
 Seekingaunionrepresentativeisuselessbecauseitwillnotresultinanyimprovementofemployment
conditionshere.
 WewillfiretheorganizersortransferthemtoourbranchinBasilan.
 Oraskinganemployee:Isittruethatyousignedthepetitionforunionorganization.
ReasonforResistancetoUnionism
 Maintainfreedomtoutilizeandmanageitsresources

9.  Avoidunnecessarycostsintimeandmoney,thus,sustainitsbusinessandcompetitivepostures;
 Maintainnon-confrontationalemployer-employeerelations;
 Avoidcostlystrikes,otherformsofworkstoppages,slowdownsandsabotage.
MaintainFreedomtoUtilizeandManageResources
Employersnormallywantawiderlatitude intheexerciseofitsmanagementprerogatives.Whilethis
prerogativeareonseveraloccasionsupheldbythesupremecourt,theyarenotabsoluteandmustbeused
prudentlysoasnottocircumscribeworker’sfreedomofassociation.SpeciallywhentheConstitution
providesunderArt.XII,Secton 3onLaborthat“they(labor)shallparticipateinpolicyanddecision-making
processesaffectingtheirrightsandbenefitsasmaybeprovidedbylaw.

10. Insomecases,managementisleftwithlittlecontroloverindividualpayrateswhenrateofpayincrease
regardlessofperformance.Thedesireof management togivepremiumpaytohighachievers.Happily,there
arealreadysomenotableCBAsthatprovidepayforperformance.Thisproductivity-basedpayinsomeCBAs
isawelcomechangeinthemindsetof someunionsbutitstillhasalongwaytogotogainwideacceptance.
Selectionforpromotionbasedonsenioritythrottlesmanagementchoiceinplacingandupgrading
peopleinthemostadvantageousandeffectiveway.Oneofthemostaggravatingandfrustratingaspectsof
managing withunionrepresentationisajuridicaltaskassignmentinwhichanemployeewhenaskto
performanotherjobbythesupervisor.

11. AvoidanceUnnecessaryCostinTimeandMoney;SustainBusinessand
CompetitivePosition
Whilenoempiricaldatahasbeengatheredthatwouldindicatethat,InthePhilippines,itismore
expensive tooperateinaunionizedcompony,thereisageneral consensusamongemployersthatlaborcost
generallyrisewithunionrepresentation. Thisactmaybeoneofthesecompanies’preemptivestrategiesfor
maintaininganon-union status.
Forinstance,recently,onemajorunionizedbankthatacquiredanotherleadingbutnon-unionizedbank
haddifficultyinabsorbingtheemployeesof thelattersimplifybecausetheyreceivedcomparativelyhigher
payandbetterbenefits.
Plansforstreamliningtheorganization,re-engineeringitsworkprocessesthatwouldresultin
redundancyorrightsizingexercisearebeingstymiedbyunionopposition.

12. MaintainaNon-ConfrontationalEmployer-EmployeeRelation
Thereareunionizedcompanies thatareparagonsofenlightenedlabor-managementrealizationsnot
marredbycontentious andemotionalladenindustrialdisputes,agoodnumberofthemarestillhamstrung
byadversarialrelations.Byfaultof managementlaborboth,that“we-theyattitudeisthesystem,nurtured
bytheperceptionthatbothsidesaremilitant andjealousof therights andprerogativesbyorwouldbemet
withactiveresistancebytheother.
The generalsuccessofLMCsinsmootheningconflicts inemployer-employeerelations
notwithstanding,thebargainingprocessisbyitselfconfrontational.Stressusuallyrocksthisrelationwhen
collectivebargaining negotiationbegin.Invariably, itisputontheedgebytheage-olddisputeforhowmuch
workersshouldshareinthefruitof production.

13. AvoidCostlyStrike,othersStoppages,Slowdown,andSabotage
Strikeareaweaponof lastresortbytheunion, itexactaheavytollonthebusinessintermsof
productionandsales,lostopportunity,andnegativeimagetothecompony.Inlongdrawnoutstrikes where
positionofbothsidesareirreconcilable,operationfoldupandjobsandinvestmentsarelost.Therehavebeen
caseswherecompaniescloseddownandtransferredtheiroperationstoothercountriesbecauseof costly
strikesexperienceinthePhilippines.
Theworseoffshootof poorlabor-managementrelationsissabotage.Thisdeliberatedamagetocompany
property,programs,orimagecanbeverycostlyanditcanbeextremely difficulttoidentifytheculprit.As
onemanagerwhohadasad experiencecommented.Onemanufacturingcompanyoncegroundtoahaltfor
severalweekswhenitmostexpensiveequipment wascrippledthroughmalevolentmeans.

14. UnionAvoidance-How?
Thereisnomagicformulatoavoidunions.However,beusefultoexaminekeystrategicapproaches
adoptedbysomeorganizedcompaniesandindustriesthathavehelpedthemavoidtheproblemsof
unionism.
Some ofthese arethefollowing;
 ManagementCommitment
Treadingadelicatebalance tonotrunafouloflawandtheConstitutionwhichencourageunionism,a
companysubtlyshoweditscommitmentto non-unionism inallitsproactive,progressivepoliciesand
practices,throughnotnecessarilyproclaimedinawrittenpolicy.

15.  Rigidrecruitmentandselectionprocess
Thepersonalvaluesystemsorideologicallearningsofcandidateswhohavestudiedinschoolsknown
fortheircause-orientedormilitantorganizationsscrupulouslychecked.Thebackgroundofpeoplewithhigh
socialistictendenciesarescreenedrigidlyandcountercheckedandwiththeirschool, neighborhood,and
pastemployer,beforeahiringdecisionismade.
 MeetingPeople’sneeds
Anorganizationoritsmanagerscannotmeetallpeople’sneedsallthetime.Atbest,theycanexpecttomeetthemajorityof
thepeople’sneedsmostofthetime.Inthisunorganizedcompanies,managementitssharpinrecognizing thefundamental
needsofitspeopleandisresponsive totheneedsofdifferent peoplewithdifferent valuesystems.

16.  EffectiveCommunication
Effectivechannelsofcommunicationadoptedbynon-unionizedcompanies(asidefrombulletinboard,
newsletters,employeehandbooks,aswellaspersonalgreetingduringbirthdaysandothersspecial
occasion)areregularweekly ormonthlydialogues.
 SupervisorTraining
Recognizing thatsupervisorcanmake orunmaketheir,companiestrainpeoplecontinuouslyonhowto
beeffectivesupervisorsofpeople.Supervisorworkdistributework,allocate overtime,recommend
promotion,demotionandsalaryincreases,andimplementdisciplinaryactions.

17.  EffectiveComplaintsMachinery
Asidefromthegoodcommunicationsystem,onecommoncharacterfoundincompaniesthathave
successfullyadoptedanon- unionizedenvironmentisaneffectivecomplaintsmachinerythataddresses
grievanceof employees.Acompanythatdoesnotprovidesasatisfactoryavenuefortheresolutionof
employeecomplaintsislikeasteamboilerwithoutareleasevalve.
Companiesshouldmaketheefforttopublish,disseminate,andexplaindecisionsresolvingcomplaints
grievances.Theexerciseisnot towinargumentsbuttopromote employeegoodwill.Supervisoraretrained
nottoresentadecisioninfavorofanemployee,tendcredencethattopmanagementhasajudiciousand
balancedviewofbothsides.

18. Agoodwillcomplaintsmachinerywill;
• Provide an outlet for pent-up employee frustrations
• Settlesdisputesatanearly dateatthelowest level
• Formalize adisputeso thateveryonerecognizesthereal issues,therebyavoiding damagingrumors.
• Provide upward communicationfrom therank-and-file totop management
• Disclose wheredisputesor complaints aremostprevalent
 ACodeofConductAdministeredConsistently
The codeof rulesandregulation or whateverone would call itmustbepositive initsapproach. Wherepenalty is
provided, itmustbecommensuratetothebreachcommittedandwiththeobjective of reforming ratherthanpunishing
theorfender.
The solution totheproblem of absenteeismisto improveawarenessanddevelop somecontrol mechanismto
correct lapsesinattendance.

19.  TrainingandDevelopment
Trainingprogramsareneededtoqualityworkersthigherresponsibilitiesandmulti-skillassignments,
theyalsoprovide hardevidencetoemployeesthatmanagementisinterestedinhelpingthemimprovethe
status.
Moreover,trainingprovidesjobenrichmentfortheTrainoraswellasthetrainee.Therelationship
developmentthroughtheeducationalprocesstrendstobring peopleclosertogetherandsomehowprevents
theintrusionof unionization.
 Companyearlywarningsystem
Companiesthatadoptanon-union policyareverysensitiveofanysignsofagitationandunusual
occurrences,andinstituteimmediateremedialactions.

20. Thisearlywarningsystem“scans”theenvironmentandtriestospotthefollowingwarningsigns:
• Significantincreaseinthenumberofcomplaints/grievances;
• Employeesinformalgroupingsincludeindividualsnotnormallyassociatingwitheachother.
• Increasingnumberof policyinquiriesonpay,benefits,anddiscipline.
• Employeesgatherinworkareastheydonotnormallyvisit.
• Argumentativequestionsaskedinmeetings.
• Exitinterviewsindicatingpeopletryingtoescapeunpleasantenvironment.
• Graffitiwhichdirectshumoroushostilitytowardsorganization,management,orsupervision;
• Anumberof overqualifiedpeopleapplyingforjobsinthecompany.

21. Group 9
REPORTER’s
Mark dexther panteria
Chariz b. rellores
James belen
THANK YOU!