EVANGELIO, VERNA JOY S.
Changes in industrial relations at macro,
meso and micro levels
Globalization, mobilization, individualism
and legal rights
Age discrimination and retirement
Equality legislation in the Philippines
Development of individual rights in society in general and in the
workplace in particular. It explores the traditional and emerging
roles of education trade unions, their use of new individual legal
rights and their engagement with notions of social partnership.
It argues that neo-liberalism and human capital theory, with their
relentless promotion of competitive individualism, have given rise
to national and supra-national legal frameworks (including the
European Court of Justice and the European Court of Human
Rights) that comprehensively protect employees against every form
of discrimination, while still failing to prevent various types of
The unionism in the Philippine private sector has its roots as early
as 1892 when a worker from Fressel and Co, Gat Andres Bonifacio,
established the KATIPUNAN.
It was Ka Cipriano Cid, the first President of Congress of Labor
Organizations (CLO) who led the new quest for labor unification.
He later became the founder and president of Philippine Association
of Free Labor Unions (PAFLU), and started structuring of its
member affiliates along industry lines.
In 1970, Ka Cipriano Cid organized the country’s pioneer teachers’
organization, the General Union of Teachers (GUT) and registered
with the Ministry of Labor and Employment. GUT underwent
several changes in name and organization: National Alliance of
Workers (NAW), National Alliance of Teachers and Allied
Workers (NATAW), National Alliance of Teachers and Office
Workers (NATOW) which adopted also a local name Samahang
Manggagawang Pilipino (SMP). During the primary years of
SMP-NATOW, Ka Cipriano had represented teachers and education
workers in their labor cases before the management and courts of
industrial relations until his death.
National Education Association
Founded over 150 years ago in 1857, today's National
Education Association services millions of public school teachers,
counselors, college faculty, retired educators, and future teachers. Not
only is the NEA the largest teachers' union in the United States, but
also the largest white-collar labor union overall.
The Alliance of Concerned Teachers is a progressive and militant
national democratic mass organization of teachers, academics, and
other education workers in the Philippines, established on June 26,
CHANGES IN INDUSTRIAL RELATIONS
AT MACRO, MESO AND MICRO LEVELS
The past 30 years have brought profound changes in the world of
work particularly in the public sector
The New Right saw managerialism as a way to promote enterprise
culture in the public sector thereby increasing efficiency and
New Left saw it as a way to make public services less paternalistic
and more responsive to the needs of the users.
Public sector industrial relations have been
radically altered by 4 separate but related drivers
(Morgan et al 2000):
1. Need to control public expenditures.
2. Promotion of market forces (through privatization, contracting
out and internal competition)
3. Restructuring of organizations to facilitate decentralized
4. Increasing importance attached to the management function and
the importation of management practices from the private sectors.
In UK, these drivers have resulted in cuts
the development of performance indicators stressing economy
the introduction of more formalized individual staff appraisal,
including performance related pay (PRP)
more devolved budgetary systems
more management training
greater emphasis on short-term, outcomes-based planning
more rhetoric about responding to the needs of the consumer.
Different public sectors have responded differently, embracing
some policies but resisting others
INDIVIDUALISM AND LEGAL RIGHTS
All aspects of public life have been affected by an increase in
legislation, but it strikes with particular force in the area of
employment. Employment law has greatly expanded in recent years
to prohibit discrimination on grounds of age, gender, race, ethnicity,
religion or belief, disability, and sexual orientation. One driver of
this expansion is the perceived need for a modern society to mobilize
its entire potential workforce and available intelligence in order to
meet the pressures of globalization and an ageing population, but
issues of fairness and equality have also played a part.
AGE DISCRIMINATION AND RETIREMENT
The old-age dependency ratio indicates what proportion of a
country’s population is of retirement age (65 or over) and what
proportion is of employment age (between 20 and 64). In 2005, the
average old-age dependency ratio for OECD countries was 24 per
cent, meaning that there were 24 people aged 65 or over for every
100 people aged 20–64. By 2050, this ratio is expected to more than
double to 52 per cent, leading to higher public spending on health,
long-term care and pensions (OECD 2007: 42)
AGE DISCRIMINATION AND RETIREMENT
Age dependency ratio (% of working-age population) in
Philippines was reported at 54.44 % in 2021, according to the World
Bank collection of development indicators, compiled from officially
recognized sources. Philippines - Age dependency ratio (% of
working-age population) - actual values, historical data, forecasts
and projections were sourced from the World Bank on October of
AGE DISCRIMINATION AND RETIREMENT
To meet this challenge, governments will have to raise the
statutory retirement ages and/or lower basic retirement benefits.
However, economic necessity is not the only driver. The
legislation is also underpinned by ideals of fairness, and a
commitment to civil and human rights. Although it makes
financial sense for people to work longer so that they pay more
taxes and delay drawing their state pension (Murray 2003).
lawmakers seeking to prohibit age discrimination and raise the
age of retirement claim they are driven by moral and ethical
imperatives, not just money.
AGE DISCRIMINATION AND RETIREMENT
In general, people of retirement age are fitter and more energetic
than in the past, making them better able to cope with the
physical and mental demands of work.
The Bill of Rights in the 1987 Constitution guarantees
equal protection for every Filipino, and prohibits discrimination of
persons based on ethnicity, race, religion or belief, political
inclination, social class, sex, gender, sexual orientation, gender
identity, gender expression, civil status, medical condition, or any
other status in the enjoyment of rights. The fundamental law also
declares that the State values the dignity of every human person and
guarantees full respect for human rights (Section 11, Article II, 1987
Constitution). It also imposes on the State the duty to ensure the
fundamental equality before the law of women and men (Sec. 14,
R.A. NO. 10911: Eliminating Age Discrimination in
The Act mandates the elimination of age-based discrimination
not only by employers, but also by labor contractors or
subcontractors. Echoing the mandate of the Philippine Constitution,
it aims to promote equal work opportunities for everyone by
prohibiting arbitrary age limitations in the hiring of applicants, as
well as, the dismissal and retirement of employees.
Republic Act No. 6725, May 12, 1989
An act strengthening the prohibition on discrimination against
women with respect to terms and conditions of employment,
amending for the purpose article one hundred thirty-five of the labor
code, as amended
REPUBLIC ACT No. 4670 June 18, 1966
THE MAGNA CARTA FOR PUBLIC SCHOOL TEACHERS
REPUBLIC ACT No. 10524
AN ACT EXPANDING THE POSITIONS RESERVED FOR
PERSONS WITH DISABILITY, AMENDING FOR THE
PURPOSE REPUBLIC ACT NO. 7277, AS AMENDED,
OTHERWISE KNOWN AS THE MAGNA CARTA FOR
PERSONS WITH DISABILITY
1. Mr Barber took early retirement at the age of 52 in
March 1997, having suffered a mental breakdown in
November 1996. He had been working 60–70 hours per
week because of staff restructuring at his school, and in May
1996 his doctor signed him off work for three weeks with
depression. Although he discussed his concerns in separate
meetings with each member of the senior management team
(SMT), they took the view that everyone was under pressure
and that the financial position of the school would not
allowany modification to his workload. In the original court
case, the LA, through the school, was deemed to have been
negligent, and Mr Barber was awarded compensation.
The Court of Appeal overturned the decision, claiming
that Mr Barber’s employers had not breached their duty of
care. The House of Lords disagreed, however, and in April
2004 restored the original verdict of negligence, though
reducing the level of compensation. The judges in the House
of Lords concluded that ‘even a small reduction in his duties,
coupled with the feeling that the senior management team
was on his side, might, by itself, have made a real difference’
(Barber v. Somerset County Council, quoted in Knott 2004:
89). This landmark ruling has led to an increase in teachers
raising issues of stress with the aid of their unions, and
forcing their school management to reduce their demands.
Since stress is often caused by pressure exerted by the SMT,
the threat of action on stress is clearly a potent one.
Jane Harris came to work at the S&J department store two
years ago. In Jane’s initial assignment in the finance department, she
proved to be a good and hard worker. It soon became obvious to both
Jane and her department head, Rich Jackson, that she could handle a
much more responsible job than the one she held. Jane discussed this
matter with Rich. It was obvious to him that if a better position could
not be found for Jane, S&J would lose a good employee. As there were
no higher openings in the finance department, Rich recommended
her for a job in the accounting department, which she received.
Jane joined the accounting department as payroll
administrator and quickly mastered her position. She became
knowledgeable in all aspects of the job and maintained a good
rapport with her two employees
A short time later, Jane was promoted to assistant manager of
the accounting department. In this job, Jane continued her
Two months ago, Bob Thomas was hired in the accounting
department. Ralph Simpson, vice president of administration for S&J,
explained to Jane and Steve Smith, head of the accounting
department, that Bob was a trainee. After Bob had learned all areas
of the department, he would be used to take some of the load off both
Jane and Steve and also undertake special projects for the
department. Several days after Bob’s arrival, Jane learned that Bob
was the son of a politician who was a close friend of the president of
S&J. Bob had worked in his father’s successful election campaign
until shortly before joining S&J.
Last week, Steve asked Jane to help him prepare the accounting
department’s budget for next year. While working on the budget,
Jane got a big surprise: She found that Bob had been hired at a salary
of $3,200 per month. At the time of Bob’s hiring, Jane, as assistant
manager of the accounting department, was making only $3,000 per
After considering her situation for several days, Jane went to
see Ralph Simpson, the division head, about the problem. She told
Ralph that she had learned of the difference in salary while assisting
Steve with the budget and stated that it was not right to pay a trainee
more than a manager. She reminded Ralph of what he had said
several times—that Jane’s position should pay $40,000 per year
considering her responsibility—but S&J just could not afford to pay
her that much.
Jane told Ralph that things could not remain as they were at
present, and she wanted to give S&J a chance to correct the situation.
Ralph told Jane he would get back to her in several days.
About a week later, Ralph gave Jane a reply. He stated that
while the situation was wrong and unfair, he did not feel that S&J
could do anything about it. He told her that sometimes one has to
accept things as they are, even if they are wrong. He further stated
that he hoped this would not cause S&J to lose a good employee.
1. What options does Jane have?
In King v. Palmer, 778 F.2d 878(D.C. Cir. 1985), a female employee
claimed she had been denied a promotion that had gone to another
female employee who was a lover of one of the employee’s supervisors.
The district court first found that the plaintiff (King) had established a
prima facie case of sex discrimination by showing that she was female,
that she had applied for and been denied a promotion for which she was
qualified, and that a substantial factor in that decision was a sexual
relationship between a supervisor and the successful applicant for the
promotion. The court also found that the employer’s reason for not
the successful applicant was better qualified for the promotion—was
pretextual because it was unsupported by credible evidence.
Nevertheless, the district court dismissed the case because it said King
failed to provide direct evidence that the successful applicant and the
The court concluded that in these types of cases, a claim must not
rest on rumor, knowing winks, and prurient overtones or on inferences
allowed in divorce law.
The court of appeals reversed this decision, holding that King
should not have been required to present direct evidence that the
supervisor and the successful applicant were lovers. The court of appeals
ruled that it was enough that King had presented circumstantial evidence
of a sexual relationship such as kisses, embraces, and other amorous
1. Do you agree or disagree with the court of appeals decision? Why?