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Employees & Labor Relations

> labor rights of workers and labor organizations (with sample scenarios).
> Conflict Management System.

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Employees & Labor Relations

  1. 1. Labor Rights of Workers Spread in various parts of the 1987 Philippine Constitution are specific pronouncements and mandates on the protection and promotion of the rights of workers in the public and private sectors, to wit: 1. Sec. 18, Art. II, the State recognizes "labor as a primary social economic force" and it endeavors to "protect the rights of workers and promote their welfare"; 2. Sec. 8, Art. III, the State recognizes the "right of (workers) xxx in the public and private sectors to form unions"; 3. Sec. 2, Art. XIII, the State pronounces "the promotion of social justice" as one of its main goals;
  2. 2. 4. The most specific labor-related provision of the Constitution is found in Sec.3, Art. XIII thereof, which provides: a) That the State shall afford "full protection to labor, local and overseas, organized and unorganized"; b) That the State shall aim to "promote full employment"; c) That the "equality of employment opportunities for all" shall be respected; d) That the State shall protect the "right of all workers to: - self-organization, - collective bargaining and negotiations, - peaceful concerted activities, and - including the right to strike, in accordance with law”. Labor Rights of Workers
  3. 3. e) That the right to "security of tenure" of workers shall be respected; f) That the workers are entitled to "humane conditions of work"; g) That the workers are entitled to "a living wage"; h) That the workers shall be afforded the right to "participate in policy and decision-making processes affecting their rights and benefits as may be provided by law"; i) That employers and workers must be guided by the precept of "shared responsibility"; Labor Rights of Workers
  4. 4. j) That the State encourages the "preferential use of voluntary modes in settling disputes" (i.e., conciliation, mediation, and voluntary arbitration); k) That the State has the power to "regulate the relations between workers and employers"; l) That the State respects the "right of labor to its just share in the fruits of production"; and m) That, balancing capital with labor, the State recognizes the "right of enterprises to reasonable returns on investments, and to expansion and growth". Labor Rights of Workers
  5. 5. Union / Employees’ Organization  It refers to any labor organization organized for collective bargaining or negotiation and for other legitimate purposes.
  6. 6. Workers’ Association As of September 2013, a total 52,126 labor organizations are registered in DOLE. Sector Number Private Sector 16,828 unions; 1,391,621 members Public Sector 1,776 unions; 462,835 members Workers Association 33,522 total associations; 1,429,966 members
  7. 7. Rights of Legitimate Labor Organizations (private sector) Pursuant to the Labor Code of the Philippines, the rights of the legitimate labor organizations are mentioned in Article 242 which summarized as follows: 1. Undertake activities for the benefit of members. 2. Sue and be sued. 3. Exclusive representative of all employees. 4. Represent union members. 5. Furnished by employers of audited financial statement. 6. Own properties. 7. Exempted from taxes.
  8. 8. Article 241 of the Labor Code and Rule III, Sec.1 of the E.O.180: 1. Political Right 2. Deliberative and decision-making right 3. Rights over money matters 4. Right to information Rights of Union Members / Members in an Employees’ Organization
  9. 9. Employees’ Right to Self-Organization (private sector) Article 243 of the Labor Code: 1. To form, join and assist labor organizations for the purpose collective bargaining through representatives of their own choosing; and 2. To engage in lawful concerted activities for the same purpose – for their mutual aid and protection.
  10. 10. Hoya Glass Disk Philippines 2,600 workers lost their job Hoya closed the company to avoid incurring losses
  11. 11. Nestle Philippines 600 workers went on strike 23 strike-related deaths settled in December 2013
  12. 12. Employees’ Right to Self-Organization (public sector) Sec. 1, E.O. 180: All government employees can form, join or assist employees’ organizations of their own choosing for the furtherance and protection of their interests. They can also form labor-management committees, work councils and other forms of workers’ participation schemes to achieve the same objectives.
  13. 13. Strike Strike, as defined by law, means any temporary stoppage of work by the concerted action of employees as a result of an industrial or labor dispute. [1] A labor dispute includes any controversy or matter concerning terms and conditions of employment; or the association or representation of persons in negotiating, fixing, maintaining, changing or arranging the terms and conditions of employment, regardless of whether the disputants stand in the proximate relation of employers and employees. [2] [1] Lapanday Workers Union vs. National Labor Relations Commission, 248 SCRA 95, September 7, 1995 [2] Gold City Integrated Port Service, Inc. vs. National Labor Relations Commission, 245 SCRA 627, July 6, 1995
  14. 14. Right to Strike SUPREME COURT DECISIONS Social Security System Employees vs. Court of Appeals [175 SCRA 686, 1989] Government employees may, therefore, through their unions or associations, either petition the Congress for the betterment of the terms and conditions of employment which are within the ambit of legislation or negotiate with the appropriate government agencies for the improvement of those which are not fixed by law. If there be any unresolved grievances, the dispute may be referred to the Public Sector Labor-Management Council for appropriate action. But employees in the civil service may not resort to strikes, walkouts and other temporary work stoppages, like workers in the private sector, to pressure the Government to accede to their demands.
  15. 15. Right to Strike Continued…... As now provided under Sec. 4, Rule III of the Rules and Regulations to Govern the Exercise of the Right of Government Employees to Self- Organization, which took effect after the instant dispute arose, '[t]he terms and conditions of employment in the government, including any political subdivision or instrumentality thereof and government-owned and controlled corporations with original charters are governed by law and employees therein shall not strike for the purpose of securing changes [thereto].
  16. 16. Right to Strike Continued….. In government employment, however, it is the legislature and, where properly given delegated power, the administrative heads of government which fix the terms and conditions of employment. And this is effected through statutes or administrative circulars, rules, and regulations, not through collective bargaining agreements.
  17. 17. Right to Strike SUPREME COURT DECISIONS Jacinto, et. al., vs. Court of Appeals, et. al. [G.R. No. 124540. November 14, 1997] Moreover, the petitioners here, except Merlinda Jacinto, were not penalized for the exercise of their right to assemble peacefully and to petition the government for a redress of grievances. Rather, the Civil Service Commission found them guilty of conduct prejudicial to the best interest of the service for having absented themselves without proper authority, from their schools during regular school days, in order to participate in the mass protest, their absence ineluctably resulting in the non-holding of classes and in the deprivation of students of education, for which they were responsible.
  18. 18. Right to Strike Continued….. Had petitioners availed themselves of their free time -- recess, after classes, weekends or holidays -- to dramatize their grievances and to dialogue with the proper authorities within the bounds of law, no one -- not the DECS, the CSC or even this Court -- could have held them liable for the valid exercise of their constitutionally guaranteed rights. As it was, the temporary stoppage of classes resulting from their activity necessarily disrupted public services, the very evil sought to be forestalled by the prohibition against strikes by government workers.
  19. 19. Self-Organization: public vs. private sector Rights Public Sector Private Sector Right to Strike X a Right to Bargain Limited bargaining rights (terms of employment not fixed by law) (Sec.13, E.O. 180) Unlimited bargaining rights Purpose of Organization Can only form, join or assist labor organization for purposes not contrary to law. Can form, join, or assist labor organization for purposes of CBA, etc.
  20. 20. Persons/Employees who are NOT granted the Right to Self-Organization Provisions Legal Basis/SC Decision High-level or managerial government employees Sec. 3, E.O. 180 Employees of international organizations with immunities International Catholic Migration Commission vs. Calleja, Managerial employees Article 245, Labor Code a. Whose functions are normally considered as policy-making or managerial Franklin Baker Company vs. Tarjano b. Whose duties are of a highly confidential or highly technical in nature Civil Service Commission vs. Javier
  21. 21. Persons/Employees who are NOT granted the Right to Self-Organization Provisions Legal Basis/SC Decision Members of the Armed Forces of the Philippines, including police officers, firemen and jail guards Sec. 4, E.O. 180 Confidential employees San Miguel Corp. Supervisors and Exempt Union, vs. Laguesma, (Employees of cooperatives who are its members San Jose Electric Service Cooperative, Inc. vs. Ministry of Labor Non-employees Rosario Bros. vs. Ople
  22. 22. Segregation of Rank-and File Employees and Supervisors Article 245 of the Labor Code: Managerial employees are not eligible to join, assist or form any labor organization. Supervisory employees shall not be eligible for membership in a labor organization of the rank-and-file employees but may join, assist or form separate labor organizations of their own. (As amended by Section 18, Republic Act No. 6715, March 21, 1989)
  23. 23. Conflict A conflict is a situation when the interest/s of one or more persons or groups are or seem to be in opposition to the interest/s of some person/s or group/s. Exists whenever people are in disagreement and opposition. Examples are interpretation or violation of rights arising from law or from contract, differences over the interpretation or relevance of data, differing ideologies, religious beliefs and cultural norms, breakdown in communications and understanding.
  24. 24. Source: F. Steadman – Handbook on Alternative Labour Dispute Resolution Conflicts are costly: the longer it lasts, the costlier
  25. 25. Conflict Management Style Other’s needs Avoid Force Other’s & Own needs Other’s & Own needs Own needs Lussier and Hendon, Human Resources Management
  26. 26. Effective Dispute Resolution (union in private and public sectors) Power Rights Consensus Strikes Lockouts Adjudication Arbitration Mediation Negotiation 2008, “Labor Dispute Resolutions Systems in the Asia-Pacific Region”, Atty. Bitonio, Jr. Employee and Labor Relations
  27. 27. Negotiation
  28. 28. Negotiation Negotiation is a process by which two or more parties: 1. Seek to exchange with each other or among themselves things that they respectively value under terms and conditions mutually acceptable to all concerned. 2. An approach at preventing or resolving conflicts resulting in an agreement or consensus of the parties.
  29. 29. What can keep parties from negotiating? 1. Principle of economic rationality and self-interest
  30. 30. What can keep parties from negotiating? 2. In an employment relationship, this can translate to conflicting objectives and interests: Capital Profits Sharing Workers Rewards Effort
  31. 31. What can keep parties from negotiating? Parties negotiate because they want to satisfy a need or interest.
  32. 32. Planning the Negotiation  Research the other parties to the negotiation.  Set objectives.  Try to develop options and trade-offs.  Anticipate questions and objectives and prepare answers.
  33. 33. Conducting the Negotiation  Develop rapport and focus on obstacles, not on the person.  Let the other party make the first offer.  Listen and ask questions to focus on meeting the other party’s needs.  Don’t be too quick to give in, and remember to ask for something in return.
  34. 34. Collective Bargaining/Negotiation Agreement  A specific and specialized type of negotiation governed by law.  CBA or CNA is the law between the parties. It must be respected at all times.
  35. 35. Process • Negotiation • terms and conditions of employment • the mechanism to administer the agreement and resolve disputes or differences arising from it Output • Collective Bargaining Agreement (private sector) • Collective Negotiation Agreement (public sector) Outcome • Fair terms and conditions of employment • Industrial peace and stability • Increased productivity • Effective employee participation • Shared responsibility Collective Bargaining Agreement
  36. 36. THANK YOU
  37. 37. References:  1987 Philippine Constitution  The Labor Code of the Philippines, 7th Edition, 2010, Cesario Alvero Azucena, Jr.  Social Dialogue and Collective Bargaining Agreement, Atty. Benedicto Ernesto Bitonio, Jr.  F. Steadman – Handbook on Alternative Labour Dispute Resolution  Robert Lussier and John Hendon, Human Resources Management,  nestle-workers-in.html   lose-jobs-following-hoya-glass-disk-illegal-closure/