This document discusses strategies for managing employee relations in a non-unionized environment. It begins by outlining employees' rights to organize under Philippine law but notes that only 11% of workers are currently unionized. Large companies avoid unions by meeting employee needs through competitive wages and benefits, effective communication channels, and grievance procedures. The document then discusses reasons companies resist unionization, such as maintaining management flexibility and avoiding costly strikes. It provides examples of illegal anti-union tactics and recommends positive union avoidance strategies like rigorous candidate screening, supervisor training, and a fair complaint resolution process. The goal of these strategies is to cultivate good employee relations without unions.

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
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