This document discusses labor management relations and the history of labor movements in the Philippines. It covers the following key points: 1. Labor unions were first formed in 1901 to advocate for workers' rights and better working conditions. The 1963 Agricultural Land Reform Code and 1974 Labor Code further strengthened protections for workers. 2. Modes of settling labor disputes discussed include negotiations, collective bargaining, grievance machinery, mediation, conciliation, and voluntary or compulsory arbitration. 3. The national policy promotes shared responsibility between workers and employers and preferential use of voluntary dispute resolution like conciliation and mediation to foster industrial peace.

1. Chapter 10
Labor Management Relations
The Labor Management
Reported By: MENDALYNE C. BADLONG

2. A labor union can be defined as an
organization of employees that uses
collective action to advance its members’
interest in regard to wages, benefits,
working conditions, and other terms and
conditions of employment.

3. A Background on the Early Philippine
Labor Movement
In 1901, Isabelo delos Reyes formed the
Union de Litografos e Impressores de
Filipinas upon his return to the country from
his exile in Spain. He is thus acknowledged
as the father of Philippine trade unionism.

4. Up to the 1960s, due to the oppression and
excesses of landowners, farm laborers were
burdened with debt and were compelled to till
the land of their masters. The passage of R.A.
No. 8344 on August 8, 1963 known as the
Agricultural Land Reform Code made a slight
improvement on the living conditions of the
tenants.

5. On May 1, 1974 when the former president, Ferdinand E.
Marcos issued Presidential Decree No. 442, “a decree
instituting a labor code and consolidating labor and social laws
to afford protection to labor, promote employment and human
resources development, and in sure industrial peace based on
social justice.” It took effect six months from its promulgation on
November 1, 1974.
Construction in favor of labor makes it explicit that all doubts in
the implementation and interpretation of the provisions of the
Labor Code, including its implementing rules and regulations,
shall be resolved in favor of labor which further strengthened
protection of workers.

6. The provisions of the 1935 Constitution on social justice and on the
promotion of the employees were also found inadequate. It was only in
the plebiscite held on January 17, 1973 when the provisions of the 1973
Constitution on the protection of labor were made broader and more
explicit.
After the EDSA Revolution that ushered the administration of President
Corazon Aquino, a new constitution was drafted, wherein a full section
was devoted to the protection of labor. It also enjoins the workers and
employers to observe the principle of shared responsibility in running the
enterprise.
From then on, the fundamental law of the land sets the broad policies
regarding labor protection and employment. Legislations have been
enacted to translate these policies into specific terms. Most of these find
expression in amendments to the Labor Code and its implementing rules
and guidelines. Gradually, the wage earners secured social sanction for
the right to organize.

7. Three Categories of
Employees
1. Managerial employees
2. Supervisory employees
3. Rank-and-file employees

8. Distinction between Managerial Employees and
Supervisory Employees
Managerial employees – “power to decide” and do
managerial acts.
Supervisory employees - Have the power only “to
recommend” managerial acts such as laying down policy,
hiring or dismissal of employees, and the like.

9. Distinction between a Labor Organization and
a Workers’ Association
A labor organization is established principally for
collective bargaining purposes, while a workers’
association is organized for the mutual aid and
protection of its members but not for collective
bargaining purposes.

10. Definition of Terms
a. Labor relations—refer to that part of labor law which
regulates the relations between employers and workers.
Example: Book V of the Labor Code which deals with labor
organizations, collective bargaining, grievance machinery,
voluntary arbitration, conciliation and mediation, unfair
labor practices, strikes, picketing, and lockout.

11. Union security agreement – a contractual
agreement, usually part of a collective
bargaining agreement, in which an employer
and a trade or labor union agree on the
extent to which the union may compel
employees to join the union, and/or whether
the employer will collect dues, fees, and
assessments on behalf of the union.

12. Types of Labor Disputes
Rights Disputes – involves alleged violation of a right recognized by
law, collective bargaining agreement (CBA), contracts, or company
policy.
Interest Disputes – economic or bargaining dispute where the
issues involved are not mandated by law and could be negotiated.
Labor Standards Disputes – include nonpayment or underpayment
of wages and wage-related benefits and violations of health and
safety standards.
Labor Relations Disputes – involves employee discipline, unfair
labor practice, deadlocks, strikes, etc.
Welfare and Social Legislations Disputes – refer to claims arising
from the failure of the employer to comply with the social and welfare
obligations under the law.

13. National Policy on Labor Dispute Settlement
The present national policy on labor dispute settlement is enunciated in the following
instruments:
1. 1987 Constitution Sec.3, Article XIII provides: “The State shall promote the
principle of shared responsibility between workers and employers and the
preferential use of voluntary modes in settling disputes, including conciliation, and
shall enforce their mutual compliance therewith to foster industrial peace.”
2. Labor Code, as amended by Republic Act 6715
Article 211 of the Code provides, among others:
a. “…It is the policy of the State… to promote and emphasize the primacy of free
collective bargaining and negotiations, including voluntary arbitration, mediation, and
conciliation, as modes of settling labor or industrial disputes.”
b. “To provide adequate administrative machinery for the expeditious settlement of
labor or industrial disputes,”

14. Early Policies Adopted by the Government
on Settling Labor Disputes.
Philippine labor policy may be said to have evolved over four periods:
A. Commonwealth Period (1936-1953)
Commonwealth Act. No. 103 established our first labor dispute
settlement system by creating the Court of Industrial Relations
and vesting it with compulsory arbitration powers over labor
disputes involving both workers in the private sector and in
government-owned or controlled corporations.

15. B. Industrial Peace Act Period (1953-1972)
In 1953, Republic Act No. 875 was enacted fundamentally
changing the framework of labor relations policies from that
of compulsory arbitration to collective bargaining. The Act
severely restricted the compulsory arbitration powers of the
Court of Industrial Relations (CIR). The latter was divested
of the power to set wages, rates of pay, hours of work, other
terms or conditions of employment, or otherwise regulate
the relation between employers and employees, as a
compulsory arbitration body, except in labor disputes
involving industries indispensable to the national interest.

16. C. Martial Law Period (1972-1986)
This period was also marked by the banning of strikes
in the so-called “vital industries.” To cushion the impact
of the strike ban, Presidential Decree No. 21 was
issued creating the National Labor Relations
Commission, which exercised original jurisdiction over
practically all kinds of labor disputes.

17. D. Post-Martial Law Period (1986-present)
There was emphasis on the promotion of voluntary modes
of dispute settlement. By virtue of Executive Order No.
126, which reorganized the Department of Labor and
Employment, the National Conciliation and Medication
Board (NCMB) was created to oversee the implementation
of the constitutional policy of promoting the preferential
use of the voluntary modes of dispute settlement,
including conciliation.
Republic Act 6715 introduced amendments to the Labor
Code which strengthened trade unionism and collective
bargaining as essential elements of an effective labor
dispute settlement system.

18. Different Modes of Settling Labor Disputes
1. Negotiations
a. Parties control the process.
b. Parties engaged in verbal interaction
completely in their own terms
c. Decision is made by the two conflicting
parties
d. Outcome is whatever the parties agree to
e. Applied to the nonunionized or unorganized
group of workers in the private and
government sectors

19. 2. Collective Bargaining
a. Decision-making process between union and management
b. Aims to set the terms and conditions of employment and
procedures in the employer-employee relationship
c. Aims to ensure that the agreement is enforced through the
grievance machinery with voluntary arbitration as the last step in
the process
3. Grievance Machinery
a. Internal rules of procedures intended to resolve all issues
arising from the implementation and interpretation of the
collective bargaining agreement
b. Part of the continuous process of the collective bargaining
intended to promote friendly dialogue between labor and
management as a means of maintaining industrial peace.

20. 4. Meditation
a. Similar to conciliation although the mediator is
expected to put forward settlement proposals
b. Parties fully participate in deciding issues and in
creating, evaluating, and solving then conflict to come up
with a win-win solution.

21. When is Mediation Useful?
a. When parties want to resolve the conflict
b. When parties are able to verbalize the cause
of their distress
c. When they need to continue or maintain a
relationship
d. When they have issues that are complicated
by strong emotions
e. When they feel uncomfortable confronting the
other
f. When they are able to live up to their promises

22. Benefits of Mediation
a. It is time saving.
b. It costs a fraction of 10% of litigation.
c. It is private and confidential.
d. It restores relationships.
e. It improves understanding of
underlying issues.
f. If does not close doors to other
option if the parties are not satisfied.
g. It is proven to be more successful in
the Philippines.

23. 5. Conciliation
a. Occurs when a conciliator-mediator intervenes
in a negotiation
b. Conciliator cannot decide upon the dispute.
c. Can only reconcile the dispute by facilitating
the meeting of the minds between the parties
d. In the meeting with the conciliator, the
disputing parties are given the chance to state
their demands and position with the aim of
reaching a viable agreement.

24. Role of Conciliator-Mediator
An offer of the NCMB has the principal function to assist in the
settlement of labor disputes through conciliation and preventive
mediation, including the promotion and encouragement of voluntary
approaches to labor disputes prevention and settlement.
6. Arbitration
a. Process where a third party, the arbitrator, decides upon the
agreement or award in a labor dispute
b. A quasi-judicial process in which the parties agree to submit an
unresolved dispute to a third neutral party for binding settlement
c. Represents the final stage in the dispute resolution process. The
grievance does not always result in an acceptable solution because
when a deadlock occurs, labor contracts call for arbitration.

25. Two Kinds of Arbitration
a. Voluntary Arbitration – the parties agree
to submit themselves to arbitration.
b. Compulsory Arbitration – parties are
compelled or ordered to submit
themselves to arbitration in case there is
deadlock during collective bargaining.

26. Authority of an Arbitrator
a. Investigate and hear the case upon notice of the
parties
b. Render an award (decision) based on the
contract and record of the case
c. Set and conduct hearing, attendance of witnesses
and proof documents
d. Conduct fact-finding and other modes of
discovery
e. Conduct reopening of hearing
f. Modify any provision of existing agreement upon
which a proposed change is submitted for
arbitration.

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