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RAFAEL D.

DAVIS III
www.rafaeldavis.com Email: admin@rafaeldavis.com Cel # 0933-3679013
Maintaining Labor-Management Relations www.rafaeldavis.com

To

find out how to maintain labormanagement relations To find out the Status of Philippine Labor, policies adopted by the government in settling labor dispute, Philippine Labor Code, rights of workers, labor organizations and its kinds, why employees join unions, contributions of unions and effects, CBA/CNA and its effects, deadlocks, types of strikes, labor-management committee and ILO.
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There is no such thing as BAD COMPANY. Only a BAD MANAGER.

Maintaining Labor-Management Relations www.rafaeldavis.com

Power

Government

Industrial Peace Industrial Peace based on Social based on Social Justice Justice

Labor Law/ CBA Rights

Capital

Prerogatives

Livelihood
From the Notes of USEC Josephus B. Jimenez

Profit
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Maintaining Labor-Management Relations www.rafaeldavis.com

Maintaining Labor-Management Relations www.rafaeldavis.com

refers to the relationship between the employees and management

Maintaining Labor-Management Relations www.rafaeldavis.com

It can also mean relationship between management and labor unions in a unionized companies
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LABOR

RELATIONS Interactions between employers and employees or their representatives and the mechanisms by which standards and others terms and conditions of employment are negotiated, adjusted and enforced.
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The growth of industrialization has generated four distinct ideas in social and political thought.
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The

government should assume the role of guardian over the interest of labor. Police Power Doctrine
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Basis:

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Employer

has a social and moral responsibility to ameliorate the lot of his employees. Human Values
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Emphasize:

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Idea

of Social Justice

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The

government should actively intervene in labor disputes because such disputes are costly both to the disputants and the public, and may even cripple the countrys economy. To protect the interest of both workers and employers
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Significance:

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Government

does not intervene in labor disputes to compel agreement between the employer and employees.
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It

leaves the settlement of disputes to the voluntary agreement between the parties through peaceful bargaining, conciliation, and arbitration.
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When

does the government intervene in a labor dispute?

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When

public interest or national security is adversely affected and the dispute cannot be settled by direct collective bargaining.
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Conciliation

or Mediation through the DOLE Arbitration Arbitration through


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Voluntary

Compulsory

the NLRC
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Major breakthrough in the field of labor administration Promulgated as Presidential Decree No. 442 on May 1, 1974. Effective Nov. 1, 1974 Declares tripartism as state policy Consonant with this policy, workers and employers are represented in decision and policy-making bodies of the government
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Right Right Right

to protection by the State; to full employment;

to equal work opportunities regardless of sex, race, and creed;


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Right Right

to self-organization;

to collective bargaining and negotiations; to security of tenure;

Right Right

to just and humane conditions of work;


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Right

to peaceful, concerted activities including strikes; to participate in policy and decision-making processes affecting their rights and benefits; and to compulsory arbitration as may be provided by law.
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Right

Right

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Any

union or association of employees that exists in whole or in part for the purpose of collective bargaining or for dealing with employers concerning terms and conditions of employment.
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Any

labor organization duly registered with the Department of Labor and Employment (DOLE) or any of its branches.

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legitimate labor organization, whether or not employed by the employer.

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union is organized primarily to enable workers to bargain collectively with the employer on such issued as employment conditions and status of its members. In Unity, there is
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Principle:

Strength.
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The

aims of labor organizations are both economic and political.

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It

is a means by which workers can satisfy their primary and secondary needs through higher wages, shorter hours of work, and various employee benefits such as vacation leave, sick leave, and hospital, medical, and insurance plans.
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It

is a means by which the union can promote its power and prestige through: 1. lobbying activities designed to secure the passage of favorable legislation and opposing unfavorable proposed laws.
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2.

Support and campaign for candidates for political offices who are friendly to labor.

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When

a union is organized, it must be registered with the nearest regional office of the DOLE so that it can acquire legal personality and be entitled to the rights and privileges granted by law to legitimate labor organizations.
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an

Independent Union composed entirely of employees belonging to a single employer

The Local Chapter of a Federation

composed of employees belonging to a single employer but affiliated with a Federation

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Who Who ionize?

can unionize?

Rank and File Supervisors

Managers cannot unionize


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Before a union can demand collective bargaining:


It

has to be registered

It has to be certified as the bargaining agent of the employees


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legally binding agreement between two parties who are compelled by the law to negotiate with each other concerns wages, hours of work and other terms and conditions of employment
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COMMON STIPULATIONS AND CLAUSES IN A CBA/CNA:


Title Description of the parties Preliminary statement of principles Description of bargaining unit Exclusionary clause Union security clause Check off of union dues Statement of management prerogatives Union commitment Economic and other fringe benefits. Grievance machinery Voluntary arbitration No strike, no lock-out clause. Family planning, health and safety, cooperative, recreation and sports, etc. Waiver and completeness of agreement.
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the Company as the Employer

the Union as the certified bargaining agent of the employees in the bargaining unit

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The

union must be a legitimate labor organization i.e. properly organized and registered with the DOLE for Certification Election OR by Voluntary Recognition

Petition

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process - written notice for negotiation which must be clear and unequivocal 2.NEGOTIATION Process 3.EXECUTION Process - signing of the agreement 4.PUBLICATION for at least 5 days before ratification 5.RATIFICATION by the majority of all the workers in the bargaining unit represented in the negotiation (not necessary in case of arbitral award)
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1.PRELIMINARY

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6.

REGISTRATION Process Requisites for registration: a) mandatory provisions b) payment of P1,000.00 c) 5 copies of CBA d) proof of ratification ADMINISTRATION Process - the CBA shall be jointly administered by the management and the bargaining agent for a period of 5 years AND APPLICATION

7.

8.INTERPRETATION Process
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term applied to a provision in a collective bargaining agreement whereby an employer agrees with the contracting union to maintain in his firm certain conditions of employment designed to protect the union against loss of membership or loss of income derived from membership dues.
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Is

an agreement between a firm and a labor union where: The firm will agree to hire only members of the contracting labor union who are in good standing; To be assured of continued employment in the company, the employee must remain a member of good standing in the union during the life of the agreement between the company and the union;
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- The

labor union is the authorized representative of the employees in that firm.

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Refers

to an agreement between a firm and a labor union whereby the firm agrees that its employees in the bargaining unit should, after a certain period, join the union and remain members in good standing with that union in order to retain their jobs in the company.
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Is

an agreement between a firm and the contracting union whereby all present and future members of the union are required to join a contracting union and remain a member in good standing. are not required to join the contracting union, but after they voluntarily join, they must remain members of the union in good standing during the life of the contract.
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Non-members

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Employees

belonging to the appropriate collective bargaining unit, but who are not members of the recognized collective bargaining agent, may be assessed a reasonable fee equivalent to the dues and other fees paid by members of the recognized collective bargaining agent, if such non-union members accept the benefits under the CBA.
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STRIKE

means any temporary stoppage of work by the concerted action of the employees as a result of an industrial or labor dispute. (Art. 212 (o), Labor Code, as amended by Sec. 4, R. A. 6715)

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PEACEFUL

PICKETING the right of workers during strikes consisting of the marching to and from the premises of an establishment involved in a labor dispute, generally accompanied by the carrying and displaying of signs, placards or banners with statements relating to the dispute. (Guidelines Governing Labor Relations, October 19, 1987)

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LOCKOUT

means the temporary refusal of an employer to furnish work as a result of an industrial or labor dispute. (Article 212 (p) Labor Code, as amended by Section 4, R.A. 6715).
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LEGAL STRIKE one called for a valid purpose and conducted through means allowed by law. ILLEGAL STRIKE one staged for a purpose not recognized by law, or if for a valid purpose, conducted through means not sanctioned by law. ECONOMIC STRIKE one staged by workers to force wage or other economic concessions from the employer which he is not required by law to grant (Consolidated Labor Association of the Phil. vs. Marsman and Company, 11 SCRA 589)
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ULP STRIKE one called to protest against the employer s acts of unfair labor practice enumerated in Article 248 of the Labor Code, as amended, including gross violation of the collective bargaining agreement (CBA) and union busting. SLOWDOWN STRIKE one staged without the workers quitting their work but merely slackening or by reducing their normal work output. WILD-CAT STRIKE one declared and staged without filing the required notice of strike and without the majority approval of the recognized bargaining agent. SIT DOWN STRIKE one where the workers stop working but do not leave their place of work.
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 Collective Bargaining

Deadlock (CBD)

and/or
 Unfair Labor

Practice (ULP)

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a) b)

Failure or refusal to meet and convene

Evading the mandatory provisions of bargaining


c) d)

Bad faith in bargaining Gross violation of the CBA

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Any certified or duly recognized bargaining representative may declare a strike in cases of bargaining deadlock and unfair labor practice. Likewise, the employer may declare a lockout in the same cases. In the absence of a certified or duly recognized bargaining representative, any legitimate labor organization in the establishment may declare a strike but only on the ground of unfair labor practice. (Section 2, Rule XIII, Book V, Omnibus Rules Implementing The Labor Code, as amended).
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break in labor-management relations culminating in strikes and other forms of concerted activities is very COSTLY to the companies, the workers involved, and the nation.

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Thus,

Labor-Management Committees are instituted in companies to improve labormanagement relations.

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Representatives

of the Labor and Management. & DOLE act as facilitators

NCMB

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Recently,

tripartism is very active in the country. is composed of the representatives of the Labor, Management, and Government. in promoting industrial
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It

Effective

peace
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Founded

by the governments of different nations on the principle of tripartism seeks international collaboration for securing permanent world peace and eliminate social injustices through the improvement of labor conditions. of management and labor organizations participate with government representatives in it s proceedings & conferences.
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It

Representatives

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Established

in 1919, the ILO became the first specialized agency associated with United Nations in 1946 became a member of ILO on May 19, 1948, by virtue of Proclamation No. 617 of the President of the Philippines.

Philippines

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In business and in life, you dont get what you deserve. You get what you negotiate.
Tony Hilado Founder, The Business Incubators
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