LABOR MANAGEMENT RELATIONS HISTORICAL NOTE From 1565 to 1898 the Philippines was a Spanish colony.

Following the Spanish American War of 1898 the Philippines became a colony of U.S.A., which established democratic institutions with limited powers under an American Governor with US military forces establishing a major base. In 1934 the US administration withdrew and the Philippines became a free Commonwealth, self governing over internal matters, but subject still to American protection and military presence. Following the Japanese invasion in 1941-42, the Philippines became a republic under Japanese protection. After the return of the Americans in 1944-45 and the defeat of the Japanese, the USA granted full independence to the Philippines on 4th of July 1946. Historical Backgrounds of Labor Movements: In the last half century of Spanish colonization, the beginning of the labor movement was made possible by the birth of guilds (gremios) organized around specific work environments and trades from carpenters and shipyard workers, to workers in tobacco factories and printing houses. These constituted the settings for new awakenings as a working class, the formation of a new consciousness, an exposure to new ideas, and an attempt to experiment at new types of organized activities. These initial steps were given further impetus in the colonial system set up under the United States. The most important workers organization before the Japanese occupation was established in 1913, the Congreso Obrero de Filipinas, or the COF (Workers Congress of the Philippines), led by Hermenegildo Cruz and Crisanto Evangelista, took advantage of the relatively more democratic space provided by the 1935 Commonwealth Government of President Manuel Quezon.\ Status of Early Philippine Labor 1901- Isabelo delos Reyes formed the Union de Litografos e Impresssores de Filipinas. He is thus acknowledged as the Father of Philippine Trade Unionism. 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. Aug. 8, 1963- Agricultural Land Reform Code, there was a slight improvement on the living conditions of the tenants. 1965- Another concept of labor unity was introduced with formation of the Philippine Labor Center (PLC) by Democrito Mendoza. This concept of one federation- one industry was patterned after the US system. The PLC started with 7 federations in the transportation, mining, communications and other industries. This concept, however, did not gain much ground. Trade unions during the collective bargaining era were characterized as fragmented and dominated by the lawyers of charismatic leaders.

These factors contributed to a generally weak trade union movement in general and real gains for the working class were not effectively achieved. HISTORY OF PHILIPPINE LABOR RELATIONS From independence in 1946 until martial law was declared in 1972, the government encouraged collective bargaining and, except for setting up a commission in 1970 to supervise the fixing of minimum wages, involved itself minimally in labor relations. For most of the martial law period (1972-81), strikes were forbidden or severely limited. The Marcos labor code of 1974 made arbitration compulsory. The right to strike was partially restored in 1976, but with considerable restrictions. The Aquino government took a somewhat more liberal approach to labor, but some of the structures of the Marcos period remained. Organized labor in the Philippines has been relatively weak. In 1986 it was estimated that about 2.2 million Filipinos were part of the union movement, accounting for approximately 20 percent of the wage-and-salary work force or 10 percent of the total labor force. These workers were organized into some 2,000 unions, half of which were not connected to a national union or federation. In 1987 only 350,000 workers were covered by collective bargaining agreements. The largest union body was the Trade Union Congress of the Philippines (TUCP). Formed in December 1974, it was designated the official labor center of the Philippines by the Marcos government. Another labor organization, the Kilusang Mayo Uno (KMU), or the May First Movement, was formed in July 1980, bringing together nine broadly based, more ideologically oriented unions. The two major union centers represented sharply different visions of the role of unions in society. Although TUCP supported Marcos, it represented itself as a proponent of nonpolitical unionism, concerned primarily with the collective bargaining process. The KMU was more openly political, projecting itself as a proponent of "genuine, militant, and nationalist unionism." Going beyond collective bargaining, the KMU called for the formation of worker solidarity movements and advocated a nationalist-oriented alternative to the prevailing economic and social policies of the government. The Labor Advisory and Consultative Council (LACC), formed at the onset of the Aquino administration in 1986 by then Labor Minister Agusto Sanchez, drew the various factions of the labor movement together to advise the Ministry of Labor and Employment. Membership in LACC included the KMU, the Federation of Free Workers, Lakas Ng Manggagawa Labor Center, and, for a short while, the TUCP. When Aquino came into office in 1986, she had the backing of a wide spectrum of the population, including those affiliated with labor unions. In her May 1 speech that year, before a large and enthusiastic gathering of labor groups, Aquino presented a package of labor-law reforms, including extension of the right to strike, making it easier to petition for a union certification election, and abrogation of repressive labor legislation decreed by the Marcos government. Soon, however, the president began to shift ground as she received vigorous protests by both Filipino and foreign businessmen against her May Day promises. The pledges were rethought, modified in some cases, and not promulgated in others. This willingness to respond to the interests of the boardroom rather than the shop floor also extended to official appointments. In particular, her first

minister of labor, Agusto Sanchez, was considered to be too prolabor and eased out within a year of his appointment. The TUCP was generally supportive of the Aquino government, but the KMU and other progressive unions resisted the conservative drift of her administration through strikes, demonstrations, and antigovernment rallies. The KMU gained influence through its leadership of the national strike, or Welga ng Bayan, in 1987, 1989, and 1990. From September to December 1990, the KMU led a series of general strikes in response to dramatic increases in the prices of petroleum products. These labor actions were noteworthy both because of a heightened level of conflict between strikers and the authorities and because of the participation of professionals and other middle-class groups. Repression of labor activists, widespread during the Marcos era, resurfaced early in the Aquino administration. In November 1986, the chairman of the KMU was murdered. The following January, the army opened fire on a march of the Peasant Movement of the Philippines (Kilusang Magbubukid ng Pilipinas--KMP) and their supporters who were protesting the lack of government action on land reform. Eighteen were killed and nearly 100 wounded. In 1990 the government charged two KMU labor leaders with sedition: Medardo Roda, the head of PISTON, a federation of drivers, and Crispin Beltran, the chairman of KMU. Old charges of slander and fraud dating back to 1967 and 1971 were revived against Beltran. The government also imprisoned the leader of the KMP, Jaime Tadeo, on ten-year-old fraud charges initiated against him by the Marcos government. After a 1990 violent strike, during which an estimated 500 participants were arrested, both the military and government officials suggested banning the KMU as a communistfront organization.

LABOR RELATIONS It is the study and practice of managing unionized employment situations. In academia, labor relations is frequently a subarea within industrial relations, though scholars from many disciplines--including economics, sociology, history, law, and political science-also study labor unions and labor movements. In practice, labor relations is frequently a subarea within human resource management. Courses in labor relations typically cover labor history, labor law, union organizing, bargaining, contract administration, and important contemporary topics. Labor Code of the Philippines Book 5 Article 211 Declaration of Policy It is a policy of the state: (a) 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 promote free trade unionism as an instrument for the enhancement of democracy and the promotion of social justice and development; (c) To foster the free and voluntary organization of a strong and united labor movement;

(d) To promote the enlightenment of workers concerning their rights and obligations as union members and as employees; (e) To provide an adequate administrative machinery for the expeditious settlement of labor or industrial disputes; (f) To ensure a stable but dynamic and just industrial peace; and (g) To ensure the participation of workers in decision and policy-making processes affecting their rights, duties and welfare. B. To encourage a truly democratic method of regulating the relations between the employers and employees by means of agreements freely entered into through collective bargaining, no court or administrative agency or official shall have the power to set or fix wages, rates of pay, hours of work or other terms and conditions of employment, except as otherwise provided under this Code. (As amended by Section 3, Republic Act No. 6715, March 21, 1989). THE CONCEPT LABOR RELATIONS The field of industrial relations or called labor relations looks at the relationship between management and workers particularly groups of workers represented by a union. It is also referred as workplace relations. Labor relations, therefore, refers to employeremployee relationships covered specifically under a collective bargaining and labor relations law. Originally, it was broadly defined to include the totality of relationships and interactions between employer and employees. From this perspective, it covers all aspects of the human resources, employee relations and union-management relations. Sometime, however, in the last century, the term has increasingly taken a narrower, more restricted interpretation that largely equates it with unionized employment. Accordingly, industrial relation pertains to the study and practice of collective bargaining, trade unionism, and labor-management relations. It also includes the processes through which these relationships are expressed such as collective bargaining, workers participation in decision-making, grievance and dispute settlement, and the management of conflict between employees, workers and trade unions, when it arises. It has become the most delicate and complex problems of modern industrial society. Industrial process is impossible without cooperation of labor and harmonious relationships. Hence, it is the interest of all to create and maintain good relations between employees (labor) and employer (management). Good labor-management relation is central to the concept of industrial relations. If the relationship is good, the whole workforce will be well motivated to work hard for the organization. On the other hand, if the relationship is bad, both management and workers will find the workplace an uncongenial environment, causing discontent, hostility and marked tendency to take self-destructive industrial action. There are two variants of this view- the pessimist view propounded by Lenin, Trotsky and Michels and the optimist view propounded by Marx and Engles.

Labor-Management Relations: - It is a mutual trust between labor and management (Employee-Employer relationship) A company has to operate and implement rules and regulations in accordance with the law of the country. - Developing human resource policy, rules, regulations and binding directives affecting conditions of employment. Models of Labor Relations: Four models of Conflictual Labor Relations 1. Perfect Model
Mgt. and labor

2. Polarization

Mgt.

Labor

Commonality of interest 3. Cooperative

Mgt. Labor

4. Co-optive

Mgt.

Labor

The Perfect Model shows a total congruence of employers and workers interests and goals. There is no conflict. This is close to what social theorists call the Unitarian perspective where the organization is perceived as an integrated and harmonious whole with the ideal of one happy family, where management and other members of the staff all share common purpose, emphasizing mutual cooperation. Furthermore, Unitarianism has a paternalistic approach where it demands loyalty to all employees, being predominantly managerial in its emphasis and applications. Consequently, trade unions are deemed as unnecessary since the loyalty between employees and organizations are considered mutually exclusive, where there cannot be two sides of the industry. Conflict is perceived as disruptive and the pathological result of agitators, interpersonal friction and communication breakdown. The Perfect Harmony model or Unitarianism theory is idealistic and impractical. As indicated earlier, in the dynamics of labormanagement relations, there is always conflict. What is important is how to manage conflict.

The second model Polarization, is the exact opposite of Perfect Harmony model. The interest of labor and management are diametrically opposed to each other. This is the Marxist approach. This is otherwise referred to as the Marxist or Radical perspective. This view of industrial relations looks at the nature of the capitalist society, where there is a fundamental division of interest between capital and labor, and sees workplace relations against this history. This perspective sees inequalities of power and economic wealth as having their roots in the nature of the capitalist economist system. Conflict is therefore seen as inevitable and trade unions are a natural response of workers to their exploitation by capital. Whilst there may be periods of acquiescence, the Marxist view would enhance rather than limit managements position as they presume the continuation of capitalism rather than challenge it. The third is Cooperative model. There are conflictual interests but congruence of interests in common areas like profitability and survival of the organization. This is otherwise referred to as the Pluralistic perspective. In pluralism, the organization is perceived as being made up of powerful and divergent sub-groups, each with its own legitimate loyalties and with their own set of objectives and leaders. In particular, the two predominant sub-groups in the pluralistic perspective are the management and trade unions. Consequently, the role of management would lean less towards enforcing and controlling and more toward persuasion and coordination. Trade unions are deemed as legitimate representatives of employees; conflict is dealt by collective bargaining and is viewed not necessarily as bad thing and, if managed, could in fact be channeled towards evolution and positive changes. The fourth is the Co-optive model. The interests of the workers are subservient to management interests. This is almost similar to the first model but with a difference. In perfect harmony model, there is no union but in the Co-optive model, a union may be allowed to exist but it is more of a company union where it signs a sweetheart contract with the management just for show with no substantial concession of granted it. Based on the above discussions of the different labor relations models, it is obvious that consistent with our democratic system, the democratic system is one adopted by mainstream trade unions that are learning towards the Marxist model but the percentage is minuscule and insignificant whose presence are not that visible in labor relations tripartite meetings organized by the Dept. of Labor and Employment.

LEGAL AND CONSTITUTIONAL FRAMEWORK OF LABOR RELATIONS Under our tripartite system of labor relations the participants, labor, management and government must come together and come up with a set of rules by which the two social partners interact and resolve disagreements. As indicated earlier, some degree of worker-management conflict is inevitable because although their interests overlap, they also diverge in some key areas like how to divide the profits. There is also that sometimes pesky issue of union recognition. Then, there are the collective bargaining negotiations, grievances, discipline, and other significant day-to-day conflicts over work rules, and clashes between management prerogatives and workers rights. An effective labor relations system does not eliminate conflict. Rather, provides institutional rules that resolve conflict in a way that minimizes its costs to management, employees and society in general. Without these rules, there will be chaos and anarchy in labor relations to the detriment not only to labor and management but to the public in general. Our constitution and laws, principally, the Labor Code provides these rules of engagement. Labor Code of the Philippines The Labor Code of the Philippines stands as the law governing employment practices and labor relations in the Philippines. It was enacted on Labor day of 1974 by President Ferdinand Marcos, in the exercise of his then extant legislative powers. Features The Labor Code prescribes the rules for hiring and termination of private employees; the conditions of work including maximum work hours and overtime; employee benefits such as holiday pay, thirteenth month pay and retirement pay; and the guidelines in the organization and membership in labor unions as well as in collective bargaining. The Labor Code contains several provisions which are beneficial to labor. It prohibits termination from employment of Private employees except for just or authorized causes as prescribed in Article 282 to 284 of the Code. The right to trade union is expressly recognized, as is the right of a union to insist on a closed shop. Strikes are also authorized for as long as they comply with the strict requirements under the Code, and workers who organize or participate in illegal strikes may be subject to dismissal. Moreover, Philippine jurisprudence has long applied a rule that any doubts in the interpretation of law, especially the Labor Code, will be resolved in favor of labor and against management. Department of Labor and Employment (Philippines) The Philippines' Department of Labor and Employment (Filipino: Kagawaran ng Paggawa at Empleyo) (commonly abbreviated to "DOLE") is the executive department of the Philippine Government mandated to formulate policies, implement programs and services, and serve as the policy-coordinating arm of the Executive Branch in the field of labor and employment. It is tasked with the enforcement of the provisions of the Labor Code.

History The Department of Labor & Employment (DOLE) was founded on December 8, 1933 via the Act No. 4121 by the Philippine Legislature. It was renamed as Ministry of Labor and Employment in 1980. The agency was renamed as a Department after the 1986 EDSA Revolution in 1986. The Constitution Article XIII, Section 3, of the Philippine Constitution provides the ff. The state shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all. The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns of investments, and to expansion and growth. It shall guarantee the rights of workers to self -organization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure, human conditions of work, and a living wage. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law. The state shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary models in settling disputes, including conciliation, and shall enforce their mutual compliance the with to foster industial peace. The Law Article 211 of the Labor Code reiterates these constitutional precepts in more detailed manner and stating at its opening that it is the policy of the state to promote and emphasize the primacy of free collective bargaining negotiatios, including voluntary arbitration, mediation and conciliation, as modes of settling labor or industrial disputes. The ILO Convention Relative to the above-cited constitutional and legal provisions, the following international and Labor Organization (ILO) conventions were ratified by the Philippine Senate and became part of the laws of the land. ILO conventions passed by the assembly in Geneva of which the Philippines is a member, are considered as treaties executed by the executive dept. As such, they must be ratified by the senate in order to be effective and enforceable. Usually, enabling laws are passed by the Congress to give more meaning to these duly ratified conventions. Convention 87- Freedom of Association and collective bargaining.

Convention 98- The right to organize and collective bargaining.